E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 105 CONGRESS, SECOND SESSION

Vol. 144 WASHINGTON, TUESDAY, FEBRUARY 24, 1998 No. 14 Senate The Senate met at 9:30 a.m. and was Mr. LOTT. Thank you, Mr. President. cated in today’s RECORD under ‘‘State- called to order by the President pro f ments on Introduced Bills and Joint tempore [Mr. THURMOND]. Resolutions.’’) SCHEDULE Mr. BOND. Mr. President, I yield the PRAYER Mr. LOTT. Mr. President, this morn- floor. The Chaplain, Dr. Lloyd John ing the Senate will be in a period of Mr. BYRD addressed the Chair. Ogilvie, offered the following prayer: morning business until 10:30 a.m., as The PRESIDING OFFICER (Mr. under the previous consent order. At Gracious God, You have planned per- BOND). The able Senator from West fectly for the balance of our listening 10:30 a.m., the Senate will resume con- Virginia. and speaking. Help us to do both well. sideration of S. 1663, the campaign fi- nance reform bill. Also, under the pre- You have called us to listen to You in f prayerful meditation on Your truth re- vious unanimous consent order, the time from 10:30 a.m. until 12:30 p.m. vealed in the Bible. You also speak THE HIGHWAY BILL through Your Spirit to our inner being. will be equally divided between the op- Sometimes You shout to our con- ponents and proponents of the legisla- Mr. BYRD. Mr. President, other Sen- science; other times it is a still small tion. ators and I have spoken numerous voice that whispers to our souls. The In addition, by consent, from 12:30 times over the past several weeks world around us asks, ‘‘Is there any p.m. to 2:15 p.m., the Senate will recess about the significant problems that word from the Lord? What does He for the weekly policy luncheons to will arise in States across the country want? Is what we are doing in plumb meet. Following those luncheons, at if the Senate further delays action on with His plans?’’ 2:15 p.m., the Senate will resume con- the highway bill. Each day we delay When we have listened to You, what sideration of the campaign finance re- adds to the burden of commuters sit- we have to say cuts to the core of form bill, with the time then going ting in traffic that is often moving at issues. We are decisive and bold. Our until 4 o’clock being equally divided a crawl or brought to a complete stop voices ring with reality and relevance. between the opponents and proponents. because many of our highways are sim- Following that debate, at 4 p.m., the The psalmist longed for this equi- ply overcrowded. Each day we delay Senate will proceed to a vote in rela- poise. He prayed, ‘‘Let the words of my brings us closer to the May 1 deadline— tion to the pending McCain-Feingold mouth and the meditation of my heart just 39 session days away from today. amendment. Therefore, the first roll- be acceptable in Your sight, O Lord, That includes today—39 days. The time call vote today will occur at 4 p.m. my strength and my Redeemer.’’— bomb is ticking. Senate session days Senators can also anticipate the possi- Psalm 19:14. remaining before May 1 deadline: 39. bility of additional votes after that Bless the men and women of this That includes May 1 as it includes vote on the McCain-Feingold amend- Senate with the grace to hear Your today. ment. But we do not have a definite voice and then speak with an echo of Since 1969, the number of trips per time agreement on that presently. Be- Your guidance and wisdom. person taken over our roadways in- fore the 4 o’clock vote, we will notify Now we join our hearts in interces- creased by more than 72 percent and Senators about the schedule for the re- sion for the people of central Florida the number of miles traveled increased mainder of the day. by more than 65 percent. whose homes and communities have I yield the floor, Mr. President. been devastated by tornados. Bless The combination of traffic growth f Senators BOB GRAHAM and CONNIE and deteriorating road conditions has MACK as they care for their people. Es- MORNING BUSINESS led to an unprecedented level of con- pecially, be with those families that The PRESIDENT pro tempore. Under gestion, not just in our urban centers have lost loves ones. Comfort and the previous order, there will now be a but in our suburbs and rural areas as strengthen them. Through our Lord period for the transaction of morning well. Congestion is literally choking and Saviour. Amen. business. our roadways as our constituents seek f Mr. BOND addressed the Chair. to travel to work, travel to the shop- The PRESIDENT pro tempore. The ping center, to the child care center, RECOGNITION OF THE MAJORITY Senator is recognized. and to the churches. According to the LEADER Mr. BOND. Mr. President, I thank the Department of Transportation, more The PRESIDENT pro tempore. The Chair. travelers, in more areas, during more able majority leader, Senator LOTT of (The remarks of Mr. BOND pertaining hours are facing high levels of conges- Mississippi, is recognized. to the introduction of S. 1669 are lo- tion and delay than at any time in our

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

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VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S866 CONGRESSIONAL RECORD — SENATE February 24, 1998 history. And these congested condi- While the size of our highway net- air quality. As cars and trucks are tions make us more susceptible to mas- work has remained relatively static for slowed by traffic congestion, they emit sive traffic jams as the result of even years, the condition and performance more pollutants, thereby impeding ef- the most minor of accidents. The DOT of those roads has deteriorated. Poor forts in many parts of the country to tells us that, during peak travel hours, road and bridge conditions must share come into compliance with federal air almost 70 percent or the urban inter- part of the blame for our nation’s con- quality standards. Road improvements states and just under 60 percent of gestion problem. According to a 1995 aimed at smoothing the flow of traffic other freeways and expressways are ei- U.S. Department of Transportation’s can reduce auto-related pollutant ther moderately or extremely con- report to Congress, 28 percent of the emissions substantially. All such im- gested. That is lost man hours, reduced most heavily traveled U.S. roads are in provements, however, cost money. And productivity, wasted fuel, and wasted poor or mediocre condition. That the Senate should be doing everything time. means that those roads need work possible to ensure that our state and The worsening congestion is taking a now—work now—to remain open and metropolitan officials do not run out of horrible toll on our economic pros- protect the safety of the traveling pub- federal highway funds that can help perity. I direct the attention of my col- lic. And more than 181,000 bridges, or 32 them relieve congestion and improve leagues to a study conducted by the percent of our nations’ 575,000 bridges, air quality. Texas Transportation Institute at are in need of repair or replacement, Today, Mr. President, Americans rely Texas A&M University. According to including 70,000 bridges built in the on automobiles for 90 percent or more the Institute’s study, the annual cost 1960’s and designed to last 30 years of all trips. In many areas of the coun- of highway congestion in our nation’s under 1960’s travel conditions. These try, we need additional highway capac- 50 most congested cities has grown roads and bridges that have outlived ity to accommodate that travel. And from $26.6 billion in 1982 to almost $53 their useful life or that are falling federal highway funds are often a crit- billion in 1994. In other words, it has apart from under-investment often are ical source of capital for these projects. doubled. Delay accounted for 85 percent traffic choke-points that can be cor- What can we do about congestion, of this cost, while fuel consumption ac- Mr. President? What can Congress do rected with the proper repairs. counted for 15 percent. While more re- And Senators don’t have to travel to help eliminate the $53 billion annual cent data are still being collected, the very far away to see the traffic choke- burden borne by commuters in our Institute’s researchers state that, in points, as they attempt to cross the large cities? What can we do to give the last four years, the cost of conges- bridges, get on the bridges and cross people more time at home with their tion in these cities has only continued the Potomac every morning and every families or on the job instead of stuck to grow. This multi-billion dollar hem- in traffic? What can Congress do to our orrhage is found not only in our largest evening. It took me an hour and 15 minutes to get from my home in cities and counties to help their air cities where eight of the top ten cities quality? McLean, 10 miles away, this morning, had total annual congestion costs ex- Probably the single most important to get to my office because of traffic ceeding $1 billion; we find congestion action Congress can take to help al- taxing severely the economies of sev- congestion feeding into the streets, and leviate these problems is the prompt eral small- and medium-sized cities as feeding on and feeding off the bridges. enactment of the 6-year highway bill. well. According to the Institute, the We have to get across that Potomac. That bill is on the Senate calendar, economy of Albuquerque, New Mexico As I say to my colleagues, we don’t ready to go, and the country cannot af- endures an estimated annual cost of have to travel far to see these choke- ford to wait any longer. The May 1 congestion approaching $150 million points working against us, against the deadline after which States will have per year; Memphis, Tennessee— almost traveling public. no more Federal money—the Governors If Senators would like examples of a $150 million per year; Nashville, Ten- are in town and I hope that some of nessee—almost $200 million per year; choke points, they need look no further them are watching the Senate at this Norfolk, Virginia— more than $350 mil- than the bridges that cross the Poto- moment—the May 1 deadline after lion per year; Columbus, Ohio— more mac River. Most of these bridges were which States will be unable to obligate than a quarter of a billion dollars per not designed to carry the traffic that any more money, and if there is any year; Jacksonville, Florida—more than accompanies the morning and evening doubt as to whether or not the States $350 million per year; and San rush hours. As a result, traffic jams may obligate any more money after Bernadino-Riverside, California—over back up for miles every work day, in midnight, May 1, take a look at what $1 billion per year. both directions. That is the gridlock the law says, public law 105–130, the There are a lot of explanations for that poor roads and bridges can cause. Surface Transportation Extension Act traffic congestion’s growing impact on I am sure that if Senators contact of 1997, which is the short-term high- our cities, but a principal cause of con- their own state transportation depart- way authorization that Congress gestion, clearly, is the fact that road ments, they will find numerous exam- passed last November before adjourn- mileage has not kept pace with a grow- ples of traffic choke-points in their ing Sine die. ing population, a growing work force, own states where a new bridge, Here is what it says. This is the law. and an American lifestyle in which the smoother pavements, where an addi- ‘‘. . . a State shall not’’—it doesn’t say personal mobility afforded by auto- tional lane would alleviate the problem it may not—‘‘. . . a State shall not ob- mobiles is as essential to daily life as and get people and freight moving ligate any funds for any Federal-aid are eating and sleeping. Many people again. highway program project after May 1, say that Americans have a love affair And congestion means more than 1998 . . . .’’ with their cars. More than a love af- just economic costs. Obviously, conges- There it is. That is the law. Unless a fair, however, Americans simply de- tion costs Americans time that could new law is passed that will be the law pend on their cars to squeeze their otherwise be spent with the family, on midnight, May 1, all the highway myriad chores and activities into a with those children who are coming in departments throughout the country, busy work day. from school and times that otherwise the Governors and mayors and other A vehicle is one tool that many could be spent at work, time that could officials and the employees of the var- American workers cannot do without. be otherwise spent in school or else- ious highway agencies throughout the They do not just drive to and from where. According to a study by the country, will feel the pinch. So the work anymore. Americans stop at the Texas Transportation Institute, com- May 1 deadline, after which States can- day care, the grocery store, the dry muters in the country’s 50 largest not obligate new Federal money to fi- cleaners, the PTA meeting, the gym- urban areas lose an average of 34 hours nance congestion relief projects, as I nasium, and at volunteer programs, all each year idling in traffic. Now that is say and I repeat it, is just 39 session in the course of driving to and from not only time wasted, it is not only days away—including today and in- work. Transportation researchers call gasoline wasted, it is pollution in the cluding May 1. It is drawing nearer this phenomenon ‘‘trip-chaining,’’ and air. with every passing minute. it is a trend that continues to grow and Another, and equally important, cost Mr. President, we cannot afford to shows no sign of slowing. of congestion is, as I say, its impact on delay. Our constituents stuck in traffic

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S867 jams need our help. They want their ican people that, indeed, we have re- paign finance bills. President Bush highway taxes used to get them out of solved to deal with the extraordinary threatened to veto the bill, effectively gridlock, but we cannot do that while problems that we have in campaign fi- killing it, because it contained vol- the Senate is stuck in legislative grid- nance today. This is probably going to untary spending limits. lock. I urge the majority leader to get be our best chance in a generation for In the 102d Congress, also a Demo- the Senate—and the country—out of meaningful campaign reform, and a cratically-led Congress, again the gridlock by calling up the highway bill clear-cut vote is something that will House and Senate passed campaign fi- now. allow us to move to that next step to- nance reform bills and President Bush f ward resolution. We do not need any vetoed the bill with the backing of all procedural excuses, no amendment of his Republican filibuster. THE VERY BAD DEBT BOXSCORE trees, no obfuscation. This will be In the Democratic-led 101st Congress, Mr. HELMS. Mr. President, at the clearly an up-or-down vote on the the House and the Senate passed cam- close of business yesterday, Monday, McCain-Feingold bill, through a ta- paign finance bills. President Bush February 23, 1998, the Federal debt bling motion, that we have sought now threatened to veto the bill, effectively stood at $5,519,492,792,898.57 (Five tril- for some time. killing it, because it contained vol- lion, five hundred nineteen billion, four The vote on Senator MCCAIN’s untary spending limits. hundred ninety-two million, seven hun- amendment answers the question, are In the 102d Congress, also a Demo- dred ninety-two thousand, eight hun- you for reform or not? A vote against cratically-led Congress, again the dred ninety-eight dollars and fifty- McCain-Feingold is a vote, in my view, House and Senate passed campaign fi- seven cents). to end reform, at least for this Con- nance reform bills and President Bush Five years ago, February 23, 1993, the gress, once again. I am very proud of vetoed the bill with the backing of all Federal debt stood at $4,195,090,000,000 the fact that each one of the members of his Republican colleagues. (Four trillion, one hundred ninety-five of the Democratic caucus will stand up In the 103d Congress, again under billion, ninety million). and be counted. And my hope is that a Democratic control, we passed a cam- Ten years ago, February 23, 1988, the number of Republicans will join us in paign finance reform bill with 95 per- Federal debt stood at $2,472,592,000,000 this effort. The only question is how cent of the Democrats in the Senate (Two trillion, four hundred seventy- many Republicans and Democrats will and 91 percent of the Democrats in the two billion, five hundred ninety-two come together in the middle to make House voting for reform. Again, Repub- licans filibustered the move to take million). this a reality this afternoon. Fifteen years ago, February 23, 1983, I believe the fate of campaign reform the bill to conference. That brings us, then, to the 104th the Federal debt stood at rests in the hands of those who have Congress, supposedly the reform Con- $1,207,534,000,000 (One trillion, two hun- not yet publicly taken their positions gress. Senators MCCAIN and FEINGOLD dred seven billion, five hundred thirty- with regard to campaign reform. It has been a generation since the last time introduced their bipartisan reform four million). plan, and reform at that point, for the Twenty-five years ago, February 23, we passed any meaningful legislation having to do with campaigns. In 1971 first time in almost 2 decades, actually 1973, the Federal debt stood at seemed to be within reach. Repub- $452,993,000,000 (Four hundred fifty-two and in 1974, Congress enacted major re- forms that first limited the amount of licans, again, in the Senate, filibus- billion, nine hundred ninety-three mil- money in politics and, second, required tered the measure, while Republicans lion) which reflects a debt increase of candidates for the first time to disclose in the House introduced a bill to allow more than $5 trillion— how they got their money. Today those more spending—a family of four would $5,066,499,792,898.57 (Five trillion, sixty- laws are outdated and virtually use- have been able to contribute $12.4 mil- six billion, four hundred ninety-nine less, and some have been circumvented lion in Federal election. The legisla- million, seven hundred ninety-two by new decisions and, as a result of tion again failed to produce results of thousand, eight hundred ninety-eight those decisions, loopholes that have any kind. As a result of that impasse, dollars and fifty-seven cents) during been created in the campaign finance nothing was done for the remaining the past 25 years. law. months of the 104th Congress, which I yield the floor. Other aspects of that reform effort in now brings us to this Congress and last I suggest the absence of a quorum. 1971 and 1974 today are unenforced or year. The PRESIDING OFFICER (Mr. completely unenforceable because of In his State of the Union Message in SMITH of New Hampshire). The clerk the systematic defunding of the FEC, January of 1997, President Clinton will call the roll. the Federal Election Commission. Still called on Congress to pass campaign fi- The assistant legislative clerk pro- others have been overturned by narrow nance reform by July 4, 1997. In the ceeded to call. and, many believe, incorrect court de- House, Republicans have voted time Mr. DASCHLE. Mr. President, I ask cisions. Many reforms were thrown out and again against bringing campaign unanimous consent that the order for by the Supreme Court in 1974 in the 5- finance reform to the floor. Speaker the quorum call be rescinded. to-4 ruling, a very controversial ruling, GINGRICH has promised consideration The PRESIDING OFFICER (Mr. in Buckley v. Valeo. this year, but also shook hands with SMITH of New Hampshire). Without ob- So, for the last 23 years now, Demo- the President on a campaign reform jection, it is so ordered. crats have tried to overcome obstacles commission that really never came to f put in place by the Buckley ruling and pass. Here in the Senate, we have trav- CAMPAIGN FINANCE REFORM to pass a campaign finance reform eled a tough road to get here today. We modification, a realization that what forced our way to the floor and refused Mr. DASCHLE. Mr. President, I want happened in 1974, and what was ad- to yield; poison pills, amendment trees to thank those who have participated dressed in that Court decision, needs to and cloture votes were all tactics used, thus far in this debate about campaign be addressed with clarification in stat- and this is probably the last oppor- reform. I am sure that many of those ute. tunity we have to do something mean- who view C-SPAN with any regularity So, consider the record of a decade, ingful in the 105th Congress. are experiencing a sense of deja vu beginning in 1988. At the opening of the The problem is really one that can be about this debate, wondering whether 100th Congress, then majority leader described in one word: money. The or not we haven’t already had debate ROBERT BYRD introduced a bill to limit amount of money, after two decades of very similar to this and whether we are spending and reduce special interest in- delay, has skyrocketed. That is the not stuck in the same spot, whether we fluence. We had a record-setting eight fundamental problem. We hear talk in are ever going to stop talking about it cloture votes when that happened. this debate about hard money and soft and actually start moving toward some Democratic sponsors modified the bill money, this money and that money. resolution. Today we are about to find to meet objections, but the fact is that They are not the core of the problem. out. This will give us the opportunity it was killed in a Republican filibuster. The core of the problem is that there is for the first time to vote this afternoon In the Democratic-led 101st Congress, just too much money in politics, pe- at 4 o’clock to indicate to the Amer- the House and the Senate passed cam- riod. Total congressional campaign

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S868 CONGRESSIONAL RECORD — SENATE February 24, 1998 spending in 1975 was $115 million; in Senator or a Congressman spending in- tening to them and not the special in- 1985, $450 million; in 1995, $765 million. ordinate amounts of time and effort terests, and to deal with the reality— We are expected, for the first time in raising money. They understand that the reality that I can’t ask a young this cycle, to exceed $1 billion in elec- there is a problem that goes beyond person today to come up with $145 mil- tion year spending, shattering every whether or not a young person today, lion when he or she is my age and other record we have ever seen in poli- contemplating public office, can come wants to run for the U.S. Senate? tics in 220 years. A 73 percent increase up with $145 million. What they under- We also have a serious problem with over the previous Presidential cycle is stand is that just the sheer effect of regard to the ads themselves and all anticipated in the year 2000. In other money is as important as the amount that comes from spending this money. words, what we spend in 2000 on Presi- of money. It is the amount of money, the percep- dential politics will exceed by 73 per- In the eyes of most Americans, the tion of to whom we are indebted, but cent what we spent in 1996 on Presi- current system makes Congress appear now we also have a problem with the dential politics. To put that in perspec- to be for sale to the highest bidder. The virulent advertising that comes from tive, wages rose 13 percent, college tui- recent Harris poll shows it very clear- it. I believe that negative advertising tion rose 17 percent—politics has in- ly. Mr. President, 85 percent of people is the crack cocaine of politics. We are creased in spending 73 percent. think special interests have more in- hooked on it because it works. We are The average cost of winning a Senate fluence than voters; 85 percent, almost hooked on it because we win elections seat in 1996 was $4.5 million. To raise 9 out of 10 Americans today, said if you using it. There is no accountability, no that much money, a Senator has to put a special interest and a voter side reporting; it is publicly not tied to any raise approximately $14,000 a week by side, there is more likelihood that a candidates. And I expect that in 1998 every week for 6 years. Given the cur- Senator is going to listen to the special we are going to see a meltdown of the rent political rate of inflation, by the interest than he is to the voter. Three- process, because we are going to see year 2023, in just 25 years, it will cost quarters of voters think Congress is more virulent ads than we have ever $145 million to run for the U.S. Senate. largely owned by special interests. seen in our lifetimes. The crack co- We have pages on the right and left, Voter turnout has plummeted, public caine of politics will be at work again. Republican and Democratic pages. I confidence in this institution has erod- Negative ads from anonymous talk to them; I look at them; I encour- ed, and democracy simply can’t survive sources push candidates to the mar- age them to run for public office. But with the cynical atmosphere that ex- gins. Candidates become bit players in how can I tell them that I want them ists today. their own races. How many times have to run if in their lifetime they will be It is just amazing to me as I talk to I heard candidates actually say, ‘‘I asking the question: How do I raise $145 world leaders who come from all parts couldn’t keep track of who was on my million to have the position you have of the world, who have not experienced side. I’d watch television and I’d hear today, Senator DASCHLE? I can’t an- democracy until just recently—they my name used pro and con, and I didn’t swer that. I don’t know the answer to are from countries where they have not have anything to do with those ads. I that. And I am troubled by that. What had a chance to vote; they are from am sitting like a man at a tennis happens if the U.S. Senate is only made countries where totalitarian regimes match, watching both sides play it up of those who have $145 million to are the order of the day, where their out.’’ And the debate now is defined by spend? Is it a truly democratic legisla- whole lives were dictated by govern- who has the most money; that is how it tive body if we lose the opportunity to ment in large measure that had every- is defined. bring in families who pay their bills thing to do with every facet of their The solution to all of this is not and confront all of the many, many lives. Now they have this new-found going to be achieved today. There are challenges that an American family freedom, and, in an explosion of inter- those who look at all of this and con- faces today and has a real appreciation est in democracy and the joy of partici- tend that nothing is wrong. Some have of the enormity of those challenges? If pation, we are seeing record numbers of argued that the system is not broken, that vacuum, that void, is dem- turnout, 80, 90 percent at the polls. that we actually need more money in onstrated cycle after cycle, year after They come from Eastern Europe, they politics. We believe the system is badly year here in the Senate, what kind of come from Africa, they come from broken, and so do the American people. decisions will this body actually make Asia, all expressing to us this profound They don’t want to be subjected to affecting those working families? If we joy that they now have democracy. But this barrage of negative advertising don’t have the broad representation an- do you know what they say to us? They that we know we are going to see ticipated by our Founding Fathers, do say, what is amazing to us is that when again. They don’t want to see the we then have the kind of democracy so we look at your country, you have dumbing down of politics year after anticipated? Mr. President, I don’t more freedom than we even have today year, in spite of the fact that we see think we do. and yet your participation in that free- the creeping up of costs, the explosion So, indeed, it is not a question of soft dom is the lowest of any country in the in increases in costs. money or hard money; it’s really a world. How is it that you can be so free So it brings us really to the issue of question of money. Do we tell our and yet so callous towards that free- the day: McCain-Feingold. It does not pages, we want you to be women and dom, so unwilling to commit to pro- cover all the critical components of re- men in the U.S. Senate in your life- longing that freedom, that democracy? form, overall spending limits, but it time, but we also expect that some- And they worry out loud about how lets us at least get off dead center. If it time, if you choose to do so, in order to long our freedom can last if no one doesn’t address the central problem, it be successful you will have to raise $145 cares; how long will it be before we lose does address several problems, includ- million? I hope not. part or all of it because we don’t care. ing banning one very, very difficult as- Obviously, this legislation is not Mr. President, it is so critical that pect of campaign finance today—soft going to solve that problem entirely, we restore trust and confidence in our money; setting restrictions on inde- but it is going to give us an oppor- democracy, that we recognize we are pendent expenditures; better disclo- tunity to deal with it more effectively. dealing here with a very, very fragile sures so people have an idea of who is At the very least, what we ought to do institution that will rise or fall based giving how much to which candidate is recognize that if we do not solve this in large measure on whether or not we and why; and it limits the ability of problem, we are never going to be able care enough to make participation in the superrich to buy political office. to encourage effectively people getting democracy a real aspect of this coun- So we are here and all 45 Democrats into public life, people expecting to try’s future. stand ready to pass it. We have made a serve in public office. So that is, in part, what this is lot of changes to pick up Republican The antipathy, the skepticism, is re- about. Do we care enough? Are we pre- support. We have dropped spending lim- flected in the polls taken of the Amer- pared to take the responsibilities seri- its, we have dropped reduced TV rate, ican people these days. They under- ously that we hold as U.S. Senators to we have dropped PAC restrictions, we stand the circumstances. They under- bring back participation, to allow the codified the so-called Beck decision stand that it is not just a question of a voters more confidence that we are lis- having to do with labor contributions.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S869 There is no more we can do, particu- Mr. MCCONNELL addressed the I wonder how they would feel if we larly since McCain-Feingold is the Chair. said, ‘‘OK, you are free to say what you least we should do. We want to do The PRESIDING OFFICER. The Sen- want on the editorial page, but, hence- more. If we were in the majority, we ator from Kentucky is recognized. forth, your circulation is limited to would fight to cap spending. The Valeo Mr. MCCONNELL. Mr. President, I 5,000. We haven’t told you what to say, decision, as I said, was 5 to 4. Mr. am sorry the Democratic leader has but we think you are saying it to too President, 126 scholars have said spend- left the floor. I did want to make a cou- many people, and so the Government ing limits are constitutional. But we ple of observations. has concluded that this is pollution.’’ simply can’t let the perfect be the First, with regard to the Buckley I heard the Democratic leader talk- enemy of the good. We are confronted case, it was 9 to 0 on the issue of spend- ing about all this polluting speech—I with a systemic problem, and we need ing is speech. Quoting that great con- am not sure that is the exact word he a systemic solution. We have a chance servative Thurgood Marshall: used —all this negativity, all this hos- to make some changes we plainly know One of the points on which all Members on tility. Most of the negativity and hos- are needed to restore some dignity and the Court agree is that money is essential tility I see is on the editorial page of sanity to this process. for effective communication in a political campaign. the American newspapers. Maybe we So much time and money in this Con- ought to suggest they can’t do that in This was an extraordinarily impor- gress has been spent already to inves- the last 60 days of the election. tant Supreme Court decision. It wasn’t tigate perceived abuses in the 1996 elec- There isn’t a court in America that is 5 to 4 on any of the critical issues, and, tion. There are cries of outrage, cries going to uphold this bill. But the good as a matter of fact, Mr. President, the of shock and indignation. The Amer- news is they are not going to get it and Court has had an opportunity over the ican people are cynical because they have the chance to uphold it. don’t think Congress is going to do last 22 years to revisit the Buckley The Democratic leader said we want- anything about it. They believe that case in various subcomponent parts ed to quietly kill it. We are not quietly and has consistently expanded the the politicians’ self-interest will again killing it, we are proudly killing it. We areas of permissible political speech. override the public good. If, after all are not apologizing for killing this un- I heard the Democratic leader saying the hearings, all the press releases, all constitutional bill. We are grateful for the statements, all the reports, all the all of this spending is getting out of control. Bear in mind that what he is the opportunity to defend the first votes, we do nothing, then frankly, Mr. amendment. No apologies will be made, President, that cynicism will be justi- saying is that all of this speaking is getting out of control. What he is sug- not now, not tomorrow, not ever. The fied. Government should not be put in The American people get it. They gesting, and our dear colleagues on the other side are suggesting, is we need to charge of how much American citizens know the system is broken. They know as individuals or as members of groups we have an opportunity to fix it, but get somebody in charge of all this speech and, of course, it is the Govern- or as political candidates or as polit- they don’t think we will. We should ical parties may speak to the people of surprise them. We need sincere bipar- ment that they want to be in charge of all this speech. The courts are not this country. tisan efforts to clean up our own house. I heard the Democratic leader com- We need Republicans to join with going to allow that. They didn’t allow it in the mid-seventies, they haven’t plain that candidates can’t control the Democrats to make that happen this campaigns. Well, it is not theirs to con- afternoon. allowed it any time they have revisited that issue since, they are not going to trol. Of course we don’t like issue advo- People who think they can quietly cacy. Of course we don’t like inde- kill this effort are wrong. One day, allow it now, and they are not going to allow it ever, because it is not the Gov- pendent expenditures. But the Supreme hopefully today, but one day we will Court has given no indication that the succeed. We will not give up. But this ernment’s business to tell citizens how much they get to speak in the Amer- political candidates are entitled to is the time to do it. If we squander this control all of the discourse in the opportunity, it will not go unnoticed. ican political process. The suggestion was made that all course of a campaign. I wish I could If we seize this moment, we can make this spending is out of control. I always control the two major newspapers in history and do the right thing for those say, how much is too much? I asked my my State that are always against what people who want to be a part of the colleague from Wisconsin during the I am doing. It irritates me in the ex- process, for all Americans, for people debate last October, how much is too treme, Mr. President. But I am not try- who want once more to participate in much? I could never get an answer. ing to introduce a bill around here to our Federal elections system. This is Maybe today we can get that answer. shut them up the last 60 days of an our opportunity. Let’s do it right. Let’s How much is too much? election. do it this afternoon. I yield the floor. In the 1996 campaign, the discussion The good news is there has been a f was intense. Spending did go up, the whole line of court cases on this ques- CONCLUSION OF MORNING stakes were big—big indeed. It was the tion of trying to control what is called BUSINESS future of the country—a Presidential ‘‘issue advocacy’’; that is, groups talk- election, control of Congress. But we ing about issues at any time they want The PRESIDING OFFICER. Under only spent about what the public spent to, up to and including proximity to an the previous order, the hour of 10:30 on bubble gum. election. a.m. having arrived, morning business Looking at it another way, Mr. Presi- The FEC has been on a mission for is closed. dent, of all the commercials that were the last few years to try to shut these f run in 1996, 1 percent of them were folks up. They have lost virtually PAYCHECK PROTECTION ACT about politics. Speaking too much? By every single case in court. As a matter The PRESIDING OFFICER. Under any objective standard, of course not. of fact, in the fourth circuit in a case the previous order, the Senate will now Of course not. about a year and a half ago, not only resume consideration of S. 1663, the It is naive in the extreme to assume did the FEC lose again, but the court Paycheck Protection Act, which the everybody in this country has an equal required that they pay the lawyer’s clerk will report. opportunity to speak. Dan Rather gets fees for the group they were harassing. The legislative clerk read as follows: to speak more than I do and more than It was pretty clear, Mr. President, A bill (S. 1663) to protect individuals from the Senator from New Hampshire does, there is no authority to do this. having their money involuntarily collected as do Tom Brokaw and Larry King and That is really where we are in this and used for politics by a corporation or the editorial page of the Washington debate. The American people are not labor organization. Post. Maybe we ought to equalize their expecting us to take away their right The Senate resumed consideration of speech. I am saying this, of course, to speak in the political process, and the bill. tongue in cheek. But you can make the the Supreme Court has made it very, Pending: argument, it is the same first amend- very clear. Let me say it again. They McCain amendment No. 1646, in the nature ment, the same right applies to all of have said, unless you have the ability of a substitute. us. to amplify your voice, your speech is

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S870 CONGRESSIONAL RECORD — SENATE February 24, 1998 not worth very much. You could go The Court went on: What is wrong with that? We do not door-to-door for the rest of your life in In the free society ordained by our Con- own these seats. If we are in trouble, California and have no impact on the stitution, it is not the Government but the we are probably going to want to ex- process. So the Court wisely recognized people—individually as citizens and can- press ourselves in the campaign. And if that citizens under the first amend- didates and collectively as associations and you are going to express yourself in the ment had to have their right either as political committees—who must retain con- campaign, you are not going to write trol over the quantity— individuals or to band together as a the check for it out of your own bank part of a group to amplify their voice. How much we speak— account. You better get busy to get the Spending has been critical in the po- and range— resources to communicate your mes- litical process going back to the found- What we say— sage or you are history. ing of the country. Somebody paid for of debate on public issues in a political cam- The Court said, with regard to the those pamphlets that were distributed paign. growth in campaign spending, ‘‘. . .the around the time of the American Revo- In other words, this is beyond the mere growth in the cost of federal elec- lution. Somebody paid for those. province of Government to regulate in tion campaigns in and of itself provides It is suggested under the most recent our democracy. no basis’’—no basis—‘‘for governmental incarnation of McCain-Feingold, ‘‘Oh, The Court went on: restrictions on the quantity of cam- we are not going to shut them up, we A restriction on the amount of money a paign spending. . .’’—no basis. are just going to make them report person or group can spend on political com- It is often said that we need to level their donors.’’ Put another way, the munication during a campaign necessarily the playing field. How many times price for discussing political issues at reduces the quantity of expression by re- stricting the number of issues discussed, the have we heard that? The Court ad- the end of a campaign is to disclose dressed that issue in Buckley as well. your donor list. The courts have al- depth of their exploration, and the size of the audience reached. This is because virtually The Court said, with regard to leveling ready dealt with that issue in 1958 in an every means of communicating ideas in to- the playing field, ‘‘. . .the concept that NAACP case in Alabama, that a group day’s mass society requires the expenditure government may restrict the speech of cannot be compelled to disclose its of money. some elements of our society in order donor list as a condition for criticizing It is a statement of the obvious. It is to enhance the relative voice of others all of us. a statement of the obvious. If it did not is wholly foreign to the First Amend- This kind of effort to quash speech, require money to communicate, why ment.’’ ‘‘Wholly foreign to the First to shut up the critics of candidates is would Common Cause be doing direct Amendment’’— brilliant and thought- not only going nowhere in the Senate, mail finance solicitations all the time? ful words from the Supreme Court in it is going nowhere in the courts. There They have to have money to operate. Buckley v. Valeo. has been an effort around the country, And I do not decry them that oppor- And the Court has never retreated financed by some very wealthy people. tunity. from the major principles in this case, George Soros, when he is not financing The Court observed that even ‘‘dis- Mr. President. In fact, they are moving a referenda to legalize marijuana, is tribution of the humblest handbill’’ in the opposite direction, in the direc- also financing this effort. And Jerome costs money. Further, the Court stated tion of more and more permissible po- Goldberg, one of the wealthy financiers that the electorate’s increasing de- litical speech. on Wall Street, has been providing pendence on television and radio for In fact, one of the few things in the money to go out and try and get these news and information makes ‘‘these ex- Buckley case that the reformers liked kinds of referenda on the ballot and ap- pensive modes of communication indis- has created one of the biggest problems proved around the country. pensable’’—Mr. President, this is the in the last 20 years. The reformers The good news is they are all getting liked the fact that the Court did up- struck down. Even if they are passed, Supreme Court—‘‘indispensable instru- they are getting struck down. It hap- ments of [free speech].’’ hold a limit on how much one could In other words, it is a statement of pened in California a couple weeks ago. contribute to another, the contribution the obvious. In a country of 270 million It happened in Wisconsin. The courts limit. Well, the Congress has never in- people, unless you have the ability to understand the law, and the law is dexed the contribution limit. Even amplify your speech, to amplify your clear, and no effort to circumvent the President Clinton said last month that voice so you might have a chance of first amendment, either in Washington the hard money contribution should be in the Congress or community by com- competing with Dan Rather, Tom indexed to inflation. And he was abso- munity or State by State around the Brokaw, and the editorial pages of your lutely right. That $1,000 set back in the country is going to succeed, because newspapers, at least during the last 30 mid-1970s, at a time when a Mustang the law is clear. days of your election, you do not have cost $2,700, is now worth $320. In a We are not apologetic in defeating a chance. So we shut down all of these medium- or small-sized State, it does this bill. It richly deserves to be de- people, Mr. President. It is a power not produce a huge distortion, but it is feated. For the moment—I see that transfer to the broadcast industry and an absolute disgrace for a candidate there are some colleagues here who to the print industry in this country, seeking to run for office in a big State wish to speak—let me just recount which some of us think have a good where you have a huge audience, like some of the points from the Buckley deal of power as it stands now. California or New York or Texas, to be case as a way of beginning today’s dis- With regard to the appearance of cor- stuck with a $320 per person contribu- cussion. ruption issue, it is frequently said that tion limit. As I said earlier, the great conserv- all of this money is corrupting the So ironically, Mr. President, the only ative Thurgood Marshall said: process. The Court held there is ‘‘noth- part of the Buckley case that the re- One of the points on which all Members of ing invidious, improper or unhealthy’’ formers applauded has produced the the Court agree is that money is essential in campaign spending money to com- biggest distortion in the process and for effective communication in a political municate— nothing. the biggest problem for candidates run- campaign. With regard to the growth in cam- ning in large States. That is not MITCH MCCONNELL or BOB paign spending, I heard the Democratic So, Mr. President, let me just con- SMITH, that is Thurgood Marshall. Fur- leader projecting some astronomical clude this part of my remarks, as I see ther excerpts from the Buckley case figure that candidates were going to others here. We make no apologies for that we ought to be aware of, the Court have to spend in the future. Let me beating this terrible piece of legisla- said: say, there is nobody in the Senate tion. It does not deserve to pass. It will The first amendment denies Government spending all their time raising money. not pass. The first amendment will be the power to determine that spending to pro- That is said all the time. That is not protected. mote one’s political views is wasteful, exces- true. Eighty percent of the money I yield the floor. sive or unwise. raised in Senate races is raised in the The PRESIDING OFFICER. Who The Government doesn’t have the last 2 years, it is raised in the last 2 seeks recognition? power to do that to individual citizens years by candidates who think they Several Senators addressed the and groups. may have a contest. Chair.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S871 The PRESIDING OFFICER. The Sen- would say to my colleagues, of real rep- up with the current system, the public ator from Wisconsin is recognized. resentative democracy. is cynical about politicians’ ability to Mr. FEINGOLD. In a moment I will Mr. President, a New York Times fix it.’’ yield to the Senator from Minnesota headline: ‘‘1996 Campaign Left Finance Mr. President, my colleague keeps who I very much want to hear from on Laws in Shreds.’’ I agree with the judg- talking about the first amendment. No- this issue. ment of this article, which I quote: body is saying you cannot spend Just a very brief comment with re- Beneath the cloudy surface of the Senate money. Nobody is saying you cannot gard to the comments of the Senator hearings, one clear picture has emerged: The speak out. But what we are talking from Kentucky. The language of the post-Watergate campaign finance laws that about is that we now have auctions McCain-Feingold bill on issue advocacy were passed to restrict the influence of spe- rather than elections. We are talking was not an issue in the Wisconsin case. cial interests in politics have been shredded. about the way in which money has sub- In fact, in that Wisconsin case the Mr. President, Americans know this. verted this system, systemic corrup- judge specifically suggested our provi- Some of my colleagues may not want tion, when too few people have too sion on issue advocacy may be a model to face up to these truths, but Ameri- much wealth, power and say, and too of what might pass constitutional mus- cans know it. They know that every many people are left out. ter. Federal Government issue that affects Mr. President, we will also be dis- The Senator made a lot of general their lives is damaged by the way big cussing the Snowe-Jeffords proposal. I comments on Buckley v. Valeo, but the money, special interest money has have said to my colleague from Wis- one thing he didn’t do is relate Buckley taken over our politics. It is as if there consin that I am a bit skeptical about v. Valeo to our bill. Our bill was spe- has been a hostile takeover of elections it. I am a bit skeptical about it. I am cifically crafted to be constitutional in our country, a hostile takeover of not at all sure that I like the idea that under Buckley v. Valeo. We have a let- Government, whether it is health care, this amendment only gets introduced if ter from 126 constitutional scholars insurance rates, taxes, telecommuni- all 45 Democrats pledge allegiance to who say that our bill is in fact con- cations, banking, tobacco, environ- it, so that we can pick up two more Re- stitutional, especially with respect to ment, food and agriculture, trade, oil publican votes. But I know it certainly the ban on soft money. It is 126 con- and pharmaceutical company sub- is a desirable alternative to the poison stitutional scholars against the mere sidies. What is on the table and what is pill, the Paycheck Protection Act. constant repetition of the claim that not on the table, what is considered But here is what I am worried about. our bill is unconstitutional. We have reasonable and realistic, what is not Maybe for tactical reasons we do it, the weight of legal authorities on this considered reasonable and realistic, but maybe for substantive reasons we issue on our side. Of course, it is our what is debated, what isn’t, what is dis- do not. I am a little worried that we intention and belief that this would torted, what issues are even dealt with now have the following argument be- pass constitutional muster. in the first place—people in the coun- fore us: We are desperately afraid that With that, Mr. President, I yield 10 try know that this is dominated by big we cannot enact real campaign finance minutes to the Senator from Min- money. The system has collapsed. The reform this year because the public is nesota. laws that are meant to regulate it have not angry enough and because the pub- The PRESIDING OFFICER. The Sen- been shredded. lic is not mobilized; therefore, we ator from Minnesota is recognized. What are we doing about it? We have should weaken the reform bill in order Mr. WELLSTONE. Mr. President, it a good bill, S. 25, the McCain-Feingold to excite the public. I do not think that has been reported that a majority—ma- bill. It is the pending amendment. It is really going to happen. And I think jority; that is, Republican party—writ- would, A, prohibit soft money to the we need an aroused public behind this ten portion of the Governmental Af- parties. That is maybe the biggest worthy effort. fairs Committee draft report reaches abuse. This might be the most single Again, I think it is desirable as a sub- the following conclusion or contains important reform that we can under- stitute for the poison pill Paycheck the following statement: ‘‘In 1996, the take; and, B, it restricts—restricts; not Protection Act, but it is also a retreat federal campaign finance system col- prohibits—phony ‘‘issue’’ ads which are from the definitely superior express-ad- lapsed.’’ I would like to associate my- really election ads. vocacy and issue-ad provisions of the self with this observation by the ma- My colleague from North Dakota, McCain-Feingold bill. Let me just re- jority members of the Governmental Senator DORGAN, read a piece yester- mind my colleagues, that those of us Affairs Committee. day on the floor of the Senate about who have been the reformers, we have Mr. President, the system did col- $800,000 of so-called issue ads poured compromised many times over already. lapse. Americans witnessed a corrup- into one congressional race, one special As a matter of fact, the provisions of tion, a tarnishing of our political sys- election, by a party—$800,000 of so- the McCain-Feingold bill that would tem. And I say to my colleague from called issue ads in a New York House affect us most are basically out right Kentucky, the Supreme Court is very district race last year to destroy a can- now. We are not even talking about a clear that that in fact is a justification didate there. piece of legislation that really affects for reform. People saw in a very sys- The bill would also expand disclosure the way we ourselves raise and spend tematic way special interest money requirements. It would strengthen FEC money in Congressional races. It is an dominate the discourse. And the Amer- enforcement, and it would discourage important effort. I am for it. I want it ican people stayed home in record wealthy candidates from spending to pass. But I want to be clear, we numbers. more than $50,000 of their own money dropped the voluntary spending limits It is not surprising that as this sys- on a race. which would have done the most to as- tem becomes more and more domi- It is a decent, worthy bill, Mr. Presi- sure a more level playing field between nated by big money, and regular people dent. I hope we can pass it. My two col- incumbents and challengers. feel like they are locked out of involve- leagues have worked extremely hard in In addition, we dropped the free and ment, and that this system dominated order to assure that this vote could discounted television time. We also, as by money does not respond to the con- happen. And I think that the bill will a concession, have inserted codifica- cerns and circumstances of their lives, receive a majority of the vote. But it is tion of the Beck language. We have they stay home. going to be filibustered. And I fear that gone a long ways toward trimming this As a matter of fact, we did not even most Members of the majority party do down in order to try and get something have 50 percent of the people voting in not want reform. They are not willing passed that would at least be a positive the last Presidential election. That was to allow an acceptable version of this step in the right direction, and the ma- the third lowest turnout in the history bill to receive the 60 votes. Why is jority party is still stonewalling this. of our country. Some people here on that? Now, Mr. President, let me be clear the floor of the U.S. Senate may be Mr. President, the public is fed up in dealing with the provision that Sen- comfortable with that reality. I am with the current system. Congressional ator JEFFORDS and Senator SNOWE have not. It is the opposite of what I live Quarterly summarizes this aptly. come up with. There is some merit to and work for. And it is the opposite, I ‘‘While polls show that the public is fed it tactically, without any doubt. I still

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S872 CONGRESSIONAL RECORD — SENATE February 24, 1998 worry that it represents a retreat. I’m didate. But so-called ‘‘issue ads,’’ which stop tral figure in the Iran-contra affair and then not sure we can excite people by con- just short of doing so, have provided political ran unsuccessful for a Virginia Senate seat. tinuing to strip this bill down to the consultants with an effective alternative. In the spring of 1996, investigators found, point where it doesn’t have teeth, and The three tax-exempt groups have refused Malenick met with Pennsylvania business- to identify their donors. Democratic inves- man Robert Cone, the former owner of chil- it doesn’t do the job. tigators said they used subpoenaed bank dren’s products manufacturer Graco Inc., Mr. President, I ask unanimous con- records to trace the identities of Cummins and Sen. Don Nickles, R–Okla. Cone soon sent to place a piece by Greg Gordon of and several other contributors to Citizens for sent the firm $600,000 in seed money and the Star Tribune, the largest news- the Republic Education Fund and Citizens later gave substantially more, the investiga- paper in my home State, be printed in for Reform. tors said. the RECORD. Other donations to the three groups were In a promotional film in which Nickles en- There being no objection, the mate- made through secret trusts represented by dorses the group, Malenick talked about Re- rial was ordered to be printed in the Gen. Ginsberg, a former general counsel to publicans developing a way to quickly infuse RECORD, as follows: the Republican National Committee (RNC), $100,000 into a congressional race, countering according to Senate investigators and a labor unions’ ability to provide ‘‘rapid fire’’ [From the (Minneapolis, MN) Star Tribune, former employee of one of the groups. to Democratic candidates. Oct. 29, 1997] Ginsberg failed to return phone calls seeking Braden said Malenick’s firm sent consult- TURNING NONPROFITS INTO POWERFUL his comment. ants to do ‘‘political audits’’ with about 250 POLITICAL TOOLS Senate investigators suspect one of these GOP campaigns nationwide to identify races (By Greg Gordon) trusts is shielding the identities of Charles where donors could support candidates who (Twin Cities entrepreneur Robert Cummins and David Koch, brothers who run oil indus- shared their ideological views and had ‘‘a gave $100,000 to a nonprofit that backed a try giant Koch Industries, which operates a viable campaign.’’ dozen GOP campaigns, including Gil large refinery in Rosemount, a Democratic Braden said Triad launched the ‘‘issue ad’’ Gutknecht’s, a Senate panel has found. committee aide said. Jay Rosser, a spokes- campaign through the nonprofits only to re- The trend, while legal, allows donors to man for Wichita, Kan.-based Koch, declined spond to the AFL–CIO’s $20 million adver- circumvent federal election laws, observers to comment on whether the Kochs or their tising blitz in the districts of vulnerable Re- say) money were involved. Democrats on the publicans such as Gutknecht. Senate investigators have obtained bank committee sent Charles Koch a letter this ‘‘The father of these ads is [AFL–CIO records showing that a Twin Cities entre- month asking to speak with him about their President] John Sweeney,’’ Braden said. ‘‘If preneur donated $100,000 to a nonprofit group inquiry, but he failed to respond, according there had been no AFL–CIO campaign, there that ran ‘‘issue ads’’ last year backing a to investigators. would have been no Citizens for the Repub- dozen Republican congressional candidates, Thomas Mann, a campaign-finance expert lican Education Fund issue campaign.’’ including Minnesota Rep. Gil Gutknecht. who is director of governmental studies for Braden denied that any of the donations With his donation to the Citizens for the the Brookings Institution, called the financ- facilitated by Triad were illegally ‘‘ear- Republic Education Fund, Robert Cummins, ing of politically active nonprofits ‘‘an utter marked’’ to specific candidates. chairman of Eden Prairie-based Fargo Elec- corruption of the system.’’ Another large donor was California farmer tronics Inc., joined in a trend by both major ‘‘There is just no question that this is an Dan Garawan, who has said publicly that he parties to turn nonprofit groups into polit- effort to circumvent the rules limiting the gave $100,000 to Citizens for Reform, which ical weapons. sources and amounts of contributions to fed- spent heavily on issues ads that attacked Campaign-finance experts say the practice, eral campaigns,’’ he said. Mann said the ef- Rep. Calvin Dooley, D–Calif. although legal, offers a way for donors to cir- fort is proof that ‘‘the whole regulatory re- Among donors yet to be identified is a cumvent federal election laws that require gime for campaign finance collapsed in 1996’’ trust that donated a total of $1.3 million to public disclosure of their names and limit amid ‘‘gaming’’ by both parties. citizens for the Republican Education Fund the amounts they can give. The loophole also The Senate committee has previously dis- and to Citizens for Reform. Also still a mys- enables corporations that are barred from di- closed that aides to President Clinton and of- tery is the source of a $700,000 check to the rectly donating to campaigns to play major ficials at the RNC referred large donors to Coalition for Our Children’s Future, a group roles in political races, said Democratic in- nonprofit groups so they could avoid the unrelated to Triad. Barry Bennett, the coali- vestigators for the Senate Governmental Af- publicity that often accompanies big dona- tion’s former executive director, says that fairs Committee. tions to the parties. The New York Times re- the donation was arranged in September 1996 Gutknecht, whose reelection campaign ported last week that Twin Cities business- by a Houston political consultant and that faced an onslaught of attack ads sponsored man Vance Opperman donated $100,000 to Ginsberg drew up confidentiality documents. by labor unions, says that early last year he Vote Now ’96, a nonprofit organization to The investigators have information ‘‘that gave the names of several potential Min- which Clinton campaign and White House very strongly suggests the Koch family and nesota donors to Triad Management Service, aides referred a number of large donors. The Koch Industries were a major funding source the Virginia company that ran the Citizens organization, which promoted voter turnout, for the Triad subsidiaries and the Coalition for the Republic Fund. The First District apparently did not finance ‘‘issue ads.’’ for Our Children’s Future,’’ one Democratic congressman declined last week to say Both conservative and liberal nonprofit committee aide said. Koch made one direct whether Cummins, who with his wife had groups have resisted committee inquiries, donation to Triad of $2,000, investigators each already donated the maximum $2,000 to and the competing Republican and Demo- found. Triad booster Nickles, a member of Gutknecht’s campaign, was among them. cratic investigations have led to deep dis- the Governmental Affairs Committee, has Cummins, a politically active conservative, agreements. Sen. John Glenn, D-Ohio, and been a major Senate ally of Koch. did not respond to phone calls seeking his other Democratic members complain that Federal Election Commission records show comment. the panel’s chairman, Sen. Fred Thompson, that the Koch brothers and KochPAC do- Gutknecht said he has never heard of the R-Tenn., has refused to sign subpoenas that nated to more than a dozen of the candidates Citizens for the Republic Education Fund, would enable them to fully trace the funding supported by the three nonprofits, most of which spent at least $3,000 boosting his cam- of the conservative groups or to allow the them located in Kansas, Oklahoma and other paign in the Rochester, Minn., media mar- Democrats to hold hearings where they could states where Koch has facilities. ket, and that he never knew about the ad. confront officials of Triad and the non- BOOST FOR GUTKNECHT The organization is one of three conserv- profits. A Republican spokesman contended Cummino sent a $100,000 check to the Citi- ative-backed nonprofits that were dormant that the Democratic inquiry has been overly zens for the Republic Fund on Oct. 3, 1996, a in the summer of 1996 but sprang to life broad and burdensome for the nonprofit week after Triad signed a consulting agree- shortly before the election as donations groups. poured into their accounts, people familiar ment with the nonprofit, investigators with the investigation said. INVESTMENT ADVISER found. Together, Citizens for the Republic Edu- At the center of the controversy is Triad, Meredith O’Rourke, a former Triad em- cation Fund, Citizens for Reform, which also whose officers have declined to answer inves- ployee, told the committee in a recent depo- was managed by Triad, and the Coalition for tigators’ questions. sition that Triad officials has discussed key Our Children’s Future spent nearly $4 mil- Mark Braden, a Washington lawyer for issues in Gutknecht’s reelection race with lion in October and November 1996 on ads Triad, says the company served as ‘‘an in- Gutknecht or his campaign, people familiar that gave GOP candidates a late boost in at vestment adviser’’ that assisted clients in with the inquiry said. Gutknecht acknowl- least 34 close House and Senate races, Senate deciding ‘‘where to make political, chari- edged that he met with a Triad official early investigators have found. The Coalition for table and issue-related donations.’’ Senate in his campaign, but said he only recalls dis- Our Children’s Future also send Republican- investigators say Triad helped clients who cussing the ‘‘issues they [Triad representa- leaning postcards to tens of thousands of had already donated the legal maximum to a tives] were advancing,’’ not his own. voters in at least nine Minnesota legislative candidate find other ways to help. The Citizens for the Republic Fund ‘‘issue districts. Triad was formed in 1995 by Carolyn ad’’ that fall mentioned Gutknecht’s name Nonprofit groups are barred from expressly Malenick, a former political fund-raiser for five times, without identifying his Demo- advocating the election or defeat of a can- Oliver North, the ex-Marine who was a cen- cratic challenger, Mary Rieder, and accused

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S873 ‘‘big labor bosses in Washington’’ of dis- a piece of legislation which would have So what do the proponents today ask torting Gutknecht’s record on education. that made-for-Congress look, a great us? They ask us to limit severely the Gutknecht dismissed disclosures about the acronym, but will not have the enforce- right of political parties to raise nonprofit groups’ political role as ‘‘a joke’’ ment teeth and would not do the job money and to use that money in order and ‘‘a desperate’’ attempt by Democrats to distract public attention from Clinton’s em- and really wouldn’t get some of the big to express the ideas that motivate barrassing campaign activities, such as in- money out of politics. those political parties. In other words, viting major donors to stay overnight in the The McCain-Feingold effort is not all they ask us to limit the ability to com- Lincoln Bedroom. I desire—I proposed the clean money, municate the freedom of speech of ‘‘As far as I know,’’ he said, ‘‘any clean elections approach which has those organized parties that have businesspeople who participated with Triad passed in Maine and that was also spanned most of the history of the did not get a night in the Lincoln Bedroom. passed in Vermont—but it is a worthy United States, parties that most aca- They didn’t get any preferential treatment piece of legislation and it ought to pass demics studying our political system on Asian pipelines, they didn’t want to block the U.S. Senate. say are too weak, not too strong. Most an Indian casino in Hudson, Wisconsin. All I yield the floor. were American citizens. None were Buddhist academics in this field feel that party The PRESIDING OFFICER (Mr. ROB- monks.’’ discipline ought to be stronger rather In the spring of 1996, three Washington- ERTS). The Senator from Kentucky. than weaker. Yet the heart of McCain- based nonprofit groups had no offices, no Mr. MCCONNELL. I understand we Feingold is the philosophy that parties staffs and were inactive. By that fall, the are under a controlled time situation should not be able to communicate groups had raised nearly $4 million in dona- without designating a controller, so I their ideas to people during election tions and were pouring much of the money ask unanimous consent I control the campaigns in any significant fashion into ‘‘issue ads’’ supporting conservative time on this side. whatever. House and Senate candidates. The PRESIDING OFFICER. Without The predecessors of those who make CITIZENS FOR REFORM objection, it is so ordered. these arguments today successfully Mr. MCCONNELL. I yield to the dis- Founded by conservative activist Peter limited the ability of political can- Flaherty, the nonprofit group was incor- tinguished Senator from Washington didates for Congress to raise and to porated in May 1996 and is now run by Triad such time as he may consume. Management Services, a political consulting Mr. GORTON. Mr. President, the first spend money and now criticize the very firm in Manassas, Va. Senate investigators amendment to the Constitution of the condition that they caused by saying say the group spent $1.4 million in October United States reads in relative part that candidates spend too much time 1996 on ads in 21 House and Senate districts, in raising money. It is a paradoxical ‘‘Congress shall make no law abridging including one that attacked Democratic con- set of arguments to say that the very the freedom of speech or of the press.’’ gressional candidate Bill Yellowtail of Mon- cause that we espoused has caused can- tana for striking his wife. Today, once again, we are engaged in a debate in which the proponents pro- didates to spend too much time cam- CITIZENS FOR THE REPUBLIC EDUCATION FUND pose to limit the freedom of speech, paigning or raising money for cam- Incorporated in June 1996, the fund later paigning and therefore we ought to obtained tax-exempt status as a political and most particularly, to limit free- dom of speech in political debate about have more laws of exactly the same group. Also run by Triad, it is headed by type. the policy and political future of the former Reagan White House aide Lyn Mr. President, whatever the constitu- United States. Nofziger. In October 1996, investigators say, tionality of limiting the right of people the fund spent almost $1.5 million on ‘‘issue At the time of an identical debate to contribute to political parties and ads’’ in 13 House and Senate races, helping last fall, George Will wrote, and I wish the right of political parties to solicit secure victories for Rep. Gil Gutknecht, R- to quote him in full: Minn., and Republican Senate candidates contributions, it can hardly be pro- Nothing in American history—not the posed with a straight face that we can Sam Brownback of Kansas and Tim Hutch- left’s recent campus ‘‘speech codes,’’ nor the inson of Arkansas. right’s depredations during 1950s McCar- limit the right of third parties, of inde- COALITION FOR OUR CHILDREN’S FUTURE thyism, or the 1920s ‘‘red scare,’’ not the pendent organizations, to express their Formed in late 1995 to air ads supporting Alien and Sedition Acts of the 1790s— ideas on matters of politics and on can- the Balanced Budget Act, the coalition was matches the menace to the First Amend- didates and on incumbents at any time, only a shell in the fall of 1996, operating in ment posed by campaign ‘‘reforms’’ advanc- much less in the 30 or 60 days preceding offices at the Virginia political fund-raising ing under the protective coloration of polit- an election. There is simply no indica- firm of Odell, Roper and Simms. Then a se- ical hygiene. tion in any decision by the Supreme cret trust reportedly contributed $700,000 to Mr. Will concludes by saying: Court of the United States that such the coalition, which ran ‘‘issue ads’’ in Ar- As Senator MITCH MCCONNELL, the Ken- limitations are appropriate. There is kansas and Louisiana Senate races and three tucky Republican, and others filibuster to also no indication that such limita- House races and blitzed voters in at least block enlargement of the Federal speech-ra- tions are a good idea. nine Minnesota legislative districts with tioning machinery, theirs is arguably the postcards favoring GOP candidates. I wonder what the editorial page of most important filibuster in American his- the New York Times would say if the Mr. WELLSTONE. He talks about tory. proposal before the Senate today said turning nonprofits into powerful polit- Mr. President, the Senator from Min- that newspapers would be limited to ical tools. I’m worried about all of the nesota has just said that fewer people one or two editorials about election- ways, to quote Thomas Mann from the vote because of cynicism about the 1996 year politics and none at all in the 30 article, that this new practice has ‘‘be- campaign and the blatant violations of days before an election. Yet, Mr. Presi- come an utter corruption of the sys- the present law that took place during dent, unless you can say in order to tem.’’ I don’t want to retreat from the course of that campaign. make elections fair, in order to give clear standards here. Mr. President, the cure for the bla- each citizen an equal right to partici- Mr. President, since I have less than tant violations of present campaign pate, we can and should tell the New 2 minutes, I hope the McCain-Feingold laws is not a new set of laws. It is the York Times, and every other daily bill will pass intact. I hope we will vote simple enforcement of the laws we al- newspaper in the country, all tele- for it today. I hope that colleagues will ready have. Laws, incidentally, that vision networks and television sta- not be able to block it. I hope we will were passed in 1974 with arguments tions, that they should shut up in the be wary of ‘‘deform’’ measures, not re- identical to those that are being made 30 days before an election takes place form measures. We have to pass some- here today; laws that themselves seem and let the election work its way out thing real. We have to pass something to have been accompanied by a drop-off on the basis of whatever individual significant. I hope we get a positive in the number of people who are vot- candidates say—unamplified, of course, vote for this piece of legislation today, ing. by any mass media—and that even out- and I ask people in the country, please If we simply look at our history and side of that period of time they should be vigilant, please hold all of us ac- desire to have more people voting, we be strictly limited in the number of countable. Don’t let the majority party would presumably repeal all of those statements that they ought to make block a reform that would restore your laws and go back to a pre-1974 situation about politics because, after all, they voice and some real democracy in this in which at least we had a greater par- have a much larger voice than does an country. Don’t let the U.S. Senate pass ticipation in our election process. individual citizen.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S874 CONGRESSIONAL RECORD — SENATE February 24, 1998 We know exactly what they would pill,’’ which is anathema to Members and by definition pointing out that ‘‘it say. They would say that is a blatant on the other side. Seventy-three per- would naively underestimate the inge- violation of the first amendment of the cent of the citizens of the State of nuity and the resourcefulness of per- Constitution. They would go to court Washington voted for that proposition, sons and groups to believe that they and they would get any such statute Mr. President. would have much difficulty devising immediately thrown out. But if the Now, what happened? Let’s take one expenditures that skirted the restric- New York Times and NBC and an indi- such organization, the Washington tions on express advocacy of election vidual television station are free to Education Association. Immediately or defeat, but nevertheless benefited communicate their ideas about politics after the passage of that initiative, the candidate’s campaign.’’ and about political candidates without fewer than 20 percent of the members Just one other quote from that same restraint, how, then, can an organiza- of the Washington Education Associa- Buckley case: ‘‘The distinction be- tion, whether it is the Christian Coali- tion gave that association permission tween discussion of issues and can- tion, the American Civil Liberties to use their money for its political pur- didates and advocacy of election or de- Union, a liberal or a conservative orga- poses. Where it had 45,000 members who feat of candidates may often dissolve nization, be so limited? And why, if an were constrained to contribute to its in practical application.’’ That was the organization of that nature can’t be political action committee previously, Supreme Court 22 years ago. ‘‘Can- limited, should a political party be the figure, after the election was over, didates, especially incumbents, are in- limited in what it can say and how it was 8,000. Well, that is why 45 members timately tied to public issues involving raises money in order to make any on the other side of the aisle feel the legislative proposals and governmental such statement? Lott bill to be a ‘‘poison pill,’’ because actions. Not only do candidates cam- Mr. President, all we have done is to it deprives one of their principal sup- paign on the basis of their positions on make political speech less responsible porters of the right to force people to various public issues, but campaigns rather than more responsible. We lim- contribute to their campaigns. That is themselves generate issues of public in- ited the amount of money candidates a ‘‘poison pill,’’ Mr. President. It is a terest.’’ can get, and candidates, of course, can ‘‘poison pill’’ to restrict political par- What is the Court saying? They are be called to account for any ties the right to speak and the right to saying, in effect, that there is this misstatement they make in a political effectively participate in politics, or whole category of discussion in this campaign or for any unfair tactics. We even to restrict certain other organiza- country that, under the first amend- now propose to limit the parties to tions. ment, citizens are entitled to engage which those candidates belong, so we Mr. President, I understand—and per- in, whether candidates like it or not. I force those who are interested in the haps the Senator from Kentucky will mean, the whole assumption of the ar- political system whose lives are af- enlighten me on this—that the United gument on the other side is that some- fected by the political system to oper- Kingdom had similar restrictions to how the candidates have a right to con- ate entirely independently of parties or those proposed here with respect to trol the election, control the discourse, of candidates and to make whatever issue advocacy. If my understanding is in this selected period right before the statements they wish for which those correct, the court of the European election. Well, the Court anticipated candidates and parties will, of course, Community has just determined that that. They have already dealt with it. bear any responsibility whatever. those restrictions were a violation of You clearly can’t do it. We don’t own Finally, I find it extraordinarily curi- human rights; is that correct? I ask the these elections. Besides, as my friend ous that the proponents of this bill— Senator from Kentucky that question. from Washington pointed out, nobody most recently the Senator from Min- Mr. MCCONNELL. The Senator from is suggesting that the newspapers shut nesota—will say that the original pro- Washington is entirely correct. Just up during that period of time. Obvi- posal before the Senate by the major- last Thursday, February 19, the Euro- ously, this would enhance their power ity leader, Senator LOTT, is a poison pean Court of Human Rights ruled that dramatically. pill. Now, what is that poison pill? It is laws banning ordinary citizens from Now, I will stipulate and concede the totally constitutional and totally spending money to promote or deni- that all of us candidates don’t like all valid requirement that a labor organi- grate candidates in an election cam- of this discourse that we don’t control. zation to which people in given bar- paign was a breach of human rights. Sometimes there are people coming in gaining units must belong and to which That was in response to a group in Eng- trying to help us and we think they are they must contribute can only use the land that brought the suit with the ar- botching the job. Sometimes people are dues and the payments of their mem- gument that their voices were essen- trying to hurt us, and that is particu- bers for political purposes with permis- tially quieted, eliminated, by British larly offensive. But it is absolutely sion. Now, this is the one area which is law that prohibited them from speak- clear that we cannot, by statute, shut not only obviously constitutional but ing, in effect, in proximity to the elec- all these people up, cleanse the process obviously desirable. Why should any tion. So the Europeans are heading in of all of this discussion, and control American, why should any American the direction of issue advocacy, which the campaign. have his or her money used by an orga- is something, I say to my friend from Mr. GORTON. If I may conclude, I nization to which he or she is required Washington—and I see my friend and thank the Senator from Kentucky for to belong to promote an idea and can- colleague from Utah on his feet as those comments. In reflecting back on didates with which whom he or she dis- well—that the Supreme Court antici- the article from which I read excerpts agrees? pated in the Buckley case. by George Will, if we had detailed CON- I do have in this connection, Mr. Mr. GORTON. I was simply going to GRESSIONAL RECORDs of what was said President, one advantage over, I be- ask that question of the Senator from in Congress in 1797 and 1798, at the time lieve, every other Member in this body, Kentucky. Does the Supreme Court in of the Alien and Sedition Act, I think except for my own colleague from the Buckley versus Valeo not deal with we would see a philosophy quite simi- State of Washington. In 1992, at a time this question of issue advocacy? lar to the philosophy that is being ex- in which Bill Clinton won the State of Mr. MCCONNELL. Absolutely. The pressed by the proponents of McCain- Washington in his Presidential cam- Senator is correct. Our friends on the Feingold: People aren’t smart enough paign, the people of my State passed other side of the aisle act as if issue ad- to know what ought to be said or not Initiative No. 134 by a 73–27 percent vocacy is a recent invention that has said or to sort out the quality of what margin. been sort of conjured up and not pre- is being said and not said, unless we Initiative 134 simply said that nei- viously thought of. The Court said in here in Congress tell them who can say ther an employer nor a labor organiza- the Buckley case, in laying out the it, when they can say it, and how much tion could withhold a portion of a terms for express advocacy, which is of it they can say. This bill, under worker’s wages or salary for political the category directly in support of a those circumstances, Mr. President, contributions without receiving writ- candidate, which is in the category of does have distinguished antecedents, ten permission from that worker each FEC money, so-called hard money— the most significant of which is the and every year—the so-called ‘‘poison they were defining express advocacy, Alien and Sedition Act.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S875 I yield the floor. answer is no. Similarly, when Congress tion laws, namely, placing limits on Mr. FEINGOLD addressed the Chair. established political action committees contributions and disclosing the iden- The PRESIDING OFFICER. The Sen- as a legitimate and needed mechanism tity of those making the contributions. ator from Wisconsin. for unions, corporations, and other Without such disclosure, we lose ac- Mr. FEINGOLD. Mr. President, per- groups to contribute to campaigns, did countability. A recent study found that haps we have reached a new low in the it intend that these entities could nev- as accountability in political commu- debate on the McCain-Feingold bill, ertheless also make unlimited expendi- nications declines, levels of misin- which has been characterized as a tures for political attack ads as long as formation and deceit rise. Thus, it is ‘‘human rights violation’’ and the certain words were avoided and some no surprise that bogus issue ads almost ‘‘Alien and Sedition Act.’’ reference, however flimsy, was made to always carry a negative message, Perhaps the Senator from Maine can an issue? Again, the answer to this something which all in this body pur- bring us back to the real discussion question is obviously no, and history port to decry. The question is—are we here. I yield her such time as she re- bears out this conclusion. willing to do something about it? quires. Go back to the early 1980s when soft In my view, it is imperative that we The PRESIDING OFFICER. The Sen- money was used only for party over- do something real about these prob- ator from Maine is recognized. head and organization expenses, and lems. Mr. President, I spent much of Ms. COLLINS. Mr. President, the you will find that contributions totaled my first year as a Member of this body time has come to strike an important only a few million dollars. By contrast, listening to endless hours of testimony blow for our democracy by making in the last election cycle, when soft before the Governmental Affairs Com- some limited, but urgently needed, re- money took on its current role, these mittee about the campaign finance pairs to our campaign finance laws. contributions exceeded $250 million. practices in the 1996 elections. While Mr. President, the legislation cur- Bogus issue ads were such a small reasonable people can disagree on the rently pending before this body is dra- element in the past, that it is impos- solutions, those hearings demonstrated matically different from the original sible to find reliable estimates on the beyond any doubt that the current sys- McCain-Feingold bill, which I cospon- amounts expended on them. Unfortu- tem is in shambles precisely as a result sored and supported. It does not seek nately, that is no longer the case, and of the loopholes I have described. to radically alter how we finance our these expenditures have now become Mr. President, let me briefly com- campaigns. Indeed, I submit that it worthy of study. The most prominent ment on the argument that S. 25 would does not alter at all the basic frame- of these studies estimates that as much violate the first amendment. I person- work that Congress established more as $150 million was spent on bogus ally do not believe that to be the case, than two decades ago. issue ads in 1995 and 1996. but more important, there are scores of Nevertheless, Mr. President, the bill Mr. President, simple logic also constitutional scholars who support before us today is vitally important. shows that soft money, as it is cur- that conclusion. But the reality is that Before us today is a bill designed to rently used, and bogus issue ads could we can play the game of dueling law close election law loopholes that un- not have been intended by those who professors forever, and it will not re- dermine the protections the American drafted our election laws. There would solve the issue. people were promised in the aftermath have been little purpose in limiting We are dealing with an area of great of Watergate. Unlike the prior version contributions to candidates if unlim- uncertainty. Indeed, in the seminal of the bill, it will not make new re- ited money could be given to parties to case of Buckley v. Valeo, a majority of forms to our campaign finance system. run ads effectively promoting those the Supreme Court Justices could not Rather, it will merely restore prior re- candidates. There would have been lit- agree on a single opinion. On the sub- forms. tle purpose in placing monetary limits ject of what constitutes issue advo- Let me be more specific, Mr. Presi- on contributions to and by PACs, as cacy, Federal Courts of Appeals have dent. Gone from S. 25 are the provi- well as subjecting them to reporting handed down conflicting decisions. sions intended to create a different sys- requirements, if the entities for which Thus, no member of this body can say tem for financing campaigns. Gone are they were designed could avoid all of with certainty how the Supreme Court the voluntary limits on campaign that by simply running issue ads. will decide the issue. Our role is to spending. Gone is the free TV time. Mr. President, some may still ask craft election laws that strengthen our Gone is the discounted TV time. Gone whether any of this matters. Why democracy, knowing that the Supreme is the reduction in PAC limits. should we be concerned if the campaign Court and the Supreme Court alone Most of these reforms continue to be contribution limits have been rendered will ultimately determine the constitu- very important, and they are reforms a sham by unlimited soft-money dona- tionality of our actions. to which I remain personally com- tions? Why should we care if the PAC It is also essential to eliminate two mitted. But in the interest of securing safeguards have been eviscerated by myths about this bill. It will not stop action on the major abuses in the cur- bogus issue ads? any American, whether acting as an in- rent system, we, the proponents of the Starting with soft money, one need dividual or as part of a group, from McCain-Feingold proposal, have agreed only consider the situation of the Hud- running ads advocating for or against a to significant compromises. son Band of Chippewa Indians, an im- position on any issue. It will also not What, then, is left? The principal poverished tribe in the State of Wis- stop any American, whether acting as purpose of today’s bill is to close two consin. Mr. President, this tribe has an individual or as part of a group, immense loopholes that have recently every reason to believe and every rea- from advocating for or against the been exploited to evade the restrictions son to suspect that the denial of their election of a candidate, as long as the and the requirements of current law. I casino application was driven by the contribution limits and reporting re- refer, of course, to soft-money con- expectation of large soft-money dona- quirements of our election laws are tributions and bogus issue ads. tions by the wealthy tribes who op- satisfied. Statements to the contrary It is fair to ask whether these are, in posed them. are false, and their constant repetition fact, loopholes or whether they are Allowing such unlimited contribu- does not make them true. practices that were contemplated when tions subverts the proper operation of Let me close, Mr. President, by re- our election laws were enacted in the government or at least creates the ap- turning to my original point. When I 1970s. To be more specific, when Con- pearance that it has been subverted. It ran for a seat in this body, I advocated gress put a $1,000 limit on campaign is a sign of how extensive the cor- a major overhaul in our campaign fi- contributions, was it intended that in- rupting effect has become that even nance laws. Regrettably, that goal dividuals could make unlimited con- Native Americans believe they must must await another day. The challenge tributions to political parties that, play the soft money to participate in before us today is far more modest. Are often following a circuitous route, our democracy. we prepared to close loopholes that would wind up financing ads clearly de- The situation with bogus issue ads is subvert the intent of the election laws signed to help or to harm particular not better. That practice undermines that we enacted more than two decades candidates? Clearly, Mr. President, the the two major objectives of our elec- ago? Are we willing to restore to the

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S876 CONGRESSIONAL RECORD — SENATE February 24, 1998 American people the campaign finance I want to address the two points that Senator from Maine, I sat on the Gov- system that rightfully belongs to my friend from Maine talked about, ernmental Affairs Committee. I heard them? soft money contributions and bogus the testimony. Maybe I heard some dif- I sincerely hope, Mr. President, that issue ads. Let me reverse the order and ferent testimony than that which she at the end of this debate, the answer talk about the first one, the bogus heard, but one of the things that will be yes and that the Senate will issue ads. She suggests, and I’m sure struck me most clearly was testimony take an initial step on the road to re- sincerely and honestly she believes, from someone not of my party, not of storing public trust in government. that bogus issue ads have come as a re- my political persuasion, someone on I yield the floor. sult of an attempt to get around the the liberal end of the spectrum, who The PRESIDING OFFICER. The Sen- Watergate reforms. In fact, bogus issue made this point historically. When ator from Kentucky is recognized. ads have been with us since the begin- Lyndon Johnson was President of the Mr. MCCONNELL. Mr. President, I ning of the Republic and they are a free United States and prosecuting the war yield 10 minutes to the distinguished exercise of first amendment rights by in Vietnam in a way that outraged Senator from Utah. Americans pre-Watergate, post-Water- huge numbers of our citizens to the The PRESIDING OFFICER. The Sen- gate, and frankly post McCain-Fein- point of protests in the streets, he was ator from Utah is recognized. gold. Americans will find a way around challenged in the electoral process Mr. BENNETT. Mr. President, I that even if the Supreme Court were to within his own party by one brave thank the Senator from Kentucky and allow McCain-Feingold to stand, Member of this body, Eugene McCar- I thank my colleagues for this debate. should we pass it. thy. McCarthy went to New Hampshire Let me make a personal point at the One of the most vivid memories I and took on an incumbent President beginning of my comments. While I have in politics is, as a 17-year-old high within his own party, an unheard of disagree quite heartily with the posi- school student, watching my father, kind of thing. He didn’t win that pri- tion taken on behalf of those who sup- who was running for his first term in mary but he came close. He came a port McCain-Feingold, I do not chal- this body, standing in the living room close enough second that he shook LBJ lenge their integrity or their motives. I of my grandmother, his mother, hold- to the point that LBJ subsequently left believe that they are acting on the ing a newspaper and saying, ‘‘I can the race. How was the McCarthy cam- basis of the highest motives, that they handle my enemies but, Lord, protect paign financed? It was financed with honestly believe that this legislation me from my friends’’—a newspaper at- five wealthy individuals, each one of would, in fact, be good for our political tacking the incumbent Senator from whom put up $100,000 apiece. And in system and be good for the Republic as Utah, Elbert Thomas, as a Communist. 1968, $100,000 went a lot farther than it a whole. I disagree most heartily with And my father, trying to run his own does in 1998. that position and I do my best to try to campaign on other issues, was terribly In a way, he brought the Government convince them that the course they are distressed by this four-page attack on down, not because he had $500,000 to on, however well meaning and well mo- his opponent. There are those who spend but because he had a message tivated, is, in fact, dangerous and wrote about that election after it was that the people of New Hampshire re- threatening of our first amendment over who blamed my father for that sponded to. Without the $500,000, how- rights. rag. One of the professors from whom I ever, the message could not have been I learned today on the floor that in took classes at the University of Utah, heard. He and the others who were in- Europe it has been determined that if in the political science department, volved with him, who testified before we went down this road we would be wrote an extensive article in the West- our committee, said, ‘‘If we had been violating basic human rights, accord- ern Political Quarterly in which he limited to $1,000 apiece, McCarthy ing to the European court. I am de- called the 1950 Senate race the dirtiest would never have been able to chal- lighted to know that the Europeans in Utah history, and blamed my father lenge Lyndon Johnson. If we had been have that much common sense. Clear- for calling his opponent a Communist limited to that kind of restriction, his- ly, the United States Supreme Court and smearing him. My father had abso- tory would have been changed.’’ And he has made that clear and we in this lutely nothing to do with that par- quoted, I believe it was Senator McCar- body should not shirk our constitu- ticular publication and had no control thy, who said, ‘‘The Founding Fathers tional responsibility. over it. Mr. President, 1950 was clearly did not say: To this we pledge our lives, I was somewhat distressed to hear pre-Watergate. It was clearly pre- the our fortunes up to $1,000, and our sa- the comment that the Supreme Court reforms that the Senator from Maine cred honor.’’ They went the whole way and only the Supreme Court can deter- hopes to reestablish here. mine what the Constitution has to say However distasteful it was, however and the Constitution gives them the about this. I think we have a responsi- reprehensible it may have been, it was opportunity to go the whole way. bility to pay attention to the Constitu- well within the rights of the first We have put limitations on. I happen tion in this body itself and not burden amendment guaranteed to the people to think that is a mistake, and I have the Supreme Court with laws that are who put up the money, published the talked about that. But we have allowed clearly unconstitutional. There is al- paper, and distributed it. As the Sen- political parties to flourish by unlim- ways the chance one of them might slip ator from Kentucky indicated, we don’t ited contributions to those parties. through. A court might not be appro- like independent expenditure ads. We That is the terrible, awful, debili- priately attentive when a case comes want to control them. They make us tating, corrosive soft money that we before them, and we get unconstitu- mad—many times from our friends, are talking about: The ability to chal- tional legislation. We are the first line many times from our opponents. But lenge an incumbent President, the abil- of defense as far as the first amend- they are part of the price we pay for a ity to expand political discourse at a ment in the Constitution is concerned, free press and free speech in this coun- time of great national concern over the and we should take that responsibility try and I, for one, am not willing, in direction in which an administration is very seriously and not say, ‘‘Oh, well, the name of shutting down that kind of going. let’s pass a law because it sounds good, an ad, to damage the first amendment I ask unanimous consent I be allowed let’s pass a law because the New York right that everyone has, including the to continue for another 2 minutes. Times will give us a good editorial, and first amendment right to be stupid, the Mr. MCCONNELL. Mr. President, I the Supreme Court will bail us out by first amendment right to be out- yield 2 more minutes to the Senator declaring it unconstitutional.’’ That is rageous, the first amendment right to from Utah. a very dangerous position to take and say inflammatory kinds of things. I The PRESIDING OFFICER. The Sen- I want to do my best to see to it that think that right is precious and the ator from Utah is recognized. The Sen- the first line of defense of the first line to protect it must be drawn here in ate will suspend until we get order in amendment is drawn here in this body the Senate and not let us wait until we the Senate. and maintained here so that the Su- get to the Supreme Court. preme Court can pay attention to other Now, the second issue, the issue of The Senator is recognized. issues. soft money contributions. Like the Mr. BENNETT. I thank the Chair.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S877 Mr. President, I am not a lawyer. eral money for the parties by Federal do not like the content, the tone of the Sometimes that is an advantage, some- legislative action and said, in referring campaign, it is not ours to control. No- times it is a disadvantage. But I hap- to the Colorado case in 1996: body said we had ownership rights over pen to have devoted a good portion of The precedent makes clear that political the campaign. Lots of people are enti- my life to trying to understand the parties have the rights to engage in issue ad- tled to have their say. Constitution and understand the inten- vocacy— I thank my friend from Utah for his tions of the Founding Fathers. Which is funded by the so-called fine statement. I yield the floor. I don’t know what was fully intended ‘‘soft money’’— Mr. FEINGOLD. Mr. President, I by the passing of the Watergate re- as other entities. In Colorado Republican yield 5 minutes to the Senator from forms, because, frankly, that was a pe- Party v. FEC, the Republican Party ran a se- Connecticut. riod of time when I was leaving Wash- ries of advertisements critical of the Demo- The PRESIDING OFFICER. The Sen- ington instead of paying attention to cratic nominee for a U.S. Senate seat from ator from Connecticut is recognized. what was going on here. But I do know Colorado. At the time the ads ran, the Re- Mr. LIEBERMAN. I thank the Chair, publican nominee had not been determined, and I thank my colleague from Wis- what was intended in the passing of the and the three candidates were actively seek- consin. first amendment. I do know what was ing that nomination. Mr. President, I have spent so much intended in the creation of the Con- That was the fact situation in that time on this subject in the last year stitution. case. that I think I can just clear my throat I believe that McCain-Feingold falls The Court rejected the FEC’s position that in 5 minutes. But I will try to do more on two overwhelmingly significant a political party could not make expendi- than that, and I hope to have addi- points: No. 1, and most important, it is tures independently of a candidate’s cam- tional opportunities to comment as the clearly unconstitutional; and No. 2, paign. debate goes on. equally crippling, it is totally unwork- Independent expenditures are hard I want to speak against the under- able. On those two bases, I am happy money; issue advocacy is soft money. lying proposal, the so-called Paycheck and proud to be part of the group that So let’s get them divided. Protection Act, and in favor of the sub- is opposing it here today. The Court held that the facts quite clearly stitute McCain-Feingold proposal that Mr. MCCONNELL addressed the showed that the defendant Republican Party is before us. The Paycheck Protection Chair. expenditures in the race were independent of Act, very briefly, is a very dis- The PRESIDING OFFICER. The Sen- any candidate’s campaign and so could not appointing response to the many prob- ator from Kentucky is recognized. be limited as contributions to the can- lems the Senate Governmental Affairs didate’s campaign directly. If a political Mr. MCCONNELL. How much time do Committee uncovered in its recently I have remaining? party can conduct express advocacy—that is independent and hard money—if a political concluded investigation. In fact, I was The PRESIDING OFFICER. The Sen- very surprised to see my dear friend, ator has 12 minutes and 20 seconds. party can conduct express advocacy cam- paigns independently of its candidates, sure- the majority leader, say yesterday, ‘‘I Mr. MCCONNELL. Mr. President, if I ly it can conduct an issue ad campaign inde- have laid down a bill that embodies the may, I want to follow up on some ob- pendently of its candidates. The Colorado most important campaign finance re- servations by my friend from Utah. Republican Federal Campaign Committee form of all, paycheck protection.’’ The underlying bill seeks to abolish held that political parties’ rights under the Frankly, there is not a single prob- what is pejoratively referred to as first amendment are equal to—equal to— lem, with all respect, looked at during ‘‘soft money.’’ In fact, as the Senator those of other groups and entities: ‘‘The our investigation in the Governmental independent expression of a political party’s from Utah and I know, soft money Affairs Committee that would have should not be a pejorative term. It is, views is ‘core’ First Amendment activity no less than is the independent expression of in- been solved with the Paycheck Protec- in fact, everything that isn’t hard dividuals, candidates or other political com- tion Act. ‘‘Paycheck Protection’’ money. Our two great political parties, mittees.’’ In reaching this conclusion, the doesn’t touch foreign money, it doesn’t of course, are interested in who gets to Court was not breaking new ground, but touch the use of public buildings for be Governor in Utah; occasionally, again merely following established law fundraising, it doesn’t touch the prob- they are interested in who gets to be granting parties the right to speak on polit- lem of unregulated and undisclosed at- mayor of Salt Lake City. They are, in ical issues. tack ads, and it doesn’t touch the fact, Federal parties. I cite that, Mr. President, just to abuse of tax-exempt status by tax-ex- So, in the aftermath of McCain-Fein- make a point in discussion with my empt organizations. gold, you would have a complete fed- friend from Utah that there is virtually In fact, the underlying bill, the Pay- eralization of the American political no chance the courts would say that check Protection Act, is a response to process, I guess putting the FEC in the Congress, by legislation, can pre- a problem that doesn’t exist. No one is charge of the city council races in Salt vent the parties from engaging in issue forced to join a union, and under the Lake City. advocacy. We already know they can Beck decision, nonunion members al- Mr. BENNETT. Mr. President, if I engage in independent expenditures ready have an absolute right to ask for might interrupt. which are financed by so-called ‘‘hard a refund of the amount they paid the Mr. MCCONNELL. I yield for a ques- money,’’ Federal money. Everybody union in agency fees that went to polit- tion. else in America can engage in issue ad- ical activities of which they do not ap- Mr. BENNETT. Salt Lake City has vocacy. The Senator from Utah can do prove. Union members, for their part, nonpartisan races. There are no limits it by himself. He can do it as part of a voluntarily join an organization, and on contributions and there are no lim- group. There is no change. The courts they express a desire to have their its on spending, and somehow we have are going to say parties can engage in leadership represent them, both with managed to maintain the pattern of de- issue advocacy. management and more generally. If cent mayors through that whole situa- I commend my friend from Utah for they disagree with the way in which tion. his statement. He is absolutely correct, the leadership of the union is spending Mr. MCCONNELL. A good point, I say there is no chance that this bill, were that money for political or legislative to my friend from Utah. it to be passed, which it will not be purposes, they have the same right It has been suggested by some around passed, but if it were to be passed, that shareholders have who are dis- here that party soft money could sim- would be held constitutional. In fact, gruntled with the activities of the lead- ply be abolished, and that is what this the courts are going in the opposite di- ership of a corporation. Shareholders underlying bill seeks to do. I doubt rection, in the direction of more and can launch a proxy fight. Disgruntled that, Mr. President. more political speech, more and more union members can try to change the A law professor at Capital University discourse, more and more discussion. leadership of the union. There is a in Columbus, OH, who is an expert in We do not have a problem in this democratic process dramatically, in- this field, in a recent article in a Notre country because we have too little po- tensely supervised by the Federal Gov- Dame Law School Journal of Legisla- litical discussion. That is not a prob- ernment itself. tion was pointing out with regard to lem. Even though, as the Senator from In fact, I suggest that the Paycheck the prospects of eliminating non-Fed- Utah wisely pointed out, we frequently Protection Act as before us is not only

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S878 CONGRESSIONAL RECORD — SENATE February 24, 1998 a solution to a problem that doesn’t conveyed that message, which is very an agenda by big corporations and the exist, it is itself a problem because it is typical of the occupant of the Chair. I right wing of the Republican Party to of doubtful constitutionality. This bill yield the floor. silence working families, not help says to a union that before it can in- Mr. FEINGOLD. Mr. President, I them. volve itself in political activities, be- thank the Senator from Connecticut The Republican leadership proposal fore it can spend its own general treas- very much for his remarks. I note the is not reform but revenge—revenge for ury funds, contributed by dues-paying emergence of a new argument that is in the role of the labor movement in the members, not just on political cam- effect that the Supreme Court of the 1996 campaign. It imposes a gag rule on paigns but, by definition in the under- United States is incompetent, that American workers, and it should be de- lying bill, in attempting to influence they will not be able to recognize the feated. legislation, the union leadership needs constitutional problems in any bill The bill is a sham. It does not protect the separate prior written voluntary and, therefore, we have to make sure the workers. It is designed to advance authorization of each one of their that every piece of our bill raises abso- an antiworker, antilabor, antiunion members. lutely no constitutional questions. I agenda. It does not protect individual To me, that comes close to being a think that is a somewhat absurd propo- rights, as its sponsor claims. It singles prior restraint on the exercise by a sition. out unions, but does nothing for cor- labor union of the rights it receives With that, Mr. President, I yield 5 porate shareholders or members of under the First Amendment to petition minutes to the distinguished senior other organizations. our Government to attempt to influ- Senator from Massachusetts. In fact, in the 1996 election, corpora- ence legislation and to free associa- The PRESIDING OFFICER. The Sen- tions outspent labor unions 11 to 1. tion. If that is not the case, it cer- ator from Massachusetts is recognized. Under the Republican proposal, big to- tainly raises questions of equal protec- Mr. KENNEDY. Mr. President, I, too, bacco can still use corporate treasury tion, because there is no similar re- join in commending Senator FEINGOLD, funds to oppose using cigarette tax rev- striction put on any other organization Senator MCCAIN, Senator LIEBERMAN enues to promote children’s health, that I know of, including particularly and the others for their persistence and even if shareholders object. And the corporations. True, there is language perseverance in advancing sensible and National Rifle Association can oppose in the paycheck protection bill that responsible campaign finance reform to a ban on cop-killer bullets even if NRA deals with corporations, but by not the U.S. Congress, and, hopefully, we members object. But before labor even trying to cover shareholders, it is will address it in a serious way as they unions can use union funds to speak up plainly not at all equivalent to the re- have addressed this issue and do so in for working families, they would have striction on the expenditure of union the next few days. to obtain written approval from every dues. I will speak for a few moments about union member first. On the other side, McCain-Feingold, the underlying bill that is being pro- But it does not stop there. The with appreciation to its two cospon- posed, and I suggest that this bill real- antiworker Republican proposal before sors—a great example of the kind of bi- ly is a sham in terms of proposing to us today is only part of a larger, big partisanship that should exist around protect the interests of American business, right wing campaign con- here—is a practical response to the workers. spiracy to deny working families a problems that came before the Govern- The average American worker earns voice in their own Government. Al- mental Affairs Committee. The argu- $12.51 an hour, just over $26,000 a year. ready, proposals virtually identical to ments against it, with all respect, are These workers want a good retirement, this one have been introduced in 19 premised on this strange twist of prin- a decent education for their children, States as ballot initiatives or as State ciple that money is speech. safe neighborhoods and quality health legislation. The same people who I think it was my friend, the junior care. But how can they compete on fought the minimum wage and want to Senator from Georgia, who said last these issues in the political process abolish labor unions—the same people year, if money is speech under the Con- when the fat cats spend far more in one who lead the charge in the Republican stitution, that must mean that the political fundraiser or in one 30-second party for tax breaks for the rich—are more money you have, the greater is political ad than the average worker also part of this coordinated nation- your right to free speech. Is that what earns in a year? wide campaign to block workers and the Framers of the Constitution meant We must return election campaigns their unions at every turn in Wash- when they said that all of us are cre- to the people, in which all voters are ington and State capitals everywhere. ated equal, we have an equal right, un- equal, no matter what their income, A recent editorial in a Nevada paper fettered, to petition our Government? I what job they hold or where they live. says it clearly as anyone. Nevada is don’t think so. Against that specious The current system is a scandal, and one of the States where the right wing principle, money is speech, they have Democrats are ready to reform it right is pushing these initiatives. And the undercut the sacred principle of equal- now. Every Democratic Senator—every Reno Gazette journal spoke out against ity of access to our Government. single one—supports the McCain-Fein- the proposal, saying: So I say the soft money ban and the gold campaign finance bill. The burden Beware of GOP Foxes in Labor’s other limits in the McCain-Feingold now rests squarely with the Republican House....Its main purpose is not to help proposal are constitutional. In the Party. It is up to Republicans to decide workers but to weaken Democrats....This Buckley decision, the Court made it whether Congress will reform the bro- petition is not intended to benefit the com- ken campaign finance laws or continue mon man nearly as much as it is intended to clear that it is constitutional to limit benefit one specific class of politi- contributions to campaigns, and this the unseemly influence of special inter- cians....So when someone asks you to ban on soft money is just another way ests in American politics. sign this Republican petition outside your to do that. So far, all the Republican leadership favorite supermarket or elsewhere, think The fact is, as Chairman THOMPSON of in Congress proposes is more money in about what is really going on here. The scent the Governmental Affairs Committee politics, not less. They want more of special interest fills the air like a conven- said during our proceedings, effec- money from their special interest tion of skunks in the hollow. tively, there is no campaign finance friends. They want to silence working This language applies equally to the law anymore in the United States of families and the labor unions for Paycheck Protection Act that my Re- America, and the reason why the limits speaking up on issues they care about. publican friends are advocating in the on individual contributions, the prohi- That is what the Republican leadership U.S. Senate. The Republican proposal bitions on corporate and union money calls campaign finance reform. is phony reform, and it should be op- that are in the law are no longer effec- The Republican proposal purports to posed. Far from protecting the Amer- tive is mostly because of soft money. help working families by regulating ican worker, it is a prescription for dis- The PRESIDING OFFICER. The time how labor unions pay for their partici- aster for millions of Americans and requested by the Senator has expired. pation in the political process. But for their families. I oppose it. My col- Mr. LIEBERMAN. I thank the Chair working families, this proposal is leagues on this side of the aisle oppose for the very gracious way in which he grossly unfair. It is the centerpiece of it. I urge every Senator to oppose it.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S879 Senator MCCAIN and Senator FEIN- rent campaign system is their conclu- out of eligible voters since 1924. In 1924, GOLD have proposed sensible reforms to sion that campaign spending limita- the first year when women were al- ban soft money and to crack down on tions restrain speech. lowed to vote, it was a year when it campaign adds by outside interest I know the Supreme Court reached was an extraordinary count. There groups that are nothing more than that decision over 20 years ago. And I were more eligible women than actu- thinly veiled appeals to defeat par- guess there is some value that the Su- ally voted. You have to go back to 1830 ticular candidates. These are respon- preme Court Justices by and large have to find this low a turnout. sible reforms. And I urge my colleagues never been political candidates. They Mr. FEINGOLD. I yield to the Sen- to support them. have not been sullied by this nasty ator from Illinois such time as he re- I thank the Senator for yielding me process. But that decision and their quires. time. conclusion lacked any grounding in the The PRESIDING OFFICER. The Sen- Mr. FEINGOLD addressed the Chair. real world of campaigns. ator is recognized. The PRESIDING OFFICER. The Sen- The campaign system we have today, Mr. DURBIN. Thank you. ator from Wisconsin. where wealth buys speech, creates in This chart really brings home the Mr. FEINGOLD. Mr. President, I fact, if not in law, a restraint on speech issue what we are faced with. In 1960, thank the Senator from Massachusetts more insidious than any frontal assault the total amount of money spent in the for his statement, and I strongly agree on the first amendment. We give the United States of America on all Fed- with his description of what this Pay- candidates of modest means a throat eral, State and local campaigns—$175 check Protection Act is all about. It is lozenge and a soap box and give the million. Watch it grow. Watch it grow a poison pill directed at only one group wealthiest candidates the magic lan- dynamically until we get to $4 billion, in this country, which I think is clear- tern of television and all its proven the estimate of the amount spent in ly unfair. power of persuasion. The opponents to 1996 on all political campaigns. Mr. President, I now yield 5 minutes McCain-Feingold are blind to this obvi- But look what is happening to the to the distinguished Senator from Illi- ous disparity and its consequences. voters. When we are spending $175 mil- lion, 63 percent of the voters turned nois, Mr. DURBIN. Now in this debate over changing our The PRESIDING OFFICER. The Sen- campaign system, if you stay tuned out. As we get up to $4 billion in spend- ator from Illinois. today, and perhaps later in the week, ing, we are down to 49% of the voters Mr. DURBIN. Mr. President, I thank do not be surprised that the ‘‘haves’’ in showing up for the Presidential elec- the Senator for yielding to me. politics are unwilling to concede any tion year. If you were running a company and Mr. President, when I try to under- ground to the ‘‘have-nots.’’ you said to your marketing division, ‘‘I stand the logic of those who oppose If Machiavelli did not write this want you to double the advertising this bipartisan campaign finance re- axiom, he should have: ‘‘No party in budget and sell more of our product,’’ form and try to understand their power will ever willingly surrender the and they come back in the next quarter thinking, which concludes that both means by which they came to power.’’ The Republican party is and always and said, ‘‘We doubled the advertising the rich and the poor in America has been more adept at fundraising. budget and we’re selling fewer prod- should have the right to purchase mil- They seldom lose for lack of money, ucts,’’ you would have to reach one of lions of dollars in television time, my only for lack of talent or ideas. And two conclusions: something was wrong mind is drawn to a movie, the movie now we have a situation where eight with your advertising organization or ‘‘Titanic.’’ Republicans have stood up and said something is wrong with your product. What is the link between the opposi- that they are for campaign finance re- In politics there is something wrong tion to McCain-Feingold and the fate form. They deserve our praise. It took with both. of the Titanic? On the Titanic, only 5 courage for them to do it. People are sick of our advertising. It percent of the first-class women pas- JOHN MCCAIN, who has joined Senator is too negative. It is too nasty. These sengers drowned; more than 50 percent RUSS FEINGOLD, deserves that recogni- drive-by shooting ads that we have, 30- of all the women in the lowest class tion, as well as Senators CHAFEE, second ads by issue groups you never cabin drowned. SUSAN COLLINS, TIM HUTCHINSON, JIM heard of, at the last minute of a cam- Now, in the eyes of those who oppose JEFFORDS, OLYMPIA SNOWE, ARLEN paign, and candidates, myself included, McCain-Feingold, everyone on the Ti- SPECTER and FRED THOMPSON. But I spending a lot of time groveling and tanic had the right to a lifeboat. Unfor- hope we can rally some more Repub- begging for money, that does not help tunately, they would have to conclude, lican support to join the 45 Democrats the process. It does not help our image. I guess, that those passengers in first- who are on the record for real reform. It does not encourage people to get in- class cabins were just better swimmers. Step back for a minute and ask your- volved. In fact, on the Titanic, they locked the self this question: Is the current cam- What McCain-Feingold is about is doors of the cabin class until all the paign system serving America? Not not just changing the law but changing lifeboats had been opened for first-class whether it is good for Democrat or Re- the attitude of the public toward the passengers. publican incumbents or challengers. Is political campaigns. And unless and It reminds me too of their logic that it serving America? until that happens, we face a very seri- the rich need to have their opportunity Let me show you two charts to take ous problem in this country. What to exercise free speech. It reminds me a look at. This is an interesting chart McCain-Feingold goes after in elimi- of the old case in law school or the old because it shows on this red line the nating soft money is something that story in law school that said the law, percentage of eligible voters who are has to happen. Soft money is what is in its infinite wisdom, makes it a actually registered. left after all of the restrictions on hard crime for the wealthy as well as the Back in 1964, 64 percent of eligible money have been applied. homeless to sleep under bridges. That voters actually registered. By 1996, the For those who are not well versed in gives us an insight, I think, into the number was up to 74.4 percent. That is the language of politics and campaigns, thought processes that guide those who good news, isn’t it? More Americans ‘‘soft money’’ can be corporate money, oppose this bipartisan campaign fi- are signing up to vote. We certainly it can be money that is given by a per- nance reform. want to encourage that. But look down son that exceeds any kind of limita- We have to understand what the re- here at the bottom line. Look at the tion. It can be money that is used indi- sult of the current campaign financing turnout of voters for Presidential elec- rectly to help a campaign. And that system is. It is a system without rules tions. The high number—61.92 percent sort of expenditure has just mush- and without any moral grounding. It is over here in 1964—look how high it was roomed. a system heavily weighted in favor of in comparison to those eligible to vote I am glad that the legislation of Sen- the insiders, the grifters and those who actually registered, and then look ator FEINGOLD and Senator MCCAIN is middle-age crazy millionaires who just what happens in 1996, 49.08 percent ac- going to ban soft money. I also think it cannot get the melody of ‘‘Hail to the tually turned out to vote for President. is critically important they do some- Chief’’ out of their minds. The flaw in So, 74.4 percent eligible, 49 percent thing about these issues ads. For good- their thinking in supporting the cur- turned out, the lowest percentage turn- ness sakes, as a candidate for the U.S.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S880 CONGRESSIONAL RECORD — SENATE February 24, 1998 Senate, I have to disclose every penny what I would like to say. I appreciate Tax Reform, $4.6 million. This soft raised and every penny spent. And very much the leadership of the Sen- money, then, comes from contributors when I put an ad on the air, I have to ator from Wisconsin, Senator FEIN- whose identities are often unknown— put an allocation at the bottom of each GOLD, and the Senator from Arizona, they often do not need to be disclosed— ad as to who paid for it and a little Senator MCCAIN, on this issue. contributing money in amounts that mug shot of myself so they can see my We had a lot of hearings last year would be prohibited under our federal face. about campaign finance reform: 31 days election laws, to influence a Federal But these groups that appear out of of hearings, 240 depositions, about 50 election. $4.6 million from a major po- nowhere come in, in the closing days of public witnesses, $3.5 million, 87 staff litical party to this organization, a campaign, and absolutely blister can- people. We learned about all kinds of Americans for Tax Reform. That was didates in the name of issue advocacy abuses with soft money and attack ads four times the total budget of this or- groups that do not disclose one single thinly disguised as issue advertising. ganization in the previous year. item of fact about how they raise their Well, here we have on the floor of the How was the money spent, this soft money and how they spent it. Don’t be- Senate today a piece of legislation that money raised in large undisclosed lieve for a minute that there is some says, ‘‘Let us reform the system we chunks from sources in many cases group called the ‘‘Campaign for Term have for financing campaigns.’’ prohibited from trying to spend money Limits’’ that is running around shop- One of the important pieces of this to influence Federal elections? How ping centers with kettles and bells col- reform, the centerpole for the tent, in was it used? To influence Federal elec- lecting money. This is a special inter- my judgment, is the ban on soft tions, 150 of them, to be precise—17 est group, spending literally millions money. Now, what is soft money? Peo- million pieces of mail to 150 congres- of dollars in our political process to de- ple who are not involved in political sional districts. feat candidates in the name of an issue, campaigns may not know what this You say the system isn’t broken? Mr. and you do not know a thing about term soft money means. It is the polit- President, $4.6 million? This is the them. You do not know if they are ical equivalent of a Swiss bank ac- equivalent of a political Swiss bank ac- funded by the tobacco companies, you count. Soft money is like a Swiss bank count. Large chunks of money, blowing do not know if they are funded by for- account. It is where somebody takes into the system to a group that never eign money, you do not have a clue. money that is often secret, from an un- has to disclose what it does with it. That is not fair. disclosed source, with nobody knowing And what about the issue ads which What we have in the McCain-Fein- where it comes from, how much is Senator DURBIN mentioned as well? gold bill is an effort to finally—fi- there, how it got there, and it is used These issue ads—are they ads that con- nally—bring some reality to this proc- over here in some other device, osten- tribute to this political process? ess and some sensibility to it. And it is sibly to help the political system and Eighty-one percent of them are nega- long overdue. We have to make sure not to be involved in Federal elections. tive. They represent the slash, burn that we have a bustling, free market- But what we now know from the range and tear faction of the political sys- place of ideas. But the evidence is com- of campaigns that have gone on in re- tem. Get money, get it in large chunks pelling that political megamergers of cent years is soft money is a legalized from secret sources and put some issue special interest groups like the NRA, form of cheating that has been used to ads on someplace and try to tear some- Right to Life, Americans for Tax Re- affect Federal campaigns all across body down. form, Chamber of Commerce, and even this country. Let’s discuss one group, and one ad in the AFL–CIO, which has clearly sup- The total amount of soft money particular. Look at this scenario. ported more Democrats than Repub- raised is on the rise. In the first 6 The Citizens for Republic Education licans, all of these things are driving months of the 1993–1994 political cycle, Fund is a tax-exempt organization in- individuals with limited means and $13 million; the first 6 months of the corporated June 20, 1996, that raised middle-range incomes out of the polit- 1997–1998 cycle, $35 million. It is going more than $2 million between June and ical process. up, up, way up. the end of the year in this election To argue passionately as we have in Some say there is not a problem of year—$1.8 million of which was raised America for ‘‘one man, one vote’’ as a campaign finance and we don’t need a between October 1 and November 15. pillar of democracy and ignore the reform. Take a look at this political They spent $1.7 million after October 11 gross disparity of resources available inflation index. At a time when wages and before the election in a matter of a to pursue that vote is elitist myopia. have risen 13 percent in 4 years, edu- couple of weeks. Remember, these I rise in support of this bill. And I cation spending rose 17 percent, the funds are not intended to influence hope that those who do support real spending on politics in this country Federal elections, but here’s all this campaign finance reform will not fall rose 73 percent. There is too much money being spent in just three weeks for proposals and poison pill amend- money in politics. before the election. ments which will basically scuttle this Some say money is speech and we You be the judge. Consider the fol- effort. We have a rare opportunity to like free speech. That is the political lowing, and then you tell me whether win back the American people and golden rule. I guess those who have the these were intended to influence a Fed- their confidence in our process. Defeat- gold make the rules. eral election. The vast majority of the ing McCain-Feingold by procedural I suppose if I was part of a group that money was spent after October 11 in an tricks and any other mechanism that had a lot more money than anybody election year. The group didn’t come they dream up is really not serving the else I suppose there would be an in- into existence until June of the elec- future of this country and the future of stinct deep inside to try to persuade tion year. The group never had any our Republic. So I stand in strong sup- you to say this situation is great. We committees or programs, had no of- port of McCain-Feingold, and thank my not only have more money but we have fices, no staff, no chairs, no desks and colleague from Wisconsin for yielding access to more money than anyone else no telephones. All it had was millions this time. in the history of civilization. Why of dollars to pump into attack ads. Mr. FEINGOLD addressed the Chair. would we want to change the rules? We The ads did not advocate on behalf of The PRESIDING OFFICER. The Sen- ought to change the rules because this any one set of issues. Instead, the ads ator from Wisconsin. system is broken and everybody in this were almost universally tailored to a Mr. FEINGOLD. I thank the Senator country knows it and understands it. particular unfavored candidate’s per- from Illinois for all his tremendous Let me go through some examples to ceived flaws, just like any campaign help on this issue, and now yield to the describe what is happening in this sys- attack ad would be. In fact, you could Senator from North Dakota such time tem. And both political parties have ask whether they advocate any issues as he requires. had problems in these areas, both par- at all. The PRESIDING OFFICER. The Sen- ties. Let me give one example. In 1996, Let me turn to a so-called issue ad. ator has 9 minutes 40 seconds. $4.6 million of soft money went from Senate [Candidate X] budget as Attorney Mr. DORGAN. Mr. President, the the Republican National Committee to General increased 71 percent. [Candidate X] Senator from Illinois said much of an organization called Americans for has taken taxpayer funded junkets to the

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S881 Virgin Islands, Alaska and Arizona, and Mr. MCCONNELL. I believe I have 7 NPR’s morning edition, December 3, spent about $100,000 on new furniture. Unfor- minutes, and I do want to reserve my 7 1997, on the subject we are debating tunately, as the State’s top law enforcement minutes. here today. official, he’s never opposed the parole of a Mr. DORGAN. I do want to make a Professor Kaminer said in her com- convicted criminal, even rapists and mur- ders. And almost 4,000 prisoners have been couple of final points here. We can de- mentary that morning: Protecting the act of spending money as sent back to prison for crimes committed cide to do one of two things in this we protect the act of speaking means stand- while they were out on parole. [Candidate X]: Senate on this day or this week. We ing up for the rights of the rich, something Government waste, political junkets, soft on can decide that campaign finance sys- not many self-identified progressives are crime. Call [Candidate X] and tell him to tem in this country is just fine, that eager to do. give the money back. nothing is wrong with it, that we like But the realization that money controls A political ad, paid for with soft the way it works. We can say that we the exercise of rights is hardly new. Money money from a political Swiss bank ac- think it has the respect of the Amer- translates into abortion rights, for example, count. It’s like a Swiss bank account ican people, that we think this sort of as well as speech. Indeed, liberals demand because it is from a secret source, de- nonsense that goes on is just fine and Medicaid funding for abortions precisely be- signed to be used to create attack ads, perfectly within the rules, that we cause they recognize that money insures re- to be used at election time to influence think that the growth of soft money, productive choice. Money also insures the right to run for office. Liberal support for re- Federal elections, something that, the growth of spending in campaigns in forms that provide minimum public sub- frankly, is supposed to be prohibited by this country is wonderful. We can say sidies to candidates is based on an implicit law. But this has now become the le- we think this explosion in political recognition that exercising political speech galized form of cheating. In fact, we money reflects the American people’s requires spending money. are not even sure it is legal, but it is determination to acquire more and So proposed public financing schemes are being done all across this country and more speech, and that we think the based on the fact that reformers like to it is being done with big chunks of se- American people believe, as some deny—the fact that sometimes money effec- tively equals speech. Reformers who support cret money. would say, that this system works just public financing argue persuasively that can- In fact, one secret donor put up, I’m fine. didates with no money have virtually no told, $700,000 to spend on so-called issue Or we can decide that something chance to be heard in the political market- ads to influence federal campaigns. We smells in campaign finance, that some- place. They want to provide more candidates don’t even know for certain the iden- thing is wrong with campaign financ- with a financial floor, in order to insure tity of that person. And that soft ing in this country, that we see the more political speech. It is simply illogical money, that big chunk of money pro- costs of political campaigns are sky- for them to deny that a financial celing— hibited from ever affecting Federal rocketing up, up, way up because we caps on contributions and expenditures—is a races was used in this kind of adver- have people who believe they can take ceiling on political speech. It is absurd to deny that that is a cap tising to directly try and influence secret money and now use it to buy on political speech. Professor Kaminer Federal campaigns. elections. We can decide something is went on: Now, I just ask the question, is there horribly wrong with that, and we can anyone here who will stand in the Sen- decide that we know the American peo- We need campaign finance reform that re- spects speech and the democratic process; it ate with a straight face and say that ple know there is something horribly would subsidize needy candidates and impose this isn’t cheating? Anyone here who wrong with that. We can decide that it no spending or contribution limits on any- will stand with a straight face and say is in our province to do something one. this isn’t designed to affect a Federal about it, now, today, this week, this She says: election? Anybody think this is fine? month. We in Congress can do some- I’m not denying that money sometimes Go to a friend someplace that has $40 thing about this. We can do something corrupts. It corrupts everything, from poli- million and say, will you lend us $1 about it without hurting free expres- tics to religion. But if some clergymen spend million, we have these two folks we sion anywhere in this country, and the hard-earned money of their followers on don’t like—one in one State up north anywhere in our political system. No fast women and fancy cars, there are others and one in a State down south. We one who supports reform wants to re- who raise money in order to spend it on the want to put half a million into each strict free speech in this country, nor poor. While some politicians seek office for State and defeat them because they should we do that. But we can decide personal gain, others seek to implement ideas, however flawed. Money only corrupts happen to be of a political persuasion that this system is out of control, that people who are already corruptible. It is ter- we don’t like, and we don’t want them this system disserves our democratic ribly naive and misleading for reformers to serving in the U.S. Senate. If you give process, and that we must pursue a bet- label their proposals ‘‘clean election laws.’’ us $1 million we will package it in two ter way. Dirty politicians who sell access and lie to parts, half a million into each State. Senator MCCAIN and Senator FEIN- voters in campaign ads will not suddenly be- Your name will never be used. No one GOLD have proposed a piece of legisla- come clean politicians when confronted with will know you did it. We will package tion. Is it perfect? No, it is not. But it limits on contributions and spending. up these kind of 30-second slash, tear is a good piece of legislation. I am a co- Reformers are guilty of false advertising when they market campaign finance reform and burn political ads and claim they sponsor. I want this Congress to pass as a substitute for integrity. Politicians are are issue ads and they can be paid for that piece of legislation this week, corrupted by money when they are unprinci- with soft money. have the House pass it, get to con- pled. Limiting the flow of money to them Does anybody in this body believe ference and pass a piece of campaign fi- will not increase their supply of principles. this is a process that the American nance reform that will make the Amer- And, in the end, money may be less cor- people ought to respect? That this is a ican people proud. rupting than a desire for power, which can process the American people think The PRESIDING OFFICER. The Sen- engender a willingness to pander rather than makes sense? Do we really believe that ator from Kentucky has 7 minutes. lead. money is equal to speech and that any- Mr. MCCONNELL. After I use 7 min- Finally, she says: thing that we would do to change the utes, we go into recess for policy lunch- If I wanted to influence Bill Clinton, I amount and kind of money spent in the eons? would not write him a check, I’d show him a pursuit of any campaign is somehow The PRESIDING OFFICER. The Sen- poll. inhibiting the political process? ator is correct. So, Mr. President, it is the denial of I ask unanimous consent for 2 addi- Mr. MCCONNELL. Maybe a good the obvious to conclude that the limi- tional minutes. place to wrap up the morning discus- tation on the financing of campaigns or The PRESIDING OFFICER. Without sion, which I think has been a good restrictions on the ability of individ- objection, it is so ordered. one, is to call to the attention of Mem- uals or groups to amplify their message Mr. MCCONNELL. Is that off of your bers of the Senate an NPR morning is anything other than a degrading, a time? edition commentary by a woman quantification, a limitation of their The PRESIDING OFFICER (Mr. SES- named Wendy Kaminer who is a pro- ability to express themselves in our de- SIONS). The presumption would be we fessor at Radcliffe College—not exactly mocracy. And the bill that we have be- would recess at 12:32. a bastion of conservatism. This was fore us essentially seeks to weaken the

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S882 CONGRESSIONAL RECORD — SENATE February 24, 1998 parties and make it impossible for out- washy; when she believed in something, In all the legislative dust that is side groups to criticize us in proximity she stood up for it. Yet, if you listened kicked up in Washington, someone has to an election. to Republicans and Democrats alike to consider the impact of high taxes There is no chance the courts would who have come forward to praise her and spending, and speak up for the peo- uphold this, but fortunately we are not for her career, you understand that ple who pay the bills: the taxpayers. going to give them a chance to rule on something unique is happening here. When the Republican Conference met this because we are not going to pass There is so much empty praise in pol- on February 11 to outline our budget this ill-advised legislation. itics. We call one another ‘‘honorable’’ priorities for the coming year, I joined Mr. President, how much time is left? when we are not even sure that we are. many of my colleagues in stressing the The PRESIDING OFFICER. All time But in this case, people are coming for- need for continued tax relief. I did not has expired. ward to praise State Senator Penny leave the room with the belief that we I believe the Senator from Illinois Severns because she truly was unique, had abandoned the taxpayers. wants to speak on a separate subject. not just because she fought on so many Yet that is precisely what the Con- The Senator would need to make a important political issues and gave all ference’s ‘‘Outline of Basic Principles unanimous consent request. of her strength in doing that, but be- and Objectives’’ does, because under Mr. DURBIN. Mr. President, I ask cause of her last fight, which was her the Conference guidelines, tax relief for unanimous consent to speak as in personal fight against cancer, and the hard-working Americans would be morning business. fact that she just would not give up nearly impossible to achieve. The PRESIDING OFFICER. Without and would not give in. Mr. President, since its very begin- objection, it is so ordered. Breast cancer has taken a toll on her nings in the 1850s, the Republican Party has dedicated itself to the pur- f family. She lost a younger sister to breast cancer a few years ago, and her suit of individual and states’ rights and TRIBUTE TO PENNY SEVERNS OF twin sister is in remission from breast a restricted role of government in eco- ILLINOIS cancer today. Penny dedicated herself, nomic and social life. Mr. DURBIN. Mr. President, on Sat- in the closing years of her service, to In 1856, the slogan of the new party urday morning, in the early morning arguing for more medical research was ‘‘Free Soil, Free Labor, Free hours, my wife and I received a tele- when it came to breast cancer—not Speech, Free Man.’’ It is still our firm phone call that was a shock to us. A just for her family, but for everybody. belief that a person owns himself, his dear friend and close political ally of That is part of her legacy. She will be labor, and the fruit of his labor, and ours, State Senator Penny Severns of remembered for that good fight and so the right of individuals to achieve the Decatur, IL, had succumbed to cancer many others. best that is within themselves as long in the early morning hours. I have to be honest with the Pre- as they respect the rights of others. I have literally known Penny Severns siding Officer and the other Members. I The fundamental goal of the Repub- for over 25 years, since she was a col- would rather not be here at this mo- lican Party is to keep government from lege student. I followed her political ment. I would rather be in Decatur, IL, becoming too big, too intrusive, to career. We had become close and fast because in just a few hours there will keep it from growing too far out of friends. The outpouring of genuine be a memorial service for Penny Sev- control. We constantly strive to make it warmth and affection for Penny that erns. My wife will be there, and I wish smaller, waste less, and deliver more, we have heard over the last few days I could be there, too. But if there is one believing that the government cannot since the announcement of her death person in Illinois who would under- do everything for everyone; it cannot has been amazing. stand why I had to be here on the cam- ensure ‘‘social justice’’ through the re- Penny Severns was 46 years old. A paign finance reform debate, it was distribution of private income. 1 Penny Severns. I am going to miss her little over 3 ⁄2 years ago, she was run- These two different approaches of and so will a lot of people in Illinois. ning for Lieutenant Governor in the governance are indeed a choice of two State of Illinois, and she discovered Thank you, Mr. President. Mr. GRAMS addressed the Chair. futures: A choice between small gov- during the course of the campaign that ernment and big government; a choice she had breast cancer. I think most The PRESIDING OFFICER. The Sen- ator from Minnesota, Mr. GRAMS, is between fiscal discipline and irrespon- people, upon hearing that they had sibility; a choice between individual cancer, would stop in their tracks, recognized. Mr. GRAMS. I ask unanimous con- freedom and servitude; a choice be- would not take another day on the job, sent to speak up to 10 minutes as in tween personal responsibility and de- would head for the hospital and the morning business. pendency; a choice between the preser- doctor and say that the rest of this The PRESIDING OFFICER. Without vation of traditional American values could wait. But not Penny Severns. objection, it is so ordered. versus the intervention of government She announced that she was going f into our family life; a choice of long- through the chemotherapy and radi- term economic prosperity and short- ation and then would return to the WHY WE MUST RETURN ANY term benefits for special interest campaign trail. And she did. BUDGET SURPLUS TO THE TAX- groups, at the expense of the insol- I will tell you, in doing that, she in- PAYERS vency of the nation. spired so many of us because her Mr. GRAMS. Mr. President, I rise I think history has proven that when- strength, her caring, her spirit, were today to express my strong disappoint- ever we have stuck to Republican prin- just so obvious. She finished that cam- ment as my colleagues waffle on our ciples, the people and the nation pros- paign and was reelected to the State commitment to allow working Ameri- per, freedom and liberty flourish; Senate and announced last year she cans to keep a little more of their own whenever we abandon these principles was going to run for secretary of state money. for short-term political gains, it makes in our State of Illinois. She filed her I rise as well, Mr. President, to make matters far worse for both our Party petitions, and within a week or so it the case for returning any potential and our country. was discovered she had another can- budget surplus to the taxpayers. Here are two examples. Facing a $2 cerous tumor, and in December she Mr. President, I was shocked to pick billion deficit and economic recession went into the hospital to have it re- up the Washington Times on February in 1932, the Hoover Administration ap- moved. She went through the radiation 18 and find the headline ‘‘Senate GOP proved a plan to drastically raise indi- and chemotherapy afterwards and had leaders give up on tax cuts.’’ vidual and corporate income taxes. a very tough time. Unfortunately, she Having been elected on a pledge to Personal exemptions were sharply re- succumbed to the cancer in the early reduce taxes for the working families duced and the maximum tax rate in- morning hours last Saturday. of my state, the idea that we would so creased from 25 percent to 63 percent. It is amazing to me how a young quickly abandon a core principle of the The estate tax was doubled, and the Democratic State Senator like this Republican Party is a folly of consider- gift tax was restored. Yet the federal could attract the kind of friends she able proportions, one I believe would revenue declined and the nation was did in politics. Penny was not wishy- abandon good public policy. deeply in recession.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S883 President Reagan took the opposite The robust American economy and ernment is alive and well. In fact, the approach in 1981 when he enacted a 25 working Americans, not government Government is getting bigger, not percent across-the-board tax, and again action, have produced this unprece- smaller. Total taxation is at an all- in 1986 when he signed a landmark dented revenue windfall. These unex- time high. So is total Government piece of legislation to reduce the mar- pected dollars have come directly from spending. Annual Government spending ginal tax rate to a simple, two-rate in- working Americans—taxes paid by con- has grown from just $100 billion in 1962 come tax system: 15 percent and 28 per- sumers, individual labor, and invest- to $1.73 trillion today, an increase of cent. ment income. This money belongs to more than 17 times. Even after adjust- What resulted was nothing short of the American people. ment for inflation, Government spend- an economic miracle. Our nation expe- Washington should not be allowed to ing today is still more than three times rienced the longest peacetime eco- stand first in line to take that away bigger than it was 35 years ago. It will nomic expansion in American history, from American families, workers, and continue to grow to $1.95 trillion by the benefits of which we are still enjoy- job creators. It is moral and fair that 2003 nearly $2 trillion a year. In the ing today. they keep it. next 5 years, the government will Over eight years, real economic We have also heard the argument spend $9.7 trillion, much of it going to- growth averaged 3.2 percent and real that we already had a large tax cut last ward wasteful or unnecessary govern- median family income grew by $4,000, year, so there is no need for more tax ment programs. Tax relief is the right 20 million new jobs were created, un- cuts. Let me set the record straight. solution because it takes power out of employment sank to record lows, all Last year, after spending $225 billion the hands of Washington’s wasteful classes of people did better, and in unexpected revenue windfall and bust- spenders and puts it back where it can spite of lower rates, tax revenues in- ing the 1993 budget spending caps to do do the most good: with families. creased dramatically. it, the Republican Party delivered tax There is also an economic case for Mr. President, let us not forget the relief only one-third as large as what cutting taxes for working Americans. fact that the Republicans gained con- we would promised in 1994. Lower tax rates increase incentives to trol of Congress in 1994 because we Those tiny tax cuts—no more than work, save, and invest. They help to were the champions of the taxpayers— slivers, really—amounted to less than maximize the increase in family in- the American people trusted us to one cent of every dollar the federal come and improvements in standards carry out our promise when we said, government takes from the taxpayers. of living. Beyond the direct benefits to ‘‘Elect a Republican majority and we Is one cent worth of tax relief too families, tax cuts can have a substan- will work to let you keep more of the much? I do not really think so. tial, positive impact on the economy as money you earned.’’ And the President today wants to in- a whole. It was John F. Kennedy who The taxpayers elected us with the ex- crease spending by $123 billion and in- observed that: pectation that Republicans would seize crease taxes $115 billion, wiping out en- an economy hampered with high tax rates every opportunity to lessen the tax tirely—and more—the tax reduction of will never produce enough revenue to bal- ance the budget just as it will never produce burden on America’s families. 1997. enough output and enough jobs. They certainly did not elect Repub- A recent Tax Foundation study President Kennedy was able to put licans thinking we would be a collabo- shows that 1997’s tax cuts came too his theories to work in the early 1960s, rator of the President’s tax-and-spend late to stem the rising tax burden on when he enacted significant tax cuts the American families. policies—that we wouldd build a big- that encouraged one of the few periods The study finds that Federal, State ger, more expensive government at the of sustained growth we have experi- and local taxes claimed an astonishing first chance we got and completely enced since the Second World War. 38.2 percent of the income of a median abandon our promise of tax relief for Twenty years later, President Ronald two-income family making $55,000—up them. Reagan cut taxes once again. The rein- from 37.3 percent in 1996. That is about Is this the same Republican majority vigorated economy responded enthu- a 1 percent increase. that arrived in Washington in January siastically. of 1995, ready to create fundamental When we ask the Government to take Mr. President, should we save Social change in a government that had a small cut of 1 percent across the Security first or provide tax cuts first? enslaved so many working families for board they say it’s impossible. But no- My answer is that we must do both in so many years? body asked the taxpayers how they tandem. We had a very similar debate Is this the same Republican majority were going to manage to pay another last year about whether we should bal- that promised the American people percent more of their income in taxes. ance the budget first and provide tax that there was no turning back to the They either had to reduce their spend- cuts later. The truth is we can abso- era of big government and higher ing or make do without. But the Fed- lutely do both at the same time, as taxes? Is this the same Republican ma- eral Government doesn’t have to do long as we have the political will to jority that I was so proud to be part of? that. Federal taxes under President enact sound fiscal policies. It has been tremendously dis- Clinton consumed 20 percent of Amer- I agree with the Conference leader- appointing to me, and I believe the ma- ica’s entire gross domestic product in ship that reforming the Social Security jority of taxpayers, to read the recent 1997. That is the highest level since and Medicare programs to ensure their comments from those who have en- 1945, when taxes were raised to finance solvency is vitally important. Any pro- dorsed the President Clinton’s ‘‘save the enormous expenses of the Second jected budget surplus should be used Social Security first’’ gimmicks and World War. partly for that purpose. Yet, I believe are seeking to eliminate meaningful, The average American family today strongly that the Congress owes it to achievable tax cuts from the next fis- spends more on taxes than it does on the taxpayers to dedicate a good share cal year’s budget. food, clothing, and housing combined. of the surplus for tax relief. After all, As I said before on this floor, if we do If the ‘‘hidden taxes’’ that result from the Government has no claim on any not carry out the taxpayers’ agenda, the high cost of government regula- surplus because the Government did we may as well pack up our bags and tions are factored in, a family today not generate it—it will have been borne go home, because we will have failed. gives up more than 50 percent of its an- of the sweat and hard work of the And the price of that failure will fall nual income to the government. At a American people, and it therefore on the backs of those we were elected time when the combination of federal should be returned to the people in the to represent. I believe any retreat from income and payroll taxes, State and form of tax relief. that promise would be a terrible mis- local taxes, and hidden taxes consumes Our Social Security system is in seri- take. over half of a working family’s budget, ous financial trouble, a fiscal disaster- Tax relief is still critical for America the taxpayers are in desperate need of in-the-making that is not sustainable for two basic reasons—moral and eco- relief. in its present form. Simply funneling nomic. Thanks to the Clinton Administra- money back into it will not help fix the First, there is a moral case to be tion, the Democratic minority, and the problem. It will not build the real as- made for continuing tax cuts. Republicans of this Congress, big gov- sets of the funds for current and future

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S884 CONGRESSIONAL RECORD — SENATE February 24, 1998 beneficiaries and it does not address I yield the floor. preserve the integrity of our political the flaws of the current pay-as-you-go f system by inspiring within the Amer- finance mechanism. Without funda- ican people confidence that we, in fact, RECESS mental reform, using the general rev- are conducting elections and not auc- enue to pay for Social Security equals The PRESIDING OFFICER. Under tions for public offices. I believe these a stealth payroll tax increase on Amer- the previous order, the Senate will now provisions are very, very important. ican workers. I believe using part of stand in recess until the hour of 2:15. Again, I commend both Senators the budget surpluses to build real as- Thereupon, at 12:52 p.m., the Senate MCCAIN and FEINGOLD for their efforts. sets by changing the system from pay- recessed until 2:15 p.m.; whereupon, the I also commend my colleagues from go to pre-funded is the right way to go. Senate reassembled when called to the States of Vermont and Maine. Sen- The President is maintaining that order by the Presiding Officer (Mr. ator JEFFORDS and Senator SNOWE are not one penny of the surplus would be COATS). proposing another amendment which used for spending increases or tax cuts. Mr. BURNS. Mr. President, I suggest would help break the current gridlock To that, I must say Mr. Clinton is not the absence of a quorum. we have on this legislation. The Snowe- being at all truthful to the American The PRESIDING OFFICER. The Jeffords proposal also addresses the people. In his FY 1997 budget, he pro- clerk will call the roll. issue of phony advertising through bet- poses $150 billion in new spending, The legislative clerk proceeded to ter disclosure of those who are partici- which is well above the spending caps call the roll. pating in campaigns. I think their ef- Mr. FEINGOLD. Mr. President, I ask he agreed on last year. In the next five forts are commendable. years, he will raid over $400 billion unanimous consent that the order for Frankly I prefer a much more robust from the Social Security trust funds to the quorum call be rescinded. form of campaign finance reform. I be- The PRESIDING OFFICER. Without pay for his Government programs. If lieve that at the heart of our problem objection, it is so ordered. Mr. Clinton is serious about saving So- is the Supreme Court decision of Buck- cial Security, he should stop looting f ley v. Valeo, which more than 20 years the Social Security surplus to fund PAYCHECK PROTECTION ACT ago held that political campaign ex- general government programs, return penditures could not be limited. Frank- the borrowed surplus to the trust The Senate continued with the con- sideration of the bill. ly, I think the decision is wrong. Jus- funds, and withdraw his new spending tice White, who dissented from that initiatives—only then will he be quali- Mr. FEINGOLD. Mr. President, what opinion and, by the way, was the only fied to talk about saving Social Secu- is the pending business? Member of that Court with any prac- rity. The PRESIDING OFFICER. The time Wrapping up, Republicans should not is occurring equally divided on the bill tical political experience, declared allow Mr. Clinton to hold any budget until 4 p.m. quite clearly that Congress has not surplus hostage. We should continue Mr. FEINGOLD. Mr. President, I ask only the ability but the obligation to pursuing our ‘‘taxpayers’ agenda’’ and to yield 5 minutes to the Senator from protect the Republic from two great do what is right for working Ameri- Rhode Island. enemies—open violence and insidious cans. It is clear to me that returning The PRESIDING OFFICER. The Sen- corruption. part of the budget surplus to the tax- ator has that right. The Senator from Indeed, the Court in Buckley did ac- payers in the form of tax relief is the Rhode Island. cept part of that reasoning by out- right thing to do. But how should we do Mr. REED. Thank you, Mr. Presi- lawing unlimited contributions to po- it? In my view, the best way is to have dent. litical campaigns, but they maintained an across-the-board marginal tax rate Mr. President, today I rise in strong that unlimited expenditures were con- cut and eliminate the capital gains and support of the bipartisan compromise stitutionally permissible. estate taxes. This will help to improve amendment offered by Senators I believe that we should go further American competitiveness in the glob- MCCAIN and FEINGOLD. This would be than this bill proposes today. Indeed, al economy and increase national sav- reasonable but limited reform of our we have practical examples within the ings. campaign finance system, reform that United States of systems that do con- However, tax cuts will not solve the is long overdue. strain contributions and expenditures problems once and for all. The origin of This legislation would effectively in political campaigns. this evil is the tax code itself. We must change two very important issues with I was interested to note that in Albu- end the tax code as we know it and re- respect to campaign finance reform. querque, NM, since 1974, the mayor’s place it with a simpler, fairer and more First, it would ban soft money, those campaign has been limited to an ex- taxpayer-friendly tax system. unlimited, unregulated gifts by cor- penditure of $80,000, equivalent to the By creating a tax system that is porations, wealthy individuals, and salary of the mayor. I know as I go more friendly to working Americans unions to political parties. The soft around my home State of Rhode Island, and more conducive to economic money issue has created a great crisis people often ask why a candidate would growth—one based on pro-family, pro- within the electoral system of the spend more money in a campaign than growth tax relief—Congress and the United States. he or she would receive in salary to President can make our economy more Second, the bill would require those hold that office. In Albuquerque, they dynamic, our businesses more competi- who run broadcasts which expressly ad- took the rather interesting step of cap- tive, and our families more prosperous vocate the election or defeat of a can- ping expenditures to the pay of the as we approach the 21st century. didate within a certain window, 30 days mayor. Again, to omit tax cuts from this of a primary or 60 days of a general It turns out that for the last 23 years, year’s budget resolution is totally un- election, to play by the same rules ap- the Albuquerque system worked well. acceptable to Republicans seeking to plying to candidates and others who Unfortunately, last year the Albu- deliver on our commitment to return participate in political campaigns. querque law was challenged in court money to the taxpayers. I will not Thus, organizations funding such under the Buckley v. Valeo theory. Up walk away from our obligation to the broadcasts would have to disclose the until last year, the municipal law was American taxpayers to pursue a Fed- individuals and political action com- a model of not only good campaign fi- eral Government that serves with ac- mittees which fund their advertise- nance practice but of also good elec- countability and leaves working fami- ments. toral politics. A former mayor, who lies a little more of their own money at This would curtail what has become held the position during the challenge the end of the day. I intend to make an explosion throughout our American said, ‘‘No one’s speech was curtailed, good on my promise to the taxpayers, political system. Phony issue adver- no candidates were excluded, the sys- and I urge my fellow Republicans, espe- tisements are unconstrained, cropping tem worked well.’’ cially our leadership, in the strongest up suddenly, without attribution, to I hope we can adopt on another day terms possible, to honor your commit- strike at candidates. robust campaign finance reform that ment as well by considering meaning- These are two very important re- would begin to revise the Buckley v. ful tax relief in the budget resolution. forms which must be implemented to Valeo decision. But today we are here

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S885 to support McCain-Feingold, to take a Last fall, we had a healthy debate didates and a majority of those ads limited step forward to ensure that we about the amounts of soft money flow- were negative. go after the two most pressing prob- ing in and out of party coffers, so I am Most of the time we don’t know lems currently facing our political sys- not going to speak at length about where these ads come from or who pays tem: the prevalence of soft money and that. But without reform, we can ex- for them. All we see are vicious per- the explosion of issue advertising by pect soft money expenditures to rocket sonal attack ads which pop up on tele- third parties. These unaccountable up with no brakes. vision during a campaign and, occa- groups surreptitiously enter the race, The Court’s decision in the Colorado sionally, a follow-up newspaper article deal their blow and leave. case opens the door to unlimited inde- or report claiming credit and detailing I believe if we support today the pendent party spending on behalf of the particulars of the attack. McCain-Feingold formula, we can, in candidates running for office as long as Let me give you some examples of fact, take a step forward to ensure that those expenditures are not coordinated what I am talking about: our political system is recognized by with the candidates. This is an issue ad that ran in the last Virginia Senate election. It was people as legitimate and positive. I Prior to the Colorado decision, par- placed by a group called Americans for yield back my time. ties long supported their candidates Term Limits: The PRESIDING OFFICER. Who with hard money. Those were the regu- yields time? lated dollars. In our case, limited to Announcer: It’s a four letter word. It’s a terrible thing. It’s really a shame it’s so Mr. FEINGOLD addressed the Chair. $1,000 contribution per election. Increasingly, though, candidate advo- widespread. It’s here in Virginia. The home The PRESIDING OFFICER. The Sen- of Washington and Jefferson . . . of all ator from Wisconsin. cacy has fallen to soft money, and that places. The word is D-E-F-Y. Defy. That’s Mr. FEINGOLD. I yield 5 minutes to is money contributed in unlimited, un- what Senator X is doing. He’s defying the the senior Senator from California. regulated amounts from seldom-dis- will of the people of Virginia and America. The PRESIDING OFFICER. The Sen- closed sources. By a five to one margin, the people who pay ator from California. Increasingly, the form that soft Warner’s salary support Congressional term Mrs. FEINSTEIN. Thank you very money takes is in scurrilous, vituper- limits. Yet Warner is defying the people’s ate ads that are often far different than will on term limits—on important and need- much, Mr. President. I thank both the ed reform. Senator X has refused to sign the Senator from Arizona and the distin- reality. I believe that goes for both sides of the aisle. I think it is a scourge U.S. Term Limits Pledge and has promised guished Senator from Wisconsin for to fight against enactment of Congressional their yeoman’s work, their persever- on our American political system. term limits. An 18-year Congressional in- ance and their energy on behalf of this We have an opportunity today to say cumbent, Senator X, is defying the clearly cause. we ban soft money and to limit express expressed wishes of the people he’s supposed I am one who, in a very short period advocacy to a certain length of time to represent. Call Senator X and ask him to prior to the election so that the oppor- stop defying the will of the people on term of time, has had to raise very large limits. Your action can make a difference. amounts of money for political cam- tunity for untrue, false and often de- famatory ads is greatly reduced. If this Tell Senator X to sign the U.S. Term Limits paigns. And I am one who has watched bill were to do nothing else, I think Pledge. and seen the evolution of soft money that would be an enormous contribu- The AFL–CIO ran the following ad in and what that soft money has wrought tion to the political culture of a cam- its much publicized campaign: upon the American political system. paign. Announcer: Working families are strug- So I rise today to join with my col- One of the reasons, Mr. President, I gling. But Congressman X voted with Newt leagues in very staunchly supporting did not cast my hat in the California Gingrich to cut college loans, while giving the McCain-Feingold legislation. gubernatorial campaign is because of tax breaks to the wealthy. He even wants to Since the 1996 election, Members of eliminate the Department of Education. the specific nature of campaigns today. Congress will vote again on the budget. Tell Congress and the public have repeat- There is very little that is uplifting edly called for reform of what is, with- Congressman X, don’t write off our chil- about them. dren’s future. out question, a broken system. The McCain-Feingold bill bans soft Congress had ample opportunity to Both of these ads are clearly designed money and prohibits parties from fun- to get voters to support one can- pass this bill last October, but, shame- neling money to outside groups and fully, after so much talk, there was didate—or in both of these to oppose a would prohibit party officials from specific candidate—and both mention still no action to back it up. It should raising money for such groups. be no source of pride for this body to candidates by name. Instead, these groups—and there are Yet, both are artfully crafted to know that the public believes that Con- similar advocacy groups on both elude campaign disclosure laws because gress is all talk and no action on an sides—would have to raise money from neither use the ‘‘magic words’’ that issue that has dominated the Wash- individual contributors or from PACs would make them express advocacy ington agenda for the last year and a to raise money. and subject to campaign finance laws. half. There is nothing in the bill barring The ‘‘magic words’’ outlined in a foot- Now we have an opportunity to put these groups from continuing to par- note on the Buckley case are ‘‘vote our votes where our mouths are when ticipate in campaigns, but the bill does for,’’ ‘‘elect,’’ ‘‘support,’’ ‘‘cast your it comes to campaign spending reform prohibit these outside groups from ballot for,’’ ‘‘Smith for Congress,’’ and, if nothing else, vote to ban soft serving as de facto party adjuncts fund- ‘‘vote against,’’ ‘‘defeat,’’ and ‘‘reject.’’ money. ed by the parties. McCain-Feingold modernizes the def- It is interesting to read the news- Also, this bill does nothing to pre- inition of express advocacy and adds to papers where Member of Congress after vent individuals from making unlim- its current definition the criterion of Member of Congress admits to the vi- ited contributions to advocacy groups, using a candidates name in advertise- cissitudes and the problems of soft it merely requires them to report their ments within 60 days of an election. money. For the first 6 months of 1997, contributions. What this means is that campaign the Republican Party raised $21.7 mil- UNREGULATED SPENDING advertisements that use a candidate’s lion and the Democrats $13.7 million. This brings me to the critical issue of name within 60 days of the election Both of these figures are increases over unregulated spending. This is, essen- would be considered express advocacy the 1995–1996 cycle, and both are sure to tially, unlimited and undisclosed soft and could not be funded with unregu- rise in the coming months. money spent outside the party system. lated and undisclosed money. While many in this body would like A study released last fall by the Instead, groups wanting to expressly to see stronger legislation, and some Annenberg Public Policy Center esti- advocate the election or defeat of an would like to see no legislation at all, mated that over two dozen independent identified candidate would have to it is important to note that McCain- groups spent between $135 million to abide by federal campaign finance Feingold is essentially a stripped-down $150 million on so-called issue adver- laws, raise hard money to fund their bill, pared to address a number of the tising during the 1996 election cycle. attacks and disclose the donors. most pressing issues. The most impor- Of the ads that were reviewed, 87 per- Will this have a dramatic impact? tant aspect is soft money. cent mentioned clearly identified can- The answer is unequivocally yes.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S886 CONGRESSIONAL RECORD — SENATE February 24, 1998 Candidate ads that name names and speech. We are all aware of the Court’s hard-earned money go to Washington run within 60 days of the election will guarantee in Buckley that spending is to support what they think is a waste- be recognized for the express advocacy the equivalent of speech. With the ex- ful Federal bureaucracy. they are and would be subject to fund- ception of banning parties receiving They care about their future, wheth- ing limits and reporting requirements. soft money, nothing in this bill limits er they can save enough money to issue ads meant to educate voters on how much can be spent on campaigns. someday retire and whether they have the issues will still be permitted as This legislation seeks to hold can- affordable health care. What they do long as they do not cross the line. didates accountable for what they say, not care about is campaign finance re- Last month, a Wisconsin court how they say it and, most importantly, form. It isn’t a real issue at all. It is an looked at exactly this issue: if the how far unregulated special interests issue created here inside the beltway to state can crack down on advertise- are allowed to go in paying to impact try to divide and in some instances to ments clearly designed at influencing elections. conquer. the election, but that stop short of re- This bill gives Congress the oppor- Let us just suppose for a minute that questing voters to support or oppose tunity to make a real difference. I hope people really did care about campaign candidates. we will have that chance. finance reform, that they sat around The debate in the Court mirrors ex- The PRESIDING OFFICER. The 5 the dinner table at night and said, actly what the issue is here. Wisconsin minutes allocated to the Senator have ‘‘Well, dear, how was your day at the Attorney General James Doyle said in expired. office? And, oh, by the way, shouldn’t a Washington Post article: Mrs. FEINSTEIN. I thank the Chair. we reform campaign finance?’’ I doubt The heart of this issue is if you run an ad Mr. MCCONNELL. Mr. President, I that that question has been asked at that any reasonable person who looks at it yield 5 minutes to the distinguished any dinner table in America since the recognizes to be a political ad, just before an Senator from Idaho. last election—after hundreds of mil- election, in which you call a particular per- The PRESIDING OFFICER. The Sen- lions of dollars were spent by some in- son names, and use phrases like ‘‘send a mes- ator from Idaho is recognized. terests only to generate a passing ques- sage’’ to that person but do not use the Mr. CRAIG. Mr. President, I thank tion about how the system works. magic words ‘‘vote for’’ or ‘‘vote against,’’ What Americans really do need to whether you can then avoid all the basic my colleague for yielding to me. Let me, again, tell him how grateful I am know are the details of the campaign campaign finance laws that we have in the laws that are currently on the books. state. for the work he has done on the issue of You know, once you begin to explain That is what we’re looking at here campaign finance reform and the clar- ity which he has brought into the de- the laws that are out there today, their and that is exactly the issue we have eyes glaze over and they say, ‘‘Well, before us. bate which I think the American peo- ple now understand. isn’t that enough?’’ And I think they OTHER NOTEWORTHY AREAS IN THE BILL need to know about some appalling There are some other areas of the bill I say that in the context now of the discussion that goes on in this Cham- campaign practices that were used by which, I believe, enhance account- this administration in their reelection. ability for how campaign money is ber, and I also look at the news of the day. The media, I think, has really at- Now, we had a committee spend mil- spent. lions of dollars here searching out Requiring candidates to attest to the tempted to work up a bit of a feeding frenzy, showing all kinds of angles as these allegations. I use the word ‘‘alle- content of ads they fund. I would like gations.’’ My guess is the only result to see this go one step further and re- to how this issue might have divided Congress, that it has divided the mem- from it was that it diverted our atten- quire candidates to attest to the verac- tion away from other scandals beset- bers of the same party, that there is a ity of independent ads that are run on ting this administration for some pe- cry of outrage across the land as people their behalf. The problem lies not with riod of time. the candidates, but with these anony- stand up ready to storm the Capitol in They need to know what Congress mous attack ads. protest over this issue. But despite the wants to do to reform campaign fi- Leveling the playing field between media’s efforts and despite their hype, nance laws and to level the playing self-financed candidates and candidates the public really does not care about field so that neither political party has who rely on contributions. This bill this issue. In the most recent Gallup an unfair advantage over the other. prohibits parties from making coordi- poll, where people were asked about They need to know what we are going nated expenditures on behalf of can- the most important problems facing to do to make all political contribu- didates who spend more than $50,000 of the country, campaign finance reform tions voluntary so that no person, their own money. I would like to see a did not appear in the top five items on union or nonunion worker, is forced to mechanism whereby we would raise in- the list. In fact, in all honesty, Mr. pony up their money for political pur- dividual contribution limits for can- President, it did not appear at all. poses without their expressed consent didates running against self-financed The same stands true for the latest or permission. candidates. CBS News poll and the latest Time/ Is it possible that today in America Lowering the disclosure requirement CNN poll, and even the latest Battle- people are forced to contribute money for contributions to candidates from ground poll by Ed Goaes and Celinda that goes to political purposes they do $200 to $50. Lake, which is a bipartisan effort to not want? Oh, yes, Mr. President, you Requiring that any person (including balance out the issues so you cannot bet it is. And that is the issue in an political committees, i.e. unions, cor- question that it might be distorted one amendment before us. I do not care porations, and banks) making inde- way or the other. After extensive re- how the other side tries to whitewash pendent expenditures over $10,000 (ag- search of all of the major polling it, the bottom line is hundreds of thou- gregate) prior to 20 days before an elec- groups, the issue of campaign finance sands of American working men and tion, file a report with the FEC within reform did not show up as a concern women who are members of unions, 48 hours. amongst almost every American. when given the opportunity to give vol- Requiring that any person (including What is important to the American untarily, walk away from the forced political committees, i.e. unions, cor- people are issues like crime, economic contribution that goes on currently porations, and banks) making inde- health, health care, education, Social within their unions. pendent expenditures over $1,000 within Security and the moral decline of our Americans need to know what we are 20 days of an election report that ex- country. What people really care about going to do to give them complete and penditure to the FEC within 24 hours. is whether their kid will get to school immediate access to campaign con- Requiring individuals making dis- and back safely and whether the tribution records about who gives and bursements of over $50,000 annually schooling they are going to get once to whom. This prompt and full disclo- (aggregate) file with the FEC on a they get there is good and of high qual- sure of so-called ‘‘soft money’’ cam- monthly basis. ity. paign donations will make the names CONCLUSION They care about keeping their jobs of the donors immediately public and It is important to note that nothing and trying to make ends meet while allow voters to decide if the candidate in this bill prohibits any type of they watch a good portion of their is looking after their best interests.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S887 So I have suggested to you today up front. It is very clear and it is what collectively and that small group’s what I think Americans want to know informing the public and the electorate voice can become louder. And if I am and, most importantly, what Ameri- is all about. able to make my voice louder, then I cans do not want to know or do not But under the McCain-Feingold pro- can affect, under the first amendment care to know or sense no urgency in posal, it would be against the law to of the Constitution, my constitutional knowing. use soft money to pay for a sample bal- right as a free citizen of this country However, under the McCain-Feingold lot with the name of any candidate by the amplification of my voice, my plan, there would be an across-the- who is running for Congress on the ideas, and my issues in the election board ban of soft money for any Fed- same ballot that the State and local process.’’ eral election activity, Mr. President. I candidates were on. Of course, our colleague and leader feel this is a grave mistake for the po- Under McCain-Feingold, it would be on this issue, Mitch MCCONNELL, has litical process. Report it? You bet. Re- against the law to use soft money to made it so very clear by repeating con- port it promptly? You bet. Let the pay for buttons, posters, yard signs, stantly what the courts of our country American people know they have a and brochures that include the name or have so clearly said—that the right to right to know. To ban it? Well, let us the picture of a candidate for Federal participate in the political process, the talk about that for a moment. office on the same item that has the right to extend one’s voice through Let me first recognize my colleagues name or the picture of a State or a contribution is the right of free speech. who have worked hard on this issue, local candidate office on it. What you So no matter how you look at what is and let me also recognize that I think are talking about is setting up a mo- going on here on the floor, no matter they are people with a deep concern. I rass of laws to be implemented and to how pleading the cries are that major have great respect for them. I have re- be enforced that becomes nearly impos- reform is at hand, let me suggest a few spect for their tenacity and their dili- sible to do. simple rules. Abide by the laws we gence as they brought this issue to the I ask unanimous consent for an addi- have—and 99 percent of those who floor. But I just flat disagree with tional 5 minutes. enter the political process do—abide by them. And I think a good many other Mrs. BOXER. Reserving the right to those laws, and you do not walk on the of my colleagues disagree with them. object. Constitution and you guarantee the And I think there is a substantial basis The PRESIDING OFFICER. Does the right of every citizen in this country, for that disagreement. Senator from Kentucky yield the Sen- whether by individual power or by the As for the ban on soft money, I have ator from Idaho the additional 5 min- collective power of individuals coming several major reservations on how this utes? together, the insurance of free speech. measure would ultimately impact the Mr. McCONNELL. Yes. Why has the Senate rejected this current campaign finance system, not The PRESIDING OFFICER. The Sen- issue in the past? And why will they re- improving it, but creating such a hard- ator from Idaho is recognized. ject it Thursday when we finally vote ship on this country’s State and local Mr. CRAIG. Under McCain-Feingold, on this once again? Because we will not political parties that it would force it would be against the law to use soft trample on free speech. We recognize them to spend more time concen- money to conduct a local voter reg- what Americans across the board have trating on raising money in order to istration drive for 120 days before the said to us: Provide limited instruction, which we already have in major cam- exist. election. These get-out-the-vote drives, Under the McCain-Feingold proposal, which have proven to be effective tools paign finance reform over the last sev- the ban on soft money, any State and for increasing all of our parties’ inter- eral decades, and then we trust that we local party committees would be pro- ests and the public’s interests, would will be able to extend our voice in the hibited from spending soft money for simply be banned. political process, and through that our any Federal election activity. Why would we want to ban all that I freedoms, our constitutional freedoms, Right now, State and local parties re- have mentioned? Because under these will be guaranteed, and the political ceive so-called ‘‘soft money’’ from new laws in McCain-Feingold’s plan process will not be obstructed by the their national political parties. Here in State and local officials would have to bureaucracy that is trying to be cre- Washington, both the Republican Na- use hard money instead of soft money. ated here today by McCain-Feingold. Let us look at the reality of this sit- tional Committee and the Democrat And already by what I have said, the uation. Because of these new restric- National Committee receive money public is confused. What is hard tions, local party officials—say like from donors. Some of that money is money? What is soft money? How does the Republican party chairman in Cus- then distributed to the respective po- it get applied? We have the FEC that is ter County, ID,—will be forced to seek out there now trying to make rulings litical parties in counties and locales out hard money donations from local on something that happened 3, 4, 5 around this country. There are thou- businesses and individuals to fund years ago. What we are talking about sands of State, county and local party these political activities. officials who receive this financial aid. is timely reporting, not creating great- In a county of a little better than Then, under certain conditions—and er obstacles for the process. 4,000 people, this party official—who is they are clear within the law—the Most importantly, what we are talk- more than likely a volunteer—now has money is used for activities such as ing about, Mr. President, is free speech. to spend more of his or her time fund- purchasing buttons and bumper stick- It is what the majority leader has raising, not to mention the fact that ers and posters and yard signs on be- called very clearly the greatest scandal those with more money stand a better half of a candidate. The money is also in America. Well, the greatest scandal chance of winning an election. used for voter registration activities on in America is not campaign financing. Party affiliation will become insig- behalf of the party’s Presidential and The greatest scandal in America is try- nificant. vice Presidential nominees. The money ing to suggest that there is a scandal In other words, raising hard money is also used for multiple candidate bro- when it does not exist, a scandal that will become a bigger concern for these chures and even sample ballots. under anyone’s measurement just does State and local officials than ever be- Let us talk about election day. You not meet the muster. fore. And, whomever raises the most go down to the local polling site. Poll America. I have mentioned that money can then fund more political ac- Maybe it is a school or a church or an polling. And it does not work. Back tivities. American Legion hall. Sometimes home in my State, when I suggested at Mr. President, what kind of cam- there is a person standing out there town meetings that campaign finance paign finance reform is this? What are who hands you a sample ballot listing is an issue, they scratch their heads we trying to accomplish? We’ve just all of the candidates running for office and say, ‘‘Why?’’ Most importantly, added more laws to a system that is al- in your party and the other party. And today, now they are coming out and ready heavily burdened with regula- it is quite obvious some people at that saying, ‘‘No. And, Senator CRAIG, let tions, forced thousands of State and point are not yet informed. They tend me tell you why it wouldn’t work. Be- local party officials to go out and raise to vote their party. This is an assist- cause I, as an individual, am a member money, and created more confusion for ance. No subterfuge about it. It is very of a small group, and I can contribute the voters. If the point of the McCain-

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S888 CONGRESSIONAL RECORD — SENATE February 24, 1998 Feingold plan is to reform the cam- was used for purposes against their Money is flowing in from people out- paign finance system, the last thing will, it would be a violation of Federal side my State to influence an election you want to do is ban soft money. campaign law. Mr. President, this is in my State and it is flowing in huge Instead, full and immediate public commonsense legislation and it is the amounts, and it is flowing into nega- disclosure of campaign donations right thing to do. tive advertising. Mr. President, that would be a much more logical ap- Mr. President, I thank my colleague does not lift the debate. proach. from Kentucky for his leadership on We heard from the senior Senator With the help of the latest tech- this issue. from California, Mrs. FEINSTEIN, about nology, we could post this information The PRESIDING OFFICER. Who the need to raise enormous sums of on the Internet within 24-hours. Let us yields time? money. She talked about her own deci- open the records for everyone to see. Mr. MCCONNELL. Just briefly, I sion not to run for Governor because of Anyone interested in researching the thank the Senator from Idaho for his that. Let me tell you something I have integrity of a campaign, or in finding outstanding contribution to this de- said on this floor before. To raise the out the identity of the donors, or in bate. We are grateful for his knowl- amount of money that she would have looking for signs of undue influence or edgeable presentation. I thank him needed, or I need today to run for the corruption would only have to have ac- very much. I yield the floor. U.S. Senate, would come to $10,000 a cess to a computer. They could track a Mr. FEINGOLD addressed the Chair. day for 6 years including Saturday and campaign—dollar for dollar—to see The PRESIDING OFFICER. The Sen- Sunday. Now, for 3 years when I got first hand where the money is coming ator from Wisconsin. here I couldn’t bear to ask anyone for from. Mr. FEINGOLD. I yield 10 minutes, a penny because I had just come from But Mr. President, what bothers me the first 5 minutes to the Senator from a very tough race and I didn’t want to the most about the McCain-Feingold California and the following 5 minutes ask anybody for any money, so I didn’t proposal is not what is in the bill, but to the Senator from Michigan. get started for 3 years. That means I what has been left out. The PRESIDING OFFICER. The Sen- have to raise $20,000 a day for 3 years to As I said, it is—what the majority ator from California is recognized for 5 make this budget. It takes time. It leader once called—‘‘the great scandal minutes. takes effort. It is hard. It takes you in American politics * * * and the Mrs. BOXER. Thank you very much, away from the things you want to do, worst campaign abuse of all.’’ That is Mr. President. not to mention the time to think about the forced collection and expenditure Others have spoken to the merits of creative ways to solve the problems of union dues for political purposes. the McCain-Feingold bill. They have that matter to real people. Mr. President, this is nothing short done so quite eloquently. And I want to Now I agree with Senator CRAIG that of extortion. share in that praise. Reining in special- when you ask people what they care Let me make myself clear, I fully interest money is absolutely necessary. about the most, they don’t list cam- support the right of unions and union Why do I say that? Because this is a paign finance reform. They list edu- workers to participate in the political Government of, by, and for the people. cation, crime, sensible gun control, So- process. Union workers should and We learned that in school. It is one of cial Security, the environment, HMO must be encouraged to become in- bill of rights, pensions. But if you ask the first things we learned, that Gov- volved and active in the electoral proc- them, do you want your Senator to be ernment is of, by, and for the people— ess. It is no only their right but their free of conflicts or potential conflicts not a Government of, by, and for the civic responsibility. when he or she votes on the economy, special interests and the people who Back in my home state of Idaho, I votes on HMO reform, votes on the are very wealthy and the people who meet with union workers in union minimum wage, votes on sensible gun could put on pin-striped suits and come halls, on the streets, and in their control, they will say, of course, I want up here and lobby us. It is a Govern- homes. And I hear their complaints, my Senator to do what is in his or her ment of, by and for the people. It is not their anger and their outrage over how heart; I don’t want my Senator to be for sale. It must not be for sale. We their dues are being spent and mis- conflicted in this either in fact or in handled by national union officers. have an obligation to make sure that it perception. They say to me ‘‘Senator CRAIG, is not. We have an obligation to make We have a job here to do. My con- every month I am forced to pay dues sure that there isn’t even a perception stituents do care. My constituents do that are used for political purposes I that it is for sale. write me about this. My constituents don’t agree with. But what can I do? If Now, for those who say they don’t see do show up at my community meetings I speak out, they’ll call me a trouble the difference between a $5 check, a $25 and they want me to be strong for cam- maker!’’ check, even a $1,000 check versus a paign finance reform. I get sick, Mr. During the 1996 elections alone, $50,000 corporate check or a $100,000 President, when I hear people come on union bosses tacked on an extra sur- check and even a $1 million check this floor or on television and say huge charge on dues to their members in which is allowed under the current sys- money in politics is the American way. order to raise $35 million to defeat Re- tem, for those who don’t see the dif- They have actually said that—it is the publican candidates around the coun- ference, I say to them that to me, to American way. I don’t think that is the try. It is likely they used much more of this Senator, you are simply not cred- American way. I don’t think it is right the worker’s money than they re- ible. You are not credible. Even if there to say that huge money in politics is ported, but I am sure we will never find isn’t one bit of a desire on the part of the American way. I think our found- out the truth. someone giving a $1 million check, it ers would roll over in their graves. But under the Paycheck Protection sure looks that way. So we have to They didn’t write a Constitution so Act, union workers will have new and have rules in place so that we are not that the privileged few could get access exapanded rights and the final say on perceived as being a Government that or the perception of access. They how their money is being spent. The is for sale. That is the soft money. founded this Nation based on a Govern- legislation not only protects the rights Those are the huge dollars that Sen- ment of, by and for the people. I feel of union workers, but also makes it ators MCCAIN and FEINGOLD are trying sick when I hear free speech equated clear that corporations adhere to the to stop. with money. Yes, I know the Supreme same measure. By the way, those are the huge dol- Court said that. But I disagree vehe- Unions and corporations would have lars that play a big role in campaigns mently with that decision. If someone to get the permission in writing from today. Right now in Santa Barbara, wealthy has more free speech than each employee prior to using any por- CA, there is a very important race someone who is of modest income or tion of dues or fees to support political going on. Congressman Walter Capps poor, there is something wrong. activities. And, workers will have the died while in office and there is a spir- So I want to say to my friend, RUSS right to revoke their authorization at ited race to replace him, two good can- FEINGOLD, and my friend, JOHN any time. didates fighting it out on the issues. MCCAIN, thank you for your persist- Finally, employees would be guaran- Mr. President, money is flowing in ence. I say to Senators SNOWE, JEF- teed the protection that if their money from outside California into this race. FORDS, and CHAFEE, thank you for

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S889 working with us. I think we will have a going through a political action com- frame, the more telling figure for our victory here. mittee. purposes, the average cost for a win- The PRESIDING OFFICER. Under At the time that they were enacted, ning Senate race went from a little the previous agreement, 5 minutes was many people fought against those laws, more than $600,000 to $3.3 million. And yielded to the Senator from Michigan. claiming that those laws—the $1,000, some of us involved in 1996 races raised It is the understanding of the Chair the $2,000 restrictions and the other and spent a great deal more. that the time was yielded to the Sen- ones—were an unconstitutional restric- And over the last 3 election cycles ator from Massachusetts. tion of the first amendment rights to ‘‘soft money,’’ which is money not reg- Mr. KERRY. The time was yielded to free speech and free association. The ulated by federal election contribution the Senator from Michigan, but the people who opposed the current limits laws, and which largely fuels the bar- Senator from Massachusetts wanted to on laws which are supposed to be there rage of negative attack ads, has in- inquire if we could lock in a sequence if but which have been evaded through creased exponentially. In the 1988 possible. Would it be possible to ask the loopholes, the people who opposed cycle, the major parties alone raised a unanimous consent that I be permitted the law’s limits, took their case to the combined $45 million in soft money. In to proceed for 5 minutes following the Supreme Court. The Supreme Court 1992 that amount doubled—and in the Senator from Michigan? ruled in Buckley that the campaign 1995–96 cycle that figure tripled again, The PRESIDING OFFICER. Is there contribution limits were constitu- to a staggering $262 million. Initial objection? The Senator from Massachu- tional. I repeat that, because there has FEC reports show this sorry trend con- setts sought consent to follow the 5 been a lot of talk on the floor about tinues in the current cycle. minutes allocated to the Senator from limits on campaign contributions being And if Congressional Quarterly and Michigan. violations of free speech. The Supreme other sources are correct, the Major- Mr. MCCONNELL. Reserving the Court in Buckley specifically held that ity’s draft of the campaign fundraising right to object, this is off the other limits on campaign contributions were investigation of the Governmental Af- side’s time? constitutional. fairs Committee report, due out later Mr. KERRY. Unless the Senator It is unnecessary to look beyond the act’s this week, will bluntly declare that in wants to be good enough to give it to primary purpose—to limit the actuality and 1996 the federal campaign finance sys- me. appearance of corruption resulting from tem ‘‘collapsed.’’ The PRESIDING OFFICER. It ap- large individual, financial contributions—in The draft of the Minority’s portion of pears that is the case. order to find a constitutionally sufficient that report, according to the same Mr. MCCONNELL. We are under di- justification for the $1,000 contribution limi- sources, apparently continues that vided time from now until the vote? tation. Under a system of private financing of elections, a candidate lacking immense theme, stating that our dependence on The PRESIDING OFFICER. The Sen- personal or family wealth must depend on fi- large contributions from wealthy per- ator is correct. nancial contributions from others to provide sons and organizations is so great that Mr. MCCONNELL. I have no problem, the resources necessary to conduct a success- ‘‘the democratic principles underlying provided it is coming off Senator FEIN- ful campaign . . . To the extent that large our government are at risk.’’ It goes on GOLD’s time. contributions are given to security political to state, as reported by Congressional The PRESIDING OFFICER (Mr. quid pro quo’s from current and potential of- Quarterly: KEMPTHORNE). The time will be so fice holders, the integrity of our system of representative democracy is undermined . . . ‘‘We face the danger of becoming a govern- charged. ment not of the people, but of the rich, by The Senator from Michigan. Of almost equal concern is . . . the impact of the appearance of corruption stemming from the rich, and for the rich. . . . Activities sur- Mr. LEVIN. McCain-Feingold takes public awareness of the opportunities for rounding the 1996 election exposed the dark direct aim at closing the loopholes that abuse inherent in a regime of large indi- side of our political system and the critical swallowed up the election laws. In par- vidual financial contributions. . . need for campaign finance reform.’’ ticular, it takes aim at closing the soft That is the Supreme Court speaking Is it any wonder, Mr. President, that money loophole which is the 800-pound on limiting contributions and saying Americans believe that their govern- gorilla in this debate. that Congress has a right to stem the ment has been hijacked by special in- As much as some want to point the appearance of corruption which results terests—that the political system re- finger of blame at those who took ad- from the opportunities for abuse which sponds to the needs of the wealthy, not vantage of the campaign finance laws are inherent in a regime of large indi- the needs of ordinary, hard-working during the last election, there is no one vidual financial contributions. citizens—and that those of us elected to blame but ourselves for the sorry Then the court said: may be more accountable to those who state of the law. The soft money loop- Congress could legitimately conclude that financed our campaigns than to aver- hole exists because we in Congress the avoidance of the appearance of improper age Americans? Many of them sense allow it to exist. The issue advocacy influence ‘‘is also critical . . . if confidence that Congress no longer belongs to the loophole exists because we in Congress in the system of representative government people. We are witnessing a growing allow it to exist. Tax-exempt organiza- is not to be eroded to a disastrous extent.’’ sense of powerlessness, a corrosive cyn- tions spend millions televising can- Now the question is, what are we icism. The reasons for this cynicism didate attack ads before an election going to do about it? What are we and disconnect are clear. More than without disclosing who they are or going to do about the unlimited anything, Mr. President, they are the where they got their funds because we money? Now the test is us. It is time to exorbitant cost of campaigns and the in Congress allow it. quit shedding the crocodile tears, quit power of special interest money in poli- It is time to stop pointing fingers at pointing the fingers. It is time for us to tics—the special interest money used others and take responsibility for our act. It is our responsibility legisla- to campaign for elective office. Special share of the blame. We alone write the tively and it is a civic responsibility. interest money is moving and dictating laws. We alone can shut down the loop- I thank the Chair and I thank the and governing the process of American holes and reinvigorate the Federal Senator from Wisconsin for his leader- politics, and most Americans under- election laws. ship, along with Senator MCCAIN. stand that. When we enacted the Federal Elec- The PRESIDING OFFICER. Under An NBC/Wall Street Journal poll tion Campaign Act 20 years ago in re- the previous agreement the Senator finds that by a margin of 77 percent to sponse to campaign abuses in connec- from Massachusetts is recognized for 5 18 percent the public wants campaign tion with the Watergate scandal, we minutes. finance reform, because ‘‘there is too had a comprehensive set of limits on Mr. KERRY. Mr. President, the rising much money being spent on political campaign contributions. Individuals cost of seeking political office is noth- campaigns, which leads to excessive in- aren’t supposed to give more than ing less than outrageous. Last year fluence by special interests and $1,000 to a candidate per election or (1996), House and Senate candidates wealthy individuals at the expense of $20,000 to a political party. Corpora- spent more than $765 million —a 76 per- average people.’’ Last spring a New tions and unions are barred from con- cent increase since 1990 and a six-fold York Times poll found that an aston- tributing to any candidate without increase since 1976. In the same time ishing 91 percent favor a fundamental

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S890 CONGRESSIONAL RECORD — SENATE February 24, 1998 transformation of the existing system. on a proposal for campaign finance re- We need to remember that this 1976 The evidence of public discontent could form advanced by my good friends, Supreme Court decision expressly re- not be more compelling. Senators JOHN MCCAIN of Arizona and affirmed the right to ban all hard In the 1996 Presidential and Congres- RUSSELL FEINGOLD of Wisconsin. I sup- money, corporate and union political sional elections we witnessed an ap- ported their original bill, because it as- contributions in federal elections, stat- palling no-holds-barred pursuit of stun- sembled a package of meaningful re- ing that Congress had a basis for find- ning amounts of money by both parties forms that seemed to Bridge the party ing a ‘‘primary governmental interest and their candidates. And I must admit divide that has too often poisoned this in the prevention of actual corruption that in my own re-election campaign, debate and prevented any real change. or the appearance of corruption in the despite an agreement between my op- And, although its scope is now reduced, political process.’’ And the Court rec- ponent and me to limit expenditures, I continue to support this version of ognized the potential for corruption in- the amounts raised and spent were the bill, because it does move us for- herent in the large campaign contribu- staggering. ward. Throughout my years in this tions that corporations and labor orga- The American people believe—with body my goal has been the same as nizations could generate. considerable justification—that the JOHN MCCAIN’s and RUSS FEINGOLD’s: to These esteemed scholars point out scores of millions of dollars flowing get special interest money and special that the most vital statement of the from the well-to-do and from special interest access out of politics. Supreme Court came in 1990, in Austin interest organizations are not donated As we begin this debate, most of the vs. Michigan Chamber of Commerce. out of disinterested patriotism, admi- pundits tell us that true reform again The scholars tell us, and I quote, ration for the candidates, or support has no chance. My friend, the junior the Court found that corporations can be for our electoral system. They have Senator from Kentucky (Mr. MCCON- walled off from the electoral process by for- NELL) has assured us all repeatedly seen repeatedly that public policy deci- bidding both contributions and independent that McCain-Feingold is dead. Yester- expenditures from general corporate treas- sions made by the Congress and the Ex- day, however, The Washington Post, uries. Surely the law can not be that Con- ecutive Branch appear to be influenced said that ‘‘the success of this venture gress has the power to prevent corporations by those who make the contributions. depends on the stubbornness of the ad- from giving money directly to a candidate, Who can blame them, Mr. President, vocates.’’ I am proud to count myself or from expending money on behalf of a can- for believing either that those con- didate, but lacks the power to prevent them among this group which is determined from pouring unlimited funds into a can- tributions directly affect the decision- to see that real reform begins now. And making process, or, at the least, pur- didate’s political party in order to buy pre- that means continuing to work in the ferred access to him after the election. chase the kind of access for large do- coming days with all those on both nors that enables them to make their Accordingly, these professors con- sides of the aisle with the fortitude to tinue—and again, I am quoting—‘‘clos- case in ways ordinary Americans sel- keep reform alive. dom can? ing the loophole for soft money con- In a recent speech, Bill Moyers tributions is in line with the long- It is no surprise that those who profit quoted a distinguished Republican, from the current system—special inter- standing and constitutional ban on cor- former Senator Barry Goldwater, who porate and union contributions in fed- ests who know how to play the game said some ten years ago that the and politicians who know how to game eral elections and with limits on the Founding Fathers knew that ‘‘liberty size of individual’s contributions that the system—continue to try to block depended on honest elections,’’ and genuine reform. If we want to regain are not corrupting.’’ that ‘‘corruption destroyed the prime There have also been a number of ref- the respect and confidence of the requisite of constitutional liberty, an erences in this debate to the 1996 Su- American people, if we want to recon- independent legislature free from any preme Court case of Colorado Repub- nect people to their democracy, we influence other than that of the peo- lican Federal Campaign Committee vs. must get special interest money out of ple.’’ The Senator continued: FEC. These same scholars have said politics. That process begins here with To be successful, representative govern- that the bill before us. ment assumes that elections will be con- One reason the results of the Govern- trolled by the citizenry at large, not by any suggestion that [the Colorado Repub- those who give the most money. Electors lican case] cast doubt on the constitu- mental Affairs Committee’s work may tionality of a soft money ban is flatly wrong. have less impact than it should is the must believe their vote counts. Elected offi- cials must owe their allegiance to the peo- [The Colorado Republican case] did not ad- perhaps unavoidable need of each party ple, not to their own wealth or to the wealth dress the constitutionality of banning soft to highlight the sins of the other. But of interest groups who speak only for the money contributions, but rather expendi- I am not interested today in assigning selfish fringes of the whole community. tures by political parties of hard money, that is, money raised in accordance with blame, Mr. President. As our distin- Those who join JOHN MCCAIN and his guished colleague, the ranking minor- FECA’s limits. Indeed, the Court noted that hardy band could do no better than to it ‘‘could understand how Congress, were it ity Member of the Committee, Senator follow Barry Goldwater’s advice today. to conclude that the potential for evasion of GLENN has said, ‘‘There is wrong on Today’s version of McCain/Feingold the individual contribution limits was a seri- both sides.’’ Indeed, the minority draft, still correctly identifies a number of ous matter, might decide to change the stat- again as reported by Congressional glaring deficiencies in the current cam- ute’s limitations on contributions to polit- Quarterly, says the investigation paign finance system and seeks to rem- ical parties.’’ showed that: edy them. This bill should pass, Mr. Mr. President, I suggest to you that Both parties have become slaves to the President. The American people want these definitive findings on the First raising of soft money. Both parties have been these reforms. Amendment issue have settled the ar- lax in screening out illegal and improper Mr. President, because it so fas- gument. We can now move forward to a contributions. Both parties have openly sold cinates those on the other side of this healthy and productive debate within access for contributions. issue, I’d like to take a moment to ex- the boundaries our Constitution sets Mr. President, the creative minds of plain briefly why the so-called First before us. campaign managers and candidates Amendment objections to a soft money I will acknowledge that, in my judg- alike have found ways to undermine ban do not hold water. Simply put, as ment, this amendment does not go far every reform over the years. To attack a distinguished group of 124 law profes- enough. Its useful reforms are by no the problem by a piecemeal approach sors from across the country has point- means all we need. That is why, Mr. will not work. One man who knew all ed out, there is nothing in Buckley v. President, I, along with Senators about abuse of the campaign finance Valeo that even suggests a problem in WELLSTONE, GLENN, BIDEN and LEAHY, system, Richard Nixon, once said that restricting, or even banning, soft introduced S. 918, the ‘‘Clean Money, campaign finance reform cannot work money contributions. Last September, Clean Elections Act’’ last June. if it ‘‘plugs only one hole in a sieve.’’ those distinguished constitutional Like the bill before us, S. 918 also Thanks to a unanimous consent scholars, led by New York University bans soft money and takes steps— agreement last fall, we are here today, Law School Professors Ronald Dworkin stronger steps than we can take finally, to have the first real debate and Burt Neuborne, joined in a letter today—truly to rein in those phony and meaningful action in this Congress to the sponsors of this amendment. issue ads that are only thinly veiled,

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S891 election-oriented advocacy ads, many money chase and totally eliminate the not be misled by diversions and red of which are purely negative attacks. influence of private money in our cam- herrings. Understand this vote for what It would also strengthen the Federal paigns—and thereby let the people buy it is. This is the most important vote Election Commission, reduce the costs back their politicians. the 105th Congress will have cast to of campaigning in many ways, such as That day is not yet here. I am a real- date on campaign finance. by requiring free air time for can- ist. Although the grassroots work in It is, in essence, stunningly simple. didates—and it would effectively re- the vineyards of state legislatures and Because this vote will show which Sen- duce the length of campaigns. Our bill state initiative campaigns is on the ators are for real campaign finance re- contains nearly all the other solid re- march, we are not close enough to form and which Senators are against forms included in the original McCain- reach that goal in this chamber today. real campaign finance reform. Feingold bill. But today we can make a down pay- There is no place to run, and no place But fundamentally, the Clean Money ment on the debt we owe the people to hide. If a Senator is for real cam- bill creates a totally new, voluntary, who sent us here by supporting paign finance reform—for reducing the alternative campaign finance system McCain-Feingold. I support it without influence of special interest money on that removes virtually all private reservation. the key decisions of our democracy—he money—and all large private contribu- I congratulate and thank both spon- or she will vote for the McCain-Fein- tions—from federal election campaigns sors of this bill for their efforts in put- gold amendment. If a Senator votes for those who choose to participate. ting together this bill and fighting for against this amendment, no one will Let me briefly summarize our pro- it. It is good legislation. It is needed need further evidence that, despite all posal: Any Senate candidate who dem- legislation. It heads us in the right di- the lofty rhetoric about constitu- onstrates sufficient citizen support by rection. tionality, about freedom of speech, collecting a set number of $5 qualifying I commend Senator FEINGOLD for his about personal rights, and all the rest, contributions from voters in his or her hard work, his determined bipartisan- that Senator is not committed to real state is eligible for a fixed amount of ship, and his commitment to making campaign finance reform. If McCain- campaign funding from a Senate our political process a cleaner, better Feingold prevails on this vote, the ef- ‘‘Clean Election Fund.’’ To receive pub- and more democratic system. The jun- fort goes on. If the opponents of reform lic funds, a Clean Money candidate ior Senator from Wisconsin, who joined defeat this amendment, they have pre- must forego all private contributions this body after a race in which he was vailed for the 105th Congress. (including self-financing) except for a outspent three to one, has worked tire- Perhaps yesterday’s New York Times small amount of ‘‘seed money’’ (to be lessly to make real progress possible. said it best: used to secure the qualifying contribu- And I especially commend the work It is too early to predict how this fight will turn out. But when it ends, Americans will of Senator MCCAIN. All of us under- tions raised in amounts of $100 or less), know where each Senator stands on pro- and he or she must limit campaign stand the stamina it takes to assume a tecting his or her own integrity and the in- spending to the allotted amount of mission of this kind, and to stick with tegrity of government decision-making from ‘‘clean money’’ funds. Additional one’s convictions despite opposition money delivered with the intention to cor- matching funds, up to a certain limit, from friends. JOHN MCCAIN has always rupt. will be provided if a participating can- excelled as a patriot, and with this leg- I urge all my colleagues to support didate is outspent by a private money islation, he has done so again. He cou- the McCain-Feingold amendment. candidate or is the target of inde- rageously pursues a just cause. I am Mr. President, this is without any pendent expenditures. proud, once again, to stand with JOHN question the most important vote we ‘‘By placing a premium on organizing MCCAIN and support his amendment. will have had in this Congress and no rather than fundraising,’’ as Ellen Mil- Mr. President, one reason the nay- one should mistake that this vote is ler of Public Campaign has pointed out, sayers are again predicting defeat for about the First Amendment or that Clean Money Campaign Reform shifts reform is their reliance on smoke- this vote is about one genuine alter- ‘‘the priorities of electoral work back screens like the so-called ‘‘paycheck native versus another. It is really a toward those that ought to matter protection’’ proposal that is clearly de- choice between those who want to keep most in a representative democracy: signed as a poison pill to sink this re- campaign finance reform alive, those issue development and advocacy, can- form. We cannot let that effort deter who really want to vote for campaign vassing, and get-out-the-vote drives.’’ us. Nor can we ignore the plain fact finance reform, and those who don’t. And most important, once elected, that it is being pressed by the big busi- Every conversation on the Hill re- Clean Money office holders are free to ness lobbyists whom my friend RUSS flects that. There are countless quotes spend full-time on the jobs they were FEINGOLD has called ‘‘the Washington that have appeared from individuals on elected to do. The days of dialing for Gatekeepers,’’ the ones who in many the other side of the aisle in the House dollars would truly be over. cases decide who get the largest con- or Senate, talking to their colleagues This reform effort began in the State tributions. These folks, as the Senator about how this is really a vote about of Maine where in November 1996, a points out, are the ones ‘‘who transfer institutional power and the capacity to statewide Clean Money, Clean Elec- the money to the politicians and stay in power and be elected. The sim- tions initiative passed by a margin of produce the legislative votes that go ple reality is that all Americans are 56 to 44 percent. Last June Vermont’s with it.’’ coming to understand is that Repub- state legislature adopted a similar The American people must not—and I licans have a stronger finance base, measure by a two-thirds margin in the believe they will not—be fooled by they have raised more money, more Senate and by better than six to one in these attempts at sabotage. This is not easily, they pour more money into the House. Other efforts are underway a complex issue. All of us face a stark, campaigns, and money is what is decid- across the nation. In my home State of but simple choice—a choice between ing who represents people in the United Massachusetts, 2,000 volunteers col- the disgraceful status quo and an im- States of America. lected 100,000 signatures for a Clean portant step forward. Despite the ef- Last year, the House and Senate can- Money initiative—well over the num- forts to muddy the waters, we can and didates spent $765 million, a 76 percent ber needed to place it on the ballot this should prevail—especially if all those increase over 1990 and a sixfold in- fall. In thirteen other states, from hearing and reading about this debate crease from 1976. We have seen voting JOHN MCCAIN’s Arizona to Connecticut, will let their voices be heard now by in America go down from 63 percent in from Georgia to Oregon, coalitions of contacting their own Senators. 1960 to 49 percent in the last election effective grassroots advocates are all Mr. President, I want to strongly em- because increasingly Americans are working hard for Clean Money reform. phasize one point—the single most im- separated from a Government that I believe the day is coming, Mr. portant point today, in fact the only they know is controlled by the money. President, when the Congress will have important point today—as we approach The fact is that in the Common- no choice but to approve this fun- this vote on this amendment. Do not be wealth of Massachusetts where I ran damentally simple reform. It will fi- deceived by this complicated expla- for re-election last year I spent $12 mil- nally put an end to the senseless nation or that complex rationale. Do lion to run for the U.S. Senate. I had

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S892 CONGRESSIONAL RECORD — SENATE February 24, 1998 never spent more than $2.5 or $3 mil- already found permissible with respect tionally high verdicts in plaintiff liti- lion on media alone in a previous race. to hard money. The Supreme Court gation in the State. It embarrassed the That is a measure of the escalating said there that it could indeed under- State and there was a bitter fight over costs of campaigning under the system stand how Congress might ‘‘conclude it. in place today. that the potential for evasion of the in- The Trial Lawyers Association, In a recent speech, Bill Moyers dividual contribution limits was a seri- which wanted to continue to file those quoted Barry Goldwater, a leader of ous matter,’’ and might indeed ‘‘decide lawsuits and receive those big verdicts the conservative movement in this to change the statute’s limitations on opposed that legislation. It was bit- country, who reminded us 10 years ago contributions to political parties.’’ And terly fought over. Tort reform passed that the Founding Fathers knew that it’s absolutely inconsistent that we the house of representatives twice but ‘‘liberty depended on honest elections’’ should be allowed to set limits on cam- twice it failed in the Alabama State and that ‘‘corruption destroyed the paign contributions, which we are al- Senate. My opponent was the chairman prime requisite of constitutional lib- lowed to—that we are allowed to have of the senate judiciary committee, erty, an independent legislature free Federal limits on the total amount of where most of those bills died. He was from any influence other than that of contributions somebody can make— also, himself personally, a plaintiff the people’’ to be successful. $25,000—and not be able to restrict in trial lawyer. He had a plaintiff trial Senator Goldwater also said ‘‘. . . the context of soft money, the same lawyer lawsuit filed during the elec- Representative government assumes kinds of contributions. tion. He was suing somebody for fraud that elections will be controlled by the So, Mr. President, this is about during the election. That was an im- citizenry at large, not by those who power and money. And most people in portant issue. It was an issue that the give the most money. Electors must America understand precisely what is people of Alabama needed to discuss believe their vote counts. Elected offi- going on here. Our colleagues have an and know about. The Trial Lawyers As- cials must owe their allegiance to the opportunity to vote for reform, and I sociation raised, I guess, what you people, not to their own wealth or to hope they will embrace that today. If would call ‘‘soft money’’ in the amount the wealth of interest groups who they don’t, it will be clear who stands of around a million dollars to express speak only for the selfish fringes of the in the way of that reform. their views and to oppose me because I whole community.’’ The PRESIDING OFFICER. Who took a different view. So that is what this vote is about yields time? Earlier today, I saw somebody with a today. Mr. MCCONNELL. Mr. President, I chart that had an ad similar to the ad Mr. President, to those who hide be- yield 10 minutes to the distinguished that was run against me. It complained hind the First Amendment, let me Senator from Alabama. make it clear that there is nothing in Mr. SESSIONS. Mr. President, this about an attorney general—obviously, the First Amendment that prohibits a has been a great debate. I think about in a different State—and it said, ‘‘if ban on soft money or prohibits what we the abilities of those of us in this body you don’t like what he did, call his of- seek to do in this legislation. to participate in unlimited debate, and fice and complain.’’ This was their at- Simply put, a very distinguished I think it is a great thing. Great and tempt to get around some of the cam- group of 124 law professors from across free debate is a characteristic of Amer- paign expenditure rules and laws that the country has pointed out that there ican society. Unfortunately, people use existed in our country. We faced those is nothing in the 1976 Supreme Court the freedom and the money they raise ads and were frustrated by them. decision of Buckley v. Valeo that even sometimes to run negative ads. I cer- When I came here to this body, I was suggests a problem in restricting or tainly see nothing in McCain-Feingold prepared to consider what we could do banning soft money contributions. that would stop that kind of activity to fix that situation. Frankly, I was Last September, those distinguished from happening. But this is an impor- not happy with having such a sum of constitutional scholars sent a letter to tant vote. As a matter of fact, I con- money being raised and used against the sponsors of this amendment and sider it a very fundamental and crucial me in my campaign. I have given it a they said we need to remember that vote for America. lot of thought. I talked to the man- the Buckley decision expressly re- In my 1996 campaign, just over a year ager, the distinguished Senator from affirmed the right to ban all hard ago, in the primary, I faced seven Re- Kentucky, Senator MCCONNELL, and money, corporate and union political publican candidates. Two of them were others. I have done some research. I contributions in Federal elections. And multimillionaires, and two of those in- have considered the Constitution and it stated that Congress specifically has dividuals spent $1 million-plus out of what I believe is fair and just and con- a basis for finding a ‘‘primary govern- their own pockets to further their sistent with the great American de- mental interest in the prevention of ac- dream of being elected to this great mocracy of which we are a part. Based tual corruption or the appearance of body. They used most of it to attack on that, I have concluded that we must corruption in the political process.’’ me. I was attorney general, I was lead- fundamentally recognize the primacy More than twenty years ago, Mr. Presi- ing in the polls, and I took most of the of the first amendment, which provides dent, the High Court recognized the po- brunt of that. Two other individuals in to all Americans the right of free tential for corruption inherent in the that race raised or spent themselves speech. That includes the right to large campaign contributions that cor- over a half-million dollars to attempt spend money to project your views, as porations and labor organizations to put their message out to the Ala- the Supreme Court has said. To limit could generate. bama people. I spent approximately a that is a historic event and an In the more recent 1990 Supreme million dollars during that primary. I unhealthy event, in my opinion. Court case of Austin v. Michigan was outspent $5 million to $1 million in They say, ‘‘Jeff, we are not trying to Chamber of Commerce, these scholars that primary. And then in the general limit people’s free speech; we just want pointed out, ‘‘the Court found that cor- election, there was also a very vigorous to limit your speech during a cam- porations can be walled off from the and contested general election. My op- paign, just during an election cycle.’’ electoral process by forbidding both ponent spent approximately $3 million, When do people want to speak out most contributions and independent expendi- as I recall, in that race. if it is not during a campaign? Isn’t it tures from general corporate treas- One of the key parts of that race and then that people are most focused on uries.’’ one of the things that was most inter- the issues and have the greatest oppor- Mr. President, it is clear not only in esting and painful to me was that I was tunity to change the direction of their that language, but in the language of attacked and received a volume of at- country? Isn’t that when they want to Colorado Republican Federal Campaign tack ads from money that really was speak out? It certainly is. If you want Committee v. FEC—which the other raised by the Alabama Trial Lawyers to limit free speech, I say to you that side often tries to cite to the contrary Association. You see, in Alabama, the last place you want to limit it, is —there is a certainly a legitimate basis there is a contested, bitter fight over during a campaign cycle. That would for banning soft money consistent with the attempt by many in the Alabama be terribly disruptive of freedom in the other restraints that the Court has legislature to reduce the aberra- America.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S893 Now, they say, ‘‘Well, it really you have had independent expenditures 1994 elections when just 38 percent of doesn’t interfere with the first amend- or issue advocacy—either one—used all registered voters cast their ballots. ment.’’ But I was on this floor, Mr. against you and you didn’t like it, but We saw it again in 1996 when only 49 President, early last year—in March of you fully recognize that it is constitu- percent of the voting age population last year, as I recall—when the Demo- tionally protected speech, that is com- turned out to vote—the lowest propor- cratic leader and other Members of this mendable. So I thank the Senator from tion in some 72 years. body proposed—and people have forgot- Alabama for his important contribu- I have noticed in my own State of Il- ten this—a constitutional amendment tion to this debate. linois a falloff in voter participation to amend the first amendment to the Mr. FEINGOLD. Mr. President, I and turnout. In 1992, Mr. President, I U.S. Constitution, to justify their at- yield 5 minutes to the senior Senator won my election for the Senate with 2.6 tempt to control free debate in Amer- from Illinois. million votes, which represented 53 per- ica during an election cycle. It was an Ms. MOSELEY-BRAUN. I thank my cent of the total vote. By 1996, when attempt to reduce the expenditures colleague from Wisconsin. Mr. Presi- Senator DURBIN ran, he won with 2.3 during that election cycle and give this dent, I think the previous speakers million votes, which was 55 percent of Congress, incumbent politicians, the have demonstrated—speaking of the the total votes. Senator DURBIN, in right to restrict their opponents’ abil- Senator from Alabama—that this de- other words, won by a greater margin ity to campaign against them. I bate is more than just about money. It but with fewer votes cast. And if our thought that was a thunderous event. really is about our core values and citizens continue to participate in the I said at the time that I considered what kind of people we are in this electoral process in fewer and fewer that a retreat from the principles of country. numbers, the United States runs the the great democracy of which we are a The argument made on this floor risk of jeopardizing its standing as the part—as a matter of fact, the largest that money is equal to speech is to sug- greatest democracy on Earth. retreat in my lifetime, maybe the larg- gest then that the poor can’t speak as Now, campaign finance is dimin- est retreat in the history of this coun- loudly as the rich. The reality check is ishing our democracy. Consider for a try. And, amazingly, 38 Senators voted that money magnifies speech, particu- moment the fact that 59 percent of the for it. You have to have two-thirds, and larly in these times when money can respondents in the Gallup/USA Today that was not nearly enough to pass this buy technology and access to the mass poll agreed with the statement ‘‘Elec- body. But I was astounded that we media in ways that were not available, tions are for sale to whoever can raise would have that. But at least those of course, when the Constitution was the most money’’ while only 37 percent people who favored the amending of the written. To suggest that money is agreed with the statement ‘‘Elections first amendment were honest about it. equal to speech is the same thing as are won on the basis of who’s the best They knew what they were attempting saying that the rich and the poor have candidate.’’ What is causing this per- to do with election campaign finance equal rights to sleep under bridges. We ception? The people are aware that we reform, and that is to affect the ability have heard that analogy before. We are spending more on congressional of people to raise money to articulate know that is abject nonsense. So it is, campaigns than we ever have before. their views during an election cycle in my opinion, abject nonsense to sug- The Federal Election Commission has and that a constitutional change was gest that in a context in which money reported that congressional candidates needed to effect such a change. buys elections the poor have the same spent a record-setting total of $765.3 So, Mr. President, I have a lot of rights as the rich. That does not com- million in the 1996 elections. That rep- issues that could be discussed here. I port with reality. resents an incredible 71 percent in- am not going to go into any others. I The reality check is—and the people crease over the 1990 level of $446.3 mil- simply say that I believe this is a his- know that to be the case; they know lion. And those numbers do not even toric vote. I think it does, in fact, re- that right now—money plays such a take into account the massive expendi- flect our contemporary view of the im- role as to buy elections and that elec- tures of ‘‘soft money’’ by political par- portance of the right of free speech. We tions dictate the direction of our de- ties on behalf of House and Senate can- have had the American Civil Liberties mocracy. And so this debate really is didates. Union and other free speech groups op- about a crisis of inestimable proportion The average winning campaign for posing McCain-Feingold because they going to the core of what kind of de- the House cost over $673,000 in 1996. are principled in that regard. But oth- mocracy we are going to enjoy in this That’s a 30 percent increase over 1994, ers who have, in the past, been cham- country. when the average House seat cost its pions of free speech curiously are now I am very pleased that the Senate is occupant $516,000. In 1996, 94 candidates attempting to pass this legislation, again turning its attention to S. 25. It for the House spent more than a mil- which I think would restrict the ability is certainly not a perfect bill. It does lion dollars to get elected. Winning of Americans to speak out aggressively not solve all of the problems created by Senate candidates spent an average of and criticize incumbent officeholders the current state of the law. However, $4.7 million in 1996. In that year, 92 per- and attempt to remove them from of- it at least brings us a little bit closer cent of House races and 88 percent of fice and express their views in a way to the sort of comprehensive campaign Senate races were won by the can- they feel is important. finance reform that I believe we all didate who spent the most money. So, Mr. President, those are my desperately need. We have, in my opin- Forty-three of the 53 open-seat House thoughts on the matter. I will be op- ion, a responsibility to restore the races and 12 of the 14 open-seat Senate posing this legislation. As to the ques- faith of the American people in the po- races were won by the candidate who tion of union contributions, dues being litical process that our democracy is as spent the most money. used against the will of the members, equally open to the poor as it is to the One of the major factors responsible against their own views on political wealthy, that every citizen has the for these huge costs increases in the issues, I think that is something we same and equal right to participate in avalanche of negative advertising that could legislate on. Somebody said such the process of elections and, therefore, has muddied the political landscape in a change would be a ‘‘poison pill’’ for the same and equal rights to dictate recent years. Political figures have campaign finance reform. Well, it is a the direction of our Government. come to rightly expect that they will poison pill to me. I am not going to At the present time, too many people be attacked from every imaginable support any campaign reform that is feel removed from the decisions that angle come election time and are rais- going to allow somebody’s money to be affect them in their lives. Many do not ing more and more money to fend off taken and spent on political issues believe they are capable of influencing charges that often have nothing to do they may oppose. their Government’s policies. A League with the people’s business. Moreover, Mr. MCCONNELL. Mr. President, I of Women Voters’ study found that one politics has become so vicious and neg- thank the Senator from Alabama for of the top three reasons that people fail ative over the last few years that able his important contribution. It seems to to vote is the belief that their vote will public officials are leaving public serv- me that it shows real principle. When not make a difference. We saw an ex- ice and potentially outstanding can- you have been through a campaign and pression of the cynicism during the didates are choosing not to run at all.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S894 CONGRESSIONAL RECORD — SENATE February 24, 1998 These individuals know that politi- Ideally, S. 25 would place an absolute one of the pillars of our cherished de- cians today have to spend a large por- limit on the ability of candidates to mocracy—into a grotesque circus of tion of their time raising money, and fund their own campaigns. In Buckley saturation (and frequently negative) that is simply not an attractive job de- v. Valeo, the Supreme Court ruled that advertising and round-the-clock fund- scription for many people capable of limitations on candidate expenditures raising. making outstanding contributions to from personal funds place direct and S. 25 may not effect the type of far- our government. For example, in ex- substantial restrictions on their ability reaching reforms that I would like to plaining his retirement from govern- to exercise their First Amendment see, but I strongly approve of its goals ment service, former Senator Paul rights. It may be time to revisit the and spirit. The time has come for us to Simon, one of the most able individ- Buckley decision by passing legislation send a signal that we share our fellow uals ever to sit in this chamber, cited tailored closely around what the Court citizens’ concerns regarding the enor- fundraising responsibilities as a burden said. Putting the issue back in front of mous role that money has come to play that he no longer wished to bear. the Court would give it the oppor- in our political system. Passing S. 25 All of the problems associated with tunity to clarify how the position it would send that signal and would place the immense role that money plays in took in 1976 is supposed to govern cam- us on the road toward creating a sys- the electoral system have been exacer- paign finance law in the very different tem in which the people’s priorities bated in recent years by an increase in era in which we now live. would be our own. I therefore urge my the number of wealthy candidates con- In Buckley, the Court struck down a colleagues to support the bill. tributing outlandish sums to their own provision of the 1971 Federal Election I commend my colleagues, the Sen- campaigns. In 1994, for example, one Campaign Act that barred presidential ator from Wisconsin and the Senator candidate for the Senate spent a record candidates from spending more than from Arizona, for their perseverance in $29 million, 94 percent of which was his $50,000 out of personal resources. As this important area and say to the Sen- own money. During the 1996 election three distinguished law professors at ator from Wisconsin and the Senator cycle, candidates for federal office con- the University of Chicago have stated, from Arizona, this may be one stage in tributed $161 million to their own cam- it is possible that, with a new set of leg- the battle. But it seems to me that we paigns. One presidential candidate islative findings, the Court might up- have an absolute responsibility to cure helped finance his campaign with $37.4 hold a statute that imposed signifi- this corrupt system. And it is a corrupt million of his own money. Fifty-four cantly more generous limits. . . [T]he Senate candidates and 91 House can- system. It is full of mousetraps. It fa- Court might find that with a much vors people who are wealthy over peo- didates put $100,000 or more of their more generous (though not unlimited) own money into their campaigns, ei- ple who are working class, ordinary opportunity for candidates to spend ther through contributions or loans. It citizens, and it is having a diminishing their own money, the infringement of is true that in 1996 only 19 of those can- effect on our democracy and the peo- individual freedom is less severe—per- didates won their elections, but the ple’s faith in it. haps not ‘‘substantial,’’ in the Court’s fact remains that the current system I yield the floor. language. allows such candidates to drive up the Mr. FEINGOLD. I yield 5 minutes to One argument for such a provision is costs of campaigns and make it more the Senator from Washington. that an important element of the difficult for average citizens to contend The PRESIDING OFFICER. The Sen- democratic process is requiring that for political office. If we allow this ator from Washington is recognized. candidates demonstrate support from a Mrs. MURRAY. Mr. President, for the trend to continue, it won’t be long be- broad range of individuals. Legislation last 5 years we have been debating the fore only the wealthiest Americans will of this type would be similar in intent be able to fully participate in the polit- issue of campaign finance reform and to laws requiring candidates to obtain ical process. for the last 5 years we have failed to fix The time has come to reduce the role a minimum number of petition signa- the system that most Americans agree that money plays in our electoral sys- tures in order to secure a place on the is broken. I have voted for campaign tem. Besides providing elected officials ballot. Such legislation would arguably reform legislation several times now, with more time to tend to the people’s be consistent with Buckley, for in that and each time it has been killed off by business, doing so will result in fewer case the Court recognized that the gov- filibuster. Today we are once again pre- negative ads, for if a candidate has less ernment has ‘‘important interests in sented with the opportunity to do what money to spend or faces a spending limiting places on the ballot to those is right and stop the rising tide of spe- limit, he or she will have to be more candidates who demonstrate substan- cial interest money that is drowning careful about how expenditures are tial popular support.’’ Given the cru- the democratic process. made. The capacity to run fewer ads cial role that money plays in today’s We last debated the McCain-Feingold would help ensure that candidates elections, it is not unreasonable to ask campaign finance reform bill in Octo- focus on establishing a connection with the Court to extend its interpretation ber. Since that time the bipartisan the voters by using television and radio of what constitutes ‘‘substantial pop- group of Senators committed to reform time to discuss their stands on the ular support’’ into the realm of cam- has continued to work together to issues, instead of running negative ads. paign financing. build a coalition and to craft a measure S. 25 and an amendment to the bill The most effective approach to com- that is fair and offers meaningful that I understand its distinguished au- prehensive campaign finance reform change. I have been proud to support thors plan to introduce takes signifi- would be legislation establishing over- that effort. cant steps in the right direction. The all campaign spending limits. If the Changing the status quo has been an bill would ban ‘‘soft money″ contribu- Supreme Court’s decision in Buckley is uphill battle. The opponents of reform tions to national political parties and regarded as prohibiting the enactment cleverly disguise their argument. They would bar political parties from mak- of mandatory caps on overall campaign wrap themselves in the flag and pos- ing ‘‘coordinated expenditures’’ on be- spending, then we should at least cre- ture as protectors of ‘‘free speech.’’ half of Senate candidates who do not ate a system that offers candidates They make complicated and con- agree to limit their personal spending cost-reducing benefits in exchange for voluted arguments about ‘‘threats to to $50,000 per election. The proposed their voluntary compliance with such the Constitution.’’ but here’s what amendment would create a voluntary caps. The Court has made clear that they are really saying: if you have more system to provide Senate candidates such a voluntary system would be con- money, you are entitled to more influence with a 50 percent discount on television stitutional. Overall spending limits over campaigns and elections. People out costs if they agree to raise a majority would not only open up our system to there find this argument to be a cyn- of their campaign funds from their greater competition, they would help ical charade and it’s time to stop play- home states, to accept no more than 25 to shift the focus of elections from ad- ing games. percent of their campaign funds in ag- vertising to issues. Until we cap run- The opponents of reform are just not gregate PAC contributions, and to away campaign spending, we will only listening. The American people have limit their personal spending to $50,000 be working at the margins of a problem been calling for reform for years, and per election. that is turning our electoral system— now the call is louder than ever.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S895 Eighty-nine percent of the American challenge all of my colleagues to do ated as an outgrowth of Watergate, to people believe fundamental changes are the same. clean up campaign finance? This is a needed in the way campaigns are fund- Mr. President, the opponents of re- product of Watergate. If you break ed. We were elected to represent the form miss the point. In America, down what it is a PAC is—some of American people. We cannot continue money does not equal speech. More them I don’t really like because they to ignore their wishes. money does not entitle one to more stand for things I don’t like. But some The campaign system is clogged with speech. The powerful are not entitled of them I do like; for example, the Na- money, and there is no room left for to a greater voice in politics than aver- tional Right to Life PAC. They talk the average voter. The last time we de- age people. In America, everyone has about wealthy people? I look at that bated reform, I told a story of a woman an equal say in our Government. That organization and I see humble folks who sent my campaign a small con- is why our Declaration of Independence who are defending a principle that is tribution of fifteen dollars. With her starts with, ‘‘We, the people.’’ sacred to them. These are not wealthy check she enclosed a note that said, Mr. President, I believe we have people, but they are enjoying their ‘‘please make sure my voice means as made this debate way too complicated. right to speak. much as those who give thousands.’’ This issue boils down to one basic ques- I want to make one other candid ad- With all due respect, this woman is tion: Are you for reform, or against is? mission to the American people. Re- typical of the people who deserve our Are you with the people, or against publicans spend an awful lot of time at- best representation. Sadly, under the them on the need for a more healthy tacking the Democrat use of union money, compulsory union dues that are current campaign system, they rarely democracy? The votes we are taking used in attacks on Republicans. We at- do. today will show the answers to these tack their major asset. The Democrats In 1996, $2.4 billion was raised by par- questions. attack the Republicans’ major asset, ties and candidates. Let me say that Mr. President, I yield the floor. which is in some cases the use of PACs, again: $2.4 billion flowed into cam- The PRESIDING OFFICER. Who or soft money. Any campaign finance paigns all across the country and dic- yields time? reform that does not include both of tated the terms of our elections. And Mr. MCCONNELL. Mr. President, how these elements will disserve the Amer- as if that weren’t enough, hundreds of much time do I have? ican people and I will not vote for millions more were spent on so-called The PRESIDING OFFICER. The Sen- those things, because at the end of the ‘‘issue advocacy’’. Nobody knows ex- ator from Kentucky has 27 minutes re- day what will happen to America is actly how much more because these maining. what happened to Oregon in a recent ads, even though they are political, are Mr. MCCONNELL. I yield 10 minutes election cycle. unregulated. to the distinguished Senator from Or- We had a well-meaning public inter- Currently there is no disclosure re- egon. est group that, through our initiative quirement for these expenditures, there The PRESIDING OFFICER. The Sen- system, instituted a campaign finance is no ban on corporate or union money, ator from Oregon is recognized. law not unlike McCain-Feingold. It ap- and there is no limit on how much can Mr. SMITH of Oregon. Mr. President, plied to State candidates. Let me tell be spent. ‘‘Issue ads’’ frequently take I thank Senator MCCONNELL for his you what happened. Contributions to the form of negative attacks made leadership on this issue. I also thank candidates directly, were severely re- against candidates by groups that no Senator FEINGOLD and Senator MCCAIN. stricted and, in a nutshell, candidates one has ever heard of. Because of the I would like to point out to the could not raise enough money to com- current weak laws, the American peo- American people, this is not a debate municate with the people whose atten- ple don’t know who are making these between good people and bad people. I tion they were trying to get. But the charges, what their agenda is and who note, however, that many who are for money wasn’t taken out of politics; it is paying for it. The bill we are consid- this bill have stated that those who are simply left direct democracy, which is ering today would change that by against it are hiding behind the first disclosable to the public, and it went strengthening the definition of polit- amendment. I don’t propose to hide be- back into the smoke-filled rooms. Then ical advertising to include these sorts hind it. I propose to stand up today and various groups colluded and figured out of expenditures. We need more ac- defend it. Let me read to you, for the how they could influence elections, not countability, not less. RECORD, what the first amendment to with a candidate, but about a can- My first Senate campaign was a the Constitution says: didate. And they did it with the luxury grassroots effort. I was out spent near- Congress shall make no law respecting an of knowing that they were not ac- ly three-to-one by a congressional in- establishment of religion, or prohibiting the countable to the American people, they cumbent. But because I had a strong, free exercise thereof; or abridging the free- could not be held accountable, so they people-based effort, I was able to win. I dom of speech, or of the press; or the right of could say or do anything they wanted. am proud of the contributions I have the people peaceably to assemble, and to pe- So what we went through in Oregon, received for my campaign. tition the Government for a redress of griev- ances. before our State supreme court de- And I am willing to put my money clared it all a violation of the first where my mouth is. I hope to offer an We are talking about the whole sec- amendment, was a cycle whereby can- amendment to implement full disclo- ond half of this amendment, about how didates, were terribly frustrated, and sure of campaign contributions. Under people petition Government for the re- so were our citizens. In the end, I have current law, the names and addresses dress of grievances, how they speak to say, what we should be encouraging of contributors who give more than $50 about Government. It is amazing to me is not a return to the smoke-filled at a time or $200 in aggregate must be that some of those who are for this bill rooms; we should be encouraging peo- disclosed. My amendment would drop point out how money is buying offices. ple to contribute directly to candidates those numbers down to zero. Under my My friend, the Senator from Wash- and to fully disclose it. amendment every contribution to a ington, pointed out how she was out- I have to say that I have experienced PAC or a campaign must be disclosed. spent 3 to 1, but she is here! I notice this also on a personal level; I have run Having full disclosure for campaign Senator FEINSTEIN is here. She had an for the U.S. Senate twice. The first contributions is like listing the nutri- opponent who spent, I think, nearly $30 time I ran, I put a lot of my own tional facts on a candy bar: the public million of his own money! I do not yet money into the race. And, folks, I deserves to know what it’s made of. know of a President Ross Perot, though didn’t win. And then I ran again, and I But I also want to make a pledge. he’s one of the biggest advocates of did win, and I won with the contribu- Whether or not my amendment passes, this and spent millions of his own try- tions of perhaps more individual con- I still intend to tell my constituents ing to make his case. tributions than have ever been raised everything about who is contributing The point is, this is a legitimate by an Oregon candidate for Federal of- to my campaign. I will make full dis- issue for the people to decide. Then the fice in our history. So you cannot buy closure of all my contributions, no attack is made on soft money, and elections. matter how big or how small. This is PACs have become a very bad word. Do During my first election I had one my commitment, this is my pledge. I people remember that PACs were cre- conservative PAC director tell me that

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S896 CONGRESSIONAL RECORD — SENATE February 24, 1998 during January of 1996 it was the best led us, all of us in this body, on this said and how it is said is not what cam- time he could remember in Washington issue. He is knowledgeable, to say the paign finance reform should be about.’’ because there were no liberals here. least, and has been a great leader not They are correct in that assessment. They were all in Oregon, beating the only leading us on this issue but, more The National Right to Life Com- stuffings out of me. They said horrible important, leading the fight to protect mittee sent letters to Senators on Feb- things about me. I didn’t like it. It and defend the first amendment to the ruary 17 of this year saying: wasn’t fun. But you know what, I am Constitution of the United States. Title II of McCain-Feingold would radi- standing here today defending their I say with great respect for my cally expand the definition of the key legal right to say it. But don’t tie my hands friend—I know I embarrass him a little terms expenditure, contribution and coordi- nation, so as to effectively ban citizen and say I can’t respond to it, because bit—this has been one of the major de- groups from engaging in many constitu- you, the people of this country, will bates in this Congress since I have been tionally protected issue advocacy activities. then be the ones disserved by all of here, with the possible exception per- Lest you think I am singling out this. haps of the Persian Gulf war in 1991, groups that may be more inclined to be So, if you really have concluded that but this goes to the heart of the first Republican, we can also take a letter we have too much political speech in amendment. And the Senator from dated February 19 from the American this country, insist that this Chamber Kentucky stood strong day after day, Civil Liberties Union—certainly one of disenfranchise soft money and unions, sometimes by himself, I remember, the leading organizations, I would say, and then you are talking about some- leading a filibuster. I remember being not exactly ideologically with the thing. But before you do that, ask here at 5 o’clock in the morning, to the right—they characterize title II as ‘‘a yourself the question, do we talk too marching orders of my leader to be out 2-month blackout on all radio and tele- much about politics in this country? Is here in a filibuster. The Senator was vision advertising before primary and it a bad thing that we are doing? I be- right, and history will prove that he general elections.’’ lieve the answer to that is no. And if was right. So there is a great debt of The ACLU continues by noting: you want the proof of it, open up News- gratitude that I think—he may not re- Under McCain-Feingold, the only individ- week or Time or U.S. News & World alize it at the moment, but it will come uals and groups that will be able to charac- Report on any given day in any week his way. terize a candidate’s record on radio and TV and you will see the bodies of people in I want to add a few remarks to the during the 60-day period would be the can- other countries in the gutters of their debate. Much has been said and there is didate, the PACs and the media. streets, because they have not learned not too much more to add. I was some- That last point made by the ACLU is how to fight with words and not with what taken by some of the remarks of very interesting, Mr. President, be- bullets. my colleagues on the other side about cause by limiting what issue groups So, let’s be careful as we talk about special interests. We hear a lot about can say during the 60 days before an amending the most important docu- that. I think you can pretty well come election, McCain-Feingold would in- ment that we have. Don’t fall for the to the conclusion that if you don’t like crease the power of the media, which easy way out, that somehow we are not somebody’s views, they are special in- may be the reason why they have been affecting speech. We are. I have seen it terests. But if you do like their views, so silent in this debate. in Oregon and we will see it in this they are probably responsible policy We are picking and choosing what country if this passes in this form. So advocates. part of the first amendment we want to I stand today proudly, not to hide be- This is where the whole debate gets protect, and of all people, the media hind the first amendment but to defend kinds of silly. There are a lot of people should understand that. I think they do it, and thank the leader for this time, who have special interests. The Breast understand it and they are being very and I urge my colleagues to vote Cancer Institute is a special interest. silent. I was particularly taken by the against this amendment in its current Social Security recipients are special Senator from California a few moments form. interests. But I don’t get the impres- ago when she said more money by can- The PRESIDING OFFICER. The time sion that some of our folks over there didates who have access to more money of the Senator has expired. The Sen- would be labeling them special inter- is not fair. I think that is pretty much ator from Kentucky. ests in the context of what has been de- what she said. I think I characterized Mr. MCCONNELL. I thank the Sen- fined. it correctly. It is not fair or it is not ator from Oregon for his extremely val- There are many reasons why McCain- right to have people with more money uable contribution to this debate. He Feingold is the wrong approach, but I or access to more money. understands this issue very well and just want to focus on a couple and spe- What about newspapers that have has experienced both the heartbreak of cifically title II. more money than other newspapers, is defeat and the exhilaration of victory. Under title II of McCain-Feingold, it that fair? Should we restrict the New I certainly share his view that we do purports to draw a new bright line be- York Times and the Washington Post not suffer from too little political dis- tween issue ads and independent ex- 60 days out so that they can be as fair cussion in this country. We ought to be penditures. As so many have said be- as some small paper in Louisville, KY, encouraging more of it, not less. I fore, I had expenditures against me. I or Wolfeboro, NH? Maybe we ought to thank the Senator from Oregon. would have loved to have seen them off even that out. There seems to be a lot The PRESIDING OFFICER. Who the air, but I had the opportunity to re- of silence in regard to that. It is ironic yields time? The Senator from Ken- spond to them. As many have said be- that so much of the media supports tucky. fore me, however close, I made it back these restrictions on free speech of po- Mr. MCCONNELL. I yield 10 minutes because I did have the opportunity to litical candidates and groups, and even to the distinguished Senator from New respond, thanks to thousands of people more ironic is the silence. It is deaf- Hampshire. who were there to help me with con- ening. The PRESIDING OFFICER. The Sen- tributions so that I could respond. I can just imagine the cry if the Gov- ator from New Hampshire is recog- Many citizen organizations have ex- ernment tried to restrict the freedom nized. pressed strong opposition to these of the press or say how many words, as Mr. SMITH of New Hampshire. issue-advocacy provisions. The Chris- the Senator said this morning, that Thank you, Mr. President. tian Coalition, for example, in a letter Dan Rather can speak. I hear him Let me start by recognizing the dated January 28 of this year urged the speak so much I get sick of it, but it is amount of work and effort that Sen- Senate to defeat McCain-Feingold be- his right to speak, and I would cer- ator MCCONNELL, the Senator from cause ‘‘this legislation essentially re- tainly protect that right, as we are Kentucky, has done on this issue. At a quires that if a citizen or group plans doing today with our votes on the Sen- time early on, I can recall in this de- to advocate a position or report on ate floor. I hope Mr. Rather is taking bate when it seemed like this thing votes candidates have cast, they must note that we are protecting his rights may take off across America, and Sen- operate a PAC and comply with all the to speak. But I hope that they will ator MCCONNELL, even in the face of his regulatory burdens that go with it. speak to protect our rights and to pro- own tough reelection, stood firm and More Government control over what is tect the rights of others to participate

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S897 in the political process who don’t have dreds of people we help in our con- my colleagues—on both sides of the access to the national media to speak stituent offices in our States. Nobody aisle—we are once again at the brink of every day to the listeners. There are talks about them. Nobody asks them doing something to address the many thousands of people out there, and they for money. They can’t give money, in problems we have with our system for do it by contributing to a political most cases. They just want good Gov- financing election campaigns. campaign. ernment and some help. We don’t hear Thanks to the tireless efforts of our Beyond the very serious issues raised about that. If you put it out there and colleagues, Senators MCCAIN and FEIN- by the specific issue-advocacy provi- balance it out, you find there is heck of GOLD, we now know that the question sions in title II of McCain-Feingold, I a lot more people with access to us who is not whether a bill will come to the have a more general concern, and this don’t have money than people who do. floor, but whether we will pass the bill is something, Mr. President, that I Mr. MCCONNELL. Will the Senator that they have brought us. Keeping think has not really been stated firmly yield for an observation? I say to my that in mind, I want to speak a bit in this debate. friend, you know who has the most ac- today on why I support the measure be- There is a premise, and I think it is cess to us is the press. fore us. an erroneous premise, and I say this to Mr. SMITH of New Hampshire. That As an original co-sponsor of McCain- the Senator from Kentucky because I is exactly right. Feingold, I agree that what is nec- think this is something that may not Mr. MCCONNELL. The most access to essary is a comprehensive overhaul of have been brought out quite as much, us. I never heard of an editorial writer the way we conduct our campaign busi- that money is the corrupting factor complain about access of the press. ness. If we have learned anything from here, that money in and of itself cor- Have you heard that? our experiences in the last few elec- rupts. I say to the Senator, does money Mr. SMITH of New Hampshire. I have tions, it is that money has become too corrupt when we do research for can- not. As I promised you I would speak important in our campaigns. Mr. Presi- cer? Does money corrupt when we give on this at 2:15 today, it took me until dent, in the last election federal can- to charity and help millions of people? 2:30 to get here because I had four didates and their allies spent over $2 Does money corrupt when we ask for minipress conferences coming over on billion—$2 billion—in support of their more money for education, indeed, a number of issues, from Iraq to this campaigns. The McCain-Feingold bill higher education to allow kids to go to and a couple of other issues as well. currently before us, I believe, is the college, does that corrupt? I don’t I, again, commend my leader and sort of sweeping reform that we must think so. proudly, as the Senator from Oregon pass if we are to restore public trust Let me say it in another way. If I am said a few moments ago, proudly sup- and return a measure of sanity to the in a store or any American citizen is in port the first amendment. Thank you. way we finance elections. a store somewhere, and as I am walk- The PRESIDING OFFICER. Who Now each of us has his or her own ing down the aisle looking for some- yields time? perspective on what’s wrong with the thing to purchase, I see a wallet on the Mr. MCCONNELL. Let me take a mo- system. For me, Mr. President, it’s the floor. I reach down and pick up the ment and thank the Senator from New explosive cost of campaigning. When I wallet and there is $5,000 in the wallet Hampshire for his contribution to this announced in March 1997 that I would and a name. I have two options: I can debate. He has very skillfully presented not seek reelection, I said: ‘‘Democracy put the wallet in my pocket and walk the analogy. The wallet story, I think, as we know it will be lost if we con- out of the store, or I can take the wal- is a very, very important addition to tinue to allow government to become let up to the counter and give it back the debate and really says a lot about one bought by the highest bidder, for to the clerk and say, ‘‘Somebody lost what this is all about. In fact, as the the highest bidder. Candidates will their wallet. Here is the name. There is Senator from New Hampshire pointed simply become bit players and pawns $5,000 in it and you can return it.’’ out, if you are going to have much of in a campaign managed and manipu- If you use the logic that money cor- an impact on the political dialog in a lated by paid consultants and hired rupts, everybody keeps the wallet. But country of 270 million people, you have guns.’’ The problem becomes clearer everybody doesn’t keep the wallet, and to be able to amplify your voice, you when you look at specifics. In my case, the majority of Americans don’t keep have to be able to project your voice to when I first was elected to the Senate, the wallet. That is the issue here. If large numbers of citizens or your voice I spent less than $450,000—actually, the shoe fits, wear it; if money cor- isn’t very much. $437,482—on my campaign. Back then, I rupts you, maybe you shouldn’t be Of course, as the Senator from New thought that was a lot of money. If here. I have never been asked for any- Hampshire pointed out, Dan Rather, only I’d known. Mr. President, if I thing for the money. Nobody has ever Tom Brokaw and the rest certainly hadn’t decided to retire, for next year’s asked me for a vote, and I wouldn’t have more speech than we do. Nobody election I would have had to raise $4.5 give it to them and I would be insulted is suggesting that we rein them in. But million. Now, I know all about infla- if somebody thought I would, and if there are many of us who think their tion but that’s not inflation—that’s somebody thought I would then they speech is not very helpful, occasion- madness. What’s worse, I understand ought not elect me and vote for me. ally, to the political process. So I that if we continue on this path, by the That is how strongly I feel about it. thank the Senator from New Hamp- year 2025 it will cost $145 million to run Fundamentally, McCain-Feingold is shire for a very important speech. for a single Senate seat. Can any of us unconstitutional. That is the bottom Mr. SMITH of New Hampshire. If I imagine what our country will look line, as the Supreme Court said in can respond, on election night, Dan like when the only people who can af- Buckley versus Valeo, 9 to 0, liberals Rather called my election the other ford public service are people who and conservatives on the Court. way, and he was wrong. I would not have—or can raise—tens of millions of We also hear a lot about how we give have minded restricting his speech that dollars for their campaigns? I can’t special access to those who give us night, but I still support his right to imagine such a future, Mr. President— money. It is never reported in any of say it and glad he was wrong. and the time is now to make sure the stories, but yes, sure, people give Mr. MCCONNELL. I thank the Sen- things never get that bad. McCain- money and they might see me or Sen- ator for his answer. How much time re- Feingold won’t cure everything that ator MCCONNELL or Senator KEMP- maining do I have, Mr. President? ails the current system, but I support THORNE or Senator FEINGOLD, sure. But The PRESIDING OFFICER. The Sen- it because it represents a real, mean- how about the other people who we ator has 7 minutes remaining. ingful first step toward restoring a help get their Social Security checks, Mr. MCCONNELL. I reserve the re- sense of balance in our campaigns by who we meet with every day or we mainder of my time. ensuring that people and ideas—not speak to from this group or that group Mr. FORD. Mr. President, once again, money—are what matters. Specifically, who we never ask for anything, they I rise to discuss an issue that in the re- I support McCain-Feingold because it never give us anything; we just help cent past has generated lots of talk and deals with a series of disturbing issues them every day, day in and day out, not much action—campaign finance re- that have grown in importance in re- hundreds of letters we answer, hun- form. But thanks to the hard work of cent years.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S898 CONGRESSIONAL RECORD — SENATE February 24, 1998 I also agree that a primary problem credit for their work, dirty or other- tinuing debate, and to demonstrate to with the current system is the flood of wise. The only people whose speech will the American people that we are seri- ‘‘soft money.’’ But when I speak of soft be prevented by this law are people ous about cleaning up the system by money, Mr. President, I want to make who are afraid to step into the light voting for comprehensive campaign fi- it clear that we are talking about more and be seen for who they are. That, Mr. nance reform. than just the fundraising of the na- President, is what I call reform—and I Mr. KOHL. Mr. President, I rise tional parties. True—in 1996, the par- think the American people would today to voice my support for the ties raised over a quarter billion dol- agree. McCain-Feingold campaign finance re- lars in soft money, which they then Another critical issue addressed in form bill. This debate is one of the used in various ways to support their McCain-Feingold—and this is one area, most important that the Senate will candidates at every level of the ballot. I think, where we all are in nearly conduct in this session of Congress, and That’s a lot of money, but it’s only a unanimous agreement—is the question I desperately hope it will result in pas- small part of the total so-called ‘‘soft of disclosure. Currently there is too sage of meaningful campaign finance money’’ picture. That’s because soft much campaign activity—contribu- reform. money is any money that is not regu- tions and spending—that is not dis- We are beginning another mid-term lated by the Federal Election Cam- closed to the public on a regular, time- election year, and the American public paign Act. That includes national ly basis. We must commit ourselves, as is again bracing for the barrage of party money, of course, but it also in- does McCain-Feingold, to providing the money, special interest TV ads, and cludes millions of dollars raised and American people with timely and full rhetorical hyperbole that accompany spent by independent groups on so- disclosure to information about polit- modern campaigns. There is near uni- called ‘‘issue ads.’’ Thanks to the ex- ical spending, and the means by which versal belief in this nation that Con- cellent work of our colleagues on the they can access that information. Like gress should do something about our Government Affairs Committee, we many colleagues, I believe that the campaign finance laws. We hold weeks now know that many of these so-called Internet and electronic filing is the of hearings on abuses in recent elec- independent organizations, many way to make this happen; but I hope tions; we document loophole after loop- claiming tax-exempt status, are estab- we will make it clear that all campaign hole in the fabric of our laws whereby lished, operated, and financed by par- finances—including third-party issue special interest influence campaigns to ties and candidates themselves—and advocacy—are to be disclosed before we the detriment of our national interests; their finances are totally unregulated. get too worried about how such disclo- and we see meaningful, genuine reform Therefore, McCain-Feingold is mean- sure would take place. proposals twisted and maligned by ingful reform because it recognizes Mr. President, all these reforms will those same groups who are terrified at that the problem is not just ‘‘soft’’ be meaningless unless we are willing to their potential loss of power. money, it is ‘‘unregulated’’ money. do right by the Federal Election Com- This is an old-fashioned debate in The McCain-Feingold bill is also val- mission. If the FEC really is the tooth- Washington, because it’s about who has uable because it recognizes that closing less tiger that many people said it is, the power and how that power will be the party soft money loophole is not we must take at least some of the used. The McCain-Feingold bill seeks enough. The bill also addresses the blame for removing its teeth. Any bill to diffuse that power; to level the play- problem of so-called ‘‘issue advocacy’’ that makes changes to the campaign fi- ing field a little bit in federal cam- advertising. These so-called issue ads nance laws without restoring the FEC’s paigns and reduce the amount of spe- have developed as a new—and some- funding and improving its ability to cial interest money in elections. Sen- times devious—way that unregulated publicize, investigate, and punish vio- ators MCCAIN and FEINGOLD have devel- money is issued to affect elections. lations cannot truly claim the title of oped a genuine compromise plan. It is Lawyers might call it ‘‘issue advo- ‘‘reform.’’ not exactly as I would have drafted—or cacy’’, but I’m not a lawyer so I call it In conclusion, Mr. President, I know any of us, if we had that chance. It is, what it really is, ‘‘handoff funding’’. that we will not have an easy road to however, the best chance we have to re- ‘‘Handoff funding’’ is where a candidate passage of campaign finance reform pair the broken campaign finance sys- ‘‘hands off’’ spending, usually on hard- legislation. In this body there are a tem. hitting negative ads, to a supposedly number of colleagues who are opposed The modified version of the bill ad- neutral third party whose finances are to reform and aren’t afraid to speak dresses one of the fundamental prob- completely unregulated and not dis- their minds about the quote, ‘‘danger,’’ lems in the system—soft money con- closed. Now I know there are those who of reform. Mr. President, I can’t blame tributions. By banning these huge call these ads free speech. But this them. If I had the advantage of mil- sums from federal campaigns, we cor- isn’t free speech, it’s paid speech. Of lions of dollars from wealthy folks and rect many of the problems which were course we need to respect the Constitu- millions more from corporations and exposed last year in hearings before the tion, but we can’t let people hide be- special interests, I would think reform Senate Government Affairs Com- hind the Constitution for their own was dangerous, too, and I would have mittee. personal or partisan gain. McCain- to think twice before supporting a bill The bill also tries to deal with the Feingold draws this paid speech into that took away that advantage. Their growing and disturbing impact of inde- the light where not the lawyers but the opposition—whether in the public in- pendent expenditures. I believe the jury—the American people—can decide terest or their self-interest—means sponsors of the bill have achieved a which issues and which candidates they that the debate on this issue will get delicate balance in this area—cur- will support. more than a few of us into a real lath- tailing the use of this practice, while Mr. President, I want to respond just er. I’ll take that challenge, Mr. Presi- still conforming to constitutional a moment to the claim of many of my dent. Just because campaign finance boundaries. Republican colleagues that McCain- reform will be difficult, and might re- Mr. President, there is an extraor- Feingold’s issue advocacy reform some- quire each party to give up things it dinary need for reform of our election how limits free speech. That simply is cares about or simply has gotten used laws. Despite the apparent problems— not true. When this bill passes, not one to, is no reason not to pass McCain- problems that have gotten worse with ad that ran in the last election—not Feingold, and soon. every election—Congress has not one, not even the worst attack ad—will All we need to do is to roll up our passed reform. Our failure to act has be illegal. What McCain-Feingold selves and remember the wisdom of contributed to a loss of confidence, not would do is say to those candidates and that great Kentuckian Henry Clay, only in our electoral system, but in our groups who have been using ‘‘handoff who called compromise ‘‘mutual sac- democracy. funding’’ to puff themselves up or tear rifice.’’ Our way is clear, if not easy, The American public has lost faith in down their opponents—all the while but I have confidence that we will do government and its institutions. Amer- claiming that they were simply, quote, what is right to restore public con- icans feel they don’t control govern- ‘‘advocating issues’’—is that within 60 fidence in the way we fund our cam- ment because they believe they don’t days of the election they must take paigns. I look forward to the con- control elections.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S899 If you ask people who runs Wash- but the McCain-Feingold amendment is more opportunities for citizen legisla- ington, most will say ‘‘special inter- not the right approach at this time. I tors to serve. This is the kind of ap- ests.’’ People watch state officials, will say that I am disappointed that proach we need. Members of Congress, and presidential many of the people advocating reform Mr. KERREY. Mr. President, I rise candidates chase money, and believe are defending people who couldn’t live today in support of the McCain-Fein- that’s the only way to get your voice under the laws we already have. Per- gold bill, which will provide this coun- heard in Washington. They see tele- haps the best reform that we can make try with much needed campaign fi- vised campaign finance hearings, alle- immediately would be for candidates to nance reform. gations of trading contributions for ac- live within the laws we have now. The Constitution lays out the re- cess, and they think, ‘‘how could my Clearly this Administration did not do quirements for someone wanting to run voice be heard over all that cash.’’ this in 1996. for office. In order to run for Senate, Certainly, Congress is not alone to I am disturbed by two provisions. the Constitution tells us that there are blame for the current system. Voters First, the naked attempt to muzzle the 3 requirements: First, you need to be a themselves share some responsibility. free speech of citizens who want to ad- U.S. Citizen for 9 years. Second, you People routinely decry the use of nega- vocate on behalf of a candidate. This need to be at least 30 years old. Third, tive political ads, yet continually re- ‘‘reform’’ would limit the free speech of you need to live in the state whose of- spond to the content of those ads. The all American citizens. I hardly see that fice you’re running for. media, especially television stations as being ‘‘reform.’’ We put too many Three simple requirements, right? and networks, have failed to ade- limits on our citizens now, we cannot Wrong. quately inform the public of important restrict their right to participate in What the Constitution doesn’t tell policy questions. Instead of covering the political process. you is that there is a fourth require- significant issues, broadcasters often Second, this bill does nothing to stop ment. You must have an awful lot of fall back on covering the ‘‘horserace’’ the loophole that unions have exploited aspect of the campaign, or ‘‘sideshow’’ money, or at least know how to raise a for years to advocate their political po- lot of money. disagreements among candidates. sitions. It does nothing to stop the The Constitution doesn’t tell you But the ultimate responsibility rests practice of labor unions taking the this because when the framers sat in this chamber, with Congress. For dues from hard working citizens and down to draft the Constitution, they more than 30 years the growing crisis spending millions of dollars on ads to could not possibly have imagined the has been ignored. Year after year, defeat candidates. Why is it that the ridiculously large amounts of time and speeches are given, bills are intro- people who advocate reform will not money one must spend today if a per- duced, but no action is taken. permit union members to keep their son wants to be elected to office. We now have a rare opportunity, well-earned money and spend it as they For example, if you want to run for with public attention focused on this wish? Why do they oppose a separate, Senate in my home state of Nebraska, debate and this bill, to pass real cam- voluntary means for using the dues of population 1.6 million, it will cost you paign finance reform. union members? Regrettably, the an- Mr. President, we have never had a several million dollars. This means swer is that the so-called reform advo- time in our nation’s history when such that candidates must raise over $10,000 cates want to keep the liberal ads com- a pervasive problem went unanswered every week for 6 years to cover the cost ing in waves, and cut off the political by the Congress. America has met chal- of the average Senate campaign. speech of others. I cannot support that lenges such as this before, and adopted We need to stop using partisan proce- policies which strengthened our democ- under any circumstances. And what happens when we make re- dural stalling tactics and get serious racy. We have that opportunity with forms? Look at the results of the 1974 about fixing our campaign financing the bill before us. laws. We need to change the law to give The McCain-Feingold bill will help law. The reforms limited personal con- tributions from individuals, yet it power back to working families, re- restore the American public’s faith in store their faith in the process, and this institution and in all the institu- spawned PAC’s and soft money. On public financing, the taxpayers were to make democracy work again. That’s tions of government. why I rise in support of the bipartisan As some of my colleagues know, Sen- pay for the campaigns of those running bill offered by Senators MCCAIN and ator BROWNBACK and I have introduced for President—so that they would be FEINGOLD. legislation to establish an independent beyond reproach. Yet by 1996, the This bill would be a strong first step commission to reform our campaign fi- President and the Vice President spent toward making democracy work. It nance laws. This commission would be untold hours raising soft money by the seeks to solve the problem of soft similar to the Base Closure Commis- millions. From appearing at Buddhist money (money raised in an election, sion, which proposed a series of rec- Temples to renting out the Lincoln but is outside of federal campaign fi- ommendations to Congress for an up- Bedroom, to making phone calls from nance rules), not just with the political or-down vote of approval. the Oval Office, the 1974 reforms be- But I do not believe that we should came a mockery at the hands of this parties, but with the special interest take such an approach at this time. It Administration. For them to be calling groups who run attack ads, who are would be much better if Congress acted for campaign finance reform is like a completely unregulated by the system, on its own, without the help of an out- horse thief galloping down the street and whose contributors are undis- side body, to reform our election laws. warning citizens to lock their barns. It closed. It would require better disclo- It would demonstrate to the American simply doesn’t pass the straight face sure, and give more power to the F.E.C. public that Congress is serious about test. It would create incentives to keep changing the way our democracy func- III conceived, reforms can make the wealthy individuals from trying to buy tions. system worse and that is why I cannot a Senate seat. Mr. President, before I conclude, I support McCain-Feingold. If we want This is not a perfect bill, especially just want to take a moment to once real reforms, we will do the following: in the stripped-down form in which it again commend my colleague from limit soft money; equalize PAC and in- has ultimately reached the floor. I feel Wisconsin, Senator FEINGOLD. Last dividual contribution at $2500; speed that it could be improved in ways year, when we debated this bill, I said disclosure to the public; tighten the which would make it easier for average that Senator FEINGOLD truly follows in ban on contributions by non-citizens; Americans to run, win and serve, and the tradition of the great progressive and, stop the abuses by unions taking which would make incumbent senators movement in Wisconsin. That’s more dues for political purposes. Finally, we a lot less comfortable. I feel especially even true today than it was last year. should pass the ultimate reform: term strong about the need to toughen our I’m proud to serve with him, and I urge limits. system of election law enforcement, so my colleagues to support our efforts to These kinds of reforms would im- that the politicians who break the law pass this vital legislation. prove the system, empower the indi- end up paying the price. Mr. FAIRCLOTH. Mr. President, I be- vidual, stop some of the most flagrant But my colleagues and I can’t make lieve we need campaign finance reform, abuses taking place now and expand an effort to improve this bill if the

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S900 CONGRESSIONAL RECORD — SENATE February 24, 1998 other party continues with their stall- Today very wealthy special interest ing confidence that the political sys- ing tactics and prevent us from debat- groups can pump unlimited amounts of tem works on their behalf, not just on ing it. money into a political campaign. In behalf of wealthy special interests. Mr. President, Americans are frus- fact, one individual or group can at- Now it is time for use to take a real trated. It is time to get serious about tempt to buy an election. After this step to win-back the public trust—it is this debate. I know it, you know it, and bill passes, that will not longer be true. time for us to pass a tough, fair, and the American people want it. This is the one reform that will do the comprehensive Campaign Finance Re- As I’ve said before, in a Harris Poll most to give an ordinary person an form bill. That bill must accomplish last March, 83 percent of Americans equal say in who they send to Congress. three things. said they thought that special interest I support this legislation because I First, it must be strong enough to en- groups had more power than the voters. believe it represents the right kind of courage the majority if not all can- Seventy-six percent said that Congress change. While not a perfect solution, it didates for federal office to participate. is largely owned by special interest will help put our political process back Second, it must contain the spiraling groups. where it belongs: with the people. And cost of campaign spending in this coun- Our lack of action on this issue rein- it will take power away from the try. finally, and most importantly, it forces the view that Americans have of wealthy special interests that all too must control the increasing flow of un- their Government. often call the shots in our political sys- disclosed and unreported ‘‘soft-money’’ The American people are frustrated tem. that is polluting our electoral system. by our delay. They are frustrated with Let’s be clear of our goal today: we REFORM MUST REDUCE COSTS OF CAMPAIGNS the political process that appears to re- must ensure that political campaigns Under the current campaign system, spond to those with economic power are a contest of ideas, not a contest of the average cost of running for a Sen- and which, all too often, ignores the money. We need to return elections to ate seat in this country is $4 million. I needs of working men and women. the citizens of states like Montana and had to raise a little more than that They are frustrated with the rising allow them to make their own deci- during my 1996 race. That is an average cost of campaigns, with a political sys- sions, rather than letting rich Wash- of almost $2000 a day. tem which closes the door to people of ington, DC groups run attack cam- When a candidate is faced with the average means who also want to serve paigns designed to do nothing but drag daunting task of raising $12,000 a their country in the U.S. Congress. down a candidate. week—every week—for six years to They are frustrated with the millions Yet, ironically, by failing to act; by meet the cost of an average campaign, of dollars they see go into our cam- failing to pass this legislation; we will qualified people are driven away from the process. If we allow ideas to take a paigns. They are frustrated with our also be opening the door to change— back seat to a candidates ability to tendency to talk instead of act. the wrong kind of change. Our political raise money—surely our democracy is Mr. President, it is time for us to system will continue to drift in the in danger. show the American people, not with dangerous direction of special inter- ests. The numbers are proof enough. As words but with action. With a single campaign costs have risen, voter turn- vote today, Senators can act to allow Since the 1970s, when Congress last enacted campaign finance reform, spe- out has drastically fallen. Think about this issue to move front and center on that. People are spending more and the political stage. With this bipar- cial interest groups supporting both political parties have found creative more, while fewer people are voting. tisan bill, we can show the American Since 1992, money spent on campaigns people that we mean what se say when new ways, some of questionable legal- ity, to get around the intent of our has risen by $700 million dollars. In the we talk. same time period, turnout has dropped Last week in the Omaha World Her- campaign finance laws. Things like soft money, independent expenditures, from 55% to an all time low of 48%. ald, there was an op-ed piece written Mr. President, less than half the and political action committees all by Deanna Frisk, the President of Ne- country now votes in elections. What came about as a consequence of well- braska’s League of Women Voters. In does this say about our political sys- intended campaign finance reforms. laying out her reasons why all Ameri- tem? It says, quite simply, that people cans would benefit from fixing our MONTANANS WANT REFORM no longer believe that their vote campaign finance laws, Ms. Frisk said: During my last campaign, I walked counts, that they can make a dif- Campaign finance reform is about creating across Montana—over 800 miles across ference. They believe that big corpora- the kind of democracy we want to have: a de- the Big Sky State. One of the benefits tions and million dollar PACs have mocracy where citizens come first, a democ- to walking across Montana, in addition more of a say in government than the racy that is open to new faces, a democracy to the beautiful scenery, is that I hear average citizen. That perception is the that can respond with fresh ideas to the what real people in Montana think. Av- problems confronting our country. most dangerous threat facing our coun- erage folks who don’t get paid to fly to try today. Mr. President, I couldn’t agree more. Washington and tell elected officials Let me be clear—my first choice As members of the Senate, we are in a what they think. Folks who work hard, would simply be to control campaign unique position to make our govern- play by the rules, and are still strug- costs by enacting campaign spending ment work better for the American gling to get by. limits. However, the Supreme Court, in people. People are becoming more and more Buckley v. Valeo, made what I believe Let’s give every 30 year old, U.S. Cit- cynical about government. Over and was a critical mistake. izen who wants to serve his state as a over, people tell me they think that They equated money with free Member of the Senate a fighting Congress cares more about ‘‘fat cat speech—preventing Congress from set- chance. Let’s get rid of that unofficial special interests in Washington’’ than ting reasonable state-by-state spending requirement that says don’t bother the concerns of middle class families limits that everyone would have to running for office if you don’t have lots like theirs. Or they tell me that they abide by. of time and money to invest. Let’s think the political system is corrupt. WHAT’S RIGHT WITH THE BILL make the wealthy candidate who can EFFECT ON WORKING MONTANANS While I must admit this bill is not afford to dump loads of his own money Middle-class families are working perfect, it will take several crucial ac- into a campaign the exception, not the longer and harder for less. They have tions to reign in campaign spending. norm like it is today. seen jobs go overseas. Health care ex- First, this is the first bi-partisan ap- Let’s give the American people what penses rise. The possibility of a college proach to campaign finance reform in they want. Let’s end this partisan education for their kids diminished. more than a decade. bickering and pass the McCain-Fein- Their hope for a secure retirement Second, the bill establishes a system gold bill. evaporate. that does not rely on taxpayers dollars Mr. BAUCUS. Mr. President, I rise in Today, many believe that to make to work effectively. support of the important campaign fi- the American Dream a reality, you The McCain-Feingold substitute nance reform legislation that is before have to be born rich or win the lottery. would prohibit all soft money contribu- us today. Part of restoring that dream is restor- tions to the national political parties

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S901 from corporations, labor unions, and heard a group of Senators talking is pretty clear that people do care wealthy individuals. among themselves about how wonder- about this issue. Just talk to them The bill offers real, workable enforce- ful the seemingly permanent campaign about it. Trying to get it to show up on ment and accountability standards. is. Well today we have a chance to do a poll is one thing, but if you talk to Like lowering the reporting threshold something about it. The McCain-Fein- them, you will find a different story. for campaign contributions from $200 gold bill won’t fix everything, but it That is particularly true when Amer- to $50. It increases penalties for know- will be the most significant step in the icans are told the facts or learn the ing and willful violations of FEC law. right direction in a long, long time. facts about our current system that it And the bill requires political adver- This bill also takes on one of the actually affects average Americans tisements to carry a disclaimer, identi- greatest threats that has developed in who may not even care a great deal fying who is responsible for the content recent years to the quality of our na- about being involved in the political of the campaign ad. tion’s public dialogue, the recent rash process. Every election year, in addition to of so-called ‘‘independent expenditure I heard today on the floor a number the millions of dollars in disclosed con- campaigns.’’ of opponents of our bill assert this tributions, there are the hundreds of Political campaigns ought to be an issue has no impact on the average cit- millions in unreported, undisclosed opportunity for people who want to izen. Although I recognize many Amer- contributions spent by ‘‘independent serve in public office to not only ex- icans do not think this issue is the No. expenditure’’ campaigns and ‘‘issue ad- plain themselves, but to listen and 1 issue in America, Americans do care vocacy’’ advertisements. These ads are learn. I have tried when running for of- about this issue because it does affect funded by soft-money contributions to fice to spend as much time as possible their daily lives in real ways. national political parties. listening to what the people I meet at Why should Americans care about Out-of-state special interest groups shopping centers and bus stops and ice campaign finance reform? One very can spend any amount of money they cream socials have to say. I want to good reason to care is that as con- choose, none of which is disclosed, all hear what they think and I want to sumers, they are affected. We all pay in the name of ‘‘educating’’ voters— talk to them in a serious way about for the current system of campaign fi- when in fact their only purpose is to the fights that I want to wage on their nancing through higher prices, higher influence the outcome of a election. behalf, the issues that I feel passion- prices in the pharmacy, in the super- market, on our cable bills, when we fill More times than not, the see-sawing 30 ately about, and the direction I think our cars with gas and in many other second bites do more to confuse than to our country ought to be headed. educate. But in the past few years, new tactics ways. Mr. President, in support of this, I This lack of accountability is dan- have been developed by a variety of have two items I would like to have gerous to our democracy. These inde- groups on both the left and the right printed in the RECORD which explain pendent expenditure campaigns can say who seek to insert themselves in be- that our current system of financing whatever they wish for or against a tween candidates and the public they political campaigns has a very real and candidate, and there is little that can- seek to serve. In these races, the can- direct effect on consumers and provides didates can do—short of spending an didates at times become mere pawns in further support for the need to pass equal or greater amount of money to some larger battle for influence. meaningful campaign finance reform. refute what are often gross distortions In the race that my colleague from Today, Common Cause released a re- and character assassinations. Oregon and I ran against each other, port entitled ‘‘Pocketbook Politics.’’ To close, Mr. President, America there were ads that were run that were Common Cause reveals how special in- needs and wants campaign finance re- probably meant to help me, and ads terest money hurts the American con- form. The Senate should pass com- that were run that were meant to hurt sumer. This report examines the cam- prehensive legislation right now. That me. I think that Senator SMITH and I paign contributions of special interest legislation should accomplish one clear would both agree that we both would groups which have benefited from Fed- goal: we must ensure that political have preferred if all of these ads had eral programs and policies that have campaigns are a contest of ideas, not a never been aired. The McCain-Feingold had a costly effect on American con- contest of money. bill is the best solution available at sumers. An oft-quoted American put it this this time to clean up the excess of Mr. President, I ask unanimous con- way: ‘‘Politics has got so expensive these independent expenditures. sent to have printed in the RECORD the that it takes lots of money to even get Democracy is a precious and fragile executive summary from this new beat with.’’ That statement wasn’t gift that has been left to us by previous Common Cause report, ‘‘Pocketbook made this year or last year, or even generations, Mr. President. I don’t ex- Politics.’’ during our political lifetimes. Will pect that the republic will collapse to- There being no objection, the report Rogers said that in 1931. He was right morrow if we fail to pass this bill, but was ordered to be printed in the then, and he’s even more right today. make no mistake about it, the steady RECORD, as follows: I remain committed to this cause and erosion of the public’s confidence in [From the Common Cause Follow the Dollar will do everything in my power to en- their leaders is a dangerous trend. We Report, February 1998] sure that the Congress passes meaning- can make a real beginning today. The POCKETBOOK POLITICS: HOW SPECIAL-INTER- ful Campaign Finance Reform, this American people want this system EST MONEY HURTS THE AMERICAN CONSUMER year. fixed, and they have a right to expect In 1996 and 1997, powerful special inter- Mr. WYDEN. Mr. President, the that it will be. Let’s not disappoint ests—with the help of generous campaign American political system is pro- them again. contributions—won victories in Washington foundly broken. I experienced this in The PRESIDING OFFICER. Who that resulted in higher prices in our day-to- my recent campaign for this office, yields time? day lives and have taken a substantial bite which was why I made it my first offi- Mr. FEINGOLD addressed the Chair. out of the pocketbooks of typical American cial act, fifteen minutes after being The PRESIDING OFFICER. The Sen- families. Special-interest victories in just six areas sworn in to the Senate, to cosponsor ator from Wisconsin. denied the American public access to cheap- the McCain-Feingold bill. Mr. FEINGOLD. I yield myself such er, generic versions of many popular brand- We have all seen the phenomenon, in time as I require. name drugs; halted improvements in the fuel our own campaigns and in others, The PRESIDING OFFICER. The Sen- efficiency of their minivans and cars; pushed where they hold the election on Tues- ator is recognized. up their cable bills; made them pay more to day, you sleep in on Wednesday, and by Mr. FEINGOLD. Mr. President, con- make a call from a pay phone; and kept the Thursday afternoon it has started all versations today have been including prices of peanuts and sugar artificially high. the notion that the American people Since 1991, the special interests rep- over again. There is no interval in resented in just these six examples gave which to focus exclusively on the don’t care about campaign finance re- more than $61.3 million in political contribu- public’s business. form, and occasionally people do ask tions, including $24.6 million in unlimited I don’t think that anyone in this why is it important to reform our sys- soft money donations to the political par- body likes that situation. I have never tem of financing campaigns. I think it ties.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S902 CONGRESSIONAL RECORD — SENATE February 24, 1998 The policies these special interests sup- The $1 Billion PB&J Sandwich: Together sell Feingold (D–Wis.) of the leading cam- ported not only harm consumers, they often peanut and sugar interests have given $14.2 paign finance reform bill. hurt the environment as well. Environ- million in political contributions since 1991, Yet after weeks of high-profile hearings on mentalists charge that the peanut price-sup- including $5.7 million in soft money dona- presidential campaign finance abuses before port program whose benefits go to large pea- tions to the political parties. In 1996, they a panel chaired by Sen. Fred Thompson (R– nut producers and a small number of land- fought to ensure that a historic overhaul of Tenn.) and heated debate on the Senate owners, has encouraged farming practices domestic farm policy left their programs vir- floor, the nation’s legislators remain dead- that exhaust the land and result in an in- tually untouched. They also rebuffed con- locked over whether to fix the system—let creased use of agricultural pesticides. Sugar gressional proposals in 1997 to phase out or alone how to do so. Worse, public interest in policies encouraged the growth of sugar eliminate their programs. These legislative the subject is practically nil. For example, a plantations near the environmentally sen- victories have upped the price of peanuts and recent poll found only 8% of Americans have sitive Florida Everglades. A stalemate on sugar substantially, costing consumers been paying close attention to news about fuel efficiency standards increased air pollu- about $1.6 billion annually. the Democrats’ 1996 fund raising. tion and aggravated global warming. Mr. FEINGOLD. Also, Money maga- So why should you care about the way ‘‘Our report documents six government both parties finance their congressional programs and policies and their costly effect zine published an article in December campaigns? Because the subject isn’t only on the American family,’’ Common Cause making much the same point, with ad- about politics, it’s about your money. Here President Ann McBride said. ‘‘But what we ditional examples of how consumers are two examples of this year’s tab: show is just a drop in the bucket. These ex- have been hurt by decisions made by U.S. taxpayers will pay $47.7 billion for amples don’t begin to explore all the agendas this Congress under the influence of corporate tax breaks and subsidies. That’s of all special-interest political contributors, campaign donations from affected in- the conclusion of an exhaustive study by their victories on Capitol Hill and at the dustries. economist Robert Shapiro, vice president of White House, and their overall impact on the the Progressive Policy Institute, a Wash- American public. Our decisions on everything from the ington think tank affiliated with the mod- ‘‘But it’s clear that a campaign finance airline tax to sugar subsidies to securi- erate Democratic Leadership Council. The system that rewards deep pocket corpora- ties laws reform to electricity deregu- total cost to the average American house- tions and wealthy individuals directly af- lation are potentially compromised by hold in 1997: $483. fects all Americans, robbing them of their the money chase. Anyone who cares Import quotas for sugar, textiles and other hard-earned dollars and threatening to de- about public confidence in this institu- goods will raise consumer prices $110 billion, grade the earth’s environment—our legacy tion should be concerned about these according to economist Gary Hufbauer of the to our children. In the insider’s game that nonprofit Council on Foreign Relations. determines public policy in Washington, spe- examples of industries and individuals total cost per household: $1,114. cial interests and politicians hit the jackpot. with a great economic stake in our de- All of this comes amid rising public cyni- But too much of that jackpot comes out of liberations being able to and actually, cism and apathy about politics. In a recent the pocketbook of the American consumer.’’ in fact, making large and strategically poll by the Center for Responsive Politics, a POCKETBOOK POLITICS: EXECUTIVE SUMMARY focused campaign contributions. nonpartisan group that studies how money In 1996 and 1997, powerful special inter- I ask unanimous consent to have influences politics, nearly four in five Ameri- ests—with the help of generous campaign printed in the RECORD an excerpt from cans said major contributors from outside contributions—won victories in Washington the Money magazine article entitled U.S. representatives’ districts have more ac- cess to the lawmakers than their constitu- that resulted in higher prices in our day-to- ‘‘Look Who’s Cashing in on Congress.’’ day lives and have taken a substantial bite ents do. Also, about half of those polled be- out of the pocketbooks of typical American There being no objection, the article lieve that money has ‘‘a lot of influence on families. This study examines just a handful was ordered to be printed in the policies and legislation.’’ Says Ann McBride, of examples where special interests won vic- RECORD, as follows: president of Common Cause, a political tories at the expense of the American con- [From Money Magazine, December 1997] watchdog group: ‘‘It’s no accident that last sumer. LOOK WHO’S CASHING IN ON CONGRESS; TALES year’s extraordinarily low voter turnout co- Bad Medicine: Since 1991, the companies FROM THE MONEY TRAIL: HERE ARE SOME incided with the highest-priced election in belonging to the Pharmaceutical Research OF THE REASONS YOU’LL PAY NEARLY $1,600 history.’’ and Manufacturers of America (PhRMA), the During the 1995–96 election cycle, the Fed- THIS YEAR FOR LEGISLATION THAT BENE- trade group for brand-name drug makers, eral Election Commission (FEC) reports, FITS CORPORATIONS AND THE WEALTHY. have given more than $18.6 million in polit- candidates running for the House and Senate ical contributions, including $8.4 million in (By Ann Reilly Dowd) raised $791 million, 68% more than a decade soft money donations to the political par- Ordinary Americans are prohibited from earlier. Of the total, a quarter, or $201 mil- ties. With the help of that influence, brand- climbing Mount Rushmore, where the faces lion, came from political action committees name drug companies have kept their bot- of four great Presidents are carved in gran- (PACs) run by corporations, labor unions and tom lines healthy by successfully convincing ite. But this September, just before the Sen- other interest groups. Of the $444 million Congress to let them hold on to their drug ate began debating campaign finance reform, from individuals, only 36%, or $158 million, patents longer. Loss of access to generic Senate Minority Leader Tom Daschle (D– was given in amounts of less than $200. drugs costs consumers, as much as $550 mil- S.D.) led a group of supporters, including 21 Even more startling, the political parties lion a year. representatives of industries as diverse as collected an additional $264 million in so- Car Fare: The American auto, iron, and airlines, financial services, telecommuni- called soft money in 1995–96, triple the steel industries gave $5.7 million ion polit- cations and tobacco, up the mountain that’s amount they raised during the last presi- ical contributions since 1991, including more been called the ‘‘Shrine of Democracy.’’ Tak- dential election campaign. While the law than $1.7 million in soft money donations to ing Washington’s traditional brie-and-Cha- limits so-called hard-money contributions to the political parties. For the past three blis fund raiser to unusual heights, Daschle candidates to $1,000 per election from indi- years, Congress has voted for a freeze on Cor- pulled in $105,000 for his re-election cam- viduals and $5,000 from PACs, there are no porate Average Fuel Economy (CAFE) stand- paign and for his party during that weekend caps on soft money, which flows from cor- ards, thereby sparing these special interests trip to his state’s Black Hills. In return, the porations, unions and individuals in huge the burden of making cars and trucks more contributors not only got to perch at the top chunks. For example, according to Common fuel efficient, which they fear might eat into of a monument off limits to most mortals, Cause, in the last election cycle tobacco their bottom lines. Supporters of higher but they also won access to the second most giant Philip Morris and its executives gave CAFE standards claim that it is possible to powerful politician in the Senate, a man who $2.5 million in soft money to the G.O.P., produce safe, fuel-efficient cars that can save wields enormous influence over their indus- while the Communications Workers of Amer- consumers money at the gas pump. Being de- tries’ futures and their own fortunes. ica contributed $1.1 million to the Demo- prived of this fuel efficiency costs consumers That cash-driven coziness was not exactly cratic Party. The FEC says soft money is about $59 billion annually. what our forefathers had in mind when they supposed to be spent on ‘‘party building.’’ Party Lines: Together cable and local spoke of a government of, by and for the peo- But much of the cash finds its way into con- phone companies have given $22.8 million in ple. Increasingly, however, the soaring cost gressional and presidential races. Says political contributions since 1991, including of congressional races, weak campaign fi- McBride: ‘‘Soft money is clearly the most $8.7 million in soft money donations to the nance laws and potentially fat returns on corrupting money in politics today.’’ political parties. The groundbreaking Tele- contributors’ donations have conspired to Indeed, campaigning has mostly turned communications Act of 1996, which was sup- give big-spending corporations and wealthy into a money chase. Last year, winning a posed to make the industries more competi- individuals unprecedented access to Wash- Senate seat cost an average of $4.7 million, tive and responsive to consumer needs, has ington lawmakers, putting the givers in a up 53% since 1986. Snagging a House seat ran actually worked to shrink competition. The prime position to influence the laws the poli- $673,739, up 89%. Some veteran senators, in- resulting jump in cable TV bills and pay ticians make. ‘‘The founding fathers must be cluding Paul Simon (D–Ill.) and Bill Bradley phone rates costs consumers about $2.8 bil- spinning in their graves,’’ says Sen. John (D–N.J.), have cited their distaste for end- lion annually. McCain (R–Ariz.), co-sponsor with Sen. Rus- lessly dialing for dollars as one reason they

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S903 dropped out of politics. As for the current But a House provision favorable to the big around for power instead of buying it from a Capitol gang, says Charles Lewis, president airlines won in the closed door negotiations single local utility, you could cut as much as of the Center for Public Integrity, a non- between Senate Majority Leader Trent Lott 24% off your monthly electric bill, according partisan research group: ‘‘It’s a (R–Miss.) and Gingrich. Says a congressional to the Department of Energy. For a family misimpression to think all new members are aide whose boss backed Southwest: ‘‘We left whose monthly electric bills average $100, innocents. Either they are millionaires or it to Trent and Newt, and Newt fought hard- that would mean yearly savings of $288, near- they are willing to sell their souls, or at er.’’ Campaign money was not a factor, in- ly three months of free power. But while least lease them, before they even set foot in sists the Speaker’s press secretary, Christina states from California to New Hampshire are Washington.’’ Martin. Instead, she says, Gingrich was guid- moving to increase competition among utili- Of course, lawmakers often take positions ed ‘‘by his experience, his vision and the will ties, two deep-pocketed and determined ad- out of principle. Other times, constituent or of his constituents and the Republican con- versaries have thus far stymied federal de- broader public interests dictate their votes. ference.’’ regulation efforts. But the question remains: What role does DANCE OF THE SUGARPLUM BARONS Those fighting for rapid deregulation in- money play in shaping legislation? clude large commercial electricity users, Why you pay 25% too much for sugar: The MONEY has found five instances where big such as Anheuser-Busch, General Motors, next time you buy a bag of sugar, consider money and bad bills collided, resulting in Texaco and major retailers, as well as low- this: You are paying 40[cents] a pound, legislation that has—or may soon—cost tax- cost power producers and marketers like 10[cents] more than you should, because a paying consumers like you dearly. (For more Houston’s Enron. The Center for Responsive handful of generous U.S. sugar magnates examples, see the table on page 132). We’ll Politics estimates that during the 1995–96 have managed to preserve their sweet deals tell the tales and let you judge whether it’s election cycle, as Congress began considering for 16 years. Says Rep. Dan Miller (R–Fla.), time for campaign finance reform. deregulation, the major commercial power who led the bitter losing battle last year to FEAR OF FLYING users contributed $7.8 million to congres- dismantle the program of import quotas and sional candidates and the parties, while Why you may pay more for air travel: guaranteed loans that props up domestic Enron and its employees gave another $1.2 Early this year, Herb Kelleher, the tough- sugar prices, costing U.S. consumers $1.4 bil- million. talking chief executive of Southwest Air- lion a year: ‘‘This is the poster child for why On the other side of the power war are old- lines, dropped to his knees in the office of we need campaign finance reform.’’ line, monopolistic utilities led by the Edison U.S. Rep. Charles Rangel of New York City, The sultans of sugar are Alfonso (‘‘Alfy’’) Electric Institute (EEI), their major Wash- the top Democrat on the powerful House and Jose (‘‘Pepe’’) Fanjul, Cuban emigre ington lobby. Their big fear: that so-called Ways and Means Committee. ‘‘If you’ll sup- brothers whose Flo-Sun company, with head- stranded costs for investments in nuclear port the little guy against this measure,’’ quarters in South Florida, produces much of power plants and other projects they pass on begged Kelleher, referring to a proposed new the sugarcane in the U.S. The Fanjuls sprin- to consumers in the rates they pay will flight tax that would hurt discount carriers kle more money over Washington than any make it difficult to compete with low-cost like his, ‘‘I’ll give up Wild Turkey and ciga- other U.S. sugar grower. According to the energy producers under deregulation. During rettes.’’ Center for Responsive Politics, during the the 1995–96 election period, the old-line utili- Though only half in jest, Kelleher’s theat- 1995–96 election cycle, when the sugar pro- ties contributed $7.7 million to the can- rics weren’t enough to overcome the clout of gram was up for another five-year reauthor- didates and the parties. In addition, the In- the Big Seven airlines—American, Conti- ization, the Fanjul family, the companies stitute assessed its members $3 million to nental, Delta, Northwest, TWA, United and they own and their employees gave $709,000 pay for a lobbying campaign against rapid US Airways—who stood to gain from the new to federal election campaigns. Alfy served on federal deregulation. tax. The Center for Responsive Politics esti- President Clinton’s Florida fund-raising op- So far, that effort seems to be working. mates that during the 1995–96 election pe- eration, while Pepe co-chaired Republican After 14 hearings on deregulation, Frank riod, the Big Seven contributed $2.5 million presidential nominee Bob Dole’s campaign fi- Murkowski (R–Alaska), chairman of the Sen- in PAC money to candidates and soft money nance committee. Overall during the past ate Energy and Natural Resources Com- to both parties, almost three times what the election cycle, the Center reports, U.S. sugar mittee, has still not introduced a com- airlines had given during the last election producers poured $2.7 million into federal prehensive bill. Instead he is backing a nar- cycle. Among their biggest recipients was campaign coffers, nearly 60% more than the rower measure sponsored by Sen. Alfonse House Speaker Newt Gingrich of Georgia, $1.7 million given by industrial sugar users, D’Amato (R–N.Y.) that would help the old- where Delta is based, who took in $12,000 for including candy and cereal companies, who line utilities by letting them compete in any his congressional campaign. Then in the first oppose price supports. nonutility business, without allowing other six months of this year, while Congress was The sugar industry’s investment appears power companies to enter the older firms’ debating the airline-tax bill, the big carriers to have paid off handsomely. At first, two local electricity markets. kicked in another $640,000, including $6,000 conservative firebrands, Rep. Dan Miller (R– more to the Speaker. By contrast, Texas- Fla.) and Sen. Judd Gregg (R–N.H.), seemed * * * * * based Southwest and its small airline allies to have enough votes to kill the price-sup- What will these power plays mean to you? have contributed nothing to Gingrich and port program. In the Senate, however, then- Says, Charlie Higley, a senior policy analyst only $95,000 to congressional campaigns and Majority Leader Dole, determined that noth- at Public Citizen, a consumer rights group: the parties since 1995. ing would hold up the 1996 farm bill, took a ‘‘Generally we are concerned that legislators After a bruising Capitol Hill battle, the machete to amendments that threatened to will strike a deal where the utilities will get major carriers emerged with much of what topple it, including Gregg’s, which died by 61 the taxpayer to foot the bill for their strand- they wanted, tucked into the 1997 tax act: a votes to 35. ed costs, the big industrial users will get all gradual reduction in the airline ticket tax In the House, the sugar program was saved the breaks, and residential and small busi- from 10% to 7.5% plus a new $1 levy, rising to after six original co-sponsors of the Miller ness customers will get no relief or, worse $3 in 2002, on each leg of a flight between amendment switched sides, killing it by 217 yet, higher costs.’’ takeoff and final landing. Many passengers votes to 208. One defector, Texas Republican A MIDSUMMER’S NIGHT SCHEME who fly on regional carriers and discounters Steve Stockman, who was locked in a tight How Wall Street and Silicon Valley could like Southwest emerged as losers, since re-election race that he ultimately lost, re- undercut investor rights: In the summer of those airlines tend to make more stops. For ceived $7,500 in sugar contributions during 1995, a coalition of accounting, securities and example, after the ticket-tax reduction and 1995 and ’96, including $1,000 on the day of the high-tech firms persuaded Congress to pass new segment fee are fully phased in, a family vote. Stockman did not return Money’s sweeping legislation limiting securities liti- of four that flies on Southwest for $225 per phone calls. Another voting for big sugar, gation that MONEY had warned could se- person from Houston to Disney World, with a Robert Torricelli (D–N.J.), now a U.S. sen- verely restrict investors’ abilities to bring stop in New Orleans, will pay $25.50 in addi- ator, received $19,000 from sugar producers. successful class-action suits for securities tional taxes. New Jersey grows no sugar, but it is home to fraud. Though the Securities and Exchange For that, opponents say, the family can 870,000 Cuban Americans, whose votes Commission has concluded that it is too thank Gingrich, who broke a deadlock in the Torricelli wanted for his Senate campaign. early to tell whether the Securities Litiga- Ways and Means Committee over two war- On the House floor, he argued that elimi- tion Reform Act has seriously eroded inves- ring proposals. One, backed by Southwest nating the program would drive up world tors’ rights, the same group of industries is and Republican Jennifer Dunn of Wash- prices, hurting domestic growers and helping now promoting legislation that would vir- ington, would have preserved the flat 10% foreign producers like Cuba. Said Torricelli: tually ban investors from bringing class-ac- ticket tax. The other, supported by the Big ‘‘We will lose the jobs and the money, and tion suites in state courts involving nation- Seven and sponsored by Republican Michael Fidel Castro’s Cuba will reap the benefits.’’ ally traded securities. Warns Barbara Roper, the Consumer Federation of America’s secu- (‘‘Mac’’) Collins of Georgia, reduced the tax * * * * * and imposed a segment fee. rities law expert: ‘‘The big risk for investors ‘‘Let’s settle this like adults and com- WASHINGTON POWER PLAY is that the federal law will end up restricting promise in [the House-Senate] conference,’’ How politically charged utilities are short- meritorious cases and that we’ll lose the Gingrich told Dunn, who agreed to shelve her circuiting federal deregulation efforts that states as an alternative venue for them.’’ proposal. The Senate sided with Southwest. could cut your electric bill: If you could shop The possible result: Wronged investors not

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S904 CONGRESSIONAL RECORD — SENATE February 24, 1998 only could find such cases harder to win, but The PRESIDING OFFICER. Without to be able to amplify your voice. That they also may be prevented from filing suits objection, it is so ordered. is not a new concept. It has been in the first place. Mr. FEINGOLD addressed the Chair. around since the beginning of the coun- * * * * * The PRESIDING OFFICER. The Sen- try. In 1995 and ’96, securities and accounting ator from Wisconsin. So the fundamental issue, Mr. Presi- firms, as well as high-tech companies, which Mr. FEINGOLD. Mr. President, at frequently are the targets of securities fraud dent, is this: Do we have too much po- this time I yield such time as he re- litical discourse in this country? I lawsuits, flooded Congress and both parties quires to the leader on this issue, the with $29.6 million in campaign money, ac- would argue that we clearly do not. cording to the Center for Responsive Poli- senior Senator from Arizona. The political discussion has increased tics. By contrast, the Center estimates the The PRESIDING OFFICER. The Sen- in recent years for several reasons. No. trial lawyers association, the biggest critic ator from Arizona is recognized. 1, the effective means of communica- Mr. McCAIN. I thank the Senator of the legislation, gave $3.1 million. (The tion costs more—nobody has capped in- from Wisconsin. total from all trial lawyers is unknown.) flation in the broadcast industry—and, Says one top Democratic congressional aide: May I ask, how much time remains ‘‘This is completely money-driven, special- on both sides? No. 2, the stakes have been large. interest legislation that we would never even The PRESIDING OFFICER. The Sen- The Congress was for many years be looking at if there were campaign finance ator from Arizona has 8 minutes 48 sec- sort of a wholly owned subsidiary of reform. Most congressmen are not being onds; the Senator from Kentucky con- the folks on the other side of the aisle. bombarded with requests from local con- trols 7 minutes 13 seconds. But since 1994 it has been a good deal stituents to pre-empt state securities laws.’’ Mr. McCAIN. Since it is the McCain- more competitive, so the voices have WHAT CONGRESS SHOULD DO Feingold amendment, I ask the Sen- been louder. We had a robust election Here are six changes recommended by ad- ator from Kentucky if we could close in 1996 about the future of the country, vocates of campaign finance reform: and a good deal of discussion occurred. Ban soft money. This is the heart of the the debate with our comments. McCain-Feingold bill to improve the way Mr. McCONNELL. I am sorry; I did But even then, Mr. President, that dis- campaigns are funded. The prohibition would not hear the Senator from Arizona. cussion, converted to money and com- shut down the easiest way corporations, Mr. McCAIN. Since the vote would be pared to other forms of consumer con- unions and the wealthy have to buy access to on our amendment, it is customary sumption, if you will, in this country, Congress and influence legislation. that we, the sponsors of the amend- was minuscule. One percent of all the Limit PAC contributions. Congress ought ment, be allowed to close the debate. I commercials in America in 1996 were to ban PACs from giving money to the cam- about politics. So it seems to me, Mr. paigns of members of committees that gov- ask if the Senator from Kentucky ern the PACs’ industries or their interests. would agree that I could have the last President, by any standard, we are not Offer cut-rate TV time. Candidates who 5 minutes before the vote. discussing these issues too much. agree to reject PAC money might get free or Mr. McCONNELL. I have absolutely The other side of the issue that must discounted TV time. no problem with that. That is perfectly be addressed is, assuming it were desir- Reward small contributors. Tax credits for acceptable. able to restrict this discussion, is that donations of $200 or less might stimulate Mr. McCAIN. Does the Senator from a good idea? In order to do that, Mr. more people to give. Says Kent Cooper, exec- Kentucky want to proceed now? utive director of the Center for Responsive President, you have to have a Federal Politics: ‘‘It’s critical that we build a wider Mr. McCONNELL. Yes. Would you agency essentially trying to control base of small contributors.’’ like me to go on to wrap up? not only the quantity but the quality Streamline disclosure. Candidates should Mr. McCAIN. Yes. of discourse in our country. be required to file their campaign receipts Mr. McCONNELL addressed the The Supreme Court has already made and expenditures electronically to the Fed- Chair. it quite clear that it is impermissible eral Election Commission. That would en- The PRESIDING OFFICER. The Sen- for the Government to control either able it to post the data to its Website ator from Kentucky. (www.fec.gov) more quickly. Mr. McCONNELL. I am happy to ac- the quantity or the quality of our po- Toughen election laws and enforcement. commodate the Senator from Arizona. litical discussion in this country. Congress must make the six-member Federal Mr. President, I think we have had a So this kind of regulatory approach Election Commission, typically half Repub- very important and useful debate. In to speech is clearly something the lican and half Democrat, more effective. The courts are not going to uphold. Nor panel needs authority to impose civil pen- many ways it has gone on for the last alties, a bigger enforcement budget (now 10 years in various forms. Prior to 1995, should the Senate uphold that ap- only $31.7 million) and a seventh member to it was the Mitchell-Boren bill. There proach. Fundamentally that is the dif- break ties. have been several changes over the ference between the two sides on this What can you do? Write to congressional years, but fundamentally the issue is issue. leaders Gingrich, Lott and McCain, as well this: Do we think we have too much po- Do we think there is too much as your own U.S. representative, senators litical discourse in this country? speech? Or do we think there is too lit- and President Clinton. Tell them you want tle? Do we think it is appropriate for campaign finance reform that will restore I would argue, Mr. President, that we accountability and integrity to federal elec- do not have any problems in this coun- the Government to regulate this tions and the government. And while you’re try related to too much political dis- speech? Or do we think it is constitu- at it, tell them you’d like the right to climb cussion. The Supreme Court has made tionally impermissible? That is the Mount Rushmore—without giving Tom it quite clear that in order to effec- core debate here, Mr. President. Daschle $5,000 of your hard-earned money. tively discuss issues in this country, McCain-Feingold, in its most recent Mr. FEINGOLD. Mr. President, how one must have access to money, and, form, upon which we will be voting on much time do we have remaining? frankly, that should not be a shocking a motion to table here shortly, in my The PRESIDING OFFICER. The Sen- concept to anyone going all the way view, clearly goes in the regulatory di- ator from Wisconsin has 9 minutes re- back to the beginning of our country rection. It is based on the notion that maining. there is too much political discussion Mr. FEINGOLD. Mr. President, I re- when anonymous pamphlets were in this country by parties and by serve the remainder of my time. passed out supporting the American The PRESIDING OFFICER. Who Revolution. Somebody paid for those. groups. yields time? Virtually any undertaking, whether Mr. President, the political parties Mr. McCONNELL. Mr. President, I it is raising money for Common Cause do not exist for any other reason than suggest the absence of a quorum with so that they can get their message out to engage in political discussion. They the time being charged to both sides. or raising money for a campaign so financed issue advocacy ads with non- The PRESIDING OFFICER. Without that it can get its message out or rais- Federal money. The pejorative term objection, it is so ordered. The clerk ing money for a political party so it for that is ‘‘soft money,’’ but it should will call the roll. can get its message out or by some not be a pejorative thing. The national The assistant legislative clerk pro- group that wants to be critical of any political parties get involved in State ceeded to call the roll. of us up to and including the time just elections, local elections. They need to Mr. FEINGOLD. Mr. President, I ask prior to an election, the Supreme Court be there to protect their candidates if unanimous consent that the order for has appropriately recognized that in they are attacked by the issue ads of the quorum call be rescinded. order to have effective speech you have someone else.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S905 All of this is constitutionally pro- to clearly identify himself or herself on ing Planned Parenthood. Tom tected speech. Obviously, we do not one of these negative ads. Bordonaro is the definition of a reli- like it when they are saying something So the fact is this bill has many im- gious political extremist.’’ That came against us. We applaud it when some- portant provisions. A tabling motion from Planned Parenthood. body is trying to help us. But the prob- denies the chance to do all of these The same thing on both sides. You lem is not too much discussion, Mr. things. What the opposition has chosen will never see one of these, Mr. Presi- President. America is not going to get to focus on is merely a few aspects, dent, in a so-called independent cam- in trouble because of too much discus- which I think we are right about, but paign that says, ‘‘Vote for our guy or sion. they completely ignore the many im- woman. They’re very decent and won- In fact, we have killed this kind of portant items of enforcement and dis- derful people.’’ Then we wonder why proposal now for 10 years. It is unre- closure and the banning of soft money there is the cynicism and the lack of lated to the popularity of Congress. the McCain-Feingold bill would respect for those of us who engage in Congress is currently sitting on a 55 to achieve. public service. 60 percent approval rating, the highest How much time remains? Mr. President, since last year there approval rating in the last 25 years. It The PRESIDING OFFICER. The Sen- have been several indictments that achieved that approval rating in spite ator has 5 minutes 30 seconds. have come down. One thing I can pre- of the fact that this issue was not ap- Mr. FEINGOLD. Mr. President, I dict to you with absolute certainty on proved last year, nor the year before, yield the remaining time to the Sen- this floor; there will be more indict- and, Mr. President, I am confident will ator from Arizona. ments, Mr. President, and there will be The PRESIDING OFFICER. The Sen- not be approved this afternoon. more scandals and more indictments ator from Arizona is recognized. So when a motion to table is made, I and more scandals and more indict- hope that the majority of the Senate Mr. MCCAIN. Mr. President, first of all, I want to extend thanks, as is cus- ments and more people going to prison will support a motion to table McCain- until we clean up this system. There is Feingold. tomary at the end of debates such as these, to the majority leader for agree- too much money washing around. This Mr. President, I yield the floor. money makes good people do bad The PRESIDING OFFICER. Who ing to schedule this vote and to the mi- nority leader for all of his help in this things and bad people do worse things. yields time? I guarantee you, Mr. President, this Mr. FEINGOLD addressed the Chair. effort, Senator DASCHLE, the Demo- The PRESIDING OFFICER. The Sen- cratic leader. I would like to thank system is so debasing as it is today that we will see lots of indictments, ator from Wisconsin. Senator MCCONNELL of Kentucky for Mr. FEINGOLD. In a moment, I will again conducting the debate, which is prison sentences and, frankly, these in- yield to the senior Senator from Ari- distinguished by its lack of rancor and vestigations reaching levels which zona. But before I do, let me make by its adherence to an honest and open many of us had never anticipated in clear what we are tabling here today if difference of opinion, a fundamental the past. we table the McCain-Feingold amend- difference but one that I believe is We have also, thanks to our tenacity, ment. strongly held by both Senator MCCON- gotten a vote. For the first time, Mem- The other side would have us believe NELL and myself. bers of the Senate will be on record on it is one narrow aspect of a bill that As always, I want to thank my dear campaign finance reform. I have no has to do with certain aspects of ex- friend, Senator FEINGOLD, who, in my doubt about what this vote is about. It press advocacy and independent advo- view, represents the very best in public is on campaign finance reform. cacy. Surely, that is part of the bill. service. As he and I differ on a broad Later, hopefully, we will have a vote But what they don’t talk about very variety of issues, we have always on the Snowe amendment, which I much is what else would be tabled. It agreed on the principle of the impor- think is a compromise which is care- would involve the tabling of a complete tance, the integrity, and the honor as- fully crafted and one that deserves the ban on soft money. It would be wiping sociated with public service. support of all of us. I believe that we out the opportunity for this Congress Mr. President, since last year, a num- are closer to the point that I have long to have a ban on soft money. What that ber of things have been happening since espoused and advocated to my friends means is they are also tabling a con- we had votes last September. A very and colleagues from both sides of this cept that has been endorsed by over 100 good manifestation of how this system issue. We are closer to the point where former Members of Congress who is out of control was contained in the all 100 of us agree that the system is signed a letter to ban soft money. January 17 Congressional Quarterly broken and needs to be fixed and we It is also a denial and tabling of an about the California House race that is need to sit down together and work out effort to ban soft money that has been taking place. the resolution to this terrible problem endorsed by people like former Presi- I will not go into all the details. This which is afflicting America, which we dents George Bush and Jimmy Carter was January 17. On March 10 there is can work out in a bipartisan fashion and Gerald Ford. In addition, if this ta- an election. It lists noncandidate that favors neither one party nor the bling motion prevails, you will be wip- spending in the California special: other. ing out provisions that actually lower Campaign for Working Families, The American people are demanding the provisions that require candidates $100,000; Americans for Limited Terms, it, the American people deserve it, and to report contributions of $50 and over, $90,000; Foundation for Responsible the American people will get it. Mr. not just the ones of $200 and over. It Government, $50,000; Planned Parent- President, we will never give up on this would be wiping out provisions that hood Action Fund, $40,000; Catholic Al- issue because we know we are right in double the penalties for the knowing liance, $40,000; California Republican the pursuit of an issue that affects the and willful violations of Federal elec- Assembly, $16,000; and the list goes on very fiber of American life and Amer- tions law and tabling the provisions and on and on. ican Government. that require full electronic disclosure Millions of dollars are being spent in Mr. President, I yield the remainder of campaign contributions to the FEC. a House race in California. And you of my time. You will be wiping out provisions know what, Mr. President? Those funds Mr. MCCONNELL. I move to table that require the Federal Elections and those campaigns are not being con- the McCain-Feingold amendment. Commission to make those campaign ducted by the candidates. They are The PRESIDING OFFICER (Mr. finance records available on the Inter- being conducted by organizations that HAGEL). Is there a sufficient second? net within 24 hours. You will be wiping enter into these races that sometimes There is a sufficient second. out provisions that would stop the have no connection with the candidate The yeas and nays were ordered. practice of Members of Congress using themselves. And you know they all VOTE ON MOTION TO TABLE AMENDMENT NO. 1646 their franking privileges, their mass have one thing in common. They are The PRESIDING OFFICER. The mailing franking privileges in an elec- all negative, Mr. President, they are all question is on agreeing to the motion tion year. Our bill would ban that. negative. to table the McCain-Feingold amend- The tabling motion would wipe out One of the radio ads says, ‘‘Call ment numbered 1646. the provisions that require a candidate Bordonaro and tell him you’re not buy- The clerk will call the roll.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S906 CONGRESSIONAL RECORD — SENATE February 24, 1998 The legislative clerk called the roll. The PRESIDING OFFICER. Without ‘‘(B) EXCEPTIONS.—Such term shall not in- Mr. FORD. I announce that the Sen- objection, it is so ordered. clude— ator from Iowa (Mr. HARKIN) is nec- The amendment is as follows: ‘‘(i) communications appearing in a news story, commentary, or editorial distributed essarily absent. Strike section 201 and insert: through the facilities of any broadcasting The result was announced—yeas 48, Subtitle A—Electioneering Communications station, unless such facilities are owned or nays 51, as follows: SEC. 200. DISCLOSURE OF ELECTIONEERING controlled by any political party, political [Rollcall Vote No. 12 Leg.] COMMUNICATIONS. committee, or candidate, or Section 304 of the Federal Election Cam- YEAS—48 ‘‘(ii) communications which constitute ex- paign Act of 1971 (2 U.S.C. 434) is amended by penditures or independent expenditures Abraham Faircloth Lugar adding at the end the following new sub- under this Act. Allard Frist Mack section: Ashcroft Gorton McConnell ‘‘(4) DISCLOSURE DATE.—For purposes of ‘‘(d) ADDITIONAL STATEMENTS ON ELECTION- Bennett Gramm Murkowski this subsection, the term ‘disclosure date’ Bond Grams Nickles EERING COMMUNICATIONS.— means— Brownback Grassley Roberts ‘‘(1) STATEMENT REQUIRED.—Every person ‘‘(A) the first date during any calendar Burns Gregg Roth who makes a disbursement for electioneering year by which a person has made disburse- Campbell Hagel Santorum communications in an aggregate amount in ments for electioneering communications Coats Hatch Sessions excess of $10,000 during any calendar year aggregating in excess of $10,000, and Cochran Helms Shelby shall, within 24 hours of each disclosure date, Coverdell Hutchinson Smith (NH) ‘‘(B) any other date during such calendar file with the Commission a statement con- year by which a person has made disburse- Craig Hutchison Smith (OR) taining the information described in para- D’Amato Inhofe Stevens ments for electioneering communications DeWine Kempthorne Thomas graph (2). aggregating in excess of $10,000 since the ‘‘(2) CONTENTS OF STATEMENT.—Each state- Domenici Kyl Thurmond most recent disclosure date for such calendar ment required to be filed under this sub- Enzi Lott Warner year. section shall be made under penalty of per- ‘‘(5) CONTRACTS TO DISBURSE.—For purposes NAYS—51 jury and shall contain the following informa- of this subsection, a person shall be treated Akaka Feingold Lieberman tion: Baucus Feinstein McCain ‘‘(A) The identification of the person mak- as having made a disbursement if the person Biden Ford Mikulski ing the disbursement, of any entity sharing has contracted to make the disbursement. Bingaman Glenn Moseley-Braun or exercising direction or control over the ‘‘(6) COORDINATION WITH OTHER REQUIRE- Boxer Graham Moynihan MENTS.—Any requirement to report under Breaux Hollings Murray activities of such person, and of the custo- dian of the books and accounts of the person this subsection shall be in addition to any Bryan Inouye Reed other reporting requirement under this Act.’’ Bumpers Jeffords Reid making the disbursement. Byrd Johnson Robb ‘‘(B) The State of incorporation and the SEC. 200A. COORDINATED COMMUNICATIONS AS Chafee Kennedy Rockefeller principal place of business of the person CONTRIBUTIONS. Cleland Kerrey Sarbanes making the disbursement. Section 315(a)(7)(B) of the Federal Election Collins Kerry Snowe ‘‘(C) The amount of each disbursement dur- Campaign Act of 1971 (2 U.S.C. 441a(a)(7)(B)) Conrad Kohl Specter ing the period covered by the statement and is amended by inserting after clause (ii) the Daschle Landrieu Thompson the identification of the person to whom the following new clause: Dodd Lautenberg Torricelli ‘‘(iii) if— Dorgan Leahy Wellstone disbursement was made. Durbin Levin Wyden ‘‘(D) The elections to which the election- ‘‘(I) any person makes, or contracts to eering communications pertain and the make, any payment for any electioneering NOT VOTING—1 names (if known) of the candidates identified communication (within the meaning of sec- Harkin or to be identified. tion 304(d)(3)), and ‘‘(E) If the disbursements were paid out of The motion to lay on the table the ‘‘(II) such payment is coordinated with a a segregated account to which only individ- candidate for Federal office or an authorized amendment (No. 1646) was rejected. uals could contribute the names and address- committee of such candidate, a Federal, Mr. LOTT. Mr. President, I move to es of all contributors who contributed an ag- State, or local political party or committee reconsider the vote. gregate amount of $500 or more to that ac- thereof, or an agent or official of any such Mr. FORD. I move to lay that motion count during the period beginning on the candidate, party, or committee. on the table. first day of the preceding calendar year and such payment or contracting shall be treated The motion to lay on the table was ending on the disclosure date. as a contribution to such candidate and as agreed to. ‘‘(F) If the disbursements were paid out of an expenditure by such candidate; and’’. funds not described in subparagraph (E), the Mr. LOTT. Mr. President, I suggest SEC. 200B. PROHIBITION OF CORPORATE AND names and addresses of all contributors who LABOR DISBURSEMENTS FOR ELEC- the absence of a quorum. contributed an aggregate amount of $500 or The PRESIDING OFFICER. The TIONEERING COMMUNICATIONS. more to the organization or any related enti- (a) IN GENERAL.—Section 316(b)(2) of the clerk will call the roll. ty during the period beginning on the first Federal Election Campaign Act of 1971 (2 The bill clerk proceeded to call the day of the preceding calendar year and end- U.S.C. 441b(b)(2)) is amended by inserting ‘‘or roll. ing on the disclosure date. for any applicable electioneering commu- Mr. LOTT. Mr. President, I ask unan- ‘‘(G) Whether or not any electioneering nication’’ before ‘‘, but shall not include’’. communication is made in coordination, co- imous consent that the order for the (b) APPLICABLE ELECTIONEERING COMMU- operation, consultation, or concert with, or NICATION.—Section 316 of such Act is amend- quorum call be rescinded. at the request or suggestion of, any can- The PRESIDING OFFICER. Without ed by adding at the end the following new didate or any authorized committee, any po- subsection: objection, it is so ordered. litical party or committee, or any agent of ‘‘(c) RULES RELATING TO ELECTIONEERING Ms. SNOWE addressed the Chair. the candidate, political party, or committee COMMUNICATIONS.— and if so, the identification of any candidate, The PRESIDING OFFICER. The Sen- ‘‘(1) APPLICABLE ELECTIONEERING COMMU- party, committee, or agent involved. ator from Maine. NICATION.—For purposes of this section, the ‘‘(3) ELECTIONEERING COMMUNICATION.—For AMENDMENT NO. 1647 term ‘applicable electioneering communica- purposes of this subsection— tion’ means an electioneering communica- (Purpose: Relating to electioneering ‘‘(A) IN GENERAL.—The term ‘election- communications) eering communication’ means any broadcast tion (within the meaning of section 304(d)(3)) Ms. SNOWE. Mr. President, I send an from a television or radio broadcast station which is made by— which— ‘‘(A) any entity to which subsection (a) ap- amendment to the desk and ask for its plies other than a section 501(c)(4) organiza- immediate consideration. ‘‘(i) refers to a clearly identified candidate for Federal office; tion, or The PRESIDING OFFICER. The ‘‘(ii) is made (or scheduled to be made) ‘‘(B) a section 501(c)(4) organization from clerk will report. within— amounts derived from the conduct of a trade The legislative clerk read as follows: ‘‘(I) 60 days before a general, special, or or business or from an entity described in subparagraph (A). The Senator from Maine [Ms. SNOWE], for runoff election for such Federal office, or ‘‘(2) SPECIAL OPERATING RULES.—For pur- herself, Mr. JEFFORDS, Mr. LEVIN, Mr. LIE- ‘‘(II) 30 days before a primary or preference poses of paragraph (1), the following rules BERMAN, Mr. MCCAIN, Mr. FEINGOLD, Mr. election, or a convention or caucus of a po- shall apply: CHAFEE, Ms. COLLINS, and Mr. THOMPSON, litical party that has authority to nominate proposes an amendment numbered 1647. a candidate, for such Federal office, and ‘‘(A) An electioneering communication ‘‘(iii) is broadcast from a television or shall be treated as made by an entity de- Ms. SNOWE. Mr. President, I ask radio broadcast station whose audience in- scribed in paragraph (1)(A) if— unanimous consent that reading of the cludes the electorate for such election, con- ‘‘(i) the entity described in paragraph amendment be dispensed with. vention, or caucus. (1)(A) directly or indirectly disburses any

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amount for any of the costs of the commu- Federal Communications Commission may (b) EFFECTIVE DATE.—This section shall nication; or be expended to impose or enforce any re- take effect two days after enactment of this ‘‘(ii) any amount is disbursed for the com- quirement or obligation with respect to the Act. munication by a corporation or organization provision of free or discounted television MOTION TO COMMIT or a State or local political party or com- broadcast time for campaign advertising un- Mr. LOTT. I send to the desk a mo- mittee thereof that receives anything of less such requirement or obligation is spe- value from the entity described in paragraph cifically and expressly authorized by title III tion to commit the bill to the Com- (1)(A), except that this clause shall not apply of the Communications Act of 1934. merce Committee with instructions to report back forthwith. to any communication the costs of which are AMENDMENT NO. 1649 defrayed entirely out of a segregated account The PRESIDING OFFICER. The (Purpose: To prohibit new welfare for to which only individuals can contribute. politicians) clerk will report. ‘‘(B) A section 501(c)(4) organization that The legislative clerk read as follows: derives amounts from business activities or Mr. LOTT. Mr. President, I now send The Senator from Mississippi [Mr. LOTT] from any entity described in paragraph (1)(A) a perfecting amendment to the desk to moves that the Senate commit S. 1663 to the shall be considered to have paid for any com- the underlying bill. Committee on Commerce, Science and munication out of such amounts unless such The PRESIDING OFFICER. The Transportation with instructions that it re- organization paid for the communication out clerk will report. port back the bill forthwith. of a segregated account to which only indi- The legislative clerk read as follows: viduals can contribute. Mr. LOTT. Mr. President, I ask for ‘‘(3) DEFINITIONS AND RULES.—For purposes The Senator from Mississippi [Mr. LOTT] the yeas and nays. of this subsection— proposes an amendment numbered 1649. The PRESIDING OFFICER. Is there a ‘‘(A) the term ‘section 501(c)(4) organiza- Mr. LOTT. Mr. President, I ask unan- sufficient second? tion’ means— imous consent that reading of the There is a sufficient second. ‘‘(ii) an organization described in section amendment be dispensed with. The yeas and nays were ordered. 501(c)(4) of the Internal Revenue Code of 1986 and exempt from taxation under section The PRESIDING OFFICER. Without AMENDMENT NO. 1651 501(a) of such Code; or objection, it is so ordered. (Purpose: To prohibit new welfare for ‘‘(ii) an organization which has submitted The amendment is as follows: politicians) an application to the Internal Revenue Serv- In the language proposed to be stricken in Mr. LOTT. I now send an amendment ice for determination of its status as an or- the bill, strike all after the word ‘‘political’’ to the desk to the instructions. ganization described in clause (i); and on page 2, line 23, and insert the following: The PRESIDING OFFICER. The ‘‘(B) a person shall be treated as having ‘‘party. made a disbursement if the person has con- clerk will report. tracted to make the disbursement. SEC. 3. ELECTIONEERING COMMUNICATIONS. The legislative clerk read as follows: ‘‘(4) COORDINATION WITH INTERNAL REVENUE (a) PROHIBITION.—None of the funds appro- The Senator from Mississippi [Mr. LOTT] CODE.—Nothing in this subsection shall be priated or otherwise made available to the proposes an amendment numbered 1651 to construed to authorize an organization ex- Federal Communications Commission may the motion to commit the bill to committee. empt from taxation under section 501(a) of be expended to impose or enforce any re- quirement or obligation with respect to the Mr. LOTT. I ask the amendment be the Internal Revenue Code of 1986 from car- considered as having been read. rying out any activity which is prohibited provision of free or discounted television under such Code.’’ broadcast time for campaign advertising un- Mr. FORD. I object. less such requirement or obligation is spe- The PRESIDING OFFICER. Objec- Subtitle B—Independent and Coordinated cifically and expressly authorized by title III Expenditures tion is heard. The clerk will report. of the Communications Act of 1934. The legislative clerk read further as SEC. 201. DEFINITION OF INDEPENDENT EXPEND- (b) EFFECTIVE DATE.—This section shall follows: ITURE. take effect one day after enactment of this Section 301 of the Federal Election Cam- Act. At the end of the instructions add the fol- paign Act (2 U.S.C. 431) is amended by strik- lowing: ing paragraph (17) and inserting the fol- Mr. LOTT. I ask for the yeas and ‘‘with an amendment as follows: lowing: nays on my amendment, Mr. President. Strike all after the enacting clause and in- ‘‘(17) INDEPENDENT EXPENDITURE.—The The PRESIDING OFFICER. Is there a sert the following: term ‘independent expenditure’ means an ex- sufficient second? SEC. 1. ELECTIONEERING COMMUNICATIONS. penditure by a person— There is a sufficient second. (a) PROHIBITION.—None of the funds appro- ‘‘(A) expressly advocating the election or The yeas and nays were ordered. priated or otherwise made available to the defeat of a clearly identified candidate; and ‘‘(B) that is not provided in coordination AMENDMENT NO. 1650 TO AMENDMENT NO. 1649 Federal Communications Commission may be expended to impose or enforce any re- with a candidate or a candidate’s agent or a (Purpose: To prohibit new welfare for quirement or obligation with respect to the person who is coordinating with a candidate politicians) or a candidate’s agent.’’ provision of free or discounted television Mr. LOTT. I now send an amendment broadcast time for campaign advertising un- The PRESIDING OFFICER. The ma- to the desk to my amendment. less such requirement or obligation is spe- jority leader. The PRESIDING OFFICER. The cifically and expressly authorized by title III AMENDMENT NO. 1648 TO AMENDMENT NO. 1647 clerk will report. of the Communications Act of 1934.’’ (Purpose: To prohibit new welfare for The legislative clerk read as follows: Mr. LOTT. Mr. President, I ask for politicians) The Senator from Mississippi [Mr. LOTT] the yeas and nays. Mr. LOTT. Mr. President, I send an proposes an amendment numbered 1650 to The PRESIDING OFFICER. Is there a amendment to the desk to the pending amendment No. 1649. sufficient second? Snowe amendment and ask for its im- Mr. LOTT. Mr. President, I ask unan- There is a sufficient second. mediate consideration. imous consent that reading of the The yeas and nays were ordered. The PRESIDING OFFICER. The amendment be dispensed with. AMENDMENT NO. 1652 TO AMENDMENT NO. 1651 clerk will report. The PRESIDING OFFICER. Without (Purpose: To prohibit new welfare for The legislative clerk read as follows: objection, it is so ordered. politicians) The Senator from Mississippi [Mr. LOTT] The amendment is as follows: Mr. LOTT. I now send an amendment proposes an amendment numbered 1648 to Strike all after the first word in the pend- to the desk to my amendment. amendment No. 1647. ing amendment and insert the following: The PRESIDING OFFICER. The Mr. LOTT. Mr. President, I ask unan- SECTION 3. ELECTIONEERING COMMUNICA- clerk will report. imous consent the amendment be con- TIONS. The legislative clerk read as follows: (a) PROHIBITIONS.—None of the funds appro- sidered as having been read. The Senator from Mississippi [Mr. LOTT] priated or otherwise made available to the The PRESIDING OFFICER. Without proposes an amendment numbered 1652 to Federal Communications Commission may objection, it is so ordered. amendment No. 1651. be expended to impose or enforce any re- The amendment is as follows: quirement or obligations with respect to the In lieu of the matter proposed to be in- In lieu of the matter proposed to be in- provision of free or discounted television serted, insert the following: serted, insert the following: broadcast time for campaign advertising un- SEC. 1. ELECTIONEERING COMMUNICATIONS. SEC. 200. ELECTIONEERING COMMUNICATIONS. less such requirement or obligations is spe- (a) PROHIBITION.—None of the funds appro- (a) PROHIBITION.—None of the funds appro- cifically and expressly authorized by title III priated or otherwise made available to the priated or otherwise made available to the of the Communication Act of 1934. Federal Communications Commission may

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S908 CONGRESSIONAL RECORD — SENATE February 24, 1998 be expended to impose or enforce any re- tion to table did fail, although I think SNOWE. I want to make sure we had quirement or obligation with respect to the we should note that it was the iden- considered all of the ramifications to provision of free or discounted television tical vote that we had on this same that. I think probably the answer may broadcast time for campaign advertising un- issue last year. be yes, but I would like to make sure less such requirement or obligation is spe- cifically and expressly authorized by title III Now our colleague, Senator SNOWE, we have had a chance to talk it of the Communications Act of 1934. has offered her version of paycheck through. I am not making a commit- (b) EFFECTIVE DATE.—This section shall protection to the McCain-Feingold ment at this point. take effect one day after enactment of this amendment, and I intend to file a clo- I think it is important that we have Act. ture motion on that today. However, it a full discussion on the FCC effort and Mr. LOTT. Mr. President, I ask for is my hope that cloture votes on the we have a full discussion on our amend- the yeas and nays. Snowe amendment could occur Thurs- ment. That will give us time. I presume The PRESIDING OFFICER. Is there a day morning, but after we have had de- she is not interested in having a vote sufficient second? bate tonight. She is prepared, I believe, this afternoon, so we will have some There is a sufficient second. to talk about her amendment. time tonight to talk about that and The yeas and nays were ordered. There also are a number of Senators then tomorrow, after the funeral serv- Mr. DASCHLE. Parliamentary in- who are very interested in talking ices for Senator Ribicoff, and then quiry. about the second-degree amendment, after the vote on the military con- Mr. LOTT. I now send a final amend- or the amendment I offered to her struction appropriations bill, we will ment to my amendment to the desk—— amendment. I know Senator MCCAIN come back to this issue around, I Mr. DASCHLE. What constitutes a feels very strongly that the FCC should guess, 3:30. Then, hopefully, we will sufficient second in this case? not impose the requirement of free have a vote sometime tomorrow after- The PRESIDING OFFICER. Does the broadcast time. Senator BURNS had in- noon, probably around this time or a Senator yield for a parliamentary in- dicated he wanted to speak on this. We little earlier. We will talk about what quiry? had been hoping he would be here mo- order that would be in prior to that. Mr. LOTT. I yield for a parliamen- mentarily, and I am sure he will be, Mr. MCCAIN. If the majority leader tary inquiry. and he will want to speak on that will further yield, I thank him for that Mr. DASCHLE. I appreciate the ma- issue, too. consideration. I do believe, obviously, jority leader’s yielding. I ask the So, after a debate on this issue, we that we should have a vote on the Chair, what would constitute a suffi- expect to have a time set for a vote. Snowe amendment, and I appreciate cient second, given the number of Sen- But I will consult with the minority his consideration of it. Of course, ators on the floor currently? leader and also with the sponsor of the whether we were going to have a vote The PRESIDING OFFICER. The Con- amendment and the second-degree on the Snowe amendment would obvi- stitution requires one-fifth of those amendment before we announce a time ously dictate my vote and, I think, present. on that. that of some of my colleagues, includ- Mr. DASCHLE. Mr. President, I hope I ask for the yeas and nays on ing those on the other side of the aisle we will count carefully, because I think amendment No. 1647. who may share our view concerning we are getting very close here to The PRESIDING OFFICER. Is there a whether the FCC should be deciding whether or not we have a sufficient sufficient second? So ordered. these things or not. Because, if it second. I appreciate the answer of the The yeas and nays were ordered. serves just to kill our ability to vote Chair. Mr. MCCAIN. Will the majority lead- on the Snowe amendment, then obvi- AMENDMENT NO. 1653 TO AMENDMENT NO. 1651 er yield for a second? ously that may not be something that (Purpose: To prohibit new welfare for Mr. LOTT. I ask for the yeas and I would want to support. But I appre- politicians) nays on amendment No. 1646. ciate the majority leader’s consider- Mr. LOTT. I now send a final amend- The PRESIDING OFFICER. It would ation. ment to the desk to my amendment. I take unanimous consent to do that. Is Mr. LOTT. I agree with the chairman believe the desk has that amendment. there objection? of the committee. I feel very strongly The PRESIDING OFFICER. The Mr. DORGAN. Reserving the right to the FCC should not be doing this. I clerk will report. object, what is the request? would like to inquire, does the chair- The legislative clerk read as follows: The PRESIDING OFFICER. To be man of the committee intend to have able to order the yeas and nays on some hearings on this and maybe move The Senator from Mississippi [Mr. LOTT] amendment No. 1646. proposes an amendment numbered No. 1653 this as an amendment or as a part of to Amendment No. 1651. Mr. DASCHLE. Did the majority another bill at some point? Perhaps Strike all after the word ‘‘section’’ in the leader ask unanimous consent to do this year? pending amendment and insert the following: that? In that case, we will be compelled Mr. MCCAIN. I would hope so. As you 1. ELECTIONEERING COMMUNICATIONS. to object. know, the majority leader knows I am (a) PROHIBITION.—None of the funds appro- Mr. MCCAIN. Will the majority lead- loath—loath—to determine policy priated or otherwise made available to the er yield for a question? My under- issues on appropriations bills. But on Federal Communications Commission may standing of the majority leader’s occasion there might be some excep- be expended to impose or enforce any re- amendment is it would bar the FCC tion made to my absolute opposition to quirement or obligation with respect to the from allocating free television time to any authorization on appropriations provision of free or discounted television candidates. As the majority leader broadcast time for campaign advertising un- bills, because I feel this is a very im- less such requirement or obligation is spe- pointed out, that is a position that I portant issue. I thank the majority cifically and expressly authorized by title III share because I believe only the legis- leader. of the Communications Act of 1934. lative and executive branch should be Mr. LOTT. I yield the floor. (b) EFFECTIVE DATE.—This section shall responsible for what basically changes The PRESIDING OFFICER. The Sen- take effect two days after enactment of this the entire electoral system in this ate minority leader. Act. country. Mr. DASCHLE. I file two cloture mo- Mr. LOTT. Mr. President, for the in- But my question to the majority tions, one on the McCain-Feingold formation of all Senators, the Senate is leader is that, following disposition of amendment and then on the Snowe— now in a posture where the tree is his amendment, either through tabling first on Snowe and then on McCain. filled with respect to the pending cam- or up-or-down vote, would the majority CLOTURE MOTION paign finance legislation. Senator leader be amenable to a unanimous Mr. DASCHLE. Mr. President, I send MCCAIN has offered his substitute consent request that Senator SNOWE’s a cloture motion to the desk. amendment and we have had a very amendment be taken up without The PRESIDING OFFICER. The clo- good discussion about the issue prior to amendment, so that the Senate can ture motion having been presented the motion to table, and the time for vote on this issue? under rule XXII, the Chair directs the the vote was agreed to and that oc- Mr. LOTT. Let me discuss this with clerk to read the motion. curred, of course, at 4 o’clock. The mo- you, Senator MCCAIN, and with Senator The legislative clerk read as follows:

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S909 CLOTURE MOTION to the amendment of the Senator from signed to allow consideration of cam- We, the undersigned Senators, in accord- Maine. It ain’t going to happen. With paign finance reform. ance with the provisions of rule XXII of the the tree as filled as it is right now, I ask the Senator from South Da- Standing Rules of the Senate, hereby move there is no way there will be a vote on kota, was it your understanding when to bring to a close the debate on the Snowe the Snowe amendment. we had an agreement on this issue that amendment: I note, and the majority leader even campaign finance reform would be Edward M. Kennedy, Daniel Inouye, Byron Dorgan, Max Cleland, Russell D. Feingold, noted, that there is maybe another op- brought to the floor of the Senate for a Ernest F. Hollings, Daniel K. Akaka, Wen- tion, another route, another bill, debate and for the opportunity to offer dell Ford, Patrick J. Leahy, Christopher J. maybe, as the Senator from Arizona amendments and to consider fully and Dodd, Jack Reed, Patty Murray, Robert suggested, an appropriations bill. I sus- have votes on issues related to that Torricelli, Barbara Boxer, Ron Wyden, Carol pect that this loaded tree will provide subject? Moseley-Braun, Kent Conrad, and Jeff Binga- both sides with ample opportunity to Mr. DASCHLE. The Senator from man. offer amendments and bills to other North Dakota is absolutely correct. I CLOTURE MOTION amendments, and with a limited period think we can all go back and look We, the undersigned Senators, in accord- of time, we all know what that means. through the RECORD and, again, as I ance with the provisions of rule XXII of the But if those are the cards we are dealt, say, we have to look at the meaning of Standing Rules of the Senate, do hereby I am prepared to accept that as the cir- each word in these agreements with move to bring to a close debate on the cumstance and deal with it. perhaps greater skepticism. This idea McCain-Feingold amendment: Russell D. Feingold, Paul Wellstone, J. It is really amazing to me that there of filling the tree is great short-term Lieberman, Richard J. Durban, Tim John- are those in the Senate who profess to strategy. It has a horrible long-term ef- son, Edward M. Kennedy, Byron L. Dorgan, support a process by which we can ac- fect, long-term effect on the comity of Barbara A. Mikulski, Daniel K. Akaka, Jay complish all of our legislative goals, the of the Senate, long-term effect on Rockefeller, Dale Bumpers, Wendell H. Ford, but then continue to put obstacles in getting legislation accomplished. John Breaux, J.R. Kerrey, Ernest F. Hol- the path of resolution to the objectives So we are compelled, once again, to lings, Daniel Moynihan, Patty Murray, Carol in reaching those goals. use the techniques and methods we Moseley-Braun, and Max Cleland. So, I am disappointed and, frankly, have used in the past. It is very likely Mr. DASCHLE. Mr. President, here somewhat amazed that we have not that we will be relegated to using them we go again. I thought that we had an learned our lessons of the past. But so again in the future. understanding about the opportunity be it, the tree is filled, the opportuni- The Senator is right, clearly we had that we would be presented to have a ties will be there, either this week, an understanding that we would have good debate. In fact, I am going to go next week, the week after, but they an opportunity to debate issues, to back to the RECORD and check, but I will be there, just as they were last offer amendments and ultimately to am quite sure that there was some un- fall. resolve this issue. We have been denied derstanding that there would not be Mr. DORGAN. Will the Senator yield that as a result of the actions taken any need to fill trees and to prevent for a question? just now, and I deeply regret it. open and free debate, because we saw Mr. DASCHLE. I will be happy to Mr. WELLSTONE. Will the minority what happened the last time we tried yield to the Senator from North Da- leader yield for one moment? this. It locked up the Senate for weeks kota. Mr. DASCHLE. I will be happy to on end with absolutely no result. Mr. DORGAN. I thank the minority yield to the Senator. I would ask my colleagues, what are leader for yielding for a question. So Mr. WELLSTONE. It will take me you afraid of here? Why are our col- that those who watch these pro- only a few seconds. Since this is an ef- leagues on the other side not willing to ceedings and listen to these pro- fort to basically choke off debate and allow this body to work its will? Why ceedings understand, is it not the case deny us an opportunity to present is the majority party filibustering leg- that a procedure, a rarely used proce- amendments—many of us worked on islation that the majority of Senators dure until recently, has been used this for years and care fiercely about it supports? today that is designed to block legisla- and many of the people in the country Mr. President, I am disappointed and tion, that creates shackles and hand- do. The minority leader understands frustrated. I am prepared to take this cuffs designed in a way to lock the leg- and certainly realizes that on any bill to whatever length is required to bring islation up so it can’t move? that comes up forthwith, it would be it to a successful resolution this week, We were, as I recall, promised some our right to come back with these next week, at some point in the future. long while ago that we would be able to amendments, is that correct? We have a lot of work to do here, and consider campaign finance reform leg- Mr. DASCHLE. The Senator from I want to work with the majority lead- islation on the floor of the Senate. So, Minnesota is absolutely right. We will er to find a way to accomplish all that a date was set, a time for a vote was have the opportunity on countless oc- must be done. But I can’t think of a set, and the legislation came to the casions over the course of the next 10 better way to slow progress, to stop floor of the Senate, at which time we months to revisit this issue, which ob- progress, to preclude us from getting discover that, although we have a first viously we will be in a position to do our work done than to deny this body vote on a tabling motion, following and be prepared to begin at some point the opportunity to have a good debate that vote, this procedure, throughout either this week or next week. But we and some votes on this important its history always used to block legis- will certainly pursue this in other issue. lation, is immediately employed. ways. I must say, it is, again, a reminder to The implication of that, I guess, is Mr. WELLSTONE. I thank the lead- the Democratic caucus that when we that there is not a desire to proceed to er, because I very much want to do enter into these agreements, we better consider, fully consider campaign fi- that. We have a right to continue to do check the writing, we better check the nance reform. Many in this Chamber this and if we are serious about it, we specifics, we better ensure we have a have other amendments they wish to will fight for it, and we can bring clear understanding of what the agree- offer, have considered and have votes amendments out over and over and ment is. on. It appears to me that the procedure over again, is that correct? There was a colloquy just a moment now employed by the majority leader is Mr. DASCHLE. That is correct. ago about whether or not we could to say, ‘‘Yes, I brought it to the floor; Mr. KERRY. Mr. President, will the have an up-or-down vote on the Snowe yes, you had one tabling vote, and from leader yield for a question? amendment. Clearly, with this sce- now on we will do it the way I want to Mr. DASCHLE. I will be happy to nario, there is no way you can have an do it.’’ As the Senator from South Da- yield to the Senator from Massachu- up-or-down vote on the Snowe amend- kota said, the majority leader ex- setts. ment. This is a tree so loaded that the pressed, ‘‘I filled up the tree and we Mr. KERRY. I ask the leader, refer- branches are breaking. And so I sup- will allow only amendments that I will ring back to the October 30, 1997, CON- pose I could dream someday of drafting allow in the future.’’ It seems to me GRESSIONAL RECORD, reading from the a scenario that would allow us to get that is not an approach that is de- language of the leader himself, he said:

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S910 CONGRESSIONAL RECORD — SENATE February 24, 1998 This is not better— ments. By doing that, he can choose to The PRESIDING OFFICER (Mr. Referring to the agreement— deny any other opportunity for an SMITH of Oregon). The Senator from This is not better necessarily for Demo- amendment. Kentucky. crats or Republicans. But in our view, this is That is precisely what the majority Mr. McCONNELL. Mr. President, if I a very big victory for the country. This will leader has chosen to do here. When we may, I listened with great interest to give us an opportunity to have a good debate say he has filled up the tree, he has de- the comments of the Democratic leader as we have discussed. nied the Senate the opportunity to be and others on that side of the aisle. And then going on further, the mi- able to bring amendments in order to Point No. 1 should be crystal clear to nority leader said: be able to work the legislative process everyone who has followed this debate. I expect a full-fledged debate with plenty as people sent us here to do. Forty-eight Senators are not in favor of opportunity to offer amendments. Given I think what he has asked for is a of this measure. this agreement, now I have every assurance In the Senate, as we know in recent and confidence that will happen. long process of delay. He has initiated gridlock in the U.S. Senate again, sole- years, every issue of any controversy I recall, having been part of the dis- ly to protect a certain group of narrow requires 60 votes. So it is not at all un- cussion and referring back to Senator vested interests represented in this usual when an issue cannot achieve 60 LOTT’s request, Senator LOTT said: campaign finance debate. It is very, votes for it not to go forward. That is I further ask that if the amendment— very clear as of today, there are a ma- the norm around here. Referring to Senator MCCAIN’s jority of the U.S. Senate prepared to Point 2. It does not make any dif- amendment— vote for campaign finance reform. ference in what context the issue is not tabled . . . the underlying bill will be There is a minority that is trying to comes up. There are 48 people in the open to further amendments, debates and stop it. They have that right, but they Senate who are not willing to vote for motions. also, I hope, will be subject to the judg- this measure either on cloture or on a There was a clear understanding, if I ment of the American people who will motion to table. So it isn’t going to am correct, and I ask the leader if recognize who is for campaign finance pass. It is not going to pass today, not there was not a clear understanding, reform and who is against it. I thank tomorrow, not 3 months from now, not that while the Republicans retained the leader. 5 months from now. We can decide the right to filibuster, they would not Mr. DASCHLE. Mr. President, I yield whether we want to waste the Senate’s fill up the tree and they would not to the Senator from North Dakota. time on an issue that is not going to deny the Senate the right to have the Mr. DORGAN. For one additional pass. But it is clearly a waste of time. opportunity to debate and have a series With regard to how unusual it is to question. I mentioned in my initial of votes on the substantive issues, but fill up the tree, let me just mention question to the Senator from South that there would be a distinct oppor- that when Senator Mitchell was major- Dakota, this is a rarely used approach. tunity for both sides to be able to ity leader in the 103d Congress, he It is true that this approach has been amend and follow this debate? Is that filled up the tree on February 4, 1993; used by the majority leader a couple of the minority leader’s understanding, February 24, 1993; January 31, 1994; May times last year, but in history, it has and is that a correct reference to the 10, 1994; May 18, 1994; June 9, 1994; June been rarely used in the Senate. And the language that he relied on at that 14, 1994; June 14, 1994; and August 18, reason is, it is almost exclusively used time? 1994. Those are nine occasions, Mr. to block legislation, but it is never suc- Mr. DASCHLE. There is no doubt President, when Senator Mitchell, dur- cessful, because you can block someone about it. Again, Senator LOTT, and I ing the 103d Congress, nine occasions in by tying legislation up in chains and quote a comment he made to reporters which Senator Mitchell filled up the shackles now and preventing anybody that very day, said: ‘‘As far as I can tree. This is not exactly uncommon. It from offering an amendment, but you tell at this point, amendments would is not a routine everyday activity, but can’t prevent that forever. You have to certainly be in order, would be consid- it certainly is not uncommon. bring legislation to the floor of the ered, they might be second-degreed and In 1977, Jimmy Carter’s energy de- Senate at some point which, according they certainly would be given a third regulation bill, Senator BYRD was the to the rules of the Senate, will allow degree.’’ leader and he filled up the amendment another Senator to stand up and offer There is no question that we had the tree. an amendment to such legislation. clear understanding that there would In 1984, in the Grove City case, Sen- In my judgment, this is very counter- be an opportunity to have a good de- ator BYRD was in the minority, and he bate, offer amendments, have them productive. Some in this Chamber want filled up the tree. voted upon and ultimately dispose of to dig their heels in and say, ‘‘Notwith- In 1985, the budget resolution, Sen- this issue. standing what the majority wants to ator Dole was the majority leader, and So I am really disappointed we have do in this Chamber, we intend to block he filled up the tree. not been able to reach that point in campaign finance reform.’’ You can In 1988, campaign finance—it has this debate to date, and this, in my block the right of Members to offer been around for a while—Senator BYRD view, is not what we had agreed to last amendments now if you use this rarely filled up the tree, and there were eight fall. used procedure, but you can’t block cloture votes. Mr. KERRY. I thank the minority people here forever from doing what we In 1993, there was an emergency sup- leader. I simply express on behalf of all want to do, and that is have a full and plemental appropriations bill, the so- of us I think who had an anticipation good debate on campaign finance re- called stimulus bill. Senator BYRD of an opportunity to bring a number of form, offer amendments and have votes filled up the tree. amendments that this is a setback for on those amendments. Let me say that it is not an everyday the Senate and it is clearly a setback I don’t think the American people action but it is not uncommon for ma- for all those in the country who are going to be denied on this issue. jority leaders to fill up the tree. What thought the Senate could approach the The American people know this system is fairly unusual is for the minorities issue of reform responsibly. is broken, it needs fixing, and they to file cloture motions. Not common, When we talk about filling the tree want this Congress and this Senate to typically done by the majority. And here, for a lot of people who listen to do something about it. We can tempo- the only cloture motions we have at these debates and don’t know what rarily tie it up in these legislative the desk at the moment are by the mi- that means, under the rules of the Sen- chains, but that is not going to last nority. ate, we are given an opportunity to be forever, and I think that simply delays But the fundamental point is this, able to bring up an amendment accord- the final consideration of this issue. Mr. President. There are not enough ing to the rules. But according to the Mr. DASCHLE. I thank the Senator votes in the Senate to pass this kind of rules, the majority leader has the op- from North Dakota for his comments, measure. Consequently, it isn’t going portunity of right of recognition to and I yield the floor. to happen. That is the way the process take up all of the options that the Mr. McCONNELL addressed the works around here. And we can waste a rules allow in order to bring up amend- Chair. whole lot of time having repetitive

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S911 votes. The 48 votes that were cast in issue in the Senate. And I understand It is always easy to be against some- favor of the motion to table were the that. That is what the rules provide. thing. same 48 votes that were cast against But it is extraordinary and it is un- So I hope, as we go along, the major- cloture in October. And it will be the usual before a vote on cloture or vote ity leader and others will think better same 48 votes that will be cast whether on amendments with the exception of of a strategy that says we allowed you it is a motion to table or a motion to one for somebody to come out and say to bring it to the floor, but we are not invoke cloture no matter how many we are going to tie this whole system going to allow a full and free debate times it is offered. So who is wasting up and we are going to use a procedure and votes on amendments. I hope he the people’s time here? It is certainly that is always used to block legisla- will think better of that, because there not the majority. tion. isn’t a way, in the long run, to shut off I say, we ought to let the American The majority leader sets the agenda. our opportunity to thoughtfully con- people have their day on the floor of He is anxious to move on to issues that sider this legislation, and to prevent the Senate. And their day is a day in people care about that will make a dif- our ability to offer amendments. ference to this country. And clearly, which the Senate recognizes that this any way you interpret what had hap- system needs reforming, this system Mr. President, I yield the floor. pened last October and here in Feb- needs changing. And if we debate be- Ms. SNOWE addressed the Chair. tween Republicans and Democrats and ruary, there are not enough votes to The PRESIDING OFFICER. The Sen- find a set of proposals, starting with pass this kind of campaign finance re- ator from Maine. form. McCain-Feingold, which I support, con- So, Mr. President, I just wanted to cluding perhaps with Snowe-Jeffords, Ms. SNOWE. Thank you, Mr. Presi- set the record straight with regard to which I also will support, and perhaps dent. how unusual it is for a majority leader with some additional amendments, we AMENDMENT NO. 1647 to fill up the tree and to make the will, I think, find an approach for cam- Ms. SNOWE. Mr. President, I rise point that the 48 votes that were cast paign finance reform that, while not today to offer an amendment on behalf in favor of the motion to table today perfect, certainly does improve cam- of myself and Senator JEFFORDS, along were the same 48 votes cast against the paign finance in this country. with a bipartisan group of colleagues— cloture motion back in October. This is You cannot, in my judgment, stand Senator MCCAIN, Senator FEINGOLD, a high water mark in the 10 years I here today and say, ‘‘Gee, the current Senator LEVIN, Senator LIEBERMAN, have handled this debate. And 48 votes system works really well. This is really Senator CHAFEE, Senator COLLINS, Sen- is the best we have ever done. This a good system.’’ The genesis of this ator THOMPSON, which I believe rep- measure simply isn’t going to pass. system starts in 1974, with the cam- resents a commonsense middle-ground Mr. President, I yield the floor. paign finance reform legislation in Mr. DORGAN addressed the Chair. 1974. The system has been changed approach to reforming our campaign fi- The PRESIDING OFFICER. The Sen- somewhat over the years by virtue of nancing system in America. ator from North Dakota. court decisions and rule changes, and As I think our colleagues know, I Mr. DORGAN. Mr. President, in re- also by some of the smartest legal have long been a proponent of fair, sponse to the Senator from Kentucky, minds in our country trying to figure meaningful changes in the way cam- let me say the point still stands. I ask out how you get campaign money paigns are financed in this country. the Senator from Kentucky to do a lit- under the door and over the transom That is why, when this issue came to tle research and tell me whether in all and into the campaign finance system. the floor last year, I worked with Sen- of those instances, where he described The rules have now been mangled and ators MCCAIN, JEFFORDS, FEINGOLD, the so-called filling of the tree, wheth- distorted so badly that the system just Senator DASCHLE, and others, to try to er someone came to the floor of the does not work. forge a compromise that would address Senate and tried to fill the legislative And if you have a system that is not the concerns of both sides and move tree or create a set of chains beyond working, it seems to me our responsi- the debate forward. I said then on the which the Senate could not work be- bility is to say: Let’s fix it. And, by the Senate floor, and say again today, that fore filing a cloture motion and allow- way, despite many attempts to muddy we should be putting our heads to- the waters on this, we are not saying: ing the votes on amendments on an gether, not building walls between us Let’s fix it in a way that denies anyone issue. I do not think he will find that with intractable rhetoric and all-or- a voice in this system or attempts to circumstance existed. nothing propositions. He pointed out a number of occasions shut anyone down or any group down. The McCain-Feingold bill, in my While that effort was not successful, when the legislative approach was judgment, is a very reasonable ap- I am pleased that we are again having used. I said it is rarely used. I stand by proach to addressing the abuses and the opportunity to address campaign that. But it is almost never used in a the problems in the current campaign reform, and I thank the distinguished circumstance where prior to a cloture finance system. majority leader for making this pos- vote and prior to allowing amendments The Snowe-Jeffords proposal, which I sible. I also want to thank the bill’s to be offered and voted, someone comes will support, is one that falls short of sponsors—Senators MCCAIN and FEIN- out here and ties the legislative system what I would like—I would like to ex- GOLD—for their continued leadership up with these chains and shackles. pand its reach, and prefer the issue ad- and determination on this issue, and That has not been the case. And so we vocacy approach in the original their support of the efforts that are ought not to suggest this is some nor- McCain-Feingold. being done here today with Senator mal procedure that has been used on Senator SNOWE is on the floor and JEFFORDS and myself. occasion over the years by both sides. prepared to speak to that amendment. The point I make is this. This is not I want to acknowledge the hard work Will her proposal advance us towards a of my colleagues who are committing a partisan issue. There are Republicans better system? Yes, it will. So let us themselves to this compromise amend- that support campaign finance reform decide that we can be more than just ment and have committed themselves and Democrats who support campaign roadblocks. I mean, the easiest thing in to moving campaign finance reform finance reform. In fact, there is a ma- the world is to be a roadblock to some- forward: Senators LEVIN, CHAFEE, LIE- jority of the Members of this body that thing. I think it was Mark Twain who BERMAN, THOMPSON, COLLINS, BREAUX, support campaign finance reform and if once said, when he was asked if he and SPECTER have worked very hard we can have a vote up or down on final would be willing to debate an issue, ‘‘Of with us on crafting this amendment. passage in some reasonable form on course, providing I’m on the negative They have made clear their support for campaign finance reform, it is going to side.’’ pass. It is what the American people They said, ‘‘You don’t even know the meaningful reform this year. want and it is what this Congress subject.’’ Last year, this body became stuck in ought to do. He said, ‘‘It doesn’t matter. It doesn’t the mire of all-or-nothing propositions The Senator from Kentucky appro- take any time to prepare for the nega- and intransigence. We missed an oppor- priately said that there is a 60-vote tive side.’’ tunity to coalesce around a middle

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S912 CONGRESSIONAL RECORD — SENATE February 24, 1998 ground—any middle ground—and the FEINGOLD for their tenacity in getting Federal candidate in that radio ad or result was that the status quo re- this bill to the Senate floor once again. that television ad, and only if the mained alive and well. Despite the ef- One of the most important aspects of group spends more than $10,000 on such forts of some of us who tried to work to this scaled-back version of the original ads in a year. What we require is the forge a compromise that would have bill is its ban on soft money. We all sponsors’ disclosure and also the do- moved the debate forward, campaign fi- know that soft money is becoming a nors on such ads because we think it is nance reform died a quiet and ignoble major issue, and for good reason. It is important that donors who contribute death here in the U.S. Senate. money that circumvents the intent of more than $500 to such ads should be The reasons are many but the central the law—unaccounted for money which disclosed by these organizations. issue then, as now, centered on the ob- influences Federal campaigns above The amendment also prohibits direct jection of Republicans to a package and beyond the intended limits. or indirect use of corporation or union that does not address the issue of pro- S. 25 takes a tremendous step for- money to fund the ads in the 60 days tecting union members from having ward by putting an end to national before the general election and 30 days their dues used without their permis- party soft money, as well as codifying before the primary. We call this new sion for political purposes with which the so-called Beck decision, making category ‘‘electioneering’’ ads—again, they may disagree, and the objection of prudent disclosure reforms, tightening making the distinction between issue Democrats to singling out unions while coordinating definitions, and working advocacy and candidate advocacy de- not providing similar protections for to level the playing field for candidates signed to influence the outcome of a corporation shareholders. facing opponents with vast personal Federal election. Let me say that I am among those wealth to spend in their own cam- They are the only communications Republicans who have had a concern paigns. that we address in our amendment, and about the use of union dues for polit- Do I think this is a perfect bill? No. we define them very narrowly and very ical purposes and, in fact, the cam- Are there other things I would like in- clearly. If the ad is not run on tele- paign finance reform bill that I intro- cluded? Of course. Do I think it can be vision or radio, if the ad is not aired duced last year included language simi- improved? Certainly. That is why I within 30 days of a primary and 60 days lar to the Paycheck Protection Act. I have again teamed up with my col- before a general election, if the ad happen to think it is not a bad idea, league from Vermont, Senator JEF- doesn’t mention a candidate’s name or and in a perfect world where I could get FORDS, to work with the sponsors of otherwise identify either he or she my way on this and still pass meaning- this legislation, Senators MCCAIN and clearly, if it isn’t targeted at the can- ful reform, I would support it. FEINGOLD and others, in a fresh ap- didate’s electorate, or if a group hasn’t But the fact is, I believe we can still proach developed by noted experts and spent more than $10,000 in that year on have fair and meaningful reform at the reformers, including Norm Ornstein, these ads, then it is not an election- same time we take a step back from Dan Ortiz of the University of Virginia eering ad. If an item appears in a news this incredibly divisive issue. In fact, it School of Law, Josh Rosenkranz at the story, editorial, commentary, distrib- is probably the only way we can have Brennan Center for Justice at NYU, as uted through a broadcast station, it is such reform. The bottom line is, we well as others. They developed a pro- also not an electioneering ad, plain and will never pass campaign finance legis- posal to address the exploding use of simple. lation—at least in the foreseeable fu- If one does run one of these election- unregulated and undisclosed adver- ture—if we take an all-or-nothing ap- eering ads, two things happen. First, tising that affects Federal elections proach on this facet of reform. And I the sponsor must disclose the amount and the concerns of many that the in- believe that we can and must make sig- spent and the identity of the contribu- tent of S. 25 to address this issue would nificant changes that may not be per- tors who donated more than $500 to the not withstand or survive court scru- fect, that may not make everyone group since January 1 of the previous tiny. year. Right now, candidates, as we all happy, but which will be a great im- Therefore, the amendment that my well know since we have been can- provement over the current morass we colleague from Vermont and I are of- didates, have to disclose campaign con- find ourselves in. fering will fundamentally change the If we do nothing, we will see a re- tributions over $200. So the threshold way in which the underlying bill ad- peat—or likely an even worse sce- and the requirement in this amend- dresses this issue. It strikes section 201 nario—of what we saw in 1996, which ment is much higher. of title II, which redefines express ad- confirmed all the reasons why it is im- Second, the ad cannot be paid for by vocacy and replaces it with the lan- perative to be strong proponents of funds from a business corporation or guage that we have offered in our campaign finance reform. We saw over labor union in the nonvoluntary con- $223.4 million in soft money raised by amendment that makes a clearly de- tributions such as union dues or cor- the two national parties—three times fined distinction between issue advo- porate treasury funds. more than in the last Presidential elec- cacy and influencing a Federal elec- Again, I just want to repeat, these tion. We saw more than $150 million— tion. In other words, we are making a are basically the provisions on what we do not know the precise amount be- distinction between candidate advo- this amendment would do. We have cause it is not disclosed—spent on at- cacy and issue advocacy. This is impor- heard a lot of things about what it tack ads paid with unlimited funds by tant because, if the courts rule the ef- would do, and I want to make sure that third-party groups that made can- forts of S. 25 to address this distinction everybody understands. It is very sim- didates largely incidental to their own as unconstitutional, then essentially ple, very direct, it is very narrow. The campaigns. all that will remain from S. 25 is a ban clear and narrow wording of this We saw an electorate that was, to put on soft money. If that happens, we will amendment is important because it it bluntly, disgusted by the spectacle. be left with only one-half of the equa- passes two critical first amendment And the 1996 elections were barely over tion. I share the concerns of those who doctrines that were at the heart of the when allegations were made of illegal want to see balanced reform and who Supreme Court’s landmark Buckley v. and improper activities, centered want to improve the system. Valeo decision—vagueness and over- around the issues of so-called ‘‘soft Our amendment applies to advertise- breadth. money’’ and foreign influence peddling ments that constitute the most blatant Vagueness could chill free speech if through campaign contributions, all form of electioneering. The chart to someone who would otherwise speak egregious abuses highlighted by the my left shows what the Snowe-Jeffords chooses not to because the rules aren’t Senate Governmental Affairs hearings. amendment does. It is a straight- clear and they fear running afoul of the All of this has only served to further forward, two-tier approach that only law. We agree that free speech should undermine public confidence and un- applies to ads run on television or not be chilled, and that is why our derscore the importance of enacting radio—those are the only ads that this rules are clear. Any sponsor will know meaningful and achievable campaign amendment addresses—near an elec- with certainty if their ad is an elec- finance reform this year. tion, 60 days before a general election, tioneering ad. That, again, gets back to I believe that S. 25 is a good start, 30 days before a primary, that identify when the ad is run and whether or not and I commend Senators MCCAIN and a Federal candidate, that mentions a it mentions a candidate by name.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S913 Overbreadth can unintentionally to disclose; and that is why the Su- rect mail, voter guides or any other sweep in a substantial amount of con- preme Court has upheld it. Disclosure nonbroadcast media because, again, it stitutionally protected speech. But our rules, according to the Supreme Court, only applies to TV and radio broadcast amendment is so narrow that it easily are the least restrictive means of curb- 60 days before the election. satisfies the Supreme Court’s over- ing the evils of campaign ignorance It would not affect the ability of any breadth concerns. We strictly limit our and of corruption. Our disclosure rules organization to urge grassroots con- requirement to ads near an election are eminently reasonable. tacts with lawmakers on upcoming that identify a candidate or ads that Second, the Congress has had a long votes. They could say, ‘‘Call your Sen- plainly intend to convince voters to record, which has been upheld, of im- ator.’’ They could say, ‘‘Call your Sen- vote for or against a particular can- posing more strenuous spending re- ator on the 1–800 number’’ which is a didate. strictions on corporations and labor very popular means of advertising Nothing in the Snowe-Jeffords unions. Corporations have been banned today. But if they use the Senator’s amendment restricts the right of any from electioneering since 1907, unions name 60 days before the election, they advocacy group, labor union, or busi- since 1947. As the Supreme Court point- have to disclose their donors who do- ness corporation from engaging in ed out in the United States v. UAW, nate more than $500. issue advocacy or urging grassroots Congress banned corporate and union It does not require invasive disclo- communications. If a group were truly contributions in order ‘‘to avoid the sure of all donors, because some have interested in only the issues, all they deleterious influences on Federal elec- said it will require them to release would have to do to avoid our require- tions resulting from the use of money their donors list. Well, we all have to ments is to run an ad talking about the by those who exercise control over release donors at a certain threshold. issues and encouraging people to call large aggregations of capital.’’ In 1990 We are not requiring everybody to re- their Senators rather than naming the Supreme Court upheld that ration- lease donors lists. We are saying in a them. Indeed, nothing in our amend- ale, as well. very narrow period, right before the ment prohibits groups like the Na- If anything, we have increased first election, those groups who identify tional Right-to-Life Committee, the amendment rights for union members candidates in their ads or use a like- Sierra Club, and a host of groups that and shareholders, while we maintain ness are required to disclose their do- exist in America from running elec- the right of labor and corporate man- nors who donate more than $500. That tioneering ads, either. We just require agement to speak through PACs and is not invasive. It is not intrusive. them to disclose how much they are raising hard money like other political It would not require advance disclo- spending on electioneering ads, who action committees. sure of full contents of ads. Some have contributes more than $500, and we pro- As these legal experts further state, said in some of the material circulated hibit them from using union and cor- ‘‘The Snowe-Jeffords amendment here in Congress that somehow these poration money during that 60-day pe- builds on these bedrock principles, ex- groups will be required to disclose in riod before the general election and 30 tending current regulations cautiously advance the contents of their ad. That days before a primary. and only in the areas in which the first is not true. So we create a very narrow standard. amendment protection is at its lowest So, it is important to understand Even if the threshold of disclosure is ebb. It works within the framework of what this amendment does as much as $500, it is not like what it was in the the two contexts—disclosure rules and in terms of what it does not do. It is a Buckley v. Valeo decision where it was corporate and union spending—’’ which very limiting amendment. That is why $10. That was broad and it was sweep- the Supreme Court allows and says we it will withstand constitutional scru- ing, drawing everybody in, and it have the broadest discretion when it tiny. That is why it is important for raised questions in the Court. That is comes to governmental interest and everybody to understand that. So every why they struck it down. We are rais- governmental regulations, as well as group can advertise, they can commu- ing a threshold of $500—$300 more than corporate and union spending because nicate, they can accept money. But in we are required in terms of disclosing we have had a century of rulings by the that narrow period of time before the our donors. Supreme Court, not to mention Con- general election, if they target a can- Both of the basic principles, disclo- gress, in this issue, ‘‘in which the Su- didate by identifying them by name— sure and a prohibition on union and preme Court, as well, has been most because if they are doing that, it is de- corporation treasury funds, not only tolerant of campaign finance regula- signed to influence the outcome of the make sense, they are also on solid, tions.’’ election—that will be upheld by the legal footing. As detailed in a letter re- Hearing the debate here today, there courts. cently circulated by legal experts Burt have already been misconceptions out We are not saying they can’t engage Neuborne, professor of law at NYU there. I think it is important to make in grassroots activities and commu- School of Law; Norm Ornstein; Dan very clear what this amendment does nications with their lawmakers who Ortiz; and Josh Rosenkranz, executive not do. I have a chart here to my right come and vote in Congress. They can director of the Brennan Center, the Su- that talks about what the Snowe-Jef- urge their Senator or urge their Con- preme Court has made clear that, for fords amendment would not do. I think gressman to vote for or against such constitutional purposes, electioneering it is important to restate this because and such a bill. It is not affected by is different from other forms of speech. there is a lot of information that has this amendment. All we are doing is re- Congress is permitted to demand the been circulated here in the Congress quiring disclosure. Now that is for a sponsor of an electioneering message to about saying what it would do, from a very good reason, as to why we require disclose the amount spent on the mes- variety of groups, saying they would disclosure, as we will see in the next sage and the source of funds. Congress not be able to disseminate election- chart of how much money is being may prohibit corporation and labor eering communications. placed in these elections by groups unions from spending money on elec- That is not true. It would not pro- that don’t have to disclose $1. tioneering. These legal scholars further hibit groups like the Sierra Club or the Mr. President, this is a sensitive and state that in Buckley the court de- right-to-life or any other group from reasonable approach to addressing a clared that the governmental interests disseminating electioneering commu- burgeoning segment of electioneering that justify disclosure of election-re- nications. They can send out whatever that is making a mockery of our cam- lated spending are considerably broad- they want. paign finance system. That is why it is er and more palatable than those justi- It would not prohibit these groups, important to use the 1996 election. It is fying prohibitions or restrictions on again, from accepting corporate or certainly the one that reflects the election-related spending. labor funds. most significant changes in campaigns. Disclosure rules, the Court said, en- It would not require groups like the As is indicated by the two charts be- hance the information available to the Sierra Club or right-to-life to create a hind me—and I am going to describe voting public. That is why we disclose; PAC or other separate entities. this because I think it is interesting to that is why we are required to disclose; It would not bar or require disclosure show the problem we are facing in elec- that is why the Congress can require us of communications by print media, di- tions today, and it will only get worse.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S914 CONGRESSIONAL RECORD — SENATE February 24, 1998 It will only get worse. We haven’t seen quires disclosure. We are not even say- a reasonable approach? How can we go a declining amount of money in each ing they can’t do it. We are saying that home and face our constituents, our subsequent election. In fact, the oppo- 60 days before the election, if they electorate, and explain that we didn’t site is true, as we well know. mention a candidate by name, they even want to vote for a measure that According to the Annenberg Public have to disclose their donors of $500 or would give them the information they Policy Center, it shows that $130 mil- more. Now, I know there are some in need to be informed voters? How can lion to $150 million was spent on issue this body who object to disclosure. But we go home without having voted for a ads in the 1996 election. But that is just can anyone, with a straight face, tell measure that addresses at least some a guesstimate because they don’t dis- me that when ads like these clearly aspect of campaign reform that Ameri- close. We don’t know. It could be far cross the line into electioneering— cans view as out of control in a sen- more than that. It could be more than which is a different category—there sible and reasonable way? $150 million. That is the best guess, the should not even be disclosure? Can- Let’s make no mistake about it; we best estimate anybody can make. didates, as I said earlier, have to dis- will pay the price. To those who hide Money spent by all candidates, includ- close, and as candidates, I could not be- behind the mistaken notion—the door- ing the President, U.S. Senate and U.S. lieve we would not want more disclo- keepers of the status quo—that people House, was $400 million. So a third of sure in other areas that affect can- don’t really care, I say that you are the ad spending was done on issue ads. didates in elections throughout this making a grave mistake. Yes, some of A third of all the money that was spent country. you may point to studies such as the by candidate advertising was spent on So can somebody honestly say that January poll conducted by the Pew Re- issue ads, and they didn’t even have to groups that spend millions of dollars in search Center, which ranked campaign disclose a dime. ads near elections that mention spe- reform 13th on a list of 14 major issues. Now, something is wrong. Something cific candidates don’t have to disclose But let’s look at the reason. The report is wrong with a system where a third of anything? Are we prepared to say that also said that the public’s confidence in all the money was spent on candidate we don’t even have the right to know Congress to write an effective and fair advertising and not one dime was dis- who is spending vast sums of money to campaign law had declined. closed in the last election. Do you influence Federal elections? It is inter- That is a sad commentary. Many think this number is going to get esting to me we had $150 million—it Americans have taken campaign fi- worse, or is it going to get better? It is could be more—spent in the last elec- nance off of their radar screens simply going to get worse. tion cycle and we don’t even know who because they have given up on us. The chart represents the so-called donated that money. Yet, 87 percent of Frankly, it is an embarrassment, Mr. issue ads in the 1996 elections. Again, those so-called issue ads identified the President. That this great body has not according to the Annenberg Public Pol- candidate. come together on some reasonable, in- icy Center of the University of Penn- As the letter from the legal scholars cremental reform to move the issue sylvania survey—and it is important to that I referenced earlier states: forward is unacceptable. That is why look at this because when you see so- The Supreme Court has never held that Senator JEFFORDS and I have worked, called issue ads, many of them are de- there is only a single constitutionally per- with a bipartisan group, to change the signed to influence the outcome of an missible route a legislature may take when dynamic in this debate, to address election. It is not talking about legis- it defines ‘‘electioneering’’ to be regulated or what were some legitimate concerns lative outcome. And no one wants to reported. Congress has the power to enact a about some of the issue advocacy pro- affect issue ads in which a group has a statute that defines electioneering in a more visions of the McCain-Feingold amend- legitimate right and is entitled to dis- nuanced manner, as long as its definition ment, on some of their restrictions. So adequately addresses the vagueness and cuss issues and run an ad that tells a overbreadth concerns expressed by the this takes a different approach, based Senator or a Member of Congress how Court. on what legal and constitutional ex- to vote without identifying them. You The letter from these distinguished perts have said would withstand judi- must disclose it if their name is men- scholars also says: cial scrutiny. tioned, if you do it 60 days before the We have a chance to remedy this ab- The Supreme Court has made clear that, rogation of our responsibility and, so election. Interestingly enough, on for constitutional purposes, electioneering is these so-called issue ads, almost 87 per- different from other speech (FEC v. Massa- far, we have failed to address some of cent referred to an official or a can- chusetts Citizens for Life). Congress has the the serious inequities and abuses in our didate; 87 percent of the so-called issue power to enact campaign finance laws that campaign finance system. Our amend- ads referred to an official or a can- constrain the spending of money on election- ment would deal simultaneously and in didate. Instead of saying, ‘‘Call your eering in a variety of ways . . . (Buckley v. a realistic way with broadcast election- Senator,’’ or, ‘‘Call your Congress- Valeo). Congress is permitted to demand eering messages at the time they have man,’’ they identified that official or that the sponsor of an electioneering mes- the most impact—which is right before sage disclosure the amount spent on the an election, and, as we all know, that that candidate by name. That is the message and the sources of funds. And Con- big distinction between issue advocacy gress may prohibit corporations and labor is where most of the money is spent in and candidate advocacy. We do not unions from spending money on election- the final analysis—and a clear cam- want to infringe upon the rights of eering. This is black letter constitutional paign context. It would provide the those groups who want to conduct law about which there can be no serious dis- electorate with information as to who grassroots communications through pute. is running the ads. Isn’t that some- their membership or through Members Again, these are their words, and thing that everybody is entitled to of Congress and their elected officials these are constitutional experts. These know when we are seeing $150 million on the issues of true issue advocacy. are the words of experts who have and we don’t know who spends that But now it is becoming candidate advo- made a life of studying these issues. money? Not one penny. In fact, it is cacy, designed to influence the out- Mr. President, we have the power and probably much more. come of a Federal election. the obligation to put elections and spe- Our amendment would reinforce the Pure attack in 1996 issue ads. Accord- cifically electioneering ads—because traditional rules, limiting the role of ing to the Annenberg survey, 41 per- that is what this amendment is all unions and corporations in elections. I cent of those issue ads were ‘‘pure at- about—back into the hands of vol- believe that this amendment would tack’’—41 percent; 24 percent, Presi- untary, individual contributors. The move us forward, again, because the dential ads; debates, 15 percent; free question before us now is, will we stand courts, as well as Congress, have been time, 8.9 percent; and 36 percent from foursquare behind reform? Will we sup- able to draw a line on imposing restric- the news organizations. But 41 percent port this incremental, reasonable, con- tions on certain groups, and it can do of the attacks came from what were so- stitutional approach that gets at some so when it comes to unions and cor- called issue ads. That is the problem of the core abuses that we have seen in porations because of the preferential that we are facing in the system today. previous elections? benefits that have been accorded to Now, that is why this amendment Maybe the question is better stated them through the U.S. Congress and by Senator JEFFORDS and I are offering re- this way: How can we not support such statute in law.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S915 Typical of any compromise, both how much they care about this issue. their identities. We will not violate their sides of the aisle have identified as- But more important, they will be re- trust simply to satisfy the curiosity of Con- pects of the measure they might not minded, if we fail to take action here, gress or the press. Bruce Hamilton, national conservation di- like. But I think that always means of our unwillingness and our failure to rector for the Sierra Club Foundation, said that we are on the right track. It is my take action on this issue. [of] donors to the separate Sierra Club’s po- hope, Mr. President, that this common- I suggest to Members that we are em- litical action committee . . . sense, incremental approach can be the barking on a high-risk strategy by sug- Of course they are required to dis- impetus to passing an improved, bal- gesting that somehow we can get away close, because they engage in express anced and fair S. 25. I sincerely believe with not addressing this issue. I think advocacy. That is part of hard money, that we can and must take a first step that is a very high-risk strategy and I part of the Federal campaign system. toward restoring public confidence and think it is dead wrong. What Senator SNOWE’s amendment is public faith in our campaign finance I hope Members of this Senate will about is issue advocacy, which is an en- system. We are the stewards of this look very carefully at this amendment. tirely different subject under Supreme great democracy that has been handed There is nothing tricky about it. It is Court interpretations; an entirely dif- down from our forefathers—who would pretty straightforward, in accordance ferent subject. be aghast if they saw the state of cam- with the decisions that have been ren- Now, the Sierra Club said with regard paigning in this country today, I might dered by the Court in the past. It is to compelling them to disclose their add—and it is our responsibility to see very narrowly drawn, very precisely membership as a precondition for en- that it does not disintegrate under the drawn, requiring disclosure. Because gaging in issue advocacy—Hamilton weight of public cynicism and mis- that is where the Court has granted a said: trust. greater prerogative to the Congress That is basically saying, ‘‘Turn around and As I said last year, it is the duty of and to the public’s right to know, and give us your membership . . . . We want pub- leaders to lead and that means making restrictions only in those areas in lic disclosure of the 650,000 members of the some difficult choices and doing the which the Court and Congress has ruled Sierra Club, which is a valuable resource, right thing. I had hoped that our lead- in the last century, because we have a coveted by others, because they can turn ers would have been able to have come right to draw that line when it comes around and make their own list.’’ together and I had urged last fall that to unions and corporations. The last thing he had to say I find we have a bipartisan group to work out So, I hope that each Member of the particularly interesting, and knowing a plan, through the leaders, to come to Senate will have a chance, over the the occupant of the Chair is from out the floor. That didn’t happen. But next 24 hours, to look at this amend- West, he might appreciate this. He many of us in the rank and file are ment very carefully and to see that it said: working together on a bipartisan basis does move in the right direction. It can also be turned around and used because we think this issue is impor- I yield the floor. against them. We have members in small The PRESIDING OFFICER. The Sen- towns in Wyoming and Alaska (who could by tant. Not to say that all we are doing hurt) if word got out that they belong to the is right and perfect; it is not. But it ad- ator from Kentucky. Sierra Club. Mr. MCCONNELL. The distinguished vances the process forward, the issue So I say to my friend from Maine, Senator from Maine asks rhetorically forward, and it makes substantial im- this is not in a gray area. The Supreme who would be opposed to disclosure of provements on those areas which we Court has opined on the question of the group contributions? I would say to my have identified to be the most problem- Government requiring a donor list of friend from Maine, the Supreme Court atic in our campaign finance system groups as a precondition for expressing today. would be opposed to it. In the 1958 case themselves at any time—close to an I hope that we would not entrench of NAACP v. Alabama, the Court ruled election or any other time. ourselves in the rhetoric of absolutism. definitively on the issue of whether a My good friend from Maine also cited Let us not shun progress in the name of group could be required to disclose its a 1990 case, commonly referred to as perfection. The fact is, improved S. 25 membership or donor list as a pre- the Austin case, in support of the no- would be a good bill and it would be a condition for criticism or discussion of tion that, somehow, the Court would good start down the road to putting public issues. So the Supreme Court sanction this new category of election- our elections back into the hands of very much is opposed to requiring eering. The Austin case, I am sure my the American people. I urge my col- groups, as a condition of engaging in good friend from Maine knows, had to leagues to join my colleague Senator issue advocacy, constitutionally-pro- do with express advocacy, not issue ad- JEFFORDS and others in bringing this tected speech, that they have to dis- vocacy. In the Austin case, they bill out of the shadows of obfuscation close their list. banned express advocacy by corporate and into the light of honest discussion Interestingly enough, two groups treasurers. That of course has been the and debate. The American people ex- that certainly have not been aligned law since 1907. That is not anything pect as much and they certainly de- with this Senator on this issue over the new. You can’t use corporate treasury serve as much. years had something to say about that. money to engage in express advocacy Mr. President, I know we will have Public Citizen and the Sierra Club, on of a candidate. further discussions on this issue tomor- the question of disclosure of issue ad- But the definitive case on the issue row before we have a vote on the mo- vocacy: the Senator from Maine is really talk- tion to table. But I urge that each and Top officials in Public Citizen and the Si- ing about, because her amendment every Senator give consideration to erra Club Foundation, a separate tax-exempt deals with issue advocacy, is First Na- this amendment—that has been offered offshoot of the environmental organization, tional Bank of Boston v. Bellotti in by a bipartisan group—that Senator argued that divulging their donor lists would 1978, where the Court held that cor- either give an unfair advantage to competi- JEFFORDS and I have been working on tors or unfairly expose identities of their porations could fund out of their treas- with others in hopes of moving this de- members. uries—out of their treasuries, issue ad- bate forward, to change the debate dis- ‘‘As I am sure you are aware, citizens have vocacy. cussion and to show there is an ear- a First Amendment right to form organiza- So, with all due respect to my good nestness and willingness to approach tions to advance their common goals with- friend from Maine, the courts have al- this very serious issue; not to set it out fear of investigation or harassment.’’ ready ruled on the kind of issues that aside, not to deflect it, not to ignore it, That was Joan Claybrook, with she is discussing here. No. 1, you can’t saying it will go away and people will whom I have dueled on this issue for a compel the production of membership not notice. I happen to think that peo- decade, in response to questions about lists as a condition to criticize all of ple will notice. They will notice. whether or not Public Citizen would be us. And, No. 2, issue advocacy cannot They will be quickly reminded when willing to disclose their donor list. be redefined by Congress. The courts they see the next election, because Claybrook goes on: have defined what issue advocacy is. more money will be spent, as we see in We respect our members’ right to freely Now, with regard to the opinion of this $150 million. This number is going and privately associate with others who various scholars, let me just say Amer- to go up and people will be reminded share their beliefs, and we do not reveal ica’s expert on the first amendment is

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S916 CONGRESSIONAL RECORD — SENATE February 24, 1998 the American Civil Liberties Union, The Court fashioned the express advocacy ments and barring use of any organiza- and they wrote me just yesterday, giv- doctrine to safeguard issue advocacy from tional funding for such communica- ing their view on the Snowe-Jeffords campaign finance controls, even though such tions if any corporations or unions advocacy might influence the outcome of an made any donations to the organiza- amendment. Let me read a pertinent election. The doctrine provides a bright-line, part. objective test that protects political speech tion. We are writing today, however, to set forth and association by focusing solely on the Mr. President, I ask unanimous con- our views on an amendment to that bill deal- content of the speaker’s words, not the mo- sent to have printed in the RECORD the ing with controls on issue advocacy which is tive in the speaker’s mind or the impact on entire letter. being sponsored by Senators Snowe and Jef- the speaker’s audience, or the proximity to There being no objection, the letter fords. Although that proposal has been char- an election. was ordered to be printed in the acterized as a compromise measure which Nor does it matter whether the issue advo- RECORD, as follows: would replace certain of the more egregious cacy is communicated on radio or television, ACLU, features of the comparable provisions of in newspapers or magazines, through direct WASHINGTON NATIONAL OFFICE, McCain-Feingold, the Snowe-Jeffords amend- mail or printed pamphlets. What counts for Washington, DC, February 23, 1998. ment still embodies the kind of unprece- constitutional purposes is not the medium, DEAR SENATOR: We have shared with you dented restraint on issue advocacy that vio- but the message. our grave concerns about the different lates bedrock First Amendment principles. My understanding of the Snowe-Jef- versions of the McCain-Feingold campaign Those time-honored principles were set finance bill that have been before the Sen- forth with great clarity in Buckley v. Valeo. fords amendment is that these restric- tions only apply to television and ate. (See ‘‘Dear Senator’’ letter dated Feb- Which we frequently refer to. The radio. But there is no constitutional ruary 19, 1998 and enclosure.) For the reasons ACLU goes on: we have stated previously, the most recent basis for sort of segmenting out tele- ‘‘pared down’’ reincarnation of that bill re- First, ‘‘issue advocacy’’ is at the core of vision and radio and saying those kinds democracy. In rejecting the claim that issue- mains fundamentally flawed, and we con- oriented speech about incumbent politicians of expenditures require the triggering tinue fully to oppose it. had to be regulated because it might influ- of disclosure, but it’s OK to go on and We are writing today, however, to set forth our views on an amendment to that bill deal- ence public opinion and affect the outcome engage in direct mail or presumably ing with controls on issue advocacy which is of elections, the Supreme Court reminded us telephones or anything other than the being sponsored by Senators Snowe and Jef- of the critical relationship between unfet- broadcast medium. That is in a some- fords. Although that proposal has been char- tered issue advocacy and healthy democracy. how different category. acterized as a compromise measure which ‘‘Discussion of public issues and debate on By the same token, it is constitu- would replace certain of the more egregious the qualifications of candidates are integral tionally irrelevant whether the mes- features of the comparable provisions of to the operation of the system of govern- sage costs $100 or $1,000 or $100,000. It is McCain-Feingold, the Snow-Jeffords amend- ment established by our Constitution.’’ content, not amount, that marks the ment still embodies the kind of unprece- Further, the ACLU said: constitutional boundary for allowable dented restraint on issue advocacy that vio- lates bedrock First Amendment principles. . . . in an election season, citizens and regulation and frees issue advocacy groups cannot effectively discuss issues if Those time-honored principles were set they are barred from discussing candidates from any impermissible restraint. The forth with great clarity in Buckley v. Valeo, who take stands on those issues. ‘‘For the control of issue advocacy is simply be- 424 U.S. 1 (1976) and reaffirmed by numerous distinction between discussion of issues and yond the pale of legislative authority. Supreme Court and lower court rulings ever candidates and advocacy of election or de- So the Snowe-Jeffords amendment since. feat of candidates may often dissolve in violates these cardinal principles. First, ‘‘issue advocacy’’ is at the core of democracy. In rejecting the claim that issue- practical application. Candidates, especially First, the amendment’s new category, oriented speech about incumbent politicians incumbents, are intimately tied to public which we have not heard before, of had to be regulated because it might influ- issues involving legislative proposals and electioneering communication is sim- ence public opinion and affect the outcome governmental actions. Not only do can- ply old wine in old bottles with a new of elections, the Supreme Court reminded us didates campaign on the basis of their posi- label. The provision would reach, regu- of the critical relationship between unfet- tions on various public issues, but campaigns tered issue advocacy and healthy democracy. themselves generate issues of public inter- late and control any person, group or organization which spent more than ‘‘Discussion of public issues and debate on est.’’ 424 U.S. at 43. If any reference to a can- the qualifications of candidates are integral didate in the context of advocacy on an issue $10,000 in an entire calendar year for to the operation of the system of govern- rendered the speaker or the speech subject to any electioneering communications. ment established by our Constitution.’’ 424 campaign finance controls, the consequences The ACLU says that critical term is U.S. at 14. for First Amendment rights would be intol- defined solely as any broadcast com- Second, in an election season, citizens and erable. munication which refers to any Federal groups cannot effectively discuss issues if Third [the ACLU says] to guard against they are barred from discussing candidates that, the Court fashioned the critical express candidate at any time within 60 days before a general or 30 days before a pri- who take stands on those issues. ‘‘For the advocacy doctrine. distinction between discussion of issues and The Court fashioned it. They didn’t mary election and is primarily in- candidates and advocacy of election or de- say, Congress, you can make up some- tended to be broadcast to the elec- feat of candidates may often dissolve in thing called electioneering. This is not torate for that election, whatever that practical application. Candidates, especially our prerogative. The Court fashioned means. incumbents, are intimately tied to public The unprecedented provision is an issues involving legislative proposals and the critical express advocacy doctrine, impermissible effort to regulate issue governmental actions. Not only do can- which holds that: speech which contains not a whisper of didates campaign on the basis of their posi- Only express advocacy of electoral out- express advocacy simply because it re- tions on various public issues, but campaigns comes may be subject to any form of re- themselves generate issues of public inter- straint. Thus, only ‘‘communications that in fers to a Federal candidate who is more est.’’ 424 U.S. at 43. If any reference to a can- express terms advocate the election or defeat often than not a congressional incum- didate in the context of advocacy on an issue of a clearly identified candidate’’ can be sub- bent during an election season. rendered the speaker or the speech subject to ject to any campaign finance controls. The ACLU says the first amendment campaign finance controls, the consequences Express advocacy: Within the Federal disables Congress from enacting such a for First Amendment rights would be intol- Election Campaign Act. Issue advo- measure regardless of whether the pro- erable. vision includes a monetary threshold, Third, to guard against that, the Court cacy: Outside the Federal Election fashioned the critical express advocacy doc- Campaign Act. That just didn’t happen covers only broadcast media, applies trine, which holds that only express advo- last year. This has been the law since only to speech during an election sea- cacy of electoral outcomes may be subject to Buckley. Issue advocacy has been son and employs prohibition or disclo- any form of restraint. Thus, only ‘‘commu- around since the beginning of the coun- sure as its primary regulatory device. nications that in express terms advocate the try. It would still cast a pall over grass- election or defeat of a clearly identified can- didate’’ can be subject to any campaign fi- Finally, and most importantly, all speech roots lobbying and advocacy commu- nance controls. which does not in express terms advocate the nication by nonpartisan, issue-oriented Finally, and most importantly, all speech election or defeat of a clearly identified can- groups like the ACLU, for example. which does not in express terms advocate the didate is totally immune from any regula- It would do so by imposing burden- election or defeat of a clearly identified can- tion; some, destructive and unprecedented didate is totally immune from any regula- The ACLU continued: disclosure and organizational require- tions; ‘‘So long as persons and groups eschew

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S917 expenditures that in express terms advocate nicate to the public in any manner on such areas of expression, to change the elec- the election or defeat of a clearly identified issues. And the radically expanded activities tion. Why would they spend $135 mil- candidate, they are free to spend as much as encompassed within the new category of lion to $200 million unless it was suc- they want to promote the candidate and his ‘‘electioneering communications’’ would be cessful? views.’’ 424 U.S. at 45. subject to those radically expanded coordi- The Court fashioned the express advocacy nation restrictions as well. The net result Let us get a real-life situation of doctrine to safeguard issue advocacy from will be to make it virtually impossible for what we are talking about. I have been campaign finance controls, even though such any issue organization to communicate, di- in the election process for many, many advocacy might influence the outcome of an rectly or indirectly, with any politician on years, and I know from my own anal- election. The doctrine provides a bright-line, any issue and then communicate on that ysis—and I think it probably is carried objective test that protects political speech same issue to the public. forward everywhere—that the critical and association by focusing solely on the All of this will have an exceptionally time in an election to make a change content of the speaker’s words, not the mo- chilling effect on organized issue advocacy in in people’s minds is the last couple of tive in the speaker’s mind or the impact on America by the hundreds and thousands of the speaker’s audience, or the proximity to groups that enormously enrich political de- weeks. an election. bate. The bill flies in the face of well-settled Basically, I find that probably of the Nor does it matter whether the issue advo- Supreme Court doctrine which is designed to electorate, only about 50 percent care cacy is communicated on radio or television, keep campaign finance regulations from en- enough about elections to even go. in newspapers or magazines, through direct snaring and overwhelming all political and That is the average across the country. mail or printed pamphlets. What counts for public speech. And the bill will chill issue Of that 50 percent, probably half of constitutional purposes is not the medium, discussion of the actions of incumbent office- but the message. By the same token, it is them will make up their minds during holders standing for re-election at the very the last 2 weeks. constitutionally irrelevant whether the mes- time when it is most vital in a democracy: sage costs $100 or $1,000 or $100,000. It is con- So you are out and have a well- during an election season. It may be incon- planned campaign and everything is tent, not amount, that marks the constitu- venient for incumbent politicians when tional boundary of allowable regulation and groups of citizens spend money to inform the coming down to the end. You can go frees issue advocacy from any impermissible voters about a politician’s public stands on and find out what your opponent has to restraint. The control of issue advocacy is controversial issues, like abortion, but it is spend, and you can try to be ready to simply beyond the pale of legislative author- the essence of free speech and democracy. match that. And then whammo, out of ity. In conclusion, the ACLU remains thor- The Snowe-Jeffords amendment violates the blue comes all these ads that are oughly opposed to McCain-Feingold. The these cardinal principles. supposedly issue ads, but they are obvi- ACLU continues to believe that the most ef- First, the amendment’s new category of ously pointed at positions that are fective and least constitutionally problem- ‘‘electioneering communication’’ is simply taken by you saying how horrible they atic route to genuine reform is a system of old wine in old bottles with a new label. The equitable and adequate public financing. are. So these are within the Snowe-Jef- provision would reach, regulate and control While reasonable people may disagree about fords amendment. any person, group or organization which the proper approaches to campaign finance What can you do about it? You can- spent more than $10,000, in an entire cal- reform, McCain-Feingold’s restraints on not do anything. You cannot even find endar year, for any ‘‘electioneering commu- issue advocacy raise profound constitutional nications.’’ That critical term is defined out who is running them, unless you problems, and nothing in the Snowe-Jeffords solely as any broadcast communication are lucky and have an inside source in amendment cures those fatal First Amend- which ‘‘refers to’’ any federal candidate, at the TV and radio stations to tell you ment flaws. any time within 60 days before a general or who it is. You cannot find out. There is Sincerely, 30 days before a primary election, and ‘‘is no disclosure. LAURA W. MURPHY, primarily intended to be broadcast to the Director, ACLU Wash- The most important part of our electorate’’ for that election, whatever that ington Office. amendment is just plain disclosure. If may mean. it is far enough in advance, 30 days be- This unprecedented provision is an imper- JOEL GORA, missible effort to regulate issue speech Dean & Professor of fore a primary and 60 days before a which contains not a whisper of express ad- Law, Brooklyn Law general election, at least you have vocacy, simply because it ‘‘refers to’’ a fed- School and Counsel time to get ready for it. If you know eral candidate—who is more often than not a to the ACLU. you are going to get all these ads com- Congressional incumbent—during an elec- Mr. McCONNELL. Mr. President, we ing, then you can reorder your prior- tion season. The First Amendment disables will discuss this issue further tomor- ities of spending. You can say, ‘‘Oh, my Congress from enacting such a measure re- row. Let me sum it up by saying the God, we have all this coming,’’ and you gardless of whether the provision includes a courts are clear. The definition of ex- never know until it is all over. You are monetary threshold, covers only broadcast press advocacy has been written into media, applies only to speech during an elec- gone. You lose the election and you tion season and employs prohibition or dis- the laws of this country through court didn’t know. The opposition comes closure as its primary regulatory device. It decisions. It is clear what issue advo- forth with this barrage and you are to- would still cast a pall over grass-roots lob- cacy is. It is clear that under previous tally helpless. bying and advocacy communication by non- Supreme Court decisions that you can- What we do is not anywhere near partisan issue-oriented groups like the not compel a group to disclose its do- what we would like to do in the sense ACLU. It would do so by imposing burden- nors or membership lists as a condition of protection against this kind of some, destructive and unprecedented disclo- for expressing themselves on issues in thing, because I am sure they will find sure and organizational requirements, and proximity to an election or any other barring use of any organizational funding for ways to get around it and feel they do such communications if any corporations or time for that matter. not have to disclose. But it is so sim- unions made any donations to the organiza- Mr. President, I will be happy to dis- ple. tion. The Snowe-Jeffords amendment would cuss these issues further tomorrow. What is wrong with disclosure? What force such groups to choose between aban- With that, I yield the floor. is wrong, if somebody is going to spend doning their issue advocacy or dramatically Several Senators addressed the a couple of million bucks in the elec- changing their organizational structure and Chair. tion against you, with at least knowing sacrificing their speech and associational The PRESIDING OFFICER (Mr. what is coming and who it is coming rights. Beyond this new feature, the Snowe-Jef- BROWNBACK). The Senator from from? That is all we are asking for. We fords amendment simply leaves in place Vermont. don’t say you can’t do it. Another many of the objectionable features of Mr. JEFFORDS. Mr. President, I un- thing we do, as explained very well by McCain-Feingold that we have criticized pre- derstand what my good friend from Senator SNOWE, is deal in a constitu- viously. One is the unprecedented generic ex- Kentucky is saying, but I remind ev- tional way with the money coming pansion of the definition of ‘‘express advo- eryone what the real issue is, and that from the treasuries of corporations or cacy’’ applicable to all forms of political is elections. We are talking about a money coming from the treasuries of communication going forward in all media system which has developed over the unions by restricting that even more so and occurring all year long. Another are the intrusive new ‘‘coordination’’ rules which past couple of years which has seri- they cannot even intervene within that will be so destructive of the ability of issue ously imposed upon us unfairness as far last 30 to 60 days. But there are other organizations to communicate with elected as candidates are concerned who find ways, through PACs and other ways officials on such issues and later commu- themselves faced with ads, and other the money can be brought into the

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S918 CONGRESSIONAL RECORD — SENATE February 24, 1998 election process, but it would be dis- The amendment Senator SNOWE and I The Supreme Court has been most tol- closed to the FEC and you have the are proposing strengthens the McCain- erant in the area of limiting corporate ability to understand what you are Feingold bill in a fair manner. Maybe and union spending and enhancing dis- going to be facing. too fair. That is the only criticism I closure rules. We also worked to make I cannot understand why anybody can find of it. the requirements sufficiently clear and would be against this amendment. It Mr. President, the work that Senator narrow to overcome unconstitutional makes such common sense. It doesn’t SNOWE and I, as well as many other claims of vagueness and overbreadth. do anything. It doesn’t create anything Senators, have done to develop an ac- I have long believed in Justice Bran- except it requires people to disclose ceptable compromise is squarely with- deis’ statement that ‘‘Sunlight is said their intentions and also prohibits the in the goals of those calling for full to be the best of disinfectants.’’ That is use of the treasuries of the corpora- campaign finance reform. We have been what we are looking for here, just a lit- tions and unions. There is nothing very brought to this point by the disillu- tle sunlight on some of the very, very dramatic about that as a change in the sionment of the electorate. People devious types of procedures that are law. I really take serious issue with my across this Nation have grown wary of utilized to influence elections. good friend, the Senator from Ken- the tenor of campaigns in recent years. Discloser of electioneering campaign tucky, on the questions he raised. This disappointment is reflected in low spending will provide the electorate Are these ads effective? Yes, I have voter participation and the diminished with information to aid voters in eval- talked with consultants, and I know role of individuals in electing their rep- uating candidates for Federal office. As one consultant who ran a lot of these resentatives. we have seen in the last few campaign ads. Obviously, what they were trying Our efforts to reform the financing of cycles, ads appear on local stations to do was win an election for their per- campaigns should begin to reinvigorate paid for by groups unknown to the pub- son who they were trying to help. No people to further participate in our de- lic. These ads reference an identified evidence of connection, but the people mocracy. I am ashamed at the voter candidate with the result of influ- who wanted the ads sent the money for turnouts across the Nation. I am a lit- encing the voters. Giving the elec- this purpose to defeat a candidate, and tle bit less ashamed of Vermont which torate the information required in our they felt those ads turned around at has one of the highest, but we all amendment will give the public the least five elections that would not have should be working to get fuller partici- facts they need to better evaluate the been turned around if it were not for pation, closer to 60, 70, 80, 90 percent. candidates but, more importantly, use of these funds with no way for the The 1996 election cycle reinforces the evaluate what information they are re- poor candidate who is facing it to un- desperate situation we face. During ceiving and whether it is biased or derstand who it is, how much money is this campaign, more than $135 million where it came from, to be able to at going to be spent and where it goes. was spent by outside groups not associ- least check where it came from and I want to give real-world situations ated with the candidates’ campaigns. make sure it did not come from Indo- we are involved with. What is so unfair These expenditures indicated to the nesia or China or some other place. about being fair and getting full disclo- public that our election laws were not Additionally, this disclosure, or dis- sure? being enforced and the system was out infectant, as Justice Brandeis puts it, I commend my good friend from of control. Additionally, recent hear- will also help deter actual corruption Maine with whom I have worked very ings in both the Senate and the House and help avoid the appearance of cor- closely. I must say, this amendment is point to the need for serious reform. ruption that many feel pervades our weaker than I would like to see, but I Senator SNOWE has clearly outlined campaign finance system. think we have done all we can do under the content of our amendment. Our Delivering this information into the the Constitution. I commend her for proposal boosts disclosure require- public purview will enable candidates, the presentation she has given and for ments and tightens expenditures of cer- the press, the FEC and interest groups her effort to raise the visibility to the tain funds in the weeks preceding a pri- to ensure that Federal campaign fi- Nation of the serious problems we have mary and general election. The amend- nance laws are being obeyed. Our with these so-called advocacy or issue ment provides disclosure of the funding amendment will expose any corruption ads. sources for electioneering communica- and help reassure the public that our It has been my pleasure to work with tions broadcast within 30 days of a pri- campaign laws will be followed and en- her on this important endeavor, and mary or 60 days of a general election. forced. today the Senate has the opportunity The measure prohibits labor union or The amendment will also prohibit to enact real campaign finance reform. corporation treasury funds from being corporations and unions from using The amendment we offer succeeds used for these electioneering broadcast general treasury funds to pay for elec- where others have failed in bringing ads 30 days before a primary or 60 days tioneering communications in a de- the two sides closer to a workable solu- before a general election. These two fined period close to an election. tion. Combined with the underlying main provisions should strengthen the By treating both corporations and McCain-Feingold legislation, this efforts put forward by the proponents unions similarly, we extend current amendment will ensure that all parties of reform. regulation cautiously and fairly. This are treated equally in the reformed Of equal importance is what this prohibition, coupled with the disclo- campaign finance structure. amendment will not do, and that was sure requirements, will address many As my record has shown, I have long gone into in very great detail. In fact, of the concerns my colleagues from been a supporter of campaign finance we have so many things we will not do both sides of the aisle have raised on reform. I have sponsored a number of that it sometimes concerns me if we campaign finance reform proposals. initiatives in the past and have worked have done enough. The amendment will This provision will help satisfy our actively to enact campaign finance re- not restrict printed material nor re- goal of creating a fair and equitable form. I have been reluctant to cospon- quire the text or a copy of a campaign campaign finance system. sor the McCain-Feingold bill this time advertisement to be disclosed. The amendment I am asking my col- around because of my concerns in two The amendment does not restrict leagues to support will, hopefully, pro- areas which I have just been dis- how much money can be spent on ads, vide the additional momentum to bring cussing. First, issue ads that have nor restrict how much money a group this issue to closure. Although I am op- turned into blatant electioneering with raises. In fact, our amendment clearly timistic, I am not blind to the uphill no meaningful disclosure of the source protects the constitutional preroga- battle we face in enacting appropriate of the attack; second, the unfettered tives while promoting reform in a sys- change. I am encouraged by the fair spending by unions and corporations to tem badly in need of change. We have and informative and productive debate influence the outcome of an election, taken great care not to violate the im- we have had on campaign reform especially close to elections, without portant principles of free speech. today. The proposal Senator SNOWE the ability to identify the source. In developing the amendment, we and I are offering, built upon the Disclosure—how in the world can you have reviewed the seminal cases in this McCain-Feingold legislation, should be against disclosure? area, particularly the Buckley case. become law.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S919 I cannot conceive of how any legiti- up later on. Are we asking them to give riod for morning business with Sen- mate objection can be made to the away their inventory? Are we asking ators permitted to speak for up to 5 Snowe-Jeffords amendment. It is a step them to pay their production people to minutes each. forward to making sure that elections dub and to produce? Why are not their The PRESIDING OFFICER. Without are fair, that the public knows who it expenses the same as any other seg- objection, it is so ordered. is trying to influence the elections, and ment of the American media? f that they have the right to find out The amendment is nothing more that information. than that the FCC should not advocate MESSAGES FROM THE PRESIDENT Mr. President, I yield the floor. or use funds to regulate radio and tele- Messages from the President of the Mr. BURNS addressed the Chair. vision stations for free time or free ac- United States were communicated to The PRESIDING OFFICER. The Sen- cess. It just does not make a lot of the Senate by Mr. Williams, one of his ator from Montana. sense, especially when broadcasters secretaries. Mr. BURNS. Mr. President, I rise lead this country in public service, in EXECUTIVE MESSAGES REFERRED today to make a few comments about news and weather and services to a As in executive session the Presiding at least one amendment that has been community. Yes, they get paid for the Officer laid before the Senate messages offered here this afternoon. advertising for some of those programs, from the President of the United As we work our way through the de- but basically they are there 24 hours a bate on campaign finance reform and States submitting sundry nominations day, 7 days a week, 52 weeks a year. which were referred to the appropriate you listen to Senators express them- Of course, they are being asked to do committees. selves in the legal areas, the more one something for nothing. So I hope in (The nominations received today are thinks that maybe we have got enough any kind of reform that passes this printed at the end of the Senate pro- laws in place, maybe it is a matter of body, that this amendment to prevent ceedings.) enforcing them. the FCC from requiring radio and tele- I remind Senators that it was in 1996 vision stations to give free advertising f when one major party failed to file space would be a part of that reform. REPORT OF EXECUTIVE ORDER their FEC report on the date it was But bottom line—and I am not a law- ORDERING THE SELECTED RE- supposed to be filed. In fact, it never yer; never been hinged with that han- SERVE OF THE ARMED FORCES was filed until after the election was dle—as I listen to the argument, it TO ACTIVE DUTY—MESSAGE over. boils down to, bottom line, the integ- FROM THE PRESIDENT—PM 97 So I would argue that law enforce- rity of the folks that are supporting an ment probably has as much to do with issue or an individual for political of- The Presiding Officer laid before the the problems we see in political cam- fice. It all comes down to that. For if Senate the following message from the paigns more than anything else. All lawyers write this law, it will be law- President of the United States, to- through this process, we try to pass yers that will figure a way around it. It gether with an accompanying report; legislation that would maybe bring po- is a matter merely of enforcing the which was referred to the Committee litical campaigns into the light of pub- law. on Armed Services. lic scrutiny. We would try to cap con- CLOTURE MOTION To the Congress of the United States: tributions, how much an individual or Mr. BURNS. Mr. President, I send a Pursuant to title 10, United States an organization can contribute to a cloture motion to the desk to the pend- Code, section 12304, I have authorized particular campaign. We would try to ing bill. the Secretary of Defense, and the Sec- cap spending. We would try to establish The PRESIDING OFFICER. The clo- retary of Transportation with respect and make permanent filing dates. ture motion having been presented to the Coast Guard, when it is not oper- Yet all of them would be to no pur- under rule XXII, the Chair directs the ating as a Service within the Depart- pose if we do not enforce them. In fact, clerk to read the motion. ment of the Navy, to order to active we have gone into some approach of The legislative clerk read as follows: duty Selected Reserve units and indi- asking for free advertising from radio CLOTURE MOTION viduals not assigned to units to aug- and television based on a faulty as- We, the undersigned Senators, in accord- ment the Active components in support sumption, an assumption, if we do ance with the provision of rule XXII of the of operations in and around Southwest something, get something for nothing, Standing Rules of the Senate, do hereby Asia. we can limit the expenses, thus making move to bring to a close debate on S. 1663, A copy of the Executive order imple- it easier for everybody to run for polit- the Paycheck Protection Act. Trent Lott, Mitch McConnell, Wayne menting this action is attached. ical office. WILLIAM J. CLINTON. I would ask those who would advo- Allard, Paul Coverdell, Robert F. Ben- nett, Larry E. Craig, Rick Santorum, THE WHITE HOUSE, February 24, 1998. cate such a regulation to offer free tel- Michael B. Enzi, Jeff Sessions, Slade f evision and free radio time, I would ask Gorton, Chuck Hagel, Don Nickles, them, the newspapers and publications, Gordon H. Smith, Jesse Helms, Conrad MESSAGES FROM THE HOUSE will they be made to offer free space? Burns, and Lauch Faircloth. ENROLLED BILL SIGNED Will printers lay out people, graphic Mr. BURNS. Mr. President, for the At 5:20 p.m., a message from the artists? Will they donate their labor information of all Senators, this clo- House of Representatives, delivered by for direct mail and fliers and stickers ture vote will be the last of three con- Ms. Goetz, one of its reading clerks, an- and, yes, those things that we mail di- secutive cloture votes occurring Thurs- nounced that the Speaker has signed rect to our constituency? day morning, assuming none of the pre- the following enrolled bill: While we are talking about that, vious cloture votes is successful. The would we also write into the same reg- S. 927. An act to reauthorize the Sea Grant leadership will notify all Senators as to Program. ulation that they may be sent postage the time for these votes, once the lead- free? Should the laborers of the post of- er has consulted with the minority The enrolled bill was signed subse- fice, or whoever, be made to do it for leader. However, at this point, I ask quently by the President pro tempore nothing? And my answer to that is, of unanimous consent that the manda- (Mr. THURMOND). course not. tory quorum under rule XXII be waived f Radio and television is a unique me- with respect to all three cloture mo- dium. Some would say it operates on INTRODUCTION OF BILLS AND tions filed today. JOINT RESOLUTIONS the public airwaves. How public are The PRESIDING OFFICER. Without they? If a radio station or a television objection, it is so ordered. The following bills and joint resolu- station owns a chunk of frequency, do f tions were introduced, read the first they not own it? They are only given so and second time by unanimous con- many hours in a day—like 24—that MORNING BUSINESS sent, and referred as indicated: they can sell time. Once that time has Mr. BURNS. Mr. President, I ask By Mr. BOND (for himself, Mr. COCH- passed, it cannot be recovered or made unanimous consent that there be a pe- RAN, Ms. SNOWE, and Mr. SHELBY):

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S920 CONGRESSIONAL RECORD — SENATE February 24, 1998 S. 1669. A bill to restructure the Internal That legislation provides a good start, changes, a married couple could go to Revenue Service and improve taxpayer but I believe we can make it even an IRS service center designed for indi- rights, and for other purposes; to the Com- stronger. viduals and get help on the issues they mittee on Finance. With the input and recommendations care about, like the new child tax cred- By Mr. MURKOWSKI (for himself and from all these sources in mind, today I it and the ROTH IRA. Similarly, a small Mr. STEVENS): S. 1670. A bill to amend the Alaskan Native am introducing the Putting Taxpayers business owner could resolve questions Claims Settlement Act to provide for selec- First Act. This bill will provide critical about the depreciation deductions for tion of lands by certain veterans of the Viet- relief for a broad spectrum of taxpayers her business equipment with IRS em- nam era; to the Committee on Energy and from single moms and married couples ployees specifically trained in these Natural Resources. to small business owners and farmers. areas. By Mr. BENNETT (for himself and Mr. It is based on two fundamental prin- I was extremely pleased to hear IRS DODD): Commissioner Rossotti embrace this S. 1671. A bill to address the Year 2000 com- ciples. We must create an IRS and a tax system that are based on top-qual- one-stop-service proposal early this puter problems with regard to financial in- month. While the Commissioner has stitutions, to extend examination parity to ity service for all taxpayers, and we the Director of the Office of Thrift Super- must act swiftly to restore citizen con- signaled his interest in a customer- vision and the National Credit Union Admin- fidence in that system. based IRS, I want to make sure that it istration, and for other purposes; to the My bill tackles these goals in three does not become one of the many reor- Committee on Banking, Housing, and Urban ways: by improving taxpayer rights ganization ideas that lose favor after a Affairs. and protections, restructuring the few short years. By Mr. DASCHLE (for himself and Mr. management and operation of the IRS, To protect against this risk, my bill JOHNSON): and using electronic filing technology that I introduce today will make this S. 1672. A bill to expand the authority of structure a permanent part of the Tax the Secretary of the Army to improve the to help taxpayers, not complicate their lives. Code. But reorganizing the IRS front control of erosion on the Missouri River; to lines, however, is only part of the task. the Committee on Environment and Public For more than 200 years, Americans Works. have had the right, guaranteed by the The top-level management of the IRS here in Washington must make tax- f fourth amendment, ‘‘to be secure in their persons, houses, papers, and ef- payer service a reality throughout the STATEMENTS ON INTRODUCED fects, against unreasonable searches agency. My bill takes that step by cre- BILLS AND JOINT RESOLUTIONS and seizures,’’ and have enjoyed the ating a full-time board of governors, By Mr. BOND (for himself, Mr. constitutional protections against which will have full responsibility, au- COCHRAN, Ms. SNOWE, and Mr. being ‘‘deprived of * * * property, with- thority and accountability for IRS op- SHELBY): out due process of law’’ under the fifth erations. This board composed of four individ- S. 1669. A bill to restructure the In- amendment. ternal Revenue Service and improve My bill will make the IRS fully re- uals drawn from the private sector plus the IRS Commissioner will have the taxpayer rights, and for other pur- spect these rights by requiring, as part authority and information necessary to poses; to the Committee on Finance. of the Tax Code, that the IRS must ob- ensure that the agency’s examinations THE PUTTING THE TAXPAYER FIRST ACT OF 1998 tain the approval by a judge or mag- and enforcement activities are con- Mr. BOND. Mr. President, I rise istrate with notice and a hearing for ducted in a manner that treats tax- today to introduce a bill —Putting the taxpayer before seizing a tax- Taxpayers First. In the next few weeks payers fairly and with respect. payer’s property. The Government The board will also oversee the serv- the Senate will have a historic oppor- ought to be required to treat ordinary ice provided by the taxpayer advocate tunity to make far-reaching changes to taxpayers at least as well as they treat and will ensure that the IRS appeals the operation of the Internal Revenue common criminals. It is way past time process is handled in an impartial man- Service and to strengthen taxpayers’ to level the playing field and preserve ner. rights. For too long, taxpayers have the constitutional rights of all tax- An independent, full-time board of had to put up with poor service when payers. governors will protect the IRS from dealing with the IRS—often to the tune My bill also stops the runaway being used for political purposes. Any of larger tax bills because of interest freight train of excessive penalties and efforts to instill confidence in our tax and penalties that accrue during the interest in two ways. First, the inter- administration system are severely un- lengthy delays in resolving disputes. est on a penalty will only begin after dercut when there are allegations that While our ultimate goal must be a sim- the taxpayer fails to pay his tax bill. the IRS is being used for politically pler and less burdensome tax law, tax- Today, interest on most penalties is motivated audits. Regrettably, there payers need help today when dealing applied retroactively to the date that have been recent reports suggesting with the IRS. We must put taxpayers the tax return was due, which may be the IRS has undertaken these types of first. as much as 2 to 3 years back. That is audits with regard to certain individ- For my part, I have asked the people just not fair. Second, my bill elimi- uals and nonprofit organizations like of Missouri for their suggestions on nates multiple penalties that apply to the Christian Coalition and the Herit- how to fix the IRS and better protect the same error. Penalties should pun- age Foundation. An IRS board of gov- taxpayers’ rights. In addition, as chair- ish bad behavior, not honest errors ernors with representatives of both po- man of the Committee on Small Busi- that even well-intentioned people are litical parties will help ensure that the ness, I have asked small businesses bound to make now and then. agency is used for one purpose and one across the country for their rec- Next, with respect to restructuring purpose alone: helping taxpayers to ommendations on this issue. I am the IRS, the second part of my bill ad- comply with the tax laws in the least pleased to say that a great many peo- dresses the need for structural changes burdensome manner possible. ple have taken the time to call or write within the IRS. I believe that the oper- Mr. President, in addition to rede- with their suggestions for improving ations and staffing of the IRS should be signing the agency, my bill also creates this country’s tax administration sys- based along customer lines, an idea a commonsense approach for rede- tem. supported by the National Commission signing IRS communications. Too Over the last several months, the Fi- on Restructuring the IRS. The IRS’ often we have heard from constituents, nance Committee has focused exten- current one-size-fits-all approach no especially small business owners, that sively on abuse of taxpayers and the longer meets the needs of taxpayers the notice they receive from the IRS is need to reform our tax administration and is inefficient for the IRS as well. incomprehensible. As a result, one of system. In addition, my committee has By restructuring the IRS along cus- two things usually happens: The tax- held hearings on this issue and the im- tomer lines, the agency could provide payer pays the bill without question portance of reform for entrepreneurs one-stop service for taxpayers with just to make the IRS go away, even if and small business owners throughout similar characteristics and needs, such they are not sure they owe taxes; or the country. The House has also com- as individuals, small businesses and the taxpayer has to hire a professional pleted its package of reform measures. large companies. As a result of these to tell

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S921 him or her what the notice means and management and operation of the IRS, to obtain advice for tax planning or as- then spend vast amounts of time and and using electronic filing technology sistance in a controversy to make sure money getting the matter straightened to help taxpayers, not complicate their he is not paying more tax than the law out. This no-win situation has to end lives. requires, does so at his peril. In fact, he now. IMPROVING TAXPAYER RIGHTS may as well invite the IRS to that My bill creates a panel of individual While our ultimate goal should be meeting because there is no privilege taxpayers, small entrepreneurs, large the wholesale reform or substantial re- of confidentiality between a taxpayer business managers and other types of placement of the tax laws, much addi- and his accountant. taxpayers who will review all standard- tional progress can be made now by For a taxpayer to gain the confiden- ized IRS documents to make sure they strengthening taxpayers’ rights in tiality protection that is available, he are clear and understandable to the order to restore faith in the fairness of must engage an attorney. Oddly taxpayers who must read them. Any our tax system. My bill includes sev- enough, in many cases, the attorney notice, letter or form that does not eral improvements to taxpayers’ may hire an accountant to gain ac- meet this minimum standard will be rights, and I will stress just a few of counting expertise, and then the work sent back to the IRS with a rec- them today. of the accountant would be protected ommendation that it be rewritten be- Recent reports of excessive seizures from disclosure to the IRS. Now the fore it is sent to the taxpayer. And by the IRS have alarmed all of us. taxpayer has assumed enormous addi- clear communications, I believe, are These inexcusable practices were high- tional costs, and for what? Just to pre- essential for good customer service. lighted by Senator NICKLES in a hear- vent the IRS from having an even America’s taxpayers deserve no less. ing he held last December in Oklahoma greater upper hand against taxpayers Mr. President, as I said, in the next City. Imagine the devastation to an in- who already have to prove their inno- few weeks the Senate will have an his- dividual who finds himself in trouble cence? toric opportunity to make far-reaching with the IRS over back taxes, and the My bill ends this disparity. It per- changes to the operation of the Inter- next thing he knows, the IRS has mits a taxpayer, in non-criminal mat- nal Revenue Service and to strengthen seized his bank account or his car—or ters, to hire any individual authorized taxpayers’ rights. For too long, tax- worse yet, his home. In the case of an to practice before the IRS, such as an payers have had to put up with poor unfortunate small business, an abrupt accountant, an enrolled agent, or an service when dealing with the IRS— seizure can mean shutting the business attorney, and be able to have conversa- often to the tune of larger tax bills be- down, ending the livelihoods of all the tions with that tax professional, which cause of interest and penalties that ac- employees and their families. can remain private from the IRS. This crue during the lengthy delays in re- While some will say that seizures are taxpayer confidentiality provision will solving disputes. While our ultimate a last resort and do not happen that ensure that all taxpayers receive equal goal must be a simpler and less burden- often, the IRS has disclosed that dur- treatment from the IRS in a way that some tax law, taxpayers need help ing Fiscal Year 1996, the agency made can save them money. In addition, it today when dealing with the IRS. We about 10,000 seizures of taxpayers’ prop- gives all taxpayers a wider choice of must put taxpayers first. erty. That is still a sizeable number, tax advisors without giving up their For my part, I have asked people and what is truly alarming is that right to confidentiality. This is a com- across Missouri for their suggestions these seizures can be done on the IRS’ mon-sense protection for the millions on how to fix the IRS and better pro- own initiative, without judicial ap- of individuals and businesses that seek tect taxpayers’ rights. In addition, as proval. professional tax advice each year. the Chairman of the Committee on For more than 200 years, Americans Penalties, too, have become an enor- Small Business, I have asked small have had the right, guaranteed by the mous burden for taxpayers who make businesses across the country for their Fourth Amendment, ‘‘to be secure in mistakes, which is not uncommon with recommendations on this issue. And I their persons, houses, papers, and ef- today’s complex tax laws. Far too am pleased to say that a great many fects, against unreasonable searches often, a minor tax bill grows into an people have taken the time to call or and seizures,’’ and have enjoyed the unmanageable liability because of the write with their suggestions for im- Constitutional protections against interest on the tax owed, the penalties proving this country’s tax-administra- being ‘‘deprived of . . . property, with- for negligence and late payment, and tion system. out due process of law’’ under the Fifth the interest on the penalties. Fre- Over the last several months, the Fi- Amendment. My bill will make the IRS quently, these penalties can prevent a nance Committee has focused exten- more fully respect these rights by re- taxpayer from settling his account and sively on abuse of taxpayers and the quiring, as part of the tax code, that getting back into good standing. need to reform our tax-administration the IRS must obtain the approval by a Penalties were included in the tax system. In addition, my Committee has judge or magistrate, with notice and a code to encourage taxpayers to comply held hearings on this issue and the im- hearing for the taxpayer, before seizing with our voluntary assessment system. portance of reform for entrepreneurs a taxpayer’s property. The government But the multiplicity of penalties and and small business owners throughout ought to be required to treat ordinary hidden punishments disguised as inter- the country. The House has also com- taxpayers at least as well as they treat est on those penalties seriously under- pleted its package of reform measures. common criminals. It is way past time mines Americans’ confidence that our That legislation provides a good start, to level the playing field and preserve system is fair. but I believe we can make it even the Constitutional rights of all tax- My bill stops the runaway freight stronger. payers. train of excessive penalties and inter- With the input and recommendations Mr. President, taxpayers, and espe- est in two ways. First, interest on a from all of these sources in mind, cially small enterprises, often need penalty will only begin after the tax- today I am introducing the Putting the help when it comes to tax planning and payer has failed to pay his tax bill. Taxpayer First Act. This bill will pro- examining alternatives to minimize Today, interest on most penalties is vide critical relief for a broad spectrum their tax liability within the law. With applied retroactively to the date that of taxpayers, from single moms and the enormous complexity of the tax the tax return was due, which may be married couples to small business own- code today, taxpayers frequently have as much as two to three years back. ers and farmers. And it is based on two to make good faith judgment calls That’s just not fair. Second, my bill fundamental principles. We must cre- about whether a particular deduction eliminates multiple penalties that ate an IRS and a tax system that are or credit applies. apply to the same error. Penalties based on top quality service for all tax- Today, there is an inequity in the should punish bad behavior, not honest payers, and we must act swiftly to re- law that results in unequal treatment errors that even well-intentioned peo- store citizen confidence in that system. of taxpayers based on their choice of ple are bound to make now and then. My bill tackles these goals in three tax professional or financial ability to Mr. President, another issue of enor- ways: by improving taxpayer rights afford a lawyer. Under the current law, mous importance to many entre- and protections, restructuring the a taxpayer who goes to an accountant preneurs in this country is the status

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S922 CONGRESSIONAL RECORD — SENATE February 24, 1998 of independent contractors. Over the tor plus the IRS Commissioner, will burdens on taxpayers, and Congress past several years, I have worked hard have the authority and information must make sure that these improve- for the adoption of a clear legislative necessary to ensure that the agency’s ments are not implemented at the ex- safe-harbor for the classification of examination and enforcement activi- pense of the taxpayers, and especially workers and protections against retro- ties are conducted in a manner that the small businesses, who are expected active reclassification of independent treats taxpayers fairly and with re- to comply with them. To prevent that contractors. I included these provisions spect. The Board will also oversee the result, my bill makes clear that ex- as part of the Home-Based Business service provided by the Taxpayer Advo- panded electronic filing of tax and in- Fairness Act, S. 460, which I introduced cate and will ensure that the IRS’ ap- formation returns should be a goal, not last March. And I intend to pursue peals process is handled in an impartial a mandate imposed on American tax- these important changes to the tax manner. payers. code through that bill as the Senate An independent, full-time Board of In addition, my bill ensures that in debates legislation to restructure the Governors will also protect the IRS making electronic filing a reality, the IRS and improve taxpayers’ rights. from being used for political purposes. IRS will involve representatives of all RESTRUCTURING THE IRS Any efforts to instill confidence in our taxpayer groups—individuals, small The second part of my bill addresses tax-administration system are severely business, large companies, and the tax- the need for structural changes within undercut by allegations that the IRS is preparation community—to ensure the IRS. Over the past century, the IRS being used for politically-motivated that electronic filing does not com- has evolved into a bureaucratic web of audits. Regrettably, there have been plicate everyone’s lives in the name of functions, regions, and district offices, recent reports suggesting that the IRS modernization and simplification. all aimed at making the collection of has undertaken these types of audits Mr. President, the provisions of the taxes easy for the government. What with regard to certain individuals and Putting the Taxpayer First Act will has been overlooked is that those tax non-profit organizations like the Chris- make the IRS a better public servant dollars come from citizens whom the tian Coalition and the Heritage Foun- and help restore confidence in our tax government is supposed to serve and dation. An IRS Board of Governors system. Taxpayers face enormous dif- represent. With roughly 140 million in- with representatives of both political ficulties today just to comply with the dividuals, alone, filing tax returns parties will help ensure that the agen- tax law, and they have waited far too every year, the system must be made cy is used for one purpose, and one pur- long for good service and fair treat- convenient for the taxpayer, not just pose alone: helping taxpayers to com- ment in a timely manner. I urge my for the government. ply with the tax laws in the least bur- colleagues on the Finance Committee I believe that the operations and densome manner possible. to include the provisions of this bill staffing of the IRS should be based Mr. President, in addition to rede- when they markup IRS-reform legisla- along customer lines, an idea supported signing the agency, my bill also creates tion next month. Our efforts must by the National Commission on Re- a common sense approach for rede- focus on putting the taxpayer first if structuring the IRS. The IRS’ current signing IRS communications. Too we are to make positive and lasting ‘‘one size fits all’’ approach no longer often I have heard from constituents, changes to the IRS and not keep Amer- meets the needs of taxpayers and is in- especially small business owners, that ica’s taxpayers waiting any longer. efficient for the IRS as well. By re- a notice they received from the IRS is Mr. President, I ask unanimous con- structuring the IRS along customer incomprehensible. As a result, one of sent that Senators COCHRAN, SNOWE lines, the agency could provide one- two things usually happens. The tax- and SHELBY be shown as original co- stop service for taxpayers with similar payer pays the bill without question sponsors. And I ask unanimous consent characteristics and needs, such as indi- just to make the IRS go away, even if that a copy of the bill and a description viduals, small businesses, and large they are not sure they owe any taxes. of its provisions be printed in the companies. As a result, a married cou- Or the taxpayer has to hire a profes- RECORD. ple could go to an IRS service center sional to tell him what the notice The PRESIDENT pro tempore. With- designed for individuals and get help on means and then spend vast amounts of out objection, it is so ordered. the issues that they care about like the time and money getting the matter There being no objection, the mate- new child tax credit and the Roth IRA. straightened out. This no-win situation rial was ordered to be printed in the Similarly, a small business owner has to end now. RECORD, as follows: could resolve questions about the de- My bill creates a panel of individual S. 1669 preciation deductions for her business taxpayers, small entrepreneurs, large Be it enacted by the Senate and House of Rep- equipment with IRS employees specifi- business managers, and other types of resentatives of the United States of America in cally trained in these areas. taxpayers, who will review all stand- Congress assembled, I was extremely pleased to hear IRS ardized IRS documents to make sure SECTION 1. SHORT TITLE; AMENDMENT OF 1986 Commissioner Rossotti embrace this they are clear and understandable to CODE; TABLE OF CONTENTS. one-stop-service proposal earlier this the taxpayers who must read them. (a) SHORT TITLE.—This Act may be cited as the ‘‘Putting the Taxpayer First Act of month. And I look forward to working Any notice, letter or form that does 1998’’. with the agency to make it a reality not meet this minimum standard, will (b) AMENDMENT OF 1986 CODE.—Except as for taxpayers at the earliest possible be sent back to the IRS with a rec- otherwise expressly provided, whenever in date. While the Commissioner has sig- ommendation that it be rewritten be- this Act an amendment or repeal is ex- naled his interest in a customer-based fore it is sent to any taxpayer. Clear pressed in terms of an amendment to, or re- IRS, I want to make sure that it does communications are essential for good peal of, a section or other provision, the ref- not become one of the many reorga- customer service, and America’s tax- erence shall be considered to be made to a section or other provision of the Internal nization ideas that lose favor after a payers deserve no less. Revenue Code of 1986. few short years. To protect against FAIR AND EFFICIENT USE OF TECHNOLOGY (c) TABLE OF CONTENTS.— that risk, my bill will make this struc- The third part of my bill concerns Sec. 1. Short title; amendment of 1986 Code; ture a permanent part of the tax code. the fair and efficient use of technology table of contents. Reorganizing the IRS at the front- in our tax-administration system. With TITLE I—TAXPAYER RIGHTS lines, however, is only part of the task. the continuing advances in technology, Sec. 101. Court approval for seizure of tax- The top-level management of the IRS we have an enormous opportunity to payer’s property. here in Washington must make tax- make all taxpayers’ lives easier. In Sec. 102. Improved offers-in-compromise pro- payer service a reality throughout the fact, the IRS has already made good cedure. agency. My bill takes that step by cre- progress in this area with programs Sec. 103. Clarification that attorney’s fees ating a full-time Board of Governors, like TeleFile, which enables many tax- are available in unauthorized- disclosure and browsing cases. which will have full responsibility, au- payers to file their tax returns through Sec. 104. Uniform application of confiden- thority, and accountability for IRS op- a brief telephone call. tiality privilege for taxpayer erations. This Board, composed of four But with technological advances communications with federally individuals drawn from the private sec- comes the risk of imposing even more authorized practitioners.

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Sec. 105. Taxpayer’s right to have an IRS ex- (b) CONFORMING AMENDMENT.—Section SEC. 104. UNIFORM APPLICATION OF CONFIDEN- amination take place at an- 6331(a) is amended by striking ‘‘If any per- TIALITY PRIVILEGE FOR TAXPAYER other site. son’’ and inserting: COMMUNICATIONS WITH FEDER- ALLY AUTHORIZED PRACTITIONERS. Sec. 106. Prohibition on IRS contact of third ‘‘(1) IN GENERAL.—If any person’’. (a) IN GENERAL.—Chapter 77 (relating to parties without taxpayer pre- (c) EFFECTIVE DATE.—The amendments miscellaneous provisions) is amended by add- notification. made by this section shall be effective for ing at the end the following new section: Sec. 107. Expansion of taxpayer’s rights in levies occurring on or after the date of the administrative appeal. enactment of this Act. ‘‘SEC. 7525. UNIFORM APPLICATION OF CON- FIDENTIALITY PRIVILEGE FOR TAX- TITLE II—PENALTY REFORM SEC. 102. IMPROVED OFFERS-IN-COMPROMISE PAYER COMMUNICATIONS WITH PROCEDURE. Sec. 201. Imposition of interest on penalties FEDERALLY AUTHORIZED PRACTI- (a) IN GENERAL.—Section 7122 (relating to TIONERS. only after a taxpayer’s failure compromises) is amended by adding at the to pay. ‘‘(a) GENERAL RULE.—With respect to tax end the following new subsection: advice, the same common law protections of Sec. 202. Repeal of the penalty for substan- ‘‘(c) OFFERS IN COMPROMISE.— tial understatement of income confidentiality which apply to a communica- ‘‘(1) IN GENERAL.—If the Secretary receives tion between a taxpayer and an attorney tax. an offer in compromise which is based on the Sec. 203. Repeal of the failure-to-pay pen- shall also apply to a communication between taxpayer’s inability to pay the taxpayer’s a taxpayer and any federally authorized tax alty. tax liability in full, the Secretary shall ac- practitioner if the communication would be TITLE III—INTERNAL REVENUE SERVICE cept such offer in compromise if it reason- considered a privileged communication if it RESTRUCTURING ably reflects the taxpayer’s ability to pay. were between a taxpayer and an attorney. Sec. 301. Internal Revenue Service Board of ‘‘(2) TIMELY RESPONSE.— ‘‘(b) LIMITATIONS.—Subsection (a) may Governors; Commissioner of In- ‘‘(A) GENERAL RULE.—The Secretary shall only be asserted in— ternal Revenue. accept, reject, or make a counteroffer to an ‘‘(1) noncriminal tax matters before the In- Sec. 302. Restructuring of IRS operations offer in compromise described in paragraph ternal Revenue Service, and along customer lines. (1) within 120 days from the date that the ‘‘(2) proceedings in Federal courts with re- Sec. 303. Greater independence of the Tax- offer is filed and reasonable documentation spect to such matters. payer Advocate. is submitted regarding the taxpayer’s ability ‘‘(c) FEDERALLY AUTHORIZED TAX PRACTI- Sec. 304. Greater independence of the Office to pay. TIONER.—For purposes of this section, the of Appeals. ‘‘(B) FAILURE TO RESPOND.—If the Sec- term ‘federally authorized tax practitioner’ Sec. 305. Improved IRS written communica- retary fails to respond within such time, in- means any individual who is authorized tions to taxpayers and tax terest on the underpayment under section under Federal law to practice before the In- forms. 6601(a) shall be suspended until such date as ternal Revenue Service but only if such prac- TITLE IV—ELECTRONIC FILING the Secretary responds. This subparagraph tice is subject to Federal regulation under shall not apply if the Secretary reasonably section 330 of title 31, United States Code.’’ Sec. 401. Goals for electronic filing; elec- determines that the taxpayer’s offer in com- (b) CONFORMING AMENDMENT.—The table of tronic-filing advisory group. promise is frivolous. sections for chapter 77 is amended by adding Sec. 402. Report on electronic filing and its ‘‘(C) UNACCEPTABLE OFFERS.—If the Sec- at the end the following new item: effect on small businesses. retary does not accept an offer in com- ‘‘Sec. 7525. Uniform application of confiden- TITLE V—REGULATORY REFORM promise from a taxpayer— tiality privilege for taxpayer Sec. 501. Congressional review of Internal ‘‘(i) the Secretary shall provide a detailed communications with federally Revenue Service rules that in- description of the reasons that the offer was authorized practitioners.’’ crease revenue. not accepted, and SEC. 105. TAXPAYER’S RIGHT TO HAVE AN IRS EX- Sec. 502. Small business advocacy panels for ‘‘(ii) the taxpayer may appeal the Sec- AMINATION TAKE PLACE AT AN- the IRS. retary’s determination to the Office of Ap- OTHER SITE. Sec. 503. Taxpayer’s election with respect to peals. (a) IN GENERAL.—Subsection (a) of section recovery of costs and certain ‘‘(3) REGULATIONS.—The Secretary shall 7605 (relating to time and place of examina- fees. prescribe such regulations as may be nec- tion) is amended to read as follows: TITLE I—TAXPAYER RIGHTS essary to carry out the purposes of this sub- ‘‘(a) TIME AND PLACE.— section, including regulations— ‘‘(1) IN GENERAL.—The time and place of ex- SEC. 101. COURT APPROVAL FOR SEIZURE OF amination pursuant to the provisions of sec- TAXPAYER’S PROPERTY. ‘‘(A) establishing standards for acceptable offers in compromise based on the economic tion 6420(e)(2), 6421(g)(2), 6427(j)(2), or 7602 (a) IN GENERAL.—Section 6331(a) is amend- reality of the taxpayer’s ability to pay, and shall be such time and place as may be fixed ed by adding at the end the following new ‘‘(B) providing for the application of this by the Secretary and as are reasonable under paragraph: subsection to offers in compromise made by the circumstances. In the case of a summons ‘‘(2) LIMITATION ON AUTHORITY OF SEC- small businesses and the self-employed.’’ under authority of paragraph (2) of section RETARY.—Notwithstanding paragraph (1)— (b) EFFECTIVE DATE.—The amendments 7602, or under the corresponding authority of ENERAL RULE.—The Secretary shall ‘‘(A) G made by this section shall be effective for of- section 6420(e)(2), 6421(g)(2), or 6427(j)(2), the not levy upon any property or rights to prop- fers in compromise filed after the date of the date fixed for appearance before the Sec- erty until— enactment of this Act. retary shall not be less than 10 days from the ‘‘(i) the taxpayer has received the notice SEC. 103. CLARIFICATION THAT ATTORNEY’S date of the summons. described in subsection (a) which notifies the FEES ARE AVAILABLE IN UNAU- ‘‘(2) LIMITATION.—Upon request of a tax- taxpayer of the opportunity for judicial re- THORIZED-DISCLOSURE AND payer, the Secretary shall conduct any ex- view under this subparagraph and advises BROWSING CASES. amination described in paragraph (1) at a lo- the taxpayer that criminal penalties may be (a) IN GENERAL.—Subsection (a) of section cation other than the taxpayer’s residence or imposed if the property is transferred or oth- 7430 (relating to awarding of costs and cer- place of business, if such location is reason- erwise made unavailable for collection while tain fees) is amended to read as follows: ably accessible to the Secretary and the tax- such review is pending, and ‘‘(a) IN GENERAL.—In any administrative or payer’s original books and records pertinent ‘‘(ii) a court of competent jurisdiction has court proceeding which is brought by or to the examination are available at such lo- determined, after the taxpayer has received against the United States in connection with cation.’’ notice and an opportunity for a hearing, that the determination, collection, or refund of (b) EFFECTIVE DATE.—The amendments such levy is reasonable under the cir- any tax, interest, or penalty under this title made by this section shall be effective for ex- cumstances. (including any civil action under section aminations occurring after the date of the ‘‘(B) EXCEPTION.—A court may waive the 7431), the prevailing party may be awarded a enactment of this Act. right to notice and hearing under subpara- judgment or settlement for— SEC. 106. PROHIBITION ON IRS CONTACT OF graph (A) if the Secretary demonstrates to ‘‘(1) reasonable administrative costs in- THIRD PARTIES WITHOUT TAX- the court’s satisfaction that— curred in connection with such administra- PAYER PRE-NOTIFICATION. ‘‘(i) irreparable harm will occur with re- tive proceeding within the Internal Revenue (a) IN GENERAL.—Section 7602 (relating to spect to the Secretary’s ability to collect the Service, and examination of books and witnesses) is tax if relief is not granted, ‘‘(2) reasonable litigation costs incurred in amended by redesignating subsection (c) as ‘‘(ii) the Secretary has provided the tax- connection with such court proceeding.’’ subsection (d) and by inserting after sub- payer with notice and demand pursuant to (b) EFFECTIVE DATE.—The amendments section (b) the following new subsection: section 6303(a), made by this section shall be effective for ‘‘(c) LIMITATION OF AUTHORITY TO SUM- ‘‘(iii) the taxpayer has neglected or refused any proceeding which— MON.—In the case of a taxpayer engaged in a to pay the tax within 10 days after notice (1) arises after the date of the enactment of trade or business, no summons concerning and demand, and this Act, or such trade or business may be issued under ‘‘(iv) the Secretary has a reasonable prob- (2) arises on or before such date and which this title with respect to any person other ability of success on the merits with regard does not become final before the 30th day than such taxpayer without providing rea- to the taxpayer’s liability for the tax.’’ after such date. sonable notice to the taxpayer that such

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REPEAL OF THE PENALTY FOR SUB- (B) by adding at the end the following: shall not apply if the Secretary determines STANTIAL UNDERSTATEMENT OF IN- ‘‘For purposes of paragraph (3), in applying for good cause shown that such notice would COME TAX. section 6013(e)(3)(C)(ii)(II), in no event shall a jeopardize collection of any tax or any pend- (a) IN GENERAL.—Subsection (d) of section corporation be treated as having a reason- ing criminal investigation.’’ 6662 is repealed. able basis for its tax treatment of an item (b) EFFECTIVE DATE.—The amendments (b) CONFORMING AMENDMENTS.— attributable to a multiple-party financing made by this section shall be effective for (1) Section 6662(b) is amended by striking transaction if such treatment does not clear- summons issued after the date of the enact- paragraph (2) and redesignating paragraphs ly reflect the income of the corporation.’’ ment of this Act. (3), (4), and (5) as paragraphs (2), (3), and (4), (c) EFFECTIVE DATE.—The amendments SEC. 107. EXPANSION OF TAXPAYER’S RIGHTS IN respectively. made by this section shall take effect on the ADMINISTRATIVE APPEAL. (2) Section 6662 is amended by redesig- date of the enactment of this Act. (a) IN GENERAL.—Subchapter B of chapter nating subsections (e), (f), (g), and (h) as sub- SEC. 203. REPEAL OF THE FAILURE-TO-PAY PEN- 63 (relating to assessment) is amended by sections (d), (e), (f), and (g), respectively. ALTY. adding before section 6212 the following new (3) Section 461(i)(3)(C) is amended to read (a) IN GENERAL.—Section 6651(a) is amend- section: as follows: ed by striking paragraphs (2) and (3). ‘‘(C) any partnership or other entity, any (b) CONFORMING AMENDMENTS TO SECTION ‘‘SEC. 6211A. NOTICE OF PROPOSED ADJUST- investment plan or arrangement, or any 6651.— MENT. other plan or arrangement if a significant (1) Section 6651(a) is amended— ‘‘(a) INCOME TAXES.—At least 60 days prior purpose of such partnership, entity, plan, or (A) by striking ‘‘In the case of failure— to issuing a notice of deficiency under sec- arrangement is the avoidance or evasion of ‘‘(1) to’’ and inserting ‘‘In the case of fail- tion 6212, the Secretary shall send a notice Federal income tax.’’ ure to’’, and explaining the adjustments that the Sec- (4) Section 1274(b)(3)(B)(i) is amended by (B) by striking the semicolon at the end of retary believes should be made to the striking ‘‘section 6662(d)(2)(C)(iii)’’ and in- paragraph (1) and inserting a period. amount shown as tax by the taxpayer on his serting ‘‘section 461(i)(3)(C)’’. (2) Section 6651(b) is amended— return that would result in a deficiency. If (5) Section 6013(e)(3) is amended to read as (A) by striking ‘‘For purposes of— the taxpayer does not agree with the Sec- follows: ‘‘(1) subsection (a)(1)’’ and inserting ‘‘For retary’s proposed adjustments, the taxpayer ‘‘(3) SUBSTANTIAL UNDERSTATEMENT.— purposes of subsection (a)’’, may appeal such proposed adjustments to ‘‘(A) IN GENERAL.—For purposes of this sub- (B) by striking the comma at the end of the Office of Appeals. section, the term ‘substantial understate- paragraph (1) and inserting a period, and ‘‘(b) ADDRESS FOR NOTICE OF PROPOSED AD- ment’ means any understatement which ex- (C) by striking paragraphs (2) and (3). JUSTMENT.—The provisions of section 6212(b) ceeds $500. (3) Section 6651 is amended by striking sub- shall apply with respect to mailing of the no- ‘‘(B) UNDERSTATEMENT.—For purposes of sections (c), (d), and (e). tice of proposed adjustment described in sub- subparagraph (A), the term ‘‘understate- (4) Section 6651(f) is amended by striking section (a).’’ ment’’ means the excess of— ‘‘paragraph (1) of’’. (b) EMPLOYMENT TAXES.—Section 6205(b) is ‘‘(i) the amount of the tax required to be (5) Section 6651(g) is amended to read as amended— shown on the return for the taxable year, follows: (1) by adding at the end the following new over ‘‘(g) TREATMENT OF RETURNS PREPARED BY paragraph: ‘‘(ii) the amount of the tax imposed which SECRETARY UNDER SECTION 6020(b).—In the ‘‘(2) NOTICE OF PROPOSED ASSESSMENT.—At is shown on the return, reduced by any re- case of any return made by the Secretary least 60 days prior to making any assessment bate (within the meaning of section under section 6020(b), such return shall be with respect to paragraph (1), the Secretary 6211(b)(2)). disregarded for purposes of determining the shall send a notice of proposed assessment ‘‘(C) REDUCTION FOR UNDERSTATEMENT DUE amount of the addition under subsection (mailed to the taxpayer at its last known ad- TO POSITION OF TAXPAYER OR DISCLOSED (a).’’ dress) explaining the adjustments that the ITEM.—The amount of the understatement (6) Section 6651, as amended by paragraphs Secretary believes should be made to the under subparagraph (B) shall be reduced by (3) and (4), is amended by redesignating sub- amount paid or deducted with respect to any that portion of the understatement which is sections (f) and (g) as subsections (c) and (d), payment of wages or compensation which attributable to— respectively. would result in an underpayment. If the tax- ‘‘(i) the tax treatment of any item by the (7) The heading of section 6651 is amended payer disagrees with the Secretary’s adjust- taxpayer if there is or was substantial au- to read as follows: ments, the taxpayer may appeal such adjust- thority for such treatment, or ‘‘SEC. 6651. FAILURE TO FILE TAX RETURN.’’ ments to the Office of Appeals.’’, and ‘‘(ii) any item if— (8) The table of sections for subchapter A (2) by striking ‘‘If less than’’ and inserting: ‘‘(I) the relevant facts affecting the item’s of chapter 68 is amended by striking the item ‘‘(1) IN GENERAL.—If less than’’. tax treatment are adequately disclosed in relating to section 6651 and inserting the fol- (b) CONFORMING AMENDMENTS.—The table the return or in a statement attached to the lowing new item: of sections for subchapter B of chapter 63 is return, and amended by inserting the following new ‘‘(II) there is a reasonable basis for the tax ‘‘Sec. 6651. Failure to file tax return.’’ item: treatment of such item by the taxpayer. (9) Section 5684(c)(2) is amended by strik- ‘‘Sec. 6211A. Notice of proposed adjustment.’’ ‘‘(D) SPECIAL RULES IN CASES INVOLVING TAX ing ‘‘or pay tax’’. SHELTERS.— (c) EFFECTIVE DATE.—The amendments (c) EFFECTIVE DATE.—The amendments ‘‘(i) IN GENERAL.—In the case of any item of made by this section shall be effective for made by this section shall be effective 60 a taxpayer which is attributable to a tax failures to pay occurring after the date of days after the date of the enactment of this shelter— the enactment of this Act. Act. ‘‘(I) subparagraph (C)(ii) shall not apply, TITLE III—INTERNAL REVENUE SERVICE TITLE II—PENALTY REFORM and RESTRUCTURING ‘‘(II) subparagraph (C)(i) shall not apply SEC. 201. IMPOSITION OF INTEREST ON PEN- SEC. 301. INTERNAL REVENUE SERVICE BOARD ALTIES ONLY AFTER A TAXPAYER’S unless (in addition to meeting the require- OF GOVERNORS; COMMISSIONER OF FAILURE TO PAY. ments of such subparagraph) the taxpayer INTERNAL REVENUE. (a) IN GENERAL.—Section 6601(e)(2) is reasonably believed that the tax treatment (a) IN GENERAL.—Chapter 80 (relating to amended to read as follows: of such item by the taxpayer was more likely general rules) is amended by adding after ‘‘(2) INTEREST ON PENALTIES, ADDITIONAL than not the proper treatment. section 7801 the following new section: ‘‘(ii) TAX SHELTER.—For purposes of this AMOUNTS, OR ADDITIONS TO THE TAX.—Interest ‘‘SEC. 7801A. INTERNAL REVENUE SERVICE shall be imposed under subsection (a) in re- subparagraph, the term ‘tax shelter’ has the BOARD OF GOVERNORS; COMMIS- spect of any assessable penalty, additional meaning given such term by section SIONER OF INTERNAL REVENUE. amount, or addition to the tax only if such 461(i)(3)(C). ‘‘(a) INTERNAL REVENUE SERVICE BOARD OF assessable penalty, additional amount, or ad- ‘‘(E) SECRETARIAL LIST.—The Secretary GOVERNORS.— dition to the tax is not paid within 21 cal- shall prescribe (and revise not less fre- ‘‘(1) ESTABLISHMENT.—There is established endar days from the date of notice and de- quently than annually) a list of positions— within the Department of the Treasury the mand therefor (10 business days if the ‘‘(i) for which the Secretary believes there Internal Revenue Service Board of Governors amount for which such notice and demand is is not substantial authority, and (in this title referred to as the ‘Board’). made equals or exceeds $100,000), and in such ‘‘(ii) which affect a significant number of ‘‘(2) MEMBERSHIP.— case interest shall be imposed only for the taxpayers. ‘‘(A) COMPOSITION.—The Board shall be period from the date of the notice and de- Such list (and any revision thereof) shall be composed of 5 members, of whom— mand to the date of payment.’’ published in the Federal Register.’’ ‘‘(i) 4 shall be individuals who are ap- (b) EFFECTIVE DATE.—The amendments (6) Section 6694(a) is amended— pointed by the President, by and with the ad- made by this section shall be effective for (A) by striking ‘‘section 6662(d)(2)(B)(ii)’’ vice and consent of the Senate, and penalties assessed after the date of the en- and inserting ‘‘section 6013(e)(3)(C)(ii)’’ in ‘‘(ii) 1 shall be the Commissioner of Inter- actment of this Act. paragraph (3), and nal Revenue.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S925

Not more than 2 members of the Board ap- ‘‘(B) OPERATIONAL PLANS.—To review and term for which such individual’s predecessor pointed under clause (i) may be affiliated approve the operational functions of the In- was appointed shall be appointed for the re- with the same political party. ternal Revenue Service, including— mainder of that term. ‘‘(B) QUALIFICATIONS.—Members of the ‘‘(i) plans for modernization of the tax sys- ‘‘(3) REMOVAL.—The Commissioner may be Board described in subparagraph (A)(i) shall tem, removed at the will of the President. be appointed solely on the basis of their pro- ‘‘(ii) plans for outsourcing or managed ‘‘(4) DUTIES.—Subject to the powers of the fessional experience and expertise in the fol- competition, and Board, the Commissioner shall have such du- lowing areas: ‘‘(iii) plans for training and education. ties and powers as the Secretary may pre- ‘‘(i) The needs and concerns of taxpayers. ‘‘(C) MANAGEMENT.—To— scribe, including the power to— ‘‘(ii) Organization development. ‘‘(i) review and approve the Commis- ‘‘(A) administer, manage, conduct, direct, ‘‘(iii) Customer service. sioner’s selection, evaluation, and compensa- and supervise the execution and application ‘‘(iv) Operation of small businesses. tion of senior managers, of the internal revenue laws or related stat- ‘‘(v) Management of large businesses. ‘‘(ii) oversee the operation of the Office of utes and tax conventions to which the ‘‘(vi) Information technology. the Taxpayer Advocate and the Office of Ap- United States is a party; and ‘‘(vii) Compliance. peals, and ‘‘(B) recommend to the President (after ‘‘(iii) review and approve the Commis- consultation with the Board) a candidate for In the aggregate, the members of the Board sioner’s plans for reorganization of the Inter- appointment as Chief Counsel for the Inter- described in subparagraph (A)(i) should col- nal Revenue Service. nal Revenue Service when a vacancy occurs, lectively bring to bear expertise in these ‘‘(D) BUDGET.—To— and recommend to the President (after con- enumerated areas. ‘‘(i) review and approve the budget request sultation with the Board) the removal of ‘‘(C) TERMS.—Each member who is de- of the Internal Revenue Service prepared by such Chief Counsel. scribed in subparagraph (A)(i) shall be ap- the Commissioner, If the Secretary determines not to delegate a pointed for a term of 5 years, except that of ‘‘(ii) submit such budget request to the power specified in subparagraph (A) or (B), the members first appointed— Secretary of the Treasury, such determination may not take effect ‘‘(i) 1 member who is affiliated with the ‘‘(iii) ensure that the budget request sup- until 30 days after the Secretary notifies the same political party as the President shall ports the annual and long-range strategic Committees on Finance, Appropriations, and be appointed for a term of 1 year, plans of the Internal Revenue Service, and Governmental Affairs of the Senate, the ‘‘(ii) 1 member who is not affiliated with ‘‘(iv) ensure appropriate financial audits of Committees on Ways and Means, Appropria- the same political party as the President the Internal Revenue Service. tions, and Government Reform and Over- shall be appointed for a term of 2 years, The Secretary shall submit, without revi- sight of the House of Representatives, and ‘‘(iii) 1 member who is affiliated with the sion, the budget request referred to in sub- the Joint Committee on Taxation. same political party as the President shall paragraph (D) for any fiscal year to the ‘‘(5) CONSULTATION WITH BOARD.—The Com- be appointed for a term of 3 years, and President who shall submit, without revi- missioner shall consult with the Board on all ‘‘(iv) 1 member who is not affiliated with sion, such request to Congress together with matters set forth in subsection (a)(4).’’ the same political party as the President the President’s annual budget request for the (b) CONFORMING AMENDMENTS.— shall be appointed for a term of 4 years. Internal Revenue Service for such fiscal (1) Section 5315 of title 5, United States A member of the Board may serve on the year. Code, is amended by adding at the end the Board after the expiration of the member’s ‘‘(5) BOARD PERSONNEL MATTERS.— following new item: ‘‘(A) COMPENSATION OF MEMBERS.—Each term until a successor has taken office as a ‘‘Members, Internal Revenue Service Board member of the Board who is described in sub- member of the Board. of Governors.’’ ‘‘(D) REAPPOINTMENT.—An individual who section (b)(1)(A)(i) shall be compensated at is described in subparagraph (A)(i) may be an annual rate equal to the rate for Execu- (2) Section 7701(a) (relating to definitions) appointed to no more than two 5-year terms tive Schedule IV under title 5 of the United is amended by inserting after paragraph (46) on the Board. States Code. The Commissioner shall receive the following new paragraph: ‘‘(E) VACANCY.—Any vacancy on the no additional compensation for service on ‘‘(47) BOARD.—The term ‘Board’ means the Board— the Board. Board of Governors of the Internal Revenue ‘‘(i) shall not affect the powers of the ‘‘(B) STAFF.—The Chairperson of the Board Service.’’ Board, and shall have the authority to hire such per- (3) The table of sections for subchapter A ‘‘(ii) shall be filled in the same manner as sonnel as may be necessary to enable the of chapter 80 is amended by inserting after the original appointment. Board to perform its duties. the item relating to section 7801 the fol- ‘‘(6) ADMINISTRATIVE MATTERS.— lowing new item: Any member appointed to fill a vacancy oc- ‘‘(A) CHAIR.—The Commissioner of Internal ‘‘Sec. 7801A. Internal Revenue Service Board curring before the expiration of the term for Revenue shall serve as the chairperson of the of Governors; Commissioner of which the member’s predecessor was ap- Board. pointed shall be appointed for the remainder Internal Revenue.’’ ‘‘(B) COMMITTEES.—The Board may estab- of that term. lish such committees as the Board deter- (c) EFFECTIVE DATE.— ‘‘(F) REMOVAL.— mines appropriate. (1) IN GENERAL.—The amendments made by N GENERAL ‘‘(i) I .—A member of the Board ‘‘(C) MEETINGS.—The Board shall meet at this section shall take effect on the date of may be removed at the will of the President. least once each month and at such other the enactment of this Act. ‘‘(ii) COMMISSIONER OF INTERNAL REV- times as the Board determines appropriate. (2) NOMINATIONS TO INTERNAL REVENUE ENUE.—An individual described in subpara- ‘‘(D) QUORUM; VOTING REQUIREMENTS; DELE- SERVICE BOARD OF GOVERNORS.—The Presi- graph (A)(ii) shall be removed upon termi- GATION OF AUTHORITIES.—3 members of the dent shall submit nominations under section nation of employment. Board shall constitute a quorum. All deci- 7801A(a) of the Internal Revenue Code of 1986, ‘‘(3) GENERAL RESPONSIBILITIES.— sions of the Board with respect to the exer- as added by this section, to the Senate not ‘‘(A) IN GENERAL.—The Board shall oversee cise of its duties and powers under this sec- later than 6 months after the date of the en- the Internal Revenue Service in the adminis- tion shall be made by a majority vote of the actment of this Act. tration, management, conduct, direction, members present and voting. A member of (3) CURRENT COMMISSIONER.—In the case of and supervision of the execution and applica- the Board may not delegate to any person an individual serving as Commissioner of In- tion of the internal revenue laws or related the member’s vote or any decisionmaking ternal Revenue on the date of the enactment statutes and tax conventions to which the authority or duty vested in the Board by the of this Act who was appointed to such posi- United States is a party. provisions of this section. tion before such date, the 5-year term re- ‘‘(B) CONSULTATION ON TAX POLICY.—The ‘‘(E) REPORTS.—The Board shall each year quired by section 7801A(b)(1) of the Internal Board shall be responsible for consulting report to the President and the Congress Revenue Code of 1986, as added by this sec- with the Secretary of the Treasury with re- with respect to the conduct of its respon- tion, shall begin as of the date of such ap- spect to the development and formulation of sibilities under this title. pointment. Federal tax policy relating to existing or ‘‘(b) COMMISSIONER OF INTERNAL REV- SEC. 302. RESTRUCTURING OF IRS OPERATIONS proposed internal revenue laws, related stat- ENUE.— ALONG CUSTOMER LINES. utes, and tax conventions. ‘‘(1) APPOINTMENT.—There shall be in the (a) IN GENERAL.—Subsection (a) of section ‘‘(4) SPECIFIC RESPONSIBILITIES.—The Board Department of the Treasury a Commissioner 7802 (relating to the Commissioner of Inter- shall have the following specific responsibil- of Internal Revenue who shall be appointed nal Revenue) is amended to read as follows: ities: by the President, by and with the advice and ‘‘(a) ORGANIZATION OF THE INTERNAL REV- ‘‘(A) STRATEGIC PLANS.—To review and ap- consent of the Senate, to a 5-year term. The ENUE SERVICE.— prove strategic plans of the Internal Revenue appointment shall be made without regard to ‘‘(1) IN GENERAL.—The Internal Revenue Service, including the establishment of— political affiliation or activity. Service shall be organized into divisions rep- ‘‘(i) mission and objectives, and standards ‘‘(2) VACANCY.—Any individual appointed resenting the following types of taxpayers: of performance relative to either, and to fill a vacancy in the position of Commis- ‘‘(A) Individual taxpayers subject to wage ‘‘(ii) annual and long-range strategic plans. sioner occurring before the expiration of the withholding.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S926 CONGRESSIONAL RECORD — SENATE February 24, 1998 ‘‘(B) Small businesses and self-employed tion at the same rate as the highest level of- (1) paperless filing should be the preferred individuals. ficial reporting directly to the Commissioner and most convenient means of filing Federal ‘‘(C) Large businesses. of the Internal Revenue. tax and information returns, ‘‘(D) Employee plans and exempt organiza- ‘‘(2) FUNCTIONS OF OFFICE.— (2) electronic filing should be a voluntary tions. ‘‘(A) IN GENERAL.—It shall be the function option for taxpayers, and ‘‘(E) Trusts and estates. of the Office of Appeals to resolve tax con- (3) there be a goal that no more than 20 ‘‘(F) Such other divisions as the Board troversies, without litigation, on a basis that percent of all such returns should be filed on deems necessary and appropriate. is fair and impartial to both the Government paper by the year 2007. ‘‘(2) SUPERVISION AND DIRECTION OF DIVI- and the taxpayer and in a manner that en- (b) STRATEGIC PLAN.— SIONS.—Each division established by para- courages voluntary compliance and public (1) IN GENERAL.—Not later than 180 days graph (1) shall be under the supervision and confidence in the integrity and efficiency of after the date of the enactment of this Act, direction of an Assistant Commissioner of the Internal Revenue Service. the Secretary of the Treasury or the Sec- Internal Revenue. As the head of a division, ‘‘(B) RESTRICTIONS.—In carrying out its retary’s delegate (hereafter in this section each Assistant Commissioner shall be re- functions, the Office of Appeals— referred to as the ‘‘Secretary’’), in consulta- sponsible for carrying out the functions of ‘‘(i) shall consider only those issues con- tion with the Board of Governors of the In- taxpayer services, examinations, collections, cerning the taxpayer’s return raised by the ternal Revenue Service and the electronic- counsel operations, and such other functions division established under subsection (a) filing advisory group described in paragraph as the Board may designate with respect to prior to its referral to the Office, and (4), shall establish a plan to eliminate bar- the taxpayers covered by the division.’’ ‘‘(ii) shall not have any communications riers, provide incentives, and use competi- (b) CONFORMING AMENDMENTS.— with any officer or employee of the division tive market forces to increase electronic fil- (1) The section heading for section 7802 is with respect to such issues unless the tax- ing gradually over the next 10 years while amended to read as follows: payer, or the taxpayer’s representative, has maintaining processing times for paper re- ‘‘SEC. 7802. ORGANIZATION OF THE INTERNAL the opportunity to be present for such com- turns at 40 days. REVENUE SERVICE; TAXPAYER AD- munications.’’ (2) PUBLICATION OF PLAN.—The plan de- VOCATE; OFFICE OF APPEALS.’’ (b) EFFECTIVE DATE.—The amendments scribed in paragraph (1) shall be published in made by this section shall take effect on the (2) The table of sections for subchapter A the Federal Register and shall be subject to date of the enactment of this Act. of chapter 80 is amended by striking the item public comment for 60 days from the date of relating to section 7802 and inserting the fol- SEC. 305. IMPROVED IRS WRITTEN COMMUNICA- publication. Not later than 180 days after lowing new item: TIONS TO TAXPAYERS AND TAX FORMS. publication of such plan, the Secretary shall ‘‘Sec. 7802. Organization of the Internal Rev- (a) TAXPAYER-COMMUNICATIONS ADVISORY publish a final plan in the Federal Register. enue Service; Taxpayer Advo- GROUP.— (3) IMPLEMENTATION OF PLAN.—The Sec- cate; Office of Appeals.’’ (1) IN GENERAL.—In order to ensure that retary shall prescribe rules and regulations the Internal Revenue Service Board of Gov- to implement the plan developed under para- (3) Subsection (b) of section 5109 of title 5, graph (1). Notwithstanding any other provi- United States Code, is amended by striking ernors receives input from the taxpayers who must comply with written communications sion of law, the Secretary shall— ‘‘the employee appointed under section (A) prescribe such rules and regulations in 7802(b)’’ and inserting ‘‘an employee ap- from the Internal Revenue Service, the Board shall, not later than 180 days after the accordance with section 553 (b), (c), (d), and pointed under section 7802(a)(2)’’. (e) of title 5, United States Code, and (c) EFFECTIVE DATE.—The amendments date of the enactment of this Act, convene a (B) in connection with such rules and regu- made by this section shall take effect on the taxpayer-communications advisory group to lations, perform an initial and final regu- date of the enactment of this Act. review all— (A) standardized letters, notices, bills, and latory flexibility analysis pursuant to sec- SEC. 303. GREATER INDEPENDENCE OF THE TAX- tions 603 and 604 of title 5, United States PAYER ADVOCATE. other written communications sent to tax- Code, and outreach pursuant to section 609 of (a) IN GENERAL.—Section 7802(d)(1) is payers by the Internal Revenue Service, and title 5, United States Code. amended to read as follows: (B) tax forms and instructions. (4) ELECTRONIC-FILING ADVISORY GROUP.— ‘‘(1) IN GENERAL.—There is established in The advisory group shall recommend to the (A) IN GENERAL.—To ensure that the Sec- the Internal Revenue Service an office to be Board the rewriting of any standardized retary receives input from the private sector known as the ‘Office of the Taxpayer Advo- written document, form, or instruction in the development and implementation of cate’. Such office shall be independent of all which it finds is not clear to, or easily under- the plan required by paragraph (1), not later other functions of the Internal Revenue stood by, the taxpayers to whom it is di- than 60 days after the date of enactment of Service and shall be under the supervision rected. this Act, the Secretary shall convene an and direction of an official to be known as (2) MEMBERSHIP.— electronic-filing advisory group to include at the ‘Taxpayer Advocate’ who shall be ap- (A) IN GENERAL.—Members of the taxpayer- least one representative of individual tax- pointed by, and report directly to, the Board. communications advisory group shall be ap- payers subject to withholding, small busi- The Taxpayer Advocate shall be entitled to pointed by the Board and shall include at nesses and the self-employed, large busi- compensation at the same rate as the high- least one representative of the following: in- nesses, trusts and estates, tax-exempt orga- est level official reporting directly to the dividual taxpayers subject to withholding; nizations, tax practitioners, preparers, and Commissioner of the Internal Revenue.’’ small businesses and the self-employed; large other tax professionals, computerized tax (b) CONFORMING AMENDMENTS.— businesses; trusts and estates; tax-exempt (1) Section 7802, as amended by subsection organizations; tax practitioners, preparers, processors, and the electronic-filing indus- (a), is amended by striking subsection (b) and other tax professionals; and such other try. and by redesignating subsection (d) as sub- types of taxpayers that the Board deems ap- (B) PERSONNEL AND OTHER MATTERS.—The section (b). propriate. provisions of section 305(b) of this Act shall (2) Section 7802(b)(3), as so redesignated, is (B) TERM.—A member of the advisory apply to the advisory group. amended— group shall be appointed for a term of one (5) TERMINATION.—The advisory group shall (A) by striking ‘‘Commissioner of Internal year and may be reappointed for one addi- terminate on December 31, 2008. Revenue’’ and inserting ‘‘Board’’, and tional term. (c) PROMOTION OF ELECTRONIC FILING AND (B) by striking ‘‘Commissioner’’ each place (b) PERSONNEL AND OTHER MATTERS.— INCENTIVES.—Section 6011 is amended by re- it appears in the text and heading and insert- (1) MEMBERS’ COMPENSATION.—Each mem- designating subsection (f) as subsection (g) ing ‘‘Board’’. ber of the advisory group shall serve without and by inserting after subsection (e) the fol- (c) EFFECTIVE DATE.—The amendments compensation, but shall be allowed travel ex- lowing new subsection: made by this section shall take effect on the penses, including per diem in lieu of subsist- ‘‘(f) PROMOTION OF ELECTRONIC FILING.— date of the enactment of this Act. ence, at rates authorized for employees of ‘‘(1) IN GENERAL.—The Secretary is author- SEC. 304. GREATER INDEPENDENCE OF THE OF- agencies under subchapter I of chapter 57 of ized to promote the benefits of and encour- FICE OF APPEALS. title 5, United States Code, while away from age the use of electronic tax administration (a) IN GENERAL.—Section 7802(c) is amend- their homes or regular places of business in programs, as they become available, through ed to read as follows: performance of services for the advisory the use of mass communications and other ‘‘(c) OFFICE OF APPEALS.— group. means. ‘‘(1) IN GENERAL.—There is established in (2) DETAILS.—Any Federal Government em- ‘‘(2) INCENTIVES.—The Secretary may im- the Internal Revenue Service an office to be ployee may be detailed to the advisory group plement procedures to provide for the pay- known as the ‘Office of Appeals’. Such office without reimbursement, and such detail ment of appropriate incentives for electroni- shall be independent of all other functions of shall be without interruption or loss of civil cally filed returns.’’ the Internal Revenue Service and shall be service status or privilege. SEC. 402. REPORT ON ELECTRONIC FILING AND under the supervision and direction of an of- TITLE IV—ELECTRONIC FILING ITS EFFECT ON SMALL BUSINESSES. ficer to be known as the ‘National Appeals SEC. 401. GOALS FOR ELECTRONIC FILING; ELEC- Not later than June 30 of each calendar Officer’ who shall be appointed by, and re- TRONIC-FILING ADVISORY GROUP. year after 1997 and before 2009, the Chair- port directly to, the Board. The National Ap- (a) IN GENERAL.—It is the policy of Con- person of the Internal Revenue Service peals Officer shall be entitled to compensa- gress that— Board of Governors, the Secretary of the

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S927 Treasury, and the Chairperson of the elec- SEC. 503. TAXPAYER’S ELECTION WITH RESPECT addition, if the IRS does not accept an offer tronic-filing advisory group established TO RECOVERY OF COSTS AND CER- (e.g., rejects it or returns it as under section 401(b)(4) of this Act shall re- TAIN FEES. unprocessable), the IRS will be required to port to the Committees on Finance, Appro- (a) IN GENERAL.— provide a complete explanation to the tax- priations, Governmental Affairs, and Small (1) Section 504(f) of title 5, United States payer as to the reasons that the offer was Business of the Senate, the Committees on Code, is amended to read as follows: not accepted, and the taxpayer may appeal Ways and Means, Appropriations, Govern- ‘‘(f) A party may elect to recover costs, the rejection to the Office of Appeals. ment Reform and Oversight, and Small Busi- fees, or other expenses under this section or This section also requires the Treasury De- ness of the House of Representatives, and the under section 7430 of the Internal Revenue partment to issue regulations that establish Joint Committee on Taxation, on— Code of 1986.’’ the standard for an acceptable offer. The reg- (1) the progress of the Internal Revenue (2) Section 2412(e) of title 28, United States ulations will require that an acceptable offer Service in meeting the goal of receiving 80 Code, is amended to read as follows: be based on the economic reality of the tax- percent of tax and information returns elec- ‘‘(e) A party may elect to recover costs, payer’s ability to pay, and establish specific tronically by 2007, fees, or other expenses under this section or provisions addressing cases involving small (2) the status of the plan required by sec- under section 7430 of the Internal Revenue businesses and the self-employed. tion 401(b) of this Act, Code of 1986.’’ (3) the legislative changes necessary to as- (b) COORDINATION.—Section 7430 (relating Section 103. Expansion of attorney’s fees to sist the Internal Revenue Service in meeting to awarding of costs and certain fees) is cover unauthorized-disclosure and browsing such goal, and amended by adding at the end the following cases (4) the effects on small businesses and the new subsection: The bill clarifies that a court may award self-employed of electronically filing tax and ‘‘(g) COORDINATION WITH EQUAL ACCESS TO attorney’s fees in cases involving unauthor- information returns, including a detailed de- JUSTICE ACT.—This section shall not apply to ized disclosure of taxpayer information and scription of the forms to be filed electroni- any administrative or judicial proceeding browsing of taxpayer records by IRS employ- cally, the equipment and technology re- with respect to which a taxpayer elects to ees. This provision is intended to overrule quired for compliance, the cost to a small recover costs, fees, or other expenses under McLarty v. United States, 6 F.3d 545 (8th Cir. business and self-employed individual of fil- section 504 of title 5, United States Code, or 1993), which denied attorney’s fees in a case ing electronically, implementation plans, section 2412 of title 28, United States Code.’’ involving unauthorized disclosure, and adopt and action to coordinate Federal, State, and (c) EFFECTIVE DATE.—The amendments the ruling in Huckaby v. United States De- local electronic filing requirements. made by this section shall be effective for partment of Treasury, 804 F.2d 297 (5th Cir. TITLE V—REGULATORY REFORM proceedings initiated after the date of the 1986), which permitted such fees. The bill is enactment of this Act. SEC. 501. CONGRESSIONAL REVIEW OF INTERNAL also intended to prevent the interpretation REVENUE SERVICE RULES THAT IN- in McLarty from being applied to browsing CREASE REVENUE. PUTTING THE TAXPAYER FIRST ACT cases. (a) IN GENERAL.—Section 804(2) of title 5, EXPLANATION OF PROVISIONS Section 104. Uniform application of confiden- United States Code, is amended to read as TITLE I—TAXPAYER RIGHTS tiality privilege for taxpayer communications follows: with Federally authorized practitioners ‘‘(2) The term ‘major rule’— Section 101. Court approval for seizure of ‘‘(A) means any rule that— taxpayer’s property The bill expands the privilege of confiden- ‘‘(i) the Administrator of the Office of In- In response to recent concerns raised about tiality that exists currently between a tax- formation and Regulatory Affairs of the Of- the IRS’ unchecked authority to seize a tax- payer and an attorney with respect to tax fice of Management and Budget finds has re- payer’s property, the bill requires that be- advice to any tax practitioner who is cur- sulted in or is likely to result in— fore the IRS may seize property the agency rently authorized to practice before the IRS, ‘‘(I) an annual effect on the economy of must obtain court approval with notice to such as accountants and enrolled agents. $100,000,000 or more; the taxpayer and an opportunity for a hear- Such confidentiality may be asserted only in ‘‘(II) a major increase in costs or prices for ing. This requirement will protect a tax- non-criminal tax cases before the IRS and consumers, individual industries, Federal, payer’s right against unreasonable search Federal courts, including Tax Court. State, or local government agencies, or geo- and seizure under the Fourth Amendment of Section 105. Taxpayer’s right to have an IRS graphic regions; or the Constitution and ensure the taxpayer’s examination take place at another site ‘‘(III) significant adverse effects on com- right to due process under the Fifth Amend- The bill provides that the IRS must accept petition, employment, investment, produc- ment. a taxpayer’s request that an audit be moved tivity, innovation, or on the ability of The bill includes an exception when a tax- away from his or her home or business prem- United States-based enterprises to compete payer tries to hide, damage, or destroy prop- ises if the off-site location is accessible to with foreign-based enterprises in domestic erty to evade paying his or her taxes. In such the auditor and the taxpayer’s books and and export markets; or a case, if the IRS demonstrates that the records are available at such a location. This ‘‘(ii)(I) is promulgated by the Internal Rev- property is likely to be lost or damaged, the provision will enable the IRS to conduct an enue Service; and court may provide immediate relief, without audit but without the fear and disruption re- ‘‘(II) the Administrator of the Office of In- involving the taxpayer, to protect the prop- sulting from the auditor being present in a formation and Regulatory Affairs of the Of- erty. To obtain such relief, the IRS must family home and among a business’ employ- fice of Management and Budget finds that demonstrate to the court’s satisfaction that ees and customers for days or weeks. the implementation and enforcement of the without relief, the government’s ultimate Section 106. Prohibition on IRS contact of third rule has resulted in or is likely to result in ability to collect the tax due from the prop- parties without taxpayer pre-notification any net increase in Federal revenues over erty will be lost. The IRS must also dem- current practices in tax collection or reve- onstrate that the taxpayer has been given In many audit cases, especially employ- nues anticipated from the rule on the date of notice that tax is due, the taxpayer has ment tax audits, the IRS uses its summons the enactment of the statute under which failed to pay, and the IRS has a reasonable authority to verify information from a busi- the rule is promulgated; and probability of success on the merits of the ness’ customers, employees, suppliers, and ‘‘(B) does not include any rule promulgated case. others who do business with the taxpayer, under the Telecommunications Act of 1996 Section 102. Improved offers-in-compromise but without notifying the taxpayer. Such in- and the amendments made by that Act.’’ procedure quiries often chill business relationships and (b) EFFECTIVE DATE.—The amendments can lead a third party to cease doing busi- made by this section shall be effective 90 The bill strengthens the IRS’ current ad- ness with the taxpayer for fear of becoming days after the date of the enactment of this ministrative program for taxpayers who ‘‘involved’’ in the audit themselves. To re- Act. have no chance of paying their tax liability duce the economic harm of such contacts, in full. The program is intended to be a last SEC. 502. SMALL BUSINESS ADVOCACY PANELS the bill requires pre-notification to a busi- FOR THE IRS. resort, and the bill requires the IRS to ac- ness taxpayer in advance of the IRS issuing (a) IN GENERAL.—Section 609(d) of title 5, cept offers in compromise when it is unlikely a summons to the business’ customers, em- United States Code, is amended to read as that the tax can be collected in full and the ployees, suppliers, and other third parties. follows: offer represents the taxpayer’s ability to An exception is provided for cases in which ‘‘(d) For purposes of this section, the term pay. The bill requires the IRS to accept, re- the IRS can demonstrate a specific bona fide ‘covered agency’ means the Internal Revenue ject, or make a counteroffer to a taxpayer’s reason that such notice would jeopardize the Service, the Environmental Protection offer-in-compromise within 120 days from the collection of tax (e.g., the business has Agency, and the Occupational Safety and date that the taxpayer filed the offer and threatened to fire any employee who talks to Health Administration of the Department of submitted reasonable documentation con- the IRS) or a criminal investigation. Labor.’’ cerning his or her ability to pay. The bill (b) EFFECTIVE DATE.—The amendments suspends interest on the taxpayer’s tax li- Section 107. Expansion of taxpayer’s rights in made by this section shall be effective 90 ability if the IRS fails to meet the 120-day administrative appeal days after the date of the enactment of this deadline (with exceptions for frivolous offers In some cases, when an audit is completed, Act. made by taxpayers merely to buy time). In the IRS does not issue a notice of proposed

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S928 CONGRESSIONAL RECORD — SENATE February 24, 1998 deficiency (i.e., 30-day letter) to the tax- and two with the Democratic party. The stand by the taxpayer to whom it is directed. payer, and instead the taxpayer receives a fifth member will be the Commissioner of In- If a document does not meet this minimum notice of deficiency (i.e., 90-day letter). As a ternal Revenue, who will continue to be ap- standard, the advisory group will recommend result, the taxpayer loses the opportunity to pointed by the President with Senate con- to the Board of Governors that the letter, resolve his or her tax dispute through an ad- firmation, subject to a 5-year term. The notice, etc. be rewritten before it is used. ministrative appeal, and the taxpayer’s only Commissioner will also serve as the Chair- The members of the advisory group will be recourse is to pay the tax or file suit in the person of the Board. Collectively, the mem- volunteers with at least one representative Tax Court. To prevent this situation, the bill bers of the Board will represent experience of individual taxpayers, small businesses and requires the IRS to issue a notice of proposed and expertise in the needs and concerns of the self-employed, large businesses, trusts deficiency and permits the taxpayer to ap- taxpayers, organization development, cus- and estates, tax-exempt organizations, tax peal any proposed adjustments to the Office tomer service, the operation of small busi- compliance professionals and other constitu- of Appeals. This section is intended to en- nesses, the management of large businesses, encies deemed necessary by the Board of courage disputes to be resolved at the agency information technology, and compliance. Governors. level without the enormous costs to the tax- Section 302. Restructuring of IRS operations TITLE IV—ELECTRONIC FILING payer of litigation. along customer lines TITLE II—PENALTY REFORM The bill reorganizes the IRS’ operations Section 401. Goals for electronic filing and the Section 201. Imposition of interest on penalties according to customer groups to provide electronic-filing advisory group only after a taxpayer’s failure to pay ‘‘one stop service’’ for taxpayers with similar This section establishes a goal, but not a Currently, interest on most penalties im- characteristics and needs. This structure mandate, that paperless filing should be the posed by the IRS is retroactively applied will replace the current functional or ‘‘one preferred and most convenient means of fil- back to the due date for the taxpayer’s re- size fits all’’ approach under which an IRS ing tax and information returns in 80 percent turn. As a result, such interest amounts to function, such as taxpayer services, exami- of cases by the year 2007. In addition, this an additional hidden penalty, which can in- nations, or collections, handles all tax- section calls on the Treasury Secretary to crease a taxpayer’s tax bill enormously. The payers. The new IRS under this section of create an electronic-filing advisory group to bill provides that interest on a penalty be- the bill will have the following customer ensure that the private sector has a role in gins to run only after the time has expired groups: the implementation of that goal. The advi- for the taxpayer to pay the bill. Individual taxpayers (subject to wage with- sory group will include representatives of in- holding). dividual taxpayers, small businesses and the Section 202. Repeal of the penalty for Small business and self-employed individ- substantial understatement of income tax self-employed, large businesses, trusts and uals. estates, tax-exempt organizations, and the To simplify the penalty rules, the bill re- Large business. tax preparation and filing industries. peals the penalty for substantial understate- Exempt organizations and pension plans. ment of income tax. In most cases involving Trusts and estates. This section requires the Treasury Sec- a substantial understatement, the existing Other division deemed necessary by the retary, in consultation with the Board of negligence penalty will also apply. As a re- Board of Governors. Governors and the advisory group, to develop sult, there will still be a deterrent against Each customer group will be headed by an a strategic plan for implementing the elec- taxpayers who attempt to cheat on their Assistant Commissioner and will have exist- tronic-filing goal. The plan will be subject to taxes. However, with the growing complexity ing IRS functions such as taxpayer service, public notice and comment and to the re- of the tax code, it is possible for an innocent examinations, collections, and counsel oper- quirements of the Regulatory Flexibility Act mistake to lead to a substantial understate- ations dedicated to the specific needs of the to ensure that the costs and burdens on tax- ment, and the bill will protect taxpayers in individuals or businesses within the division. payers who decide to file electronically are such cases. This structure will be required by law in minimized. Section 203. Repeal of the failure-to-pay penalty order to make it permanent and prevent it This section also provides authority for from becoming just one of the many reorga- the IRS to promote the benefits of electronic The failure-to-pay penalties were origi- nization plans that the IRS has undertaken filing and to provide appropriate incentives nally enacted in the 1960s to compensate for over the past several decades. to encourage taxpayers to file electronically. the low rate of interest applied to an individ- ual’s tax liability, and for the fact that such Section 303. Greater independence of the Section 402. Report on electronic filing and its interest was not compounded. Today, with Taxpayer Advocate effect on small businesses interest compounded daily and adjusted for The bill requires that the Taxpayer Advo- The bill requires the IRS Board of Gov- changes in the interest rate, these penalties cate be appointed by and report directly to ernors, the Treasury Secretary, and the elec- are no longer needed and serve only as an- the Board of Governors. The Office of the tronic-filing advisory group to issue an an- other hidden, second penalty. In addition, Taxpayer Advocate will also be independent nual report to Congress through 2008 that these penalties are often applied on top of of all other functions of the IRS. Currently, specifically addresses the effects of elec- accuracy-related penalties, resulting in total the Taxpayer Advocate is appointed by and tronic filing on small business and its feasi- punishment of as much as 45 percent in non- reports only to the Commissioner of Internal bility. In particular, the report will include a criminal cases. To reduce the multiplicity of Revenue. detailed description of the forms to be filed punishment on taxpayers who make mis- Section 304. Greater independence of the Office electronically, the equipment and tech- takes, the bill repeals the failure-to-pay pen- of Appeals nology required for compliance, cost of filing alties. The section establishes a statutory Office electronically, implementation plans, and ef- TITLE III—INTERNAL REVENUE SERVICE of Appeals within the IRS, which will be forts undertaken to coordinate Federal, RESTRUCTURING independent of all other IRS functions. The state and local filing requirements including Section 301. Internal Revenue Service Board of Office of Appeals will be managed by a Na- the possibility of one-stop filing. tional Appeals Officer, who will be appointed Governors and Commissioner of Internal Rev- TITLE V—REGULATORY REFORM enue by and report to the Board of Governors. Section 501. Congressional review of Internal The bill creates an independent, full-time In order to ensure that the Office of Ap- Revenue Service rules that increase revenue Board of Governors for the Internal Revenue peals is an impartial arbiter, the bill pro- Service (IRS), which will exercise top-level hibits two practices that currently occur in The bill includes the provisions of the administrative management over the agen- the IRS’ appeals process. Under the bill, an Stealth Tax Prevention Act of 1997 (S. 831), cy. The Board of Governors will have full re- appeals officer will be precluded from ad- which will provide Congress with a 60-day sponsibility, authority, and accountability dressing issues and arguments outside of window to review any final IRS rule that for the IRS’ enforcement activities, such as those identified by the auditor. In addition, raises revenue. this section prohibits communications be- examinations and collections, which are Under the bill, Congress will have expe- tween an appeals officer and the auditor han- often at the heart of taxpayer complaints dited procedures to enact a joint resolution dling the case without the presence of the about the IRS. In addition, the Board will of disapproval to overrule the IRS rule be- taxpayer or his or her representative. oversee the Office of the Taxpayer Advocate fore it takes effect. The primary example of and the Office of Appeals. While the bill Section 305. Improved IRS written this situation is the IRS’ 1997 proposed regu- keeps the formulation of tax policy within communications to taxpayers and tax forms lations defining who is a limited partner for the purview of the Treasury Department, the The bill directs the Board of Governors to self-employment tax purposes (now known as Board of Governors will have a significant create a taxpayer-communications advisory the ‘‘stealth tax regulations’’), which is cur- consultative role in such policy decisions. group to provide a common-sense review rently subject to a Congressionally imposed The Board will consist of five members ap- process for all new and existing IRS written moratorium. pointed by the President and confirmed by communications to taxpayers, such as stand- Section 502. Small Business Advocacy Panels for the Senate, and the members will have stag- ardized letters, notices and bills as well as the IRS gered five-year terms (i.e., one member will forms and instructions. The advisory group’s be appointed each year). Two of the members goal will be to ensure that all written com- The bill requires the IRS to increase small will be affiliated with the Republican party munications are clear and easy to under- business participation in agency rulemaking

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S929 activities by convening a Small Business Ad- The Alaska Native Allotment Act, in party service organizations which have vocacy Review Panel for a proposed rule effect from 1906–71, allowed Alaska Na- assumed more of the traditional bank with a significant economic impact on small tives who had continuous use of either functions. This bill will make OTS and entities. For such rules, the IRS will have to vacant land or certain mineral lands NCUA comparable to the Office of the notify SBA’s Chief Counsel of Advocacy that the rule is under development and provide set aside for federal use, the oppor- Controller of the Currency and the sufficient information so that the Chief tunity to apply for, select, and ulti- Federal Deposit Insurance Corporation Counsel can identify affected small entities mately be granted conveyance of these in their ability to ensure safe and and gather advice and comments on the ef- lands. Alaska Native Vietnam Veterans sound banking practices as they relate fects of the proposed rule. A Small Business did not receive the outreach and assist- to third party service organizations. Advocacy Review Panel, comprising Federal ance in applying that other Alaska Na- This Bill also requires federal financial government employees from the IRS, the Of- tives received during the time the act regulatory agencies to hold seminars fice of Advocacy, and OMB, must be con- was in effect, and were effectively de- for financial institutions on the impli- vened to review the proposed rule and to col- cations of the Year 2000 (Y2K) problem lect comments from small businesses. Within nied the opportunity to apply for allot- 60 days, the panel will have to issue a report ments when they were serving their for safe and sound operations, and to of the comments received from small enti- country. Our legislation calls for the provide model approaches for solving ties and the panel’s findings, which will be- same standards that were in effect common Y2K problems. come part of the public record. As appro- under the Allotment Act be used to The authorities proposed for the priate, the IRS may modify the rule or the evaluate these new applications. It NCUA and OTS have been requested by initial Reg Flex analysis (or its decision on calls for DOI to develop rules to imple- both regulatory agencies. NCUA whether a Reg Flex analysis is required) ment this bill, in consultation with ‘‘strongly supports [this proposal] and based on the panel’s report. urges its quick enactment.’’ OTS, in Currently, the requirement for Small Busi- Alaska Native groups. Congressman separate letters to Senator DODD and ness Advisory Panels applies to the Occupa- YOUNG has introduced a companion tional Safety and Health Administration measure in the House, and our respec- myself, refers to the current situation (OSHA) and the Environmental Protection tive committees plan to hold hearings as an ‘‘obstacle’’ to their supervisory Agency (EPA). By expanding it to the IRS, this winter on these pieces of legisla- efforts and a ‘‘statutory deficiency’’. the bill will ensure that the views of small tion. OTS Director Seidman further states businesses are taken into account early in Mr. President, I am pleased that my ‘‘I support your efforts.... I have the process of developing new rules and regu- 1995 authorizing legislation, Public asked my staff to cooperate fully with lations and that the IRS will take action to Senate Banking Committee staff to ad- reduce the burdens of such rules on these Law 104–2, that required the Depart- ment of the Interior to produce a re- dress any concerns you may have re- small enterprises. garding this provision.’’ Section 503. Taxpayer’s election with respect to port on the possible impacts of allot- ment legislation, has led to this day. OTS staff has been very helpful in recovery of costs and certain fees this effort and I want to take this op- Under the Internal Revenue Code, a tax- The time has come to give these vet- erans the opportunity to join their fel- portunity to thank OTS Director payer may recover costs and fees, including Seidman for her assistance as well as attorney’s fees, against the IRS if he or she low Alaska Natives in reaping the ben- prevails and the IRS’ litigation position was efits of the historic Alaska Native Al- Ms Deborah Dakins. I also want to ex- not substantially justified. The Equal Access lotment Act. press appreciation to the Senate Bank- to Justice Act (EAJA) permits a small busi- ing Committee staff, especially Mr. An- ness to recover such costs when an unreason- By Mr. BENNETT (for himself drew Lowenthal, and my own Sub- able agency demand for fines or civil pen- and Mr. DODD): committee staff for their efforts. alties is not sustained in court or in an ad- S. 1671. A bill to address the Year 2000 Mr. President, I ask unanimous con- ministrative proceeding. In addition, a small computer problems with regard to fi- sent that the text of the bill be printed business may also recover such costs and nancial institutions, to extend exam- in the RECORD. fees under the EAJA when it is the pre- There being no objection, the bill was vailing party and the agency enforcement ination parity to the Director of the action is not substantially justified. Cur- Office of Thrift Supervision and the ordered to be printed in the RECORD, as rently, the EAJA prohibits a taxpayer seek- National Credit Union Administration, follows: ing to recover costs and fees in an IRS en- and for other purposes; to the Com- S. 1671 forcement action from doing so under the mittee on Banking, Housing, and Be it enacted by the Senate and House of Rep- EAJA if the fees and costs can be recovered Urban Affairs. resentatives of the United States of America in under the Internal Revenue Code. Congress assembled, THE EXAMINATION PARITY AND YEAR 2000 The bill permits taxpayers to elect wheth- SECTION 1. SHORT TITLE. READINESS FOR FINANCIAL INSTITUTIONS ACT er to pursue recovery of attorney’s fees and This Act may be cited as the ‘‘Examina- expenses under the Equal Access to Justice Mr. BENNETT. Mr. President, I rise tion Parity and Year 2000 Readiness for Fi- Act (‘‘EAJA’’) or the Internal Revenue Code. today, with my esteemed colleague nancial Institutions Act’’. Senator DODD, to address an issue of SEC. 2. YEAR 2000 READINESS FOR FINANCIAL IN- By Mr. MURKOWSKI (for himself significant import. Almost all of our STITUTIONS. and Mr. STEVENS): nation’s commercial banks, thrifts, and (a) FINDINGS.—The Congress finds that— S. 1670. A bill to amend the Alaskan credit unions are regulated and in- (1) the Year 2000 computer problem poses a Native Claims Settlement Act to pro- sured. This brings great peace of mind serious challenge to the American economy, vide for selection of lands by certain including the Nation’s banking and financial to the American public. We all rest services industries; veterans of the Vietnam era; to the easier knowing that our funds, held by (2) thousands of banks, savings associa- Committee on Energy and Natural Re- our insured and regulated financial in- tions, and credit unions rely heavily on in- sources. stitutions, are protected by (a) an in- ternal information technology and computer THE ALASKA NATIVE VIETNAM VETERANS surance fund, (b) a safety and sound- systems, as well as outside service providers, ALLOTMENT OPEN SEASON ACT OF 1998 ness regulator, and (c) the full faith for mission-critical functions, such as check Mr. MURKOWSKI. Mr. President, I and credit of the US Treasury. In order clearing, direct deposit, accounting, auto- am pleased to rise today to introduce to continue this tradition of safe and mated teller machine networks, credit card processing, and data exchanges with domes- on behalf of myself and Senator STE- sound banking practice, we need to en- tic and international borrowers, customers, VENS, legislation that will provide sure that banking law stays abreast of and other financial institutions; and Alaska Native Veterans of the Vietnam current practices in the market place (3) Federal financial regulatory agencies era, from 1964–75, a chance to apply for and that our banks have the most up- must have sufficient examination authority Native Allotments. Because these to-date information available on up- to ensure that the safety and soundness of brave men and women were outside of coming issues affecting the safety and the Nation’s financial institutions will not the country, serving America with dis- soundness of their operations. be at risk. tinction, they missed the opportunity The Bill we introduce today has a (b) DEFINITIONS.—For purposes of this sec- tion— to apply for these allotments. Our bill two-fold purpose. It grants the Office of (1) the terms ‘‘depository institution’’ and will create a year-long open season for Thrift Supervision (OTS) and the Na- ‘‘Federal banking agency’’ have the same these veterans and their heirs to apply tional Credit Union Administration meanings as in section 3 of the Federal De- for and select allotment parcels. (NCUA) the authority to examine third posit Insurance Act;

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(2) the term ‘‘Federal home loan bank’’ has ‘‘(B) EXAMINATION BY OTHER BANKING AGEN- Section 8 of the Federal Deposit Insurance the same meaning as in section 2 of the Fed- CIES.—The Director may authorize any other Act (12 U.S.C. 1818) is amended— eral Home Loan Bank Act; Federal banking agency that supervises any (A) in subsection (b)(9), by striking ‘‘to any (3) the term ‘‘Federal reserve bank’’ means other owner of part of the service company service corporation of a savings association a reserve bank established under the Federal or subsidiary to perform an examination de- and to any subsidiary of such service cor- Reserve Act; scribed in subparagraph (A). poration’’; (4) the term ‘‘insured credit union’’ has the ‘‘(C) APPLICABILITY OF SECTION 8 OF THE (B) in subsection (e)(7)(A)(ii), by striking same meaning as in section 101 of the Fed- FEDERAL DEPOSIT INSURANCE ACT.—A service ‘‘(b)(8)’’ and inserting ‘‘(b)(9)’’; and eral Credit Union Act; and company or subsidiary that is owned in (C) in subsection (j)(2), by striking ‘‘(b)(8)’’ (5) the term ‘‘Year 2000 computer problem’’ whole or in part by a saving association shall and inserting ‘‘(b)(9)’’. means, with respect to information tech- be subject to the provisions of section 8 of (b) REGULATION AND EXAMINATION OF SERV- nology, any problem which prevents such the Federal Deposit Insurance Act as if the ICE PROVIDERS FOR CREDIT UNIONS.—Title II technology from accurately processing, cal- service company or subsidiary were an in- of the Federal Credit Union Act (12 U.S.C. culating, comparing, or sequencing date or sured depository institution. In any such 1781 et seq.) is amended by inserting after time data— case, the Director shall be deemed to be the section 206 the following new section: (A) from, into, or between— appropriate Federal banking agency, pursu- ‘‘SEC. 206A. REGULATION AND EXAMINATION OF (i) the 20th and 21st centuries; or ant to section 3(q) of the Federal Deposit In- CREDIT UNION ORGANIZATIONS AND (ii) the years 1999 and 2000; or surance Act. SERVICE PROVIDERS. (B) with regard to leap year calculations. ‘‘(D) SERVICE PERFORMED BY CONTRACT OR ‘‘(a) REGULATION AND EXAMINATION OF (c) SEMINARS AND MODEL APPROACHES TO OTHERWISE.—Notwithstanding subparagraph CREDIT UNION ORGANIZATIONS.— YEAR 2000 COMPUTER PROBLEM.— (A), if a savings association, a subsidiary ‘‘(1) GENERAL EXAMINATION AND REGU- (1) SEMINARS.— thereof, or any savings and loan affiliate or LATORY AUTHORITY.—A credit union organiza- (A) IN GENERAL.—Each Federal banking tion shall be subject to examination and reg- agency and the National Credit Union Ad- entity, as identified by section 8(b)(9) of the ulation by the Board to the same extent as ministration Board shall offer seminars to Federal Deposit Insurance Act, that is regu- that insured credit union. all depository institutions and insured credit larly examined or subject to examination by ‘‘(2) EXAMINATION BY OTHER BANKING AGEN- unions under the jurisdiction of such agency the Director, causes to be performed for CIES.—The Board may authorize to make an on the implication of the Year 2000 computer itself, by contract or otherwise, any service examination of a credit union organization problem for— authorized under this Act or, in the case of (i) the safe and sound operations of such a State savings association, any applicable in accordance with paragraph (1)— depository institutions and credit unions; State law, whether on or off its premises— ‘‘(A) any Federal regulator agency that su- and ‘‘(i) such performance shall be subject to pervises any activity of a credit union orga- (ii) transactions with other financial insti- regulation and examination by the Director nization; or tutions, including Federal reserve banks and to the same extent as if such services were ‘‘(B) any Federal banking agency that su- Federal home loan banks. being performed by the savings association pervises any other person who maintains an (B) CONTENT AND SCHEDULE.—The content on its own premises; and ownership interest in a credit union organi- and schedule of seminars offered pursuant to ‘‘(ii) the savings association shall notify zation. subparagraph (A) shall be determined by the Director of the existence of the service ‘‘(b) APPLICABILITY OF SECTION 206.—A each Federal banking agency and the Na- relationship not later than 30 days after the credit union organization shall be subject to tional Credit Union Administration Board earlier of— the provisions of section 206 as if the credit taking into account the resources and exam- ‘‘(I) the date on which the contract is en- union organization were an insured credit ination priorities of such agency. tered into; or union. (2) MODEL APPROACHES.— ‘‘(II) the date on which the performance of ‘‘(c) SERVICE PERFORMED BY CONTRACT OR (A) IN GENERAL.—Each Federal banking the service is initiated. OTHERWISE.—Notwithstanding subsection (a), agency and the National Credit Union Ad- ‘‘(E) ADMINISTRATION BY THE DIRECTOR.— if an insured credit union or a credit union ministration Board shall make available to The Director may issue such regulations and organization that is regularly examined or each depository institution and insured cred- orders, including those issued pursuant to subject to examination by the Board, causes it union under the jurisdiction of such agen- section 8 of the Federal Deposit Insurance to be performed for itself, by contract or oth- cy model approaches to common Year 2000 Act, as may be necessary to enable the Di- erwise, any service authorized under this Act computer problems, such as model ap- rector to administer and carry out this para- or, in the case of a State credit union, any proaches with regard to project manage- graph and to prevent evasion of this para- applicable State law, whether on or off its ment, vendor contracts, testing regimes, and graph. premises— business continuity planning. ‘‘(8) DEFINITIONS.—For purposes of this sec- ‘‘(1) such performance shall be subject to (B) VARIETY OF APPROACHES.—In devel- tion— regulation and examination by the Board to oping model approaches to the Year 2000 ‘‘(A) the term ‘service company’ means— the same extent as if such services were computer problem pursuant to subparagraph ‘‘(i) any corporation— being performed by the insured credit union (A), each Federal banking agency and the ‘‘(I) that is organized to perform services or credit union organization itself on its own National Credit Union Administration Board authorized by this Act or, in the case of a premises; and shall take into account the need to develop corporation owned in part by a State savings ‘‘(2) the insured credit union or credit a variety of approaches to correspond to the association, authorized by applicable State union organization shall notify the Board of variety of depository institutions or credit law; and the existence of the service relationship not unions within the jurisdiction of the agency. ‘‘(II) all of the capital stock of which is later than 30 days after the earlier of— (3) COOPERATION.—In carrying out this sec- owned by 1 or more insured savings associa- ‘‘(A) the date on which the contract is en- tion, the Federal banking agencies and the tions; and tered into; or National Credit Union Administration Board ‘‘(ii) any limited liability company— ‘‘(B) the date on which the performance of may cooperate and coordinate their activi- ‘‘(I) that is organized to perform services the service is initiated. ties with each other, the Financial Institu- authorized by this Act or, in the case of a ‘‘(d) ADMINISTRATION BY THE BOARD.—The tions Examination Council, and appropriate company, 1 of the members of which is a Board may issue such regulations and orders organizations representing depository insti- State savings association, authorized by ap- as may be necessary to enable the Board to tutions and credit unions. plicable State law; and administer and carry out this section and to SEC. 3. REGULATION AND EXAMINATION OF ‘‘(II) all of the members of which are 1 or prevent evasion of this section. SERVICE PROVIDERS. more insured savings associations; ‘‘(e) DEFINITIONS.—For purposes of this sec- (a) REGULATION AND EXAMINATION OF SAV- ‘‘(B) the term ‘limited liability company’ tion— INGS ASSOCIATION SERVICE COMPANIES.— means any company, partnership, trust, or ‘‘(1) the term ‘credit union organization’ (1) AMENDMENT TO HOME OWNERS’ LOAN similar business entity organized under the means any entity that— ACT.—Section 5(d) of the Home Owners’ Loan law of a State (as defined in section 3 of the ‘‘(A) is not a credit union; Act (12 U.S.C. 1464(d)) is amended by adding Federal Deposit Insurance Act) that provides ‘‘(B) is an entity in which an insured credit at the end the following: that a member or manager of such company union may lawfully hold an ownership inter- ‘‘(7) REGULATION AND EXAMINATION OF SAV- is not personally liable for a debt, obligation, est or investment; and INGS ASSOCIATION SERVICE COMPANIES, SUB- or liability of the company solely by reason ‘‘(C) is owned in whole or in part by an in- SIDIARIES, AND SERVICE PROVIDERS.— of being, or acting as, a member or manager sured credit union; and ‘‘(A) GENERAL EXAMINATION AND REGU- of such company; and ‘‘(2) the term ‘Federal banking agency’ has LATORY AUTHORITY.—A service company or ‘‘(C) the terms ‘State savings association’ the same meaning as in section 3 of the Fed- subsidiary that is owned in whole or in part and ‘subsidiary’ have the same meanings as eral Deposit Insurance Act. by a savings association shall be subject to in section 3 of the Federal Deposit Insurance ‘‘(f) EXPIRATION OF AUTHORITY.—This sec- examination and regulation by the Director Act.’’. tion and all powers and authority of the to the same extent as that savings associa- (2) CONFORMING AMENDMENTS TO SECTION 8 Board under this section shall cease to be ef- tion. OF THE FEDERAL DEPOSIT INSURANCE ACT.— fective as of December 31, 2001.’’.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00066 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S931 Mr. DODD. Mr. President. I am very prove the control of erosion on the Mis- private property owners to prevent pleased to join with Senator BENNETT souri River; to the Committee on Envi- damage to private property from ero- to introduce the ‘‘Examination Parity ronment and Public Works. sion. Nevertheless, new circumstances and Year 2000 Readiness For Financial THE MISSOURI RIVER EROSION CONTROL ACT OF require new thinking. Particularly in Institutions Act.’’ This legislation, 1998 the wake of last year’s disaster in while technical in nature, will provide Mr. DASCHLE. Mr. President, it is South Dakota, circumstances have badly needed authority and guidance to my pleasure today to introduce the made it clear that we must help fami- Federal financial regulators to help Missouri River Erosion Control Act of lies take the steps they need to protect their supervised institutions cope with 1998, a bill to provide much-needed as- their homes. Homeowners want to take the Year 2000 computer problem. sistance to homeowners who live along responsible measures to protect their The Year 2000—or Y2K—computer the Missouri River. Over the past sev- property. We must give them that op- problem is caused by the inability of eral years, many South Dakotans have portunity. I urge my colleagues to join most of the major financial systems to seen property values drop and homes me in support of this bill. process the year 2000 as the one that nearly destroyed by shoreline erosion. Mr. President, I ask unanimous con- follows the year 1999. This is caused by This legislation will help these families sent that the text of the bill be printed the fact that basic computer code, to work with the U.S. Army Corps of in the RECORD. much of it written as many as thirty Engineers to take responsible steps to There being no objection, the bill was years ago, reads dates as two-digits, prevent these problems. My colleague, ordered to be printed in the RECORD, as ‘‘98’’ or ‘‘99,’’ instead of four digits Senator JOHNSON, is joining me as an follows: ‘‘1999’’ or ‘‘2000.’’ If left untreated, com- original cosponsor of this legislation. S. 1672 puters will read the year 2000 as the While erosion occurs naturally on years 1900, 1980 or some other default any river, shorelines on the Missouri Be it enacted by the Senate and House of Rep- are particularly vulnerable to it. Re- resentatives of the United States of America in date. The result is not only erroneous Congress assembled, calculations, but the total crash of leases from the hydroelectric dams many critical financial systems. that span the river in South Dakota SECTION 1. SHORT TITLE. Federal financial regulators have cause its depth and speed to fluctuate This Act may be cited as the ‘‘Missouri River Erosion Control Act of 1998’’. been very active, of late, in helping drastically, sometimes with dangerous their supervised institutions prepare consequences. Following last year’s SEC. 2. MISSOURI RIVER EROSION CONTROL. for this extremely dangerous problem. flooding disaster, the rapid, swirling Section 9(f) of the Act entitled ‘‘An Act au- However, both the Office of Thrift Su- current caused by sustained high re- thorizing the construction of certain public leases from the dams swept away half works on rivers and harbors for flood con- pervision and the National Credit trol, and for other purposes’’, approved De- Union Administration have notified an acre of land near Burbank, South cember 22, 1944 (102 Stat. 4031)), is amended— Senator BENNETT and I that they lack Dakota, in just 3 hours. A subsequent (1) by striking ‘‘(f) The’’ and inserting the the authority to examine the Year 2000 release destroyed an additional 40 feet following: preparations of service providers to of land, bringing the river’s edge to the ‘‘(f) MISSOURI RIVER BETWEEN FORT PECK thrifts and credit unions. Currently, foundation of the home of Neil and Ei- DAM, MONTANA, AND A POINT BELOW GAVINS other federal financial regulators—the leen Helvig. Thanks to last minute POINT DAM, SOUTH DAKOTA AND NEBRASKA.— Federal Reserve, Office of the Comp- work by the Corps of Engineers to sta- ‘‘(1) IN GENERAL.—The’’; troller of the Currency and the Federal bilize the shoreline, the Helvig’s home, (2) in the first sentence of paragraph (1) (as designated by paragraph (1)), by striking Deposit Insurance Corporation—have and several others nearby, were saved. ‘‘58’’ and inserting ‘‘77’’; this authority. However, this is not the only case when (3) in the second sentence— These service providers perform bank erosion has posed a threat to resi- (A) by striking ‘‘The cost’’ and inserting many of the key transaction and data dential homes and without a com- the following: processing for federally-insured thrifts prehensive program in place to provide ‘‘(2) COSTS.— and credit unions, particularly smaller help to others in need, we may not be ‘‘(A) MAXIMUM.—The cost’’; and institutions for whom it is not cost-ef- so lucky in the future. (B) by striking ‘‘$3,000,000’’ and inserting fective to establish their own computer Over the last several years, Mrs. Lois ‘‘$6,000,000’’; Hyde of rural Lake Andes has watched (4) in the third sentence, by striking ‘‘Not- systems. As a result, it is imperative to withstanding’’ and inserting the following: the river work its way to within a the safety and soundness of these insti- ‘‘(B) APPORTIONMENT AMONG PROJECT PUR- tutions for the regulators to be able to stone’s throw of her home—an original POSES.—Notwithstanding’’; establish that their service providers homestead first settled by her family (5) in the last sentence, by striking ‘‘In will be Year 2000 compliant. over 100 years ago. Without additional lieu’’ and inserting the following: The legislation also contains provi- help, it is likely that she may be forced ‘‘(3) ACQUISITION OF LAND.— sions that require all financial regu- to abandon her farm. I believe it is our ‘‘(A) IN GENERAL.—In lieu’’; lators to hold seminars to educate responsibility to give individuals like (6) in paragraph (3) (as designated by para- her the help they need to protect their graph (5)), by adding at the end the fol- their respective supervised institutions lowing: homes. and, to the maximum extent possible, ‘‘(B) RECREATIONAL RIVER SEGMENTS.—Not- provide model solutions for fixing the The Missouri River Erosion Control withstanding the Wild and Scenic Rivers Act problem. The beneficial impact of such Act of 1998 will give homeowners the (16 U.S.C. 1271 et seq.), in the case of a seg- outreach and education efforts for fed- opportunity to take responsible steps ment of the Missouri River in the State of erally-insured institutions is self-evi- to protect their property. The bill South Dakota that is administered as a rec- dent. amends current law to permit home- reational river under section 3(a) of that Act Mr. President, the Year 2000 problem owners to work in partnership with the (16 U.S.C. 1274(a)), the Secretary of the Army is one that we will have to confront in U.S. Army Corps of Engineers to take may acquire, from willing sellers, such real steps to stabilize their shoreline. Under estate interests as the Secretary determines many more ways than this legislation. are necessary to carry out this subsection.’’; The extent of the problem goes well be- the my bill, the Corps of Engineers will and yond the financial services industry to accept applications from private prop- (7) by adding at the end the following: affect virtually every segment of our erty owners along the Missouri River ‘‘(4) MEASURES ON BEHALF OF NON-FEDERAL nation’s economy. But this sensible bill and rank those applications in order of ENTITIES.—The Secretary of the Army may is a good first step to ensuring that need. The most vulnerable stretches of undertake measures authorized by paragraph Federal financial regulators have the the shoreline would then be targeted (1) at the request of, or on behalf of, a non- tools necessary to address the problem for assistance. Like other erosion con- Federal public or private entity or individual trol programs, the bill requires a 35 with respect to land owned by the entity or in their area of jurisdiction. individual as of the date of enactment of this percent non-federal cost share, while paragraph, if a non-Federal interest de- By Mr. DASCHLE (for himself the federal government will provide scribed in section 221(b) of the Flood Control and Mr. JOHNSON): the other 65 percent of the cost. Act of 1970 (42 U.S.C. 1962d–5b(b)) agrees in S. 1672. A bill to expand the authority For many years the Corps of Engi- writing to provide 35 percent of the cost of of the Secretary of the Army to im- neers has been reluctant to work with the measures to be undertaken.’’.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00067 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S932 CONGRESSIONAL RECORD — SENATE February 24, 1998 ADDITIONAL COSPONSORS medicare beneficiaries to enter into kota (Mr. JOHNSON), the Senator from AUCUS S. 230 private contracts with physicians and Montana (Mr. B ), and the Sen- other health care professionals for the ator from Massachusetts (Mr. KERRY) At the request of Mr. THURMOND, the were added as cosponsors of S. 1422, a name of the Senator from Kansas (Mr. provision of health services for which no payment is sought under the medi- bill to amend the Communications Act BROWNBACK) was added as a cosponsor of 1934 to promote competition in the of S. 230, a bill to amend section 1951 of care program. market for delivery of multichannel title 18, United States Code (commonly S. 1251 video programming and for other pur- known as the Hobbs Act), and for other At the request of Mr. D’AMATO, the poses. purposes. name of the Senator from Hawaii (Mr. INOUYE) was added as a cosponsor of S. S. 1481 S. 314 1251, a bill to amend the Internal Rev- At the request of Mr. DEWINE, the At the request of Mr. THOMAS, the enue Code of 1986 to increase the names of the Senator from Mississippi name of the Senator from Oregon (Mr. amount of private activity bonds which (Mr. COCHRAN), the Senator from WYDEN) was added as a cosponsor of S. may be issued in each State, and to Michigan (Mr. LEVIN), the Senator 314, a bill to require that the Federal index such amount for inflation. from North Dakota (Mr. DORGAN), and Government procure from the private S. 1252 the Senator from Hawaii (Mr. INOUYE) sector the goods and services necessary were added as cosponsors of S. 1481, a for the operations and management of At the request of Mr. D’AMATO, the name of the Senator from Minnesota bill to amend the Social Security Act certain Government agencies, and for to eliminate the time limitation on other purposes. (Mr. GRAMS) was added as a cosponsor of S. 1252, a bill to amend the Internal benefits for immunosuppressive drugs S. 358 Revenue Code of 1986 to increase the under the medicare program, to pro- At the request of Mr. DEWINE, the amount of low-income housing credits vide for continued entitlement for such names of the Senator from Michigan which may be allocated in each State, drugs for certain individuals after (Mr. ABRAHAM) and the Senator from and to index such amount for inflation. medicare benefits end, and to extend Utah (Mr. HATCH) were added as co- certain medicare secondary payer re- S. 1260 sponsors of S. 358, a bill to provide for quirements. At the request of Mr. GRAMM, the compassionate payments with regard S. 1570 name of the Senator from Ohio (Mr. to individuals with blood-clotting dis- At the request of Mr. FAIRCLOTH, the DEWINE) was added as a cosponsor of S. orders, such as hemophilia, who con- 1260, a bill to amend the Securities Act name of the Senator from Kentucky tracted human immunodeficiency virus (Mr. MCCONNELL) was added as a co- of 1933 and the Securities Exchange Act due to contaminated blood products, sponsor of S. 1570, a bill to limit the of 1934 to limit the conduct of securi- and for other purposes. amount of attorneys’ fees that may be ties class actions under State law, and paid on behalf of States and other S. 375 for other purposes. At the request of Mr. MCCAIN, the plaintiffs under the tobacco settle- S. 1283 ment. names of the Senator from Missouri At the request of Mr. BUMPERS, the S. 1580 (Mr. BOND) and the Senator from Colo- name of the Senator from Minnesota rado (Mr. CAMPBELL) were added as co- At the request of Mr. SHELBY, the (Mr. WELLSTONE) was added as a co- name of the Senator from Missouri sponsors of S. 375, a bill to amend title sponsor of S. 1283, A bill to award Con- (Mr. BOND) was added as a cosponsor of II of the Social Security Act to restore gressional gold medals to Jean Brown the link between the maximum amount S. 1580, a bill to amend the Balanced Trickey, Carlotta Walls LaNier, Melba Budget Act of 1997 to place an 18-month of earnings by blind individuals per- Patillo Beals, Terrence Roberts, Gloria mitted without demonstrating ability moratorium on the prohibition of pay- Ray Karlmark, Thelma Mothershed ment under the medicare program for to engage in substantial gainful activ- Wair, Ernest Green, Elizabeth Eckford, ity and the exempt amount permitted home health services consisting of and Jefferson Thomas, commonly re- venipuncture solely for the purpose of in determining excess earnings under ferred collectively as the ‘‘Little Rock the earnings test. obtaining a blood sample, and to re- Nine’’ on the occasion of the 40th anni- quire the Secretary of Health and S. 1067 versary of the integration of the Cen- Human Services to study potential At the request of Mr. KERRY, the tral High School in Little Rock, Ar- fraud and abuse under such program name of the Senator from New Jersey kansas. with respect to such services. (Mr. LAUTENBERG) was added as a co- S. 1365 S. 1631 sponsor of S. 1067, a bill to prohibit At the request of Ms. MIKULSKI, the At the request of Mr. HUTCHINSON, United States military assistance and names of the Senator from South Caro- the name of the Senator from Alabama arms transfers to foreign governments lina (Mr. HOLLINGS) and the Senator (Mr. SHELBY) was added as a cosponsor that are undemocratic, do not ade- from South Dakota (Mr. JOHNSON) were of S. 1631, a bill to amend the General quately protect human rights, are en- added as cosponsors of S. 1365, a bill to Education Provisions Act to allow par- gaged in acts of armed aggression, or amend title II of the Social Security ents access to certain information. are not fully participating in the Act to provide that the reductions in SENATE JOINT RESOLUTION 30 United Nations Register of Conven- social security benefits which are re- At the request of Mr. WARNER, the tional Arms. quired in the case of spouses and sur- name of the Senator from Iowa (Mr. S. 1163 viving spouses who are also receiving GRASSLEY) was added as a cosponsor of At the request of Mr. BRYAN, the certain Government pensions shall be Senate Joint Resolution 30, a joint res- name of the Senator from South Da- equal to the amount by which two- olution designating March 1, 1998 as kota (Mr. JOHNSON) was added as a co- thirds of the total amount of the com- ‘‘United States Navy Asiatic Fleet Me- sponsor of S. 1163, a bill to amend the bined monthly benefit (before reduc- morial Day’’, and for other purposes. Truth in Lending Act to prohibit the tion) and monthly pension exceeds SENATE JOINT RESOLUTION 40 distribution of any negotiable check or $1,200, adjusted for inflation. At the request of Mr. HATCH, the other instrument with any solicitation S. 1396 name of the Senator from Michigan to a consumer by a creditor to open an At the request of Mr. JOHNSON, the (Mr. ABRAHAM) was added as a cospon- account under any consumer credit name of the Senator from Minnesota sor of Senate Joint Resolution 40, a plan or to engage in any other credit (Mr. WELLSTONE) was added as a co- joint resolution proposing an amend- transaction which is subject to that sponsor of S. 1396, A bill to amend the ment to the Constitution of the United Act, and for other purposes. Child Nutrition Act of 1966 to expand States authorizing Congress to prohibit S. 1194 the School Breakfast Program in ele- the physical desecration of the flag of At the request of Mr. LOTT, his name mentary schools. the United States. was added as a cosponsor of S. 1194, a S. 1422 SENATE RESOLUTION 114 bill to amend title XVIII of the Social At the request of Mr. MCCAIN, the At the request of Mr. TORRICELLI, the Security Act to clarify the right of names of the Senator from South Da- name of the Senator from Ohio (Mr.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S933 DEWINE) was added as a cosponsor of Sec. 302. Prohibition of deposit of contribu- ‘‘(i) voter registration activity during the Senate Resolution 114, a resolution ex- tions with incomplete contrib- period that begins on the date that is 120 pressing the sense of the Senate that utor information. days before the date a regularly scheduled the transfer of Hong Kong to the Peo- Sec. 303. Audits. Federal election is held and ends on the date Sec. 304. Reporting requirements for con- of the election; ple’s Republic of China not alter the tributions of $50 or more. ‘‘(ii) voter identification, get-out-the-vote current or future status of Taiwan as a Sec. 305. Use of candidates’ names. activity, or generic campaign activity con- free and democratic country. Sec. 306. Prohibition of false representation ducted in connection with an election in SENATE RESOLUTION 175 to solicit contributions. which a candidate for Federal office appears Sec. 307. Soft money of persons other than on the ballot (regardless of whether a can- At the request of Mr. ROBB, the political parties. didate for State or local office also appears names of the Senator from Michigan Sec. 308. Campaign advertising. on the ballot); and (Mr. ABRAHAM), the Senator from Ne- TITLE IV—PERSONAL WEALTH OPTION ‘‘(iii) a communication that refers to a vada (Mr. BRYAN), the Senator from clearly identified candidate for Federal of- Sec. 401. Voluntary personal funds expendi- South Dakota (Mr. DASCHLE), the Sen- fice (regardless of whether a candidate for ture limit. State or local office is also mentioned or ator from New York (Mr. D’AMATO), Sec. 402. Political party committee coordi- identified) and is made for the purpose of in- the Senator from Kentucky (Mr. FORD), nated expenditures. the Senator from North Carolina (Mr. fluencing a Federal election (regardless of TITLE V—MISCELLANEOUS whether the communication is express advo- HELMS), the Senator from Massachu- Sec. 501. Codification of Beck decision. cacy). setts (Mr. KENNEDY), the Senator from Sec. 502. Use of contributed amounts for cer- ‘‘(B) EXCLUDED ACTIVITY.—The term ‘Fed- Washington (Mrs. MURRAY), the Sen- tain purposes. eral election activity’ does not include an ator from West Virginia (Mr. ROCKE- Sec. 503. Limit on congressional use of the amount expended or disbursed by a State, FELLER), the Senator from Maryland franking privilege. district, or local committee of a political (Mr. SARBANES), the Senator from New Sec. 504. Prohibition of fundraising on Fed- party for— Jersey (Mr. TORRICELLI), and the Sen- eral property. ‘‘(i) campaign activity conducted solely on ator from Virginia (Mr. WARNER) were Sec. 505. Penalties for knowing and willful behalf of a clearly identified candidate for added as cosponsors of Senate Resolu- violations. State or local office, provided the campaign Sec. 506. Strengthening foreign money ban. activity is not a Federal election activity de- tion 175, a resolution to designate the Sec. 507. Prohibition of contributions by mi- scribed in subparagraph (A); week of May 3, 1998 as ‘‘National Cor- nors. ‘‘(ii) a contribution to a candidate for rectional Officers and Employees Sec. 508. Expedited procedures. State or local office, provided the contribu- Week.’’ Sec. 509. Initiation of enforcement pro- tion is not designated or used to pay for a ceeding. f Federal election activity described in sub- TITLE VI—SEVERABILITY; CONSTITU- paragraph (A); AMENDMENTS SUBMITTED ON TIONALITY; EFFECTIVE DATE; REGU- ‘‘(iii) the costs of a State, district, or local FEBRUARY 23, 1998 LATIONS political convention; ‘‘(iv) the costs of grassroots campaign ma- Sec. 601. Severability. terials, including buttons, bumper stickers, Sec. 602. Review of constitutional issues. and yard signs, that name or depict only a THE PAYCHECK PROTECTION ACT Sec. 603. Effective date. candidate for State or local office; Sec. 604. Regulations. ‘‘(v) the non-Federal share of a State, dis- TITLE I—REDUCTION OF SPECIAL trict, or local party committee’s administra- MCCAIN (AND OTHERS) INTEREST INFLUENCE tive and overhead expenses (but not includ- AMENDMENT NO. 1646 SEC. 101. SOFT MONEY OF POLITICAL PARTIES. ing the compensation in any month of an in- Mr. MCCAIN (for himself, Mr. FEIN- Title III of the Federal Election Campaign dividual who spends more than 20 percent of GOLD, Mr. THOMPSON, Ms. COLLINS, Mr. Act of 1971 (2 U.S.C. 431 et seq.) is amended the individual’s time on Federal election ac- tivity) as determined by a regulation pro- LEVIN, and Mr. CLELAND) proposed an by adding at the end the following: mulgated by the Commission to determine amendment to the bill (S. 1663) to pro- ‘‘SEC. 324. SOFT MONEY OF POLITICAL PARTIES. ‘‘(a) NATIONAL COMMITTEES.— the non-Federal share of a State, district, or tect individuals from having their local party committee’s administrative and money involuntarily collected and used ‘‘(1) IN GENERAL.—A national committee of a political party (including a national con- overhead expenses; and for politics by a corporation or labor gressional campaign committee of a political ‘‘(vi) the cost of constructing or pur- organization; as follows: party) and any officers or agents of such chasing an office facility or equipment for a Strike all after the enacting clause and in- party committees, shall not solicit, receive, State, district or local committee. sert the following: or direct to another person a contribution, ‘‘(c) FUNDRAISING COSTS.—An amount spent by a national, State, district, or local com- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. donation, or transfer of funds, or spend any mittee of a political party, by an entity that (a) SHORT TITLE.—This Act may be cited as funds, that are not subject to the limita- tions, prohibitions, and reporting require- is established, financed, maintained, or con- the ‘‘Bipartisan Campaign Reform Act of trolled by a national, State, district, or local 1997’’. ments of this Act. ‘‘(2) APPLICABILITY.—This subsection shall committee of a political party, or by an (b) TABLE OF CONTENTS.—The table of con- agent or officer of any such committee or en- tents of this Act is as follows: apply to an entity that is directly or indi- rectly established, financed, maintained, or tity, to raise funds that are used, in whole or Sec. 1. Short title; table of contents. controlled by a national committee of a po- in part, to pay the costs of a Federal election TITLE I—REDUCTION OF SPECIAL litical party (including a national congres- activity shall be made from funds subject to INTEREST INFLUENCE sional campaign committee of a political the limitations, prohibitions, and reporting Sec. 101. Soft money of political parties. party), or an entity acting on behalf of a na- requirements of this Act. Sec. 102. Increased contribution limits for tional committee, and an officer or agent ‘‘(d) TAX-EXEMPT ORGANIZATIONS.—A na- tional, State, district, or local committee of State committees of political acting on behalf of any such committee or a political party (including a national con- parties and aggregate contribu- entity. gressional campaign committee of a political tion limit for individuals. ‘‘(b) STATE, DISTRICT, AND LOCAL COMMIT- party, an entity that is directly or indirectly Sec. 103. Reporting requirements. TEES.— established, financed, maintained, or con- TITLE II—INDEPENDENT AND ‘‘(1) IN GENERAL.—An amount that is ex- trolled by any such national, State, district, COORDINATED EXPENDITURES pended or disbursed by a State, district, or or local committee or its agent, an agent local committee of a political party (includ- Sec. 201. Definitions. acting on behalf of any such party com- ing an entity that is directly or indirectly Sec. 202. Civil penalty. mittee, and an officer or agent acting on be- established, financed, maintained, or con- Sec. 203. Reporting requirements for certain half of any such party committee or entity), trolled by a State, district, or local com- independent expenditures. shall not solicit any funds for, or make or di- mittee of a political party and an officer or Sec. 204. Independent versus coordinated ex- rect any donations to, an organization that agent acting on behalf of such committee or penditures by party. is described in section 501(c) of the Internal entity) for Federal election activity shall be Sec. 205. Coordination with candidates. Revenue Code of 1986 and exempt from tax- made from funds subject to the limitations, ation under section 501(a) of such Code (or TITLE III—DISCLOSURE prohibitions, and reporting requirements of has submitted an application to the Sec- Sec. 301. Filing of reports using computers this Act. retary of the Internal Revenue Service for and facsimile machines; filing ‘‘(2) FEDERAL ELECTION ACTIVITY.— determination of tax-exemption under such by Senate candidates with ‘‘(A) IN GENERAL.—The term ‘Federal elec- section). Commission. tion activity’ means— ‘‘(e) CANDIDATES.—

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S934 CONGRESSIONAL RECORD — SENATE February 24, 1998

‘‘(1) IN GENERAL.—A candidate, individual TITLE II—INDEPENDENT AND ‘‘(II) is provided in coordination with the holding Federal office, or agent of a can- COORDINATED EXPENDITURES candidate, the candidate’s agent, or the po- didate or individual holding Federal office litical party of the candidate; and SEC. 201. DEFINITIONS. shall not solicit, receive, direct, transfer, or ‘‘(III) is for the purpose of influencing a spend funds for a Federal election activity (a) DEFINITION OF INDEPENDENT EXPENDI- Federal election (regardless of whether the on behalf of such candidate, individual, TURE.—Section 301 of the Federal Election communication is express advocacy).’’. agent or any other person, unless the funds Campaign Act (2 U.S.C. 431) is amended by SEC. 202. CIVIL PENALTY. are subject to the limitations, prohibitions, striking paragraph (17) and inserting the fol- Section 309 of the Federal Election Cam- and reporting requirements of this Act. lowing: paign Act of 1971 (2 U.S.C. 437g) is amended— ‘‘(A) STATE LAW.—Paragraph (1) does not ‘‘(17) INDEPENDENT EXPENDITURE.— (1) in subsection (a)— apply to the solicitation or receipt of funds ‘‘(A) IN GENERAL.—The term ‘independent (A) in paragraph (4)(A)— by an individual who is a candidate for a expenditure’ means an expenditure by a per- (i) in clause (i), by striking ‘‘clause (ii)’’ State or local office if the solicitation or re- son— and inserting ‘‘clauses (ii) and (iii)’’; and ceipt of funds is permitted under State law ‘‘(i) for a communication that is express (ii) by adding at the end the following: for any activity other than a Federal elec- advocacy; and ‘‘(iii) If the Commission determines by an tion activity. ‘‘(ii) that is not provided in coordination affirmative vote of 4 of its members that ‘‘(B) FUNDRAISING EVENTS.—Paragraph (1) with a candidate or a candidate’s agent or a there is probable cause to believe that a per- does not apply in the case of a candidate who person who is coordinating with a candidate son has made a knowing and willful violation attends, speaks, or is a featured guest at a or a candidate’s agent.’’. of section 304(c), the Commission shall not fundraising event sponsored by a State, dis- (b) DEFINITION OF EXPRESS ADVOCACY.— enter into a conciliation agreement under trict, or local committee of a political Section 301 of the Federal Election Cam- this paragraph and may institute a civil ac- party.’’. paign Act of 1971 (2 U.S.C. 431) is amended by tion for relief under paragraph (6)(A).’’; and SEC. 102. INCREASED CONTRIBUTION LIMITS FOR adding at the end the following: (B) in paragraph (6)(B), by inserting ‘‘(ex- STATE COMMITTEES OF POLITICAL ‘‘(20) EXPRESS ADVOCACY.— cept an action instituted in connection with PARTIES AND AGGREGATE CON- ‘‘(A) IN GENERAL.—The term ‘express advo- a knowing and willful violation of section TRIBUTION LIMIT FOR INDIVIDUALS. cacy’ means a communication that advo- 304(c))’’ after ‘‘subparagraph (A)’’; and (a) CONTRIBUTION LIMIT FOR STATE COMMIT- cates the election or defeat of a candidate (2) in subsection (d)(1)— TEES OF POLITICAL PARTIES.—Section by— (A) in subparagraph (A), by striking ‘‘Any 315(a)(1) of the Federal Election Campaign ‘‘(i) containing a phrase such as ‘vote for’, person’’ and inserting ‘‘Except as provided in Act of 1971 (2 U.S.C. 441a(a)(1)) is amended— ‘re-elect’, ‘support’, ‘cast your ballot for’, subparagraph (D), any person’’; and (1) in subparagraph (B), by striking ‘‘or’’ at ‘(name of candidate) for Congress’, ‘(name of (B) by adding at the end the following: the end; candidate) in 1997’, ‘vote against’, ‘defeat’, ‘‘(D) In the case of a knowing and willful violation of section 304(c) that involves the (2) in subparagraph (C)— ‘reject’, or a campaign slogan or words that reporting of an independent expenditure, the (A) by inserting ‘‘(other than a committee in context can have no reasonable meaning violation shall not be subject to this sub- described in subparagraph (D))’’ after ‘‘com- other than to advocate the election or defeat section.’’. mittee’’; and of 1 or more clearly identified candidates; (B) by striking the period at the end and ‘‘(ii) referring to 1 or more clearly identi- SEC. 203. REPORTING REQUIREMENTS FOR CER- inserting ‘‘; or’’; and TAIN INDEPENDENT EXPENDITURES. fied candidates in a paid advertisement that Section 304(c) of the Federal Election Cam- (3) by adding at the end the following: is broadcast by a radio broadcast station or ‘‘(D) to a political committee established paign Act of 1971 (2 U.S.C. 434(c)) is amend- a television broadcast station within 60 cal- ed— and maintained by a State committee of a endar days preceding the date of an election political party in any calendar year that, in (1) in paragraph (2), by striking the undes- of the candidate and that appears in the ignated matter after subparagraph (C); the aggregate, exceed $10,000’’. State in which the election is occurring, ex- (b) AGGREGATE CONTRIBUTION LIMIT FOR IN- (2) by redesignating paragraph (3) as para- cept that with respect to a candidate for the DIVIDUAL.—Section 315(a)(3) of the Federal graph (7); and office of Vice President or President, the Election Campaign Act of 1971 (2 U.S.C. (3) by inserting after paragraph (2) (as time period is within 60 calendar days pre- 441a(a)(3)) is amended by striking ‘‘$25,000’’ amended by paragraph (1)) the following: and inserting ‘‘$30,000’’. ceding the date of a general election; or ‘‘(d) TIME FOR REPORTING CERTAIN EXPEND- ‘‘(iii) expressing unmistakable and unam- SEC. 103. REPORTING REQUIREMENTS. ITURES.— biguous support for or opposition to 1 or (a) REPORTING REQUIREMENTS.—Section 304 ‘‘(1) EXPENDITURES AGGREGATING $1,000.— more clearly identified candidates when of the Federal Election Campaign Act of 1971 ‘‘(A) INITIAL REPORT.—A person (including taken as a whole and with limited reference (2 U.S.C. 434) (as amended by section 203) is a political committee) that makes or con- to external events, such as proximity to an amended by adding at the end the following: tracts to make independent expenditures ag- ‘‘(e) POLITICAL COMMITTEES.— election. gregating $1,000 or more after the 20th day, ‘‘(1) NATIONAL AND CONGRESSIONAL POLIT- ‘‘(B) VOTING RECORD AND VOTING GUIDE EX- but more than 24 hours, before the date of an ICAL COMMITTEES.—The national committee CEPTION.—The term ‘express advocacy’ does election shall file a report describing the ex- of a political party, any national congres- not include a printed communication that— penditures within 24 hours after that amount sional campaign committee of a political ‘‘(i) presents information in an educational of independent expenditures has been made. party, and any subordinate committee of ei- manner solely about the voting record or po- ‘‘(B) ADDITIONAL REPORTS.—After a person ther, shall report all receipts and disburse- sition on a campaign issue of 2 or more can- files a report under subparagraph (A), the ments during the reporting period. didates; person shall file an additional report within ‘‘(2) OTHER POLITICAL COMMITTEES TO WHICH ‘‘(ii) that is not made in coordination with 24 hours after each time the person makes or SECTION 324 APPLIES.—A political committee a candidate, political party, or agent of the contracts to make independent expenditures (not described in paragraph (1)) to which sec- candidate or party; or a candidate’s agent or aggregating an additional $1,000 with respect tion 324(b)(1) applies shall report all receipts a person who is coordinating with a can- to the same election as that to which the ini- and disbursements made for activities de- didate or a candidate’s agent; tial report relates. scribed in paragraphs (2) and (3)(A)(v) of sec- ‘‘(iii) does not contain a phrase such as ‘‘(2) EXPENDITURES AGGREGATING $10,000.— tion 324(b). ‘vote for’, ‘re-elect’, ‘support’, ‘cast your bal- ‘‘(A) INITIAL REPORT.—A person (including ‘‘(3) ITEMIZATION.—If a political committee lot for’, ‘(name of candidate) for Congress’, a political committee) that makes or con- has receipts or disbursements to which this ‘(name of candidate) in 1997’, ‘vote against’, tracts to make independent expenditures ag- subsection applies from any person aggre- ‘defeat’, or ‘reject’, or a campaign slogan or gregating $10,000 or more at any time up to gating in excess of $200 for any calendar words that in context can have no reasonable and including the 20th day before the date of year, the political committee shall sepa- meaning other than to urge the election or an election shall file a report describing the rately itemize its reporting for such person defeat of 1 or more clearly identified can- expenditures within 48 hours after that in the same manner as required in para- didates.’’. amount of independent expenditures has graphs (3)(A), (5), and (6) of subsection (b). (c) DEFINITION OF EXPENDITURE.—Section been made. ‘‘(4) REPORTING PERIODS.—Reports required 301(9)(A) of the Federal Election Campaign ‘‘(B) ADDITIONAL REPORTS.—After a person to be filed under this subsection shall be Act of 1971 (2 U.S.C. 431(9)(A)) is amended— files a report under subparagraph (A), the filed for the same time periods required for (1) in clause (i), by striking ‘‘and’’ at the person shall file an additional report within political committees under subsection (a).’’. end; 48 hours after each time the person makes or (b) BUILDING FUND EXCEPTION TO THE DEFI- (2) in clause (ii), by striking the period at contracts to make independent expenditures NITION OF CONTRIBUTION.—Section 301(8)(B) of the end and inserting ‘‘; and’’; and aggregating an additional $10,000 with re- the Federal Election Campaign Act of 1971 (2 (3) by adding at the end the following: spect to the same election as that to which U.S.C. 431(8)(B)) is amended— ‘‘(iii) a payment for a communication that the initial report relates. (1) by striking clause (viii); and is express advocacy; and ‘‘(3) PLACE OF FILING; CONTENTS.—A report (2) by redesignating clauses (ix) through ‘‘(iv) a payment made by a person for a under this subsection— (xiv) as clauses (viii) through (xiii), respec- communication that— ‘‘(A) shall be filed with the Commission; tively. ‘‘(I) refers to a clearly identified candidate; and

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S935 ‘‘(B) shall contain the information required ‘‘(iii) a payment made by a person based on Campaign Act of 1971 (2 U.S.C. 441b(b)) is by subsection (b)(6)(B)(iii), including the information about a candidate’s plans, amended by striking ‘‘shall include’’ and in- name of each candidate whom an expendi- projects, or needs provided to the person serting ‘‘includes a contribution or expendi- ture is intended to support or oppose.’’. making the payment by the candidate or the ture, as those terms are defined in section SEC. 204. INDEPENDENT VERSUS COORDINATED candidate’s agent who provides the informa- 301, and also includes’’. EXPENDITURES BY PARTY. tion with the intent that the payment be TITLE III—DISCLOSURE Section 315(d) of the Federal Election Cam- made; paign Act (2 U.S.C. 441a(d)) is amended— ‘‘(iv) a payment made by a person if, in the SEC. 301. FILING OF REPORTS USING COM- (1) in paragraph (1), by striking ‘‘and (3)’’ PUTERS AND FACSIMILE MACHINES; same election cycle in which the payment is FILING BY SENATE CANDIDATES and inserting ‘‘, (3), and (4)’’; and made, the person making the payment is WITH COMMISSION. (2) by adding at the end the following: serving or has served as a member, em- (a) USE OF COMPUTER AND FACSIMILE MA- ‘‘(4) INDEPENDENT VERSUS COORDINATED EX- ployee, fundraiser, or agent of the can- CHINE.—Section 302(a) of the Federal Elec- PENDITURES BY PARTY.— didate’s authorized committee in an execu- tion Campaign Act of 1971 (2 U.S.C. 434(a)) is ‘‘(A) IN GENERAL.—On or after the date on tive or policymaking position; amended by striking paragraph (11) and in- which a political party nominates a can- ‘‘(v) a payment made by a person if the serting the following: didate, a committee of the political party person making the payment has served in ‘‘(11)(A) The Commission shall promulgate shall not make both expenditures under this any formal policy making or advisory posi- a regulation under which a person required subsection and independent expenditures (as tion with the candidate’s campaign or has to file a designation, statement, or report defined in section 301(17)) with respect to the participated in formal strategic or formal under this Act— candidate during the election cycle. policymaking discussions with the can- ‘‘(i) is required to maintain and file a des- ‘‘(B) CERTIFICATION.—Before making a co- didate’s campaign relating to the candidate’s ignation, statement, or report for any cal- ordinated expenditure under this subsection pursuit of nomination for election, or elec- endar year in electronic form accessible by with respect to a candidate, a committee of tion, to Federal office, in the same election computers if the person has, or has reason to a political party shall file with the Commis- cycle as the election cycle in which the pay- expect to have, aggregate contributions or sion a certification, signed by the treasurer ment is made; expenditures in excess of a threshold amount of the committee, that the committee has ‘‘(vi) a payment made by a person if, in the determined by the Commission; and not and shall not make any independent ex- same election cycle, the person making the ‘‘(ii) may maintain and file a designation, penditure with respect to the candidate dur- payment retains the professional services of statement, or report in electronic form or an ing the same election cycle. any person that has provided or is providing alternative form, including the use of a fac- ‘‘(C) APPLICATION.—For the purposes of campaign-related services in the same elec- simile machine, if not required to do so this paragraph, all political committees es- tion cycle to a candidate in connection with under the regulation promulgated under tablished and maintained by a national po- the candidate’s pursuit of nomination for litical party (including all congressional election, or election, to Federal office, in- clause (i). campaign committees) and all political com- cluding services relating to the candidate’s ‘‘(B) The Commission shall make a des- mittees established and maintained by a decision to seek Federal office, and the per- ignation, statement, report, or notification State political party (including any subordi- son retained is retained to work on activities that is filed electronically with the Commis- nate committee of a State committee) shall relating to that candidate’s campaign; sion accessible to the public on the Internet be considered to be a single political com- ‘‘(vii) a payment made by a person who has not later than 24 hours after the designation, mittee. engaged in a coordinated activity with a can- statement, report, or notification is received ‘‘(D) TRANSFERS.—A committee of a polit- didate described in clauses (i) through (vi) by the Commission. ical party that submits a certification under for a communication that clearly refers to ‘‘(C) In promulgating a regulation under subparagraph (B) with respect to a candidate the candidate and is for the purpose of influ- this paragraph, the Commission shall pro- shall not, during an election cycle, transfer encing an election (regardless of whether the vide methods (other than requiring a signa- any funds to, assign authority to make co- communication is express advocacy); ture on the document being filed) for ordinated expenditures under this subsection ‘‘(viii) direct participation by a person in verifying designations, statements, and re- to, or receive a transfer of funds from, a fundraising activities with the candidate or ports covered by the regulation. Any docu- committee of the political party that has in the solicitation or receipt of contributions ment verified under any of the methods shall made or intends to make an independent ex- on behalf of the candidate; be treated for all purposes (including pen- penditure with respect to the candidate.’’. ‘‘(ix) communication by a person with the alties for perjury) in the same manner as a SEC. 205. COORDINATION WITH CANDIDATES. candidate or an agent of the candidate, oc- document verified by signature.’’. (a) DEFINITION OF COORDINATION WITH CAN- curring after the declaration of candidacy (b) SENATE CANDIDATES FILE WITH COMMIS- DIDATES.— (including a pollster, media consultant, ven- SION.—Title III of the Federal Election Cam- (1) SECTION 301(8).—Section 301(8) of the Fed- dor, advisor, or staff member), acting on be- paign Act of 1971 (2 U.S.C. 431 et seq.) is eral Election Campaign Act of 1971 (2 U.S.C. half of the candidate, about advertising mes- amended— 431(8)) is amended— sage, allocation of resources, fundraising, or (1) in section 302, by striking subsection (g) (A) in subparagraph (A)— other campaign matters related to the can- and inserting the following: (i) by striking ‘‘or’’ at the end of clause (i); didate’s campaign, including campaign oper- ‘‘(g) FILING WITH THE COMMISSION.—All des- (ii) by striking the period at the end of ations, staffing, tactics, or strategy; or ignations, statements, and reports required clause (ii) and inserting ‘‘; or’’; and ‘‘(x) the provision of in-kind professional to be filed under this Act shall be filed with (iii) by adding at the end the following: services or polling data to the candidate or the Commission.’’; and ‘‘(iii) anything of value provided by a per- candidate’s agent. (2) in section 304— son in coordination with a candidate for the ‘‘(D) For purposes of subparagraph (C), the (A) in subsection (a)(6)(A), by striking ‘‘the purpose of influencing a Federal election, re- term ‘professional services’ includes services Secretary or’’; and gardless of whether the value being provided in support of a candidate’s pursuit of nomi- (B) in the matter following subsection is a communication that is express advocacy, nation for election, or election, to Federal (c)(2), by striking ‘‘the Secretary or’’. in which such candidate seeks nomination or office such as polling, media advice, direct SEC. 302. PROHIBITION OF DEPOSIT OF CON- election to Federal office.’’; and mail, fundraising, or campaign research. TRIBUTIONS WITH INCOMPLETE (B) by adding at the end the following: ‘‘(E) For purposes of subparagraph (C), all CONTRIBUTOR INFORMATION. ‘‘(C) The term ‘provided in coordination political committees established and main- Section 302 of Federal Election Campaign with a candidate’ includes— tained by a national political party (includ- Act of 1971 (2 U.S.C. 432) is amended by add- ‘‘(i) a payment made by a person in co- ing all congressional campaign committees) ing at the end the following: operation, consultation, or concert with, at and all political committees established and ‘‘(j) DEPOSIT OF CONTRIBUTIONS.—The treas- the request or suggestion of, or pursuant to maintained by a State political party (in- urer of a candidate’s authorized committee any general or particular understanding with cluding any subordinate committee of a shall not deposit, except in an escrow ac- a candidate, the candidate’s authorized com- State committee) shall be considered to be a count, or otherwise negotiate a contribution mittee, or an agent acting on behalf of a can- single political committee.’’. from a person who makes an aggregate didate or authorized committee; (2) SECTION 315(a)(7).—Section 315(a)(7) (2 amount of contributions in excess of $200 ‘‘(ii) a payment made by a person for the U.S.C. 441a(a)(7)) is amended by striking sub- during a calendar year unless the treasurer production, dissemination, distribution, or paragraph (B) and inserting the following: verifies that the information required by republication, in whole or in part, of any ‘‘(B) a thing of value provided in coordina- this section with respect to the contributor broadcast or any written, graphic, or other tion with a candidate, as described in section is complete.’’. form of campaign material prepared by a 301(8)(A)(iii), shall be considered to be a con- SEC. 303. AUDITS. candidate, a candidate’s authorized com- tribution to the candidate, and in the case of (a) RANDOM AUDITS.—Section 311(b) of the mittee, or an agent of a candidate or author- a limitation on expenditures, shall be treat- Federal Election Campaign Act of 1971 (2 ized committee (not including a communica- ed as an expenditure by the candidate. U.S.C. 438(b)) is amended— tion described in paragraph (9)(B)(i) or a (b) MEANING OF CONTRIBUTION OR EXPENDI- (1) by inserting ‘‘(1) IN GENERAL.—’’ before communication that expressly advocates the TURE FOR THE PURPOSES OF SECTION 316.— ‘‘The Commission’’; and candidate’s defeat); Section 316(b)(2) of the Federal Election (2) by adding at the end the following:

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‘‘(2) RANDOM AUDITS.— ‘‘(A) on a monthly basis as described in the audio statement under paragraph (1), a ‘‘(A) IN GENERAL.—Notwithstanding para- subsection (a)(4)(B); or written statement that— graph (1), the Commission may conduct ran- ‘‘(B) in the case of disbursements that are ‘‘(A) appears at the end of the communica- dom audits and investigations to ensure vol- made within 20 days of an election, within 24 tion in a clearly readable manner with a rea- untary compliance with this Act. The selec- hours after the disbursements are made. sonable degree of color contrast between the tion of any candidate for a random audit or ‘‘(2) ACTIVITY.—The activity described in background and the printed statement, for a investigation shall be based on criteria this paragraph is— period of at least 4 seconds; and adopted by a vote of at least 4 members of ‘‘(A) Federal election activity; ‘‘(B) is accompanied by a clearly identifi- the Commission. ‘‘(B) an activity described in section able photographic or similar image of the ‘‘(B) LIMITATION.—The Commission shall 316(b)(2)(A) that expresses support for or op- candidate. not conduct an audit or investigation of a position to a candidate for Federal office or ‘‘(e) Any broadcast or cablecast commu- candidate’s authorized committee under sub- a political party; and nication described in paragraph (3) of sub- paragraph (A) until the candidate is no ‘‘(C) an activity described in subparagraph section (a) shall include, in addition to the longer a candidate for the office sought by (C) of section 316(b)(2). requirements of that paragraph, in a clearly the candidate in an election cycle. ‘‘(3) APPLICABILITY.—This subsection does spoken manner, the following statement: ‘‘(C) APPLICABILITY.—This paragraph does not apply to— ‘llllllll is responsible for the con- not apply to an authorized committee of a ‘‘(A) a candidate or a candidate’s author- tent of this advertisement.’ (with the blank candidate for President or Vice President ized committees; or to be filled in with the name of the political subject to audit under section 9007 or 9038 of ‘‘(B) an independent expenditure. committee or other person paying for the the Internal Revenue Code of 1986.’’. ‘‘(4) CONTENTS.—A statement under this communication and the name of any con- (b) EXTENSION OF PERIOD DURING WHICH section shall contain such information about nected organization of the payor). If broad- CAMPAIGN AUDITS MAY BE BEGUN.—Section the disbursements made during the reporting cast or cablecast by means of television, the 311(b) of the Federal Election Campaign Act period as the Commission shall prescribe, in- statement shall also appear in a clearly read- of 1971 (2 U.S.C. 438(b)) is amended by strik- cluding— able manner with a reasonable degree of ing ‘‘6 months’’ and inserting ‘‘12 months’’. ‘‘(A) the aggregate amount of disburse- color contrast between the background and SEC. 304. REPORTING REQUIREMENTS FOR CON- ments made; the printed statement, for a period of at TRIBUTIONS OF $50 OR MORE. ‘‘(B) the name and address of the person or least 4 seconds.’’. Section 304(b)(3)(A) of the Federal Election entity to whom a disbursement is made in an TITLE IV—PERSONAL WEALTH OPTION Campaign Act at 1971 (2 U.S.C. 434(b)(3)(A) is aggregate amount in excess of $200; amended— ‘‘(C) the date made, amount, and purpose SEC. 401. VOLUNTARY PERSONAL FUNDS EX- (1) by striking ‘‘$200’’ and inserting ‘‘$50’’; of the disbursement; and PENDITURE LIMIT. and ‘‘(D) if applicable, whether the disburse- Title III of the Federal Election Campaign (2) by striking the semicolon and inserting ment was in support of, or in opposition to, Act of 1971 (2 U.S.C. 431 et seq.) (as amended ‘‘, except that in the case of a person who a candidate or a political party, and the by section 101) is amended by adding at the makes contributions aggregating at least $50 name of the candidate or the political end the following: but not more than $200 during the calendar party.’’. ‘‘SEC. 325. VOLUNTARY PERSONAL FUNDS EX- year, the identification need include only (b) DEFINITION OF GENERIC CAMPAIGN AC- PENDITURE LIMIT. the name and address of the person;’’. TIVITY.—Section 301 of the Federal Election ‘‘(a) ELIGIBLE SENATE CANDIDATE.— SEC. 305. USE OF CANDIDATES’ NAMES. Campaign Act of 1971 (2 U.S.C. 431 et seq.) (as ‘‘(1) PRIMARY ELECTION.— Section 302(e) of the Federal Election Cam- amended by section 201(b)) is amended by ‘‘(A) DECLARATION.—A candidate is an eli- paign Act of 1971 (2 U.S.C. 432(e)) is amended adding at the end the following: gible primary election Senate candidate if by striking paragraph (4) and inserting the ‘‘(21) GENERIC CAMPAIGN ACTIVITY.—The the candidate files with the Commission a following: term ‘generic campaign activity’ means an declaration that the candidate and the can- ‘‘(4)(A) The name of each authorized com- activity that promotes a political party and didate’s authorized committees will not mittee shall include the name of the can- does not promote a candidate or non-Federal make expenditures in excess of the personal didate who authorized the committee under candidate.’’. funds expenditure limit. paragraph (1). SEC. 308. CAMPAIGN ADVERTISING. ‘‘(B) TIME TO FILE.—The declaration under ‘‘(B) A political committee that is not an Section 318 of the Federal Election Cam- subparagraph (A) shall be filed not later than authorized committee shall not— paign Act of 1971 (2 U.S.C. 441d) is amended— the date on which the candidate files with ‘‘(i) include the name of any candidate in (1) in subsection (a)— the appropriate State officer as a candidate its name; or (A) in the matter preceding paragraph (1)— for the primary election. ‘‘(ii) except in the case of a national, State, (i) by striking ‘‘Whenever’’ and inserting ‘‘(2) GENERAL ELECTION.— or local party committee, use the name of ‘‘Whenever a political committee makes a ‘‘(A) DECLARATION.—A candidate is an eli- any candidate in any activity on behalf of disbursement for the purpose of financing gible general election Senate candidate if the committee in such a context as to sug- any communication through any broad- the candidate files with the Commission— gest that the committee is an authorized casting station, newspaper, magazine, out- ‘‘(i) a declaration under penalty of perjury, committee of the candidate or that the use door advertising facility, mailing, or any with supporting documentation as required of the candidate’s name has been authorized other type of general public political adver- by the Commission, that the candidate and by the candidate.’’. tising, or whenever’’; the candidate’s authorized committees did SEC. 306. PROHIBITION OF FALSE REPRESENTA- (ii) by striking ‘‘an expenditure’’ and in- not exceed the personal funds expenditure TION TO SOLICIT CONTRIBUTIONS. serting ‘‘a disbursement’’; and limit in connection with the primary elec- Section 322 of the Federal Election Cam- (iii) by striking ‘‘direct’’; and tion; and paign Act of 1971 (2 U.S.C. 441h) is amended— (B) in paragraph (3), by inserting ‘‘and per- ‘‘(ii) a declaration that the candidate and (1) by inserting after ‘‘SEC. 322.’’ the fol- manent street address’’ after ‘‘name’’; and the candidate’s authorized committees will lowing: ‘‘(a) IN GENERAL.—’’; and (2) by adding at the end the following: not make expenditures in excess of the per- (2) by adding at the end the following: ‘‘(c) Any printed communication described sonal funds expenditure limit. ‘‘(b) SOLICITATION OF CONTRIBUTIONS.—No in subsection (a) shall— ‘‘(B) TIME TO FILE.—The declaration under person shall solicit contributions by falsely ‘‘(1) be of sufficient type size to be clearly subparagraph (A) shall be filed not later than representing himself or herself as a can- readable by the recipient of the communica- 7 days after the earlier of— didate or as a representative of a candidate, tion; ‘‘(i) the date on which the candidate quali- a political committee, or a political party.’’. ‘‘(2) be contained in a printed box set apart fies for the general election ballot under SEC. 307. SOFT MONEY OF PERSONS OTHER THAN from the other contents of the communica- State law; or POLITICAL PARTIES. tion; and ‘‘(ii) if under State law, a primary or run- (a) IN GENERAL.—Section 304 of the Federal ‘‘(3) be printed with a reasonable degree of off election to qualify for the general elec- Election Campaign Act of 1971 (2 U.S.C. 434) color contrast between the background and tion ballot occurs after September 1, the (as amended by section 103(c)) is amended by the printed statement. date on which the candidate wins the pri- adding at the end the following: ‘‘(d)(1) Any broadcast or cablecast commu- mary or runoff election. ‘‘(g) DISBURSEMENTS OF PERSONS OTHER nication described in paragraphs (1) or (2) of ‘‘(b) PERSONAL FUNDS EXPENDITURE THAN POLITICAL PARTIES.— subsection (a) shall include, in addition to LIMIT.— ‘‘(1) IN GENERAL.—A person, other than a the requirements of that paragraph, an audio ‘‘(1) IN GENERAL.—The aggregate amount of political committee or a person described in statement by the candidate that identifies expenditures that may be made in connec- section 501(d) of the Internal Revenue Code the candidate and states that the candidate tion with an election by an eligible Senate of 1986, that makes an aggregate amount of has approved the communication. candidate or the candidate’s authorized com- disbursements in excess of $50,000 during a ‘‘(2) If a broadcast or cablecast commu- mittees from the sources described in para- calendar year for activities described in nication described in paragraph (1) is broad- graph (2) shall not exceed $50,000. paragraph (2) shall file a statement with the cast or cablecast by means of television, the ‘‘(2) SOURCES.—A source is described in this Commission— communication shall include, in addition to paragraph if the source is—

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S937 ‘‘(A) personal funds of the candidate and lated to collective bargaining, including but year in which there will be an election for members of the candidate’s immediate fam- not limited to the opportunity to file such the seat held by the Member during the pe- ily; or objection by mail. riod between January 1 of that year and the ‘‘(B) proceeds of indebtedness incurred by ‘‘(B) If an employee who is not a member of date of the general election for that Office, the candidate or a member of the candidate’s the labor organization files an objection unless the Member has made a public an- immediate family. under the procedure in subparagraph (A), nouncement that the Member will not be a ‘‘(c) CERTIFICATION BY THE COMMISSION.— such organization shall— candidate for reelection to that year or for ‘‘(1) IN GENERAL.—The Commission shall ‘‘(i) reduce the payments in lieu of organi- election to any other Federal office.’’. determine whether a candidate has met the zation dues or fees by such employee by an SEC. 504. PROHIBITION OF FUNDRAISING ON requirements of this section and, based on amount which reasonably reflects the ratio FEDERAL PROPERTY. the determination, issue a certification stat- that the organization’s expenditures sup- Section 607 of title 18, United States Code, ing whether the candidate is an eligible Sen- porting political activities unrelated to col- is amended by— ate candidate. lective bargaining bears to such organiza- (1) striking subsection (a) and inserting the ‘‘(2) TIME FOR CERTIFICATION.—Not later tion’s total expenditures; following: than 7 business days after a candidate files a ‘‘(ii) provide such employee with a reason- ‘‘(a) PROHIBITION.— declaration under paragraph (1) or (2) of sub- able explanation of the organization’s cal- ‘‘(1) IN GENERAL.—It shall be unlawful for section (a), the Commission shall certify culation of such reduction, including calcu- any person to solicit or receive a donation of whether the candidate is an eligible Senate lating the amount of organization expendi- money or other thing of value for a political candidate. tures supporting political activities unre- committee or a candidate for Federal, State ‘‘(3) REVOCATION.—The Commission shall lated to collective bargaining. or local office from a person who is located revoke a certification under paragraph (1), ‘‘(3) DEFINITION.—In this subsection, the in a room or building occupied in the dis- based on information submitted in such form term ‘expenditures supporting political ac- charge of official duties by an officer or em- and manner as the Commission may require tivities unrelated to collective bargaining’ ployee of the United States. An individual or on information that comes to the Com- means expenditures in connection with a who is an officer or employee of the Federal mission by other means, if the Commission Federal, State, or local election or in con- Government, including the President, Vice determines that a candidate violates the per- nection with efforts to influence legislation President, and Members of Congress, shall sonal funds expenditure limit. unrelated to collective bargaining.’’. not solicit a donation of money or other ‘‘(4) DETERMINATIONS BY COMMISSION.—A SEC. 502. USE OF CONTRIBUTED AMOUNTS FOR thing of value for a political committee or determination made by the Commission CERTAIN PURPOSES. candidate for Federal, State or local office, under this subsection shall be final, except Title III of the Federal Election Campaign while in any room or building occupied in to the extent that the determination is sub- Act of 1971 (2 U.S.C. 431 et seq.) is amended the discharge of official duties by an officer ject to examination and audit by the Com- by striking section 313 and inserting the fol- or employee of the United States, from any lowing: mission and to judicial review. person. ‘‘SEC. 313. USE OF CONTRIBUTED AMOUNTS FOR ‘‘(d) PENALTY.—If the Commission revokes ‘‘(2) PENALTY.—A person who violates this CERTAIN PURPOSES. the certification of an eligible Senate can- section shall be fined not more than $5,000, ‘‘(a) PERMITTED USES.—A contribution ac- didate— imprisoned more than 3 years, or both.’’. cepted by a candidate, and any other amount ‘‘(1) the Commission shall notify the can- (2) inserting in subsection (b) after ‘‘Con- didate of the revocation; and received by an individual as support for ac- tivities of the individual as a holder of Fed- gress’’ ‘‘or Executive Office of the Presi- ‘‘(2) the candidate and a candidate’s au- dent’’. thorized committees shall pay to the Com- eral office, may be used by the candidate or individual— SEC. 505. PENALTIES FOR KNOWING AND WILL- mission an amount equal to the amount of FUL VIOLATIONS. expenditures made by a national committee ‘‘(1) for expenditures in connection with the campaign for Federal office of the can- (a) INCREASED PENALTIES.—Section 309(a) of a political party or a State committee of of the Federal Election Campaign Act of 1971 a political party in connection with the gen- didate or individual; ‘‘(2) for ordinary and necessary expenses (2 U.S.C. 437g(a)) is amended— eral election campaign of the candidate (1) in paragraphs (5)(A), (6)(A), and (6)(B), under section 315(d).’’. incurred in connection with duties of the in- dividual as a holder of Federal office; by striking ‘‘$5,000’’ and inserting ‘‘$10,000’’; SEC. 402. POLITICAL PARTY COMMITTEE COORDI- and NATED EXPENDITURES. ‘‘(3) for contributions to an organization described in section 170(c) of the Internal (2) in paragraphs (5)(B) and (6)(C), by strik- Section 315(d) of the Federal Election Cam- ing ‘‘$10,000 or an amount equal to 200 per- paign Act of 1971 (2 U.S.C. 441a(d)) (as amend- Revenue Code of 1986; or ‘‘(4) for transfers to a national, State, or cent’’ and inserting ‘‘$20,000 or an amount ed by section 204) is amended by adding at equal to 300 percent’’. the end the following: local committee of a political party. ‘‘(b) PROHIBITED USE.— (b) EQUITABLE REMEDIES.—Section ‘‘(5) This subsection does not apply to ex- ‘‘(1) IN GENERAL.—A contribution or 309(a)(5)(A) of the Federal Election Campaign penditures made in connection with the gen- amount described in subsection (a) shall not Act of 1971 (2 U.S.C. 437g(a)(5)) is amended by eral election campaign of a candidate for the be converted by any person to personal use. striking the period at the end and inserting Senate who is not an eligible Senate can- ‘‘(2) CONVERSION.—For the purposes of ‘‘, and may include equitable remedies or didate (as defined in section 325(a)).’’. paragraph (1), a contribution or amount penalties, including disgorgement of funds to TITLE V—MISCELLANEOUS shall be considered to be converted to per- the Treasury or community service require- SEC. 501. CODIFICATION OF BECK DECISION. sonal use if the contribution or amount is ments (including requirements to participate Section 8 of the National Labor Relations used to fulfill any commitment, obligation, in public education programs).’’. Act (29 U.S.C. 158) is amended by adding at or expense of a person that would exist irre- (c) AUTOMATIC PENALTY FOR LATE FILING.— the end the following new subsection: spective of the candidate’s election cam- Section 309(a) of the Federal Election Cam- ‘‘(h) NONUNION MEMBER PAYMENTS TO paign or individual’s duties as a holder of paign Act of 1971 (2 U.S.C. 437g(a)) is amend- LABOR ORGANIZATION.— Federal officeholder, including— ed— ‘‘(1) IN GENERAL.—It shall be an unfair ‘‘(A) a home mortgage, rent, or utility pay- (1) by adding at the end the following: labor practice for any labor organization ment; ‘‘(13) PENALTY FOR LATE FILING.— which receives a payment from an employee ‘‘(B) a clothing purchase; ‘‘(A) IN GENERAL.— pursuant to an agreement that requires em- ‘‘(C) a noncampaign-related automobile ex- ‘‘(i) MONETARY PENALTIES.—The Commis- ployees who are not members of the organi- pense; sion shall establish a schedule of mandatory zation to make payments to such organiza- ‘‘(D) a country club membership; monetary penalties that shall be imposed by tion in lieu of organization dues or fees not ‘‘(E) a vacation or other noncampaign-re- the Commission for failure to meet a time to establish and implement the objection lated trip; requirement for filing under section 304. procedure described in paragraph (2). ‘‘(F) a household food item; ‘‘(ii) REQUIRED FILING.—In addition to im- ‘‘(2) OBJECTION PROCEDURE.—The objection ‘‘(G) a tuition payment; posing a penalty, the Commission may re- procedure required under paragraph (1) shall ‘‘(H) admission to a sporting event, con- quire a report that has not been filed within meet the following requirements: cert, theater, or other form of entertainment the time requirements of section 304 to be ‘‘(A) The labor organization shall annually not associated with an election campaign; filed by a specific date. provide to employees who are covered by and ‘‘(iii) PROCEDURE.—A penalty or filing re- such agreement but are not members of the ‘‘(I) dues, fees, and other payments to a quirement imposed under this paragraph organization— health club or recreational facility.’’. shall not be subject to paragraph (1), (2), (3), ‘‘(i) reasonable personal notice of the ob- SEC. 503. LIMIT ON CONGRESSIONAL USE OF THE (4), (5), or (12). jection procedure, the employees eligible to FRANKING PRIVILEGE. ‘‘(B) FILING AN EXCEPTION.— invoke the procedure, and the time, place, Section 3210(a)(6) of title 39, United States ‘‘(i) TIME TO FILE.—A political committee and manner for filing an objection; and Code, is amended by striking subparagraph shall have 30 days after the imposition of a ‘‘(ii) reasonable opportunity to file an ob- (A) and inserting the following: penalty or filing requirement by the Com- jection to paying for organization expendi- ‘‘(A) A Member of Congress shall not mail mission under this paragraph in which to file tures supporting political activities unre- any mass mailing as franked mail during a an exception with the Commission.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S938 CONGRESSIONAL RECORD — SENATE February 24, 1998 ‘‘(ii) TIME FOR COMMISSION TO RULE.—With- other facts available to the Commission, poration or labor organization; as fol- in 30 days after receiving an exception, the that the complaint is clearly without merit, lows: Commission shall make a determination the Commission may— Strike section 201 and insert: that is a final agency action subject to ex- ‘‘(i) order expedited proceedings, short- Subtitle A—Electioneering Communications clusive review by the United States Court of ening the time periods for proceedings under Appeals for the District of Columbia Circuit paragraphs (1), (2), (3), and (4) as necessary to SEC. 200. DISCLOSURE OF ELECTIONEERING under section 706 of title 5, United States allow the matter to be resolved in sufficient COMMUNICATIONS. Code, upon petition filed in that court by the time before the election to avoid harm or Section 304 of the Federal Election Cam- political committee or treasurer that is the prejudice to the interests of the parties; or paign Act of 1971 (2 U.S.C. 434) is amended by subject of the agency action, if the petition ‘‘(ii) if the Commission determines that adding at the end the following new sub- is filed within 30 days after the date of the there is insufficient time to conduct pro- section: Commission action for which review is ceedings before the election, summarily dis- ‘‘(d) ADDITIONAL STATEMENTS ON ELECTION- sought.’’; miss the complaint.’’. EERING COMMUNICATIONS.— ‘‘(1) STATEMENT REQUIRED.—Every person (2) in paragraph (5)(D)— (b) REFERRAL TO ATTORNEY GENERAL.—Sec- (A) by inserting after the first sentence the tion 309(a)(5) of the Federal Election Cam- who makes a disbursement for electioneering following: ‘‘In any case in which a penalty or paign Act of 1971 (2 U.S.C. 437g(a)(5)) is communications in an aggregate amount in filing requirement imposed on a political amended by striking subparagraph (C) and excess of $10,000 during any calendar year committee or treasurer under paragraph (13) inserting the following: shall, within 24 hours of each disclosure date, has not been satisfied, the Commission may ‘‘(C) The Commission may at any time, by file with the Commission a statement con- institute a civil action for enforcement an affirmative vote of at least 4 of its mem- taining the information described in para- under paragraph (6)(A).’’; and bers, refer a possible violation of this Act or graph (2). (B) by inserting before the period at the chapter 95 or 96 of title 26, United States ‘‘(2) CONTENTS OF STATEMENT.—Each state- end of the last sentence the following: ‘‘or Code, to the Attorney General of the United ment required to be filed under this sub- has failed to pay a penalty or meet a filing States, without regard to any limitation set section shall be made under penalty of per- requirement imposed under paragraph (13)’’; forth in this section.’’. jury and shall contain the following informa- and tion: SEC. 509. INITIATION OF ENFORCEMENT PRO- ‘‘(A) The identification of the person mak- (3) in paragraph (6)(A), by striking ‘‘para- CEEDING. ing the disbursement, of any entity sharing graph (4)(A)’’ and inserting ‘‘paragraph (4)(A) Section 309(a)(2) of the Federal Election or exercising direction or control over the or (13)’’. Campaign Act of 1971 (2 U.S.C. 437g(a)(2)) is activities of such person, and of the custo- SEC. 506. STRENGTHENING FOREIGN MONEY amended by striking ‘‘reason to believe dian of the books and accounts of the person BAN. that’’ and inserting ‘‘reason to investigate making the disbursement. Section 319 of the Federal Election Cam- whether’’. paign Act of 1971 (2 U.S.C. 441e) is amended— ‘‘(B) The State of incorporation and the (1) by striking the heading and inserting TITLE VI—SEVERABILITY; CONSTITU- principal place of business of the person the following: ‘‘CONTRIBUTIONS AND DONA- TIONALITY; EFFECTIVE DATE; REGULA- making the disbursement. TIONS BY FOREIGN NATIONALS’’; and TIONS ‘‘(C) The amount of each disbursement dur- (2) by striking subsection (a) and inserting SEC. 601. SEVERABILITY. ing the period covered by the statement and the following: If any provision of this Act or amendment the identification of the person to whom the ‘‘(a) PROHIBITION.—It shall be unlawful made by this Act, or the application of a pro- disbursement was made. for— vision or amendment to any person or cir- ‘‘(D) The elections to which the election- ‘‘(1) a foreign national, directly or indi- cumstance, is held to be unconstitutional, eering communications pertain and the rectly, to make— the remainder of this Act and amendments names (if known) of the candidates identified ‘‘(A) a donation of money or other thing of made by this Act, and the application of the or to be identified. value, or to promise expressly or impliedly provisions and amendment to any person or ‘‘(E) If the disbursements were paid out of to make a donation, in connection with a circumstance, shall not be affected by the a segregated account to which only individ- Federal, State, or local election to a polit- holding. uals could contribute the names and address- es of all contributors who contributed an ag- ical committee or a candidate for Federal of- SEC. 602. REVIEW OF CONSTITUTIONAL ISSUES. gregate amount of $500 or more to that ac- fice; or An appeal may be taken directly to the Su- count during the period beginning on the ‘‘(ii) a contribution or donation to a com- preme Court of the United States from any first day of the preceding calendar year and mittee of a political party; or final judgment, decree, or order issued by ending on the disclosure date. ‘‘(B) for a person to solicit, accept, or re- any court ruling on the constitutionality of ‘‘(F) If the disbursements were paid out of ceive such contribution or donation from a any provision of this Act or amendment funds not described in subparagraph (E), the foreign national.’’. made by this Act. SEC. 507. PROHIBITION OF CONTRIBUTIONS BY names and addresses of all contributors who SEC. 603. EFFECTIVE DATE. MINORS. contributed an aggregate amount of $500 or Title III of the Federal Election Campaign Except as otherwise provided in this Act, more to the organization or any related enti- Act of 1971 (2 U.S.C. 431 et seq.) (as amended this Act and the amendments made by this ty during the period beginning on the first by section 401) is amended by adding at the Act take effect on the date that is 60 days day of the preceding calendar year and end- end the following: after the date of enactment of this Act or ing on the disclosure date. ‘‘SEC. 326. PROHIBITION OF CONTRIBUTIONS BY January 1, 1998, whichever occurs first. ‘‘(G) Whether or not any electioneering MINORS. SEC. 604. REGULATIONS. communication is made in coordination, co- An individual who is 17 years old or young- The Federal Election Commission shall operation, consultation, or concert with, or er shall not make a contribution to a can- prescribe any regulations required to carry at the request or suggestion of, any can- didate or a contribution or donation to a out this Act and the amendments made by didate or any authorized committee, any po- committee of a political party.’’. this Act not later than 270 days after the ef- litical party or committee, or any agent of SEC. 508. EXPEDITED PROCEDURES. fective date of this Act. the candidate, political party, or committee (a) IN GENERAL.—Section 309(a) of the Fed- f and if so, the identification of any candidate, eral Election Campaign Act of 1971 (2 U.S.C. party, committee, or agent involved. 437g(a)) (as amended by section 505(c)) is AMENDMENTS SUBMITTED ON ‘‘(3) ELECTIONEERING COMMUNICATION.—For amended by adding at the end the following: FEBRUARY 24, 1998 purposes of this subsection— ‘‘(14)(A) If the complaint in a proceeding ‘‘(A) IN GENERAL.—The term ‘election- was filed within 60 days preceding the date of eering communication’ means any broadcast a general election, the Commission may take THE PAYCHECK PROTECTION ACT from a television or radio broadcast station action described in this subparagraph. which— ‘‘(B) If the Commission determines, on the ‘‘(i) refers to a clearly identified candidate basis of facts alleged in the complaint and SNOWE (AND OTHERS) for Federal office; other facts available to the Commission, AMENDMENT NO. 1647 ‘‘(ii) is made (or scheduled to be made) that there is clear and convincing evidence within— that a violation of this Act has occurred, is Ms. SNOWE (for herself, Mr. Jeffords, ‘‘(I) 60 days before a general, special, or occurring, or is about to occur, the Commis- Mr. LEVIN, Mr. LIEBERMAN, Mr. runoff election for such Federal office, or sion may order expedited proceedings, short- MCCAIN, Mr. FEINGOLD, Mr. CHAFEE, ‘‘(II) 30 days before a primary or preference ening the time periods for proceedings under Ms. COLLINS, and Mr. THOMPSON) pro- election, or a convention or caucus of a po- paragraphs (1), (2), (3), and (4) as necessary to posed an amendment to amendment litical party that has authority to nominate allow the matter to be resolved in sufficient a candidate, for such Federal office, and time before the election to avoid harm or No. 1646 proposed by Mr. MCCAIN to the ‘‘(iii) is broadcast from a television or prejudice to the interests of the parties. bill (S. 1663) to protect individuals from radio broadcast station whose audience in- ‘‘(C) If the Commission determines, on the having their money involuntarily col- cludes the electorate for such election, con- basis of facts alleged in the complaint and lected and used for politics by a cor- vention, or caucus.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00074 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S939 ‘‘(B) Exceptions.—Such term shall not in- amount for any of the costs of the commu- ‘‘party. clude— nication; or SECTION 3. ELECTIONEERING COMMUNICA- ‘‘(i) communications appearing in a news ‘‘(ii) any amount is disbursed for the com- TIONS. story, commentary, or editorial distributed munication by a corporation or organization (a) PROHIBITION.—None of the funds appro- through the facilities of any broadcasting or a State or local political party or com- priated or otherwise made available to the station, unless such facilities are owned or mittee thereof that receives anything of Federal Communications Commission may controlled by any political party, political value from the entity described in paragraph be expended to impose or enforce any re- committee, or candidate, or (1)(A), except that this clause shall not apply quirement or obligation with respect to the ‘‘(ii) communications which constitute ex- to any communication the costs of which are provision of free or discounted television penditures or independent expenditures defrayed entirely out of a segregated account broadcast time for campaign advertising un- under this Act. to which only individuals can contribute. less such requirement or obligation is spe- ‘‘(4) DISCLOSURE DATE.—For purposes of ‘‘(B) A section 501(c)(4) organization that cifically and expressly authorized by title III this subsection, the term ‘disclosure date’ derives amounts from business activities or of the Communications Act of 1934. means— from any entity described in paragraph (1)(A) (b) EFFECTIVE DATE.—This section shall ‘‘(A) the first date during any calendar shall be considered to have paid for any com- take effect one day after enactment of this year by which a person has made disburse- munication out of such amounts unless such Act. ments for electioneering communications organization paid for the communication out aggregating in excess of $10,000, and of a segregated account to which only indi- ‘‘(B) any other date during such calendar viduals can contribute. LOTT AMENDMENT NO. 1650 year by which a person has made disburse- ‘‘(3) DEFINITIONS AND RULES.—For purposes ments for electioneering communications of this subsection— Mr. LOTT proposed an amendment to aggregating in excess of $10,000 since the ‘‘(A) the term ‘section 501(c)(4) organiza- amendment No. 1649 proposed by him most recent disclosure date for such calendar tion’ means— to the bill, S. 1663, supra; as follows: year. ‘‘(ii) an organization described in section Strike all after the first word in the pend- ‘‘(5) CONTRACTS TO DISBURSE.—For purposes 501(c)(4) of the Internal Revenue Code of 1986 ing amendment and insert the following: and exempt from taxation under section of this subsection, a person shall be treated SECTION 3. ELECTIONEERING COMMUNICA- as having made a disbursement if the person 501(a) of such Code; or TIONS. ‘‘(ii) an organization which has submitted has contracted to make the disbursement. (a) PROHIBTION.—None of the funds appro- ‘‘(6) COORDINATION WITH OTHER REQUIRE- an application to the Internal Revenue Serv- priated or otherwise made available to the MENTS.—Any requirement to report under ice for determination of its status as an or- Federal Communications Commission may this subsection shall be in addition to any ganization described in clause (i); and be expended to impose or enforce any re- other reporting requirement under this Act.’’ ‘‘(B) a person shall be treated as having quirement or obligation with respect to the SEC. 200A. COORDINATED COMMUNICATIONS AS made a disbursement if the person has con- provision of free or discounted television CONTRIBUTIONS. tracted to make the disbursement. broadcast time for campaign advertising un- ‘‘(4) COORDINATION WITH INTERNAL REVENUE Section 315(a)(7)(B) of the Federal Election less such requirement or obligation is spe- CODE.—Nothing in this subsection shall be Campaign Act of 1971 (2 U.S.C. 441a(a)(7)(B)) cifically and expressly authorized by title III construed to authorize an organization ex- is amended by inserting after clause (ii) the of the Communication Act of 1934. empt from taxation under section 501(a) of following new clause: (b) EFFECTIVE DATE.—This section shall the Internal Revenue Code of 1986 from car- ‘‘(iii) if— take effect two days after enactment of this rying out any activity which is prohibited ‘‘(I) any person makes, or contracts to Act. make, any payment for any electioneering under such Code.’’ communication (within the meaning of sec- Subtitle B—Independent and Coordinated tion 304(d)(3)), and Expenditures LOTT AMENDMENT NO. 1651 ‘‘(II) such payment is coordinated with a SEC. 201. DEFINITION OF INDEPENDENT EXPEND- Mr. LOTT proposed an amendment to candidate for Federal office or an authorized ITURE. committee of such candidate, a Federal, Section 301 of the Federal Election Cam- the motion to commit proposed by him State, or local political party or committee paign Act (2 U.S.C. 431) is amended by strik- to the bill, S. 1663, supra; as follows: thereof, or an agent or official of any such ing paragraph (17) and inserting the fol- At the end of the instructions add the fol- candidate, party, or committee. lowing: lowing: such payment or contracting shall be treated ‘‘(17) INDEPENDENT EXPENDITURE.—The ‘‘with an amendment as follows: as a contribution to such candidate and as term ‘independent expenditure’ means an ex- Strike all after the enacting clause and in- an expenditure by such candidate; and’’. penditure by a person— sert the following: SEC. 200B. PROHIBITION OF CORPORATE AND ‘‘(A) expressly advocating the election or SEC. 1. ELECTIONEERING COMMUNICATIONS. LABOR DISBURSEMENTS FOR ELEC- defeat of a clearly identified candidate; and TIONEERING COMMUNICATIONS. ‘‘(B) that is not provided in coordination (a) PROHIBITION.—None of the funds appro- (a) IN GENERAL.—Section 316(b)(2) of the with a candidate or a candidate’s agent or a priated or otherwise made available to the Federal Election Campaign Act of 1971 (2 person who is coordinating with a candidate Federal Communications Commission may U.S.C. 441b(b)(2)) is amended by inserting ‘‘or or a candidate’s agent.’’ be expended to impose or enforce any re- for any applicable electioneering commu- quirement or obligation with respect to the provision of free or discounted television nication’’ before ‘‘, but shall not include’’. LOTT AMENDMENT NO. 1648 (b) APPLICABLE ELECTIONEERING COMMU- broadcast time for campaign advertising un- NICATION.—Section 316 of such Act is amend- Mr. LOTT proposed an amendment to less such requirement or obligation is spe- ed by adding at the end the following new amendment No. 1647 proposed by Ms. cifically and expressly authorized by title III of the Communications Act of 1934.’’ subsection: SNOWE to the bill, S. 1663, supra; as fol- ‘‘(c) RULES RELATING TO ELECTIONEERING lows: COMMUNICATIONS.— In lieu of the matter proposed to be in- ‘‘(1) APPLICABLE ELECTIONEERING COMMU- LOTT AMENDMENT NO. 1652 serted, insert the following: NICATION.—For purposes of this section, the Mr. LOTT proposed an amendment to SEC. 200. ELECTIONEERING COMMUNICATIONS. term ‘applicable electioneering communica- amendment No. 1651 proposed by him (a) PROHIBITION.—None of the funds appro- tion’ means an electioneering communica- to the bill, S. 1663, supra; as follows: tion (within the meaning of section 304(d)(3)) priated or otherwise made available to the which is made by— Federal Communications Commission may In lieu of the matter proposed to be in- ‘‘(A) any entity to which subsection (a) ap- be expended to impose or enforce any re- serted, insert the following: plies other than a section 501(c)(4) organiza- quirement or obligation with respect to the SEC. 1. ELECTIONEERING COMMUNICATIONS. tion, or provision of free or discounted television (a) PROHIBITION.—None of the funds appro- ‘‘(B) a section 501(c)(4) organization from broadcast time for campaign advertising un- priated or otherwise made available to the amounts derived from the conduct of a trade less such requirement or obligation is spe- Federal Communications Commission may or business or from an entity described in cifically and expressly authorized by title III be expended to impose or enforce any re- subparagraph (A). of the Communications Act of 1934. quirement or obligation with respect to the ‘‘(2) SPECIAL OPERATING RULES.—For pur- provision of free or discounted television poses of paragraph (1), the following rules LOTT AMENDMENT NO. 1649 broadcast time for campaign advertising un- shall apply: less such requirement or obligation is spe- ‘‘(A) An electioneering communication Mr. LOTT proposed an amendment to cifically and expressly authorized by title III shall be treated as made by an entity de- the bill, S. 1663, supra; as follows: of the Communications Act of 1934. scribed in paragraph (1)(A) if— In the language proposed to be stricken in (b) EFFECTIVE DATE.—This section shall ‘‘(i) the entity described in paragraph the bill, strike all after the word ‘‘political’’ take effect one day after enactment of this (1)(A) directly or indirectly disburses any on page 2, line 23, and insert the following: Act.

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00075 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S940 CONGRESSIONAL RECORD — SENATE February 24, 1998 LOTT AMENDMENT NO. 1653 AMENDMENT NO. 1656 mittee on Foreign Relations be author- Mr. LOTT proposed an amendment to At the appropriate place, insert the fol- ized to meet during the session of the lowing: amendment No. 1651 proposed by him Senate on February 24, 1998, at 10:00 ll to the bill, S. 1663, supra; as follows: SEC. . LIMITATION ON ACCEPTANCE OF OUT- AM to hold a hearing. OF-STATE CONTRIBUTIONS BY SEN- The PRESIDING OFFICER. Without Strike all after the word ‘‘section’’ in the ATE CANDIDATES. pending amendment and insert the following: Title III of the Federal Election Campaign objection, it is so ordered. COMMITTEE ON LABOR AND HUMAN RESOURCES 1. ELECTIONEERING COMMUNICATIONS. Act of 1971 (2 U.S.C. 431 et seq.) is amended Mr. MCCONNELL. Mr. President, I (a) PROHIBITION.—None of the funds appro- by adding at the end the following: priated or otherwise made available to the ‘‘SEC. ll. LIMITATION ON ACCEPTANCE OF OUT- ask unanimous consent that the Com- Federal Communications Commission may OF-STATE CONTRIBUTIONS BY SEN- mittee on Labor and Human Resources be expended to impose or enforce any re- ATE CANDIDATES. be authorized to meet for a hearing on quirement or obligation with respect to the ‘‘(a) LIMITATION.—A Senate candidate and Tobacco Settlement V during the ses- provision of free or discounted television the candidate’s authorized committees shall not accept, during an election cycle, con- sion of the Senate on Tuesday, Feb- broadcast time for campaign advertising un- ruary 24, 1998, at 10:00 a.m. less such requirement or obligation is spe- tributions from persons other than individ- uals residing in the candidate’s State in an The PRESIDING OFFICER. Without cifically and expressly authorized by title III objection, it is so ordered. of the Communications Act of 1934. amount exceeding 40 percent of the total amount of contributions accepted during the (b) EFFECTIVE DATE.—This section shall SUBCOMMITTEE ON CONSTITUTION, FEDERALISM, take effect two days after enactment of this election cycle. AND PROPERTY RIGHTS ‘‘(b) DEFINITION OF ELECTION CYCLE.—In Act. Mr. MCCONNELL. Mr. President, I this section, the term ‘election cycle’ means ask unanimous consent that the Sub- the period beginning on the day after the HUTCHISON AMENDMENTS NOS. date of the most recent general election for committee on Constitution, Fed- 1654—1656 the specific office or seat that the candidate eralism, and Property Rights, of the Senate Judiciary Committee, be au- (Ordered to lie on the table.) seeks and ending on the date of the next gen- eral election for that office or seat.’’. thorized to meet during the session of Mrs. HUTCHISON submitted three f the Senate on Tuesday, February 24, amendments intended to be proposed 1997 at 2:00 p.m. to hold a hearing in by her to the bill, S. 1663, supra; as fol- NOTICES OF HEARINGS room 226, Senate Dirksen Building, on: lows: COMMITTEE ON INDIAN AFFAIRS ‘‘Term Limits or Campaign Finance AMENDMENT NO. 1654 Mr. CAMPBELL. Mr. President, I Reform: Which Provides True Political At the appropriate place, insert the fol- would like to announce that the Senate Reform?’’ lowing: Committee on Indian Affairs will meet The PRESIDING OFFICER. Without SEC. ll. LIMIT ON CONGRESSIONAL USE OF THE on Wednesday, February 25th, 1998 at objection, it is so ordered. FRANKING PRIVILEGE. 9:30 a.m. and Thursday, February 26th, SUBCOMMITTEE ON NATIONAL PARKS, HISTORIC Section 3210(a)(6)(A) of title 39, United 1998 at 11:00 a.m. in room 562 of the PRESERVATION, AND RECREATION States Code, is amended to read as follows: ‘‘(A) A Member of Congress shall not mail Dirksen Senate Office Building to con- Mr. MCCONNELL. Mr. President, I any mass mailing as franked mail during a duct hearings on the President’s FY ’99 ask unanimous consent that the Sub- year in which there will be an election for budget request for Indian programs. committee on National Parks, Historic the seat held by the Member during the pe- Those wishing additional information Preservation, and Recreation of the riod between January 1 of that year and the should contact the Committee on In- Committee on Energy and Natural Re- date of the general election for that Office, dian Affairs at 224–2251. sources be granted permission to meet unless the Member has made a public an- COMMITTEE ON AGRICULTURE, NUTRITION, AND during the session of the Senate on nouncement that the Member will not be a FORESTRY Tuesday, February 24, for purposes of candidate for election to any Federal office in that year (including the office held by the Mr. LUGAR. Mr. President, I would conducting a subcommittee hearing Member).’’. like to announce that the Senate Com- which is scheduled to begin at 2:00 p.m. mittee on Agriculture, Nutrition, and The purpose of this oversight hearing AMENDMENT NO. 1655 Forestry will meet on March 5, 1998 at is to receive testimony on the visitor At the appropriate place, insert the fol- 9:00 a.m. in SR–328A. The purpose of center and museum facilities project at lowing: this meeting will be to examine the Gettysburg National Military Park. SEC. ll. LIMITATION ON REIMBURSEMENT Kyoto Treaty on Climate Change and The PRESIDING OFFICER. Without FROM CAMPAIGNS FOR CONTRIBU- its effect on the agricultural economy. objection, it is so ordered. TIONS BY SENATE CANDIDATES AND SUBCOMMITTEE ON READINESS IMMEDIATE FAMILIES OF SENATE f Mr. MCCONNELL. Mr. President, I CANDIDATES. AUTHORITY FOR COMMITTEES TO ask unanimous consent that the Sub- Title III of the Federal Election Campaign MEET Act of 1971 (2 U.S.C. 431 et seq.) is amended committee on Readiness of the Com- by adding at the end the following: COMMITTEE ON COMMERCE, SCIENCE, AND mittee on Armed Services be author- ‘‘SEC. ll. LIMITATION ON REIMBURSEMENT TRANSPORTATION ized to meet on Tuesday, February 24, FROM CAMPAIGNS FOR CONTRIBU- Mr. MCCONNELL. Mr. President, I 1998 at 3:00 p.m. in open session, to re- TIONS BY SENATE CANDIDATES AND ask unanimous consent that the Com- ceive testimony on the status of the IMMEDIATE FAMILIES OF SENATE merce, Science, and Transportation CANDIDATES. operational readiness of the U.S. Mili- ‘‘(a) IN GENERAL.—The aggregate amount Committee be authorized to meet on tary Forces including the availability of contributions made during an election Tuesday, February 24, 1998, at 9:30 a.m. of resources and training opportunities cycle to a Senate candidate or the can- on tobacco legislation. necessary to meet our national secu- didate’s authorized committees from the The PRESIDING OFFICER. Without rity requirements. sources described in subsection (b) that may objection, it is so ordered. The PRESIDING OFFICER. Without be reimbursed to those sources shall not ex- COMMITTEE ON GOVERNMENTAL AFFAIRS objection, it is so ordered. ceed $250,000. Mr. MCCONNELL. Mr. President, I SUBCOMMITTEE ON TECHNOLOGY, TERRORISM, ‘‘(b) SOURCES.—A source is described in this subsection if the source is— ask unanimous consent on behalf of the AND GOVERNMENT INFORMATION ‘‘(1) personal funds of the candidate and Governmental Affairs Committee to Mr. MCCONNELL. Mr. President, I members of the candidate’s immediate fam- meet for a hearing on Tuesday, Feb- ask unanimous consent that the Sub- ily; or ruary 24, 1998, at 3:00 p.m. The subject committee on Technology, Terrorism, ‘‘(2) personal loans incurred by the can- of the hearing is the substitute for S. and Government Information, of the didate and members of the candidate’s im- 981, The Regulatory Improvement Act Senate Judiciary Committee, be au- mediate family. of 1998. thorized to meet during the session of ‘‘(c) INDEXING.—The $250,000 amount under The PRESIDING OFFICER. Without the Senate on Tuesday, February 24, subsection (a) shall be increased as of the be- objection, it is so ordered. ginning of each calendar year based on the 1997 at 9:00 a.m. to hold a hearing in increase in the price index determined under COMMITTEE ON FOREIGN RELATIONS room 226, Senate Dirksen Building, on: section 315(c), except that the base period Mr. MCCONNELL. Mr. President, I ‘‘Foreign Terrorists in America: Five shall be calendar year 1997.’’. ask unanimous consent that the Com- Years After the World Trade Center.’’

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00076 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S941 The PRESIDING OFFICER. Without I want to emphasize that these funds ruary 16, 1998, became the 133rd Presi- objection, it is so ordered. come from gas taxes collected every dent of the California Medical Associa- f time Americans pull up to the pump. tion, the largest state medical associa- This ‘‘user fee’’ arrangement is sup- tion in the nation. With a membership ADDITIONAL STATEMENTS posed to ensure that these taxes pay of 35,000 physicians, the California for improving their highways. Medical Association represents Cali- 1 ISTEA REAUTHORIZATION Mr. President, 31 ⁄2 billion dollars in fornia physicians from all regions, gas taxes are collected each year, of medical specialties, and modes of prac- ∑ Mr. FAIRCLOTH. Mr. President, I which about 20 billion dollars actually tice. would like to speak on reauthorization goes towards highways. Even as we Dr. Reid’s medical career is both long of the highway bill. I respectfully urge delay consideration of S. 1173, Ameri- and distinguished. For more than 25 the Majority Leader to take up Senate cans pay their gas taxes in the belief years, he was a practicing OB/GYN, and Bill 1173—ISTEA—now. Let’s not delay that much-needed highway improve- is currently Director of Medical Affairs its consideration into the spring. ments will be funded. for the Cottage Health System in The State’s highway programs are al- Looking at the legislative calendar Santa Barbara, California. Dr. Reid has ready operating under a temporary between now and May 1, when federal also served as the hospital’s Chief of funding extension. I believe that fur- highway funds will dry up, there are 41 Staff, and was a member of its Board of ther delaying consideration of S. 1173 legislative days including Mondays and Directors from 1991 to 1996. Dr. Reid is will add more uncertainty to the Fridays. a Fellow of the American College of States’ highway construction. Even after we debate and pass a bill Obstetrics-Gynecology and Past Presi- As I mentioned, before this body ad- in the Senate, we have a conference re- dent of the Tri-Counties Obstetrics- journed last November, we passed a port to complete. Gynecology Society. A former Presi- temporary extension of the highway Other issues are sure to be considered dent of the Santa Barbara County Med- bill, after repeated attempts to begin here, including potential military con- ical Society, Dr. Reid also served as Al- debate on the bill failed. flict with Iraq, IRS restructuring, cam- ternate Delegate to the American Med- It now appears that floor consider- paign finance reform, and the budget ical Association. ation of S. 1173 may be delayed until resolution. That will take us well into Born in Milan, Italy, Dr. Reid is a after the Senate considers the Fiscal April at best. graduate of the University of Colorado Year 1999 Budget Resolution. If we do not act on S. 1173 now, a Medical Center. He lives in Santa Bar- I am second to no Member in my lapse in federal highway funding is a bara, California, with his wife Patricia, commitment to a balanced federal virtual certainty. The presence of and is the father of four grown chil- budget. However, I believe that we other important matters on the cal- dren. must also follow through on our com- endar only increases the importance of At a time of rapid change in the med- mitment to quality infrastructure, and bringing up the Highway bill. ical profession, Dr. Reid’s leadership these two objectives are by no means This is our obligation. It is our obli- will be most welcome. I extend my con- mutually exclusive. gation to the millions of motorists who gratulations to him, and wish him the The current funding extension ex- pay gas taxes, and the contractors, very best in his term as President of pires on March 31. That means that all subcontractors and employees working the California Medical Association.∑ ∑ federal highway funds will be cut off on on highway projects. f f May 1. Clearly, prompt action on TRIBUTE TO EDWARD AKER, ISTEA is critical to maintaining the RED CEDAR ELEMENTARY SCHOOL DEVOTED PUBLIC SERVANT flow of federal highway dollars. 50TH ANNIVERSARY ∑ Mr. SMITH of New Hampshire. Mr. Unlike delays last fall, however, ∑ Mr. ABRAHAM. Mr. President, I rise these spring delays for ISTEA will President, I rise to pay tribute to the today to acknowledge the 50th anniver- life and accomplishments of Edward occur in the middle of construction sary of the Red Cedar Elementary Aker, of Adelphi, Maryland, who passed season. This will compound the disrup- School in East Lansing, Michigan. The away last week of brain cancer. tive effects of this halt on highway school began immediately following Ed was an executive officer with the projects—and the jobs they support— World War II in an effort to educate U.S. Agency for International Develop- around the country. the children of G.I.s who moved to East ment (USAID) for nearly two decades. In the northern States, it is critical Lansing to get an education promised His service brought him posts in many that construction funding flows at this by the G.I. bill. Since that time, Red countries, including Israel, Nicaragua, time of year. The window for road con- Cedar has grown tremendously and has Guatemala, Pakistan, Somalia, Kenya struction work in many areas is lim- come to hold a prominent place in the and Tanzania. He was known by citi- ited by weather factors during the win- East Lansing community. Because zens throughout the Washington area ter months. many of the students are from other and the world for his commitment to Many states, including my own, have countries, the diverse backgrounds and his mission, and his desire to help the highway construction projects under- beliefs that make up the Red Cedar underprivileged by encouraging eco- way that are designed to reduce traffic community provide for a truly unique nomic development, humanitarian as- congestion. This congestion worsens learning environment. sistance and international cooperation. air quality, causes ‘‘road rage,’’ in- This momentous occasion has been Ed distinguished himself with his creases wear and tear on vehicles, celebrated throughout the month of public service. He served in the United wastes fuel, and robs American busi- February within both the Red Cedar States Navy during the Korean War, nesses and families of valuable time. and East Lansing communities and will and worked at a number of government Cutting off crucial federal funds for culminate on the evening February 27, agencies including Housing and Urban these projects undermines State efforts 1998 with a reception and a dance for Development, the State Department, to deal with their congestion problems. students, parents and other members of and the General Services Administra- It is very unfortunate that highway the community. It is with great pleas- tion before commencing his distin- fatalities continue to rise. By Federal ure that I recognize and congratulate guished career at the United States Highway Administration estimates, the Red Cedar Elementary School on Agency for International Development. poor road maintenance may contribute their 50th anniversary. He graduated from the University of to as many as 30 percent of fatal acci- Mr. President, I yield the floor.∑ Maryland, received masters degrees dents, resulting in thousands of deaths f from the U.S. International University per year. Safety-related highway work in Nairobi and San Diego, and received faces stoppage if we delay consider- DR. ROBERT A. REID, INCOMING a PhD in business administration from ation of ISTEA. PRESIDENT OF THE CALIFORNIA Pacific Western University. In fact, in North Carolina, 300 million MEDICAL ASSOCIATION Ed was admired by many for his pa- dollars in safety projects may be de- ∑ Mrs. BOXER. Mr. President, I rise to triotism, commitment to his family, layed if federal funds are not approved. recognize Dr. Robert Reid, who on Feb- dedication to his job, and uplifting

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00077 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S942 CONGRESSIONAL RECORD — SENATE February 24, 1998 spirit. He was the type of dedicated [From the Mount Vernon Register-News, achieve independence and gain employ- public servant that all Americans can Feb. 2, 1998] ment. Jack’s record of achievement is admire. He was a no-nonsense execu- MT. VERNON YOUTH WHO SAVED BROTHER impressive. In 1996, under his direction, tive who could be tough when the job FROM DOG TO MEET WITH CLINTON the Tennessee Vocational Rehabilita- had to get done; but, he combined this MT. VERNON—A young boy who stepped tion Program served 26,032 individuals strong work ethic with a quick wit, between his 4-year-old brother and a 95- with disabilities of which 81 percent great sense of humor and special pound attacking dog is being rewarded for were severely disabled. Of the individ- charm. His generous smile will be his bravery with a meeting with President uals, served 5,820 were successfully em- Clinton. missed by all who knew him. Christopher Simmons, 8, has been chosen ployed with more than 90 percent of Ed Aker was buried today, Tuesday, to represent the nation’s 2.1 million Cub them working in the competitive labor February 24th, 1997, with military hon- Scouts in presenting scouting’s yearly Re- market. The annualized income of ors at Arlington National Cemetery. I port to the Nation in the Oval Office next these 5,820 individuals, once they en- extend my deepest sympathies to his month. tered the work force increased from wife, Lisa, his sons, Mike and Tim, his His bravery also earned him the Scouts’ $8.732 million to $64.233 million. I am stepson, Jared, and his grandson, rare Honor Medal, ‘‘for unusual heroism in proud of Jack’s leadership and the Mitchell. He leaves behind a legacy of saving or attempting to save life at consider- achievement of his agency. ∑ able risk to self.’’ Only 42 such medals were which his family can be very proud. earned last year by the nation’s 4.5 million Jack began to develop the strong f Cub Scouts, Boy Scouts and Explorers. leadership skills that have transcended THE HEROISM OF CHRISTOPHER Christopher’s story began last April 6 when through his distinguished career while SIMMONS his dad, Phillip, took along Christopher, attending Columbia High School in Co- then 7, and his brother, Michael, to help the lumbia, Tennessee. At Columbia High, ∑ Mr. DURBIN. Mr. President, I would dog’s owner with some yard work. Jack was elected President of the Stu- like to enter into the RECORD an amaz- Phillip Simmons was chatting with the ing story of heroism and courage. man, who is in his 80s, when he saw the dog dent Body, and served as the captain of Faced with the threat of severe injury shaking Michael by his coat. The boxer then the football, baseball and basketball to his 4-year-old brother, Michael, released its grip and aimed for Michael’s teams. In football, Jack was All-State throat. Christopher Simmons, an 8-year-old for two years and made the All-South- ‘‘As his jaws closed on Michael’s head, ern and All-American teams. from Mt. Vernon, Illinois, boldly Christopher launched a kick that connected placed himself between his brother and with the dog’s left eye,’’ the father recalled After High School, Jack attended a 95-pound dog. In doing so, Chris- last week. ‘‘The pain further enraged the Tennessee Tech where he met his wife topher demonstrated a profound sense dog, who instantly turned on Christopher.’’ of forty-three years, Wanda with whom of selflessness that is all too rarely re- As Christopher stepped back, with the he has two sons, Jay and Dave. He con- ported. His heroism, as described in an dog’s paws on his chest and its jaws ripping tinued his sports career at Tennessee article in the Mt. Vernon Register- at his coat, the momentary diversion gave Tech where he played football and Simmons time to reach his sons. baseball. As Tennessee Tech’s quarter- News, was quite possibly the only thing ‘‘I jumped on him and kicked him,’’ Chris- that saved his younger brother from se- topher, a third-grader at St. Mary’s School, back he made the All-Conference Team rious bodily harm. recalled last week at his home here. ‘‘Then and the little All-American Football On April 6, 1997, as the boys’ father, he jumped on me. By that time my dad was Team. Jack served in the United States Phillip Simmons, spoke with the dog’s there. I pulled my brother out of reach of the Army for two years upon graduation. owner, Christopher noticed the boxer dog.’’ Jack went back to school and earned playfully tugging at Michael’s jacket. Seizing the dog by one ear, Phillip Sim- mons rammed his fist down the animal’s a master’s degree from the University Suddenly, the dog lunged for the 4- of Tennessee after his military service year-old’s throat. Christopher, without throat and held him against a car. ‘‘As the dog struggled, I looked back to see and was a teacher and athletic coach in the slightest hesitation, stepped in Michael standing frozen in a pool of blood, Lake City, Florida and Isaac Litton front of the attacking dog and kicked still within reach of the dog if he got loose,’’ High School in Nashville. Even today, it in the left eye. The dog, startled mo- the father recalled. serving as a softball coach, his passion mentarily, became more angry and ‘‘Chris, even though bleeding from two sets for sports and coaching is evident. jumped onto Christopher, clawing and of chest wounds, had the presence of mind to In 1960, Jack began his service to the biting his chest. Fortunately, Chris- pull Michael out of range of the boxer so I citizens of Tennessee with the Ten- topher’s quick thinking gave his father could release the dog,’’ Phillip Simmons added. ‘‘There is no doubt that if it had not nessee Division of Rehabilitation Serv- enough time to come to his aid, remov- been for Christopher’s quick thinking and ices. He started as a Disabilities Exam- ing the dog from the boy’s chest and action, I would have lost my 4-year-old son.’’ iner, helping individuals with disabil- subduing it until the owner arrived. Michael, now 5, had to have surgery on his Christopher received two chest ities get their benefits. Jack, went on jaw and dangling left ear. Physicians to supervise, train and develop the wounds and lost a significant amount stitched along a crease so that the ear would of blood. Michael, now 5 years old, heal with no visible damage. The boxer’s staff of the Division of Rehabilitation needed surgery to repair a wounded jaw teeth barely missed a nerve that controls the Services. As I review Jack’s record of and a severely damaged ear. The dog’s eye and another that controls the jaw. achievement, I notice that he has held teeth barely missed nerves that help A typically lively 5-year-old, Michael several important positions that seems to have few emotional scars, though control the movements of the eyes and touched all aspects of the program his parents say he is very afraid of dogs. until he ultimately headed the pro- the jaw. If the dog had been able to do The dog had no history of harming or more harm to Michael, the little boy gram in 1995. I am proud of his dedica- threatening anyone. tion to help Tennesseans with disabil- may not have survived. Instead of insisting the dog be killed, the This horrible incident had one posi- Simmons family agreed to allow the boxer to ities achieve employment, to help give tive consequence: Christopher will be be sent to a breeding farm where children them opportunity and independence. in Washington next month to represent were not allowed. The dog has since died.∑ That caring and dedication should serve as an example to us all as we 2.1 million Cub Scouts as he presents f President Clinton with the Scouts’ an- carry out the critical work of the nual Report to the Nation. I am TRIBUTE TO JACK VAN HOOSER United States Senate. pleased to have this opportunity to ∑ Mr. FRIST. Mr. President, at the end Friday, Jack Van Hooser will retire. join President Clinton in honoring of this month, Jack Van Hooser the He will spend more time with his wife Christopher for his tremendous her- Commissioner for Rehabilitation Serv- and family. I have no doubt that he oism and outstanding courage. I ask ices for the State of Tennessee is retir- will also teach his four grand- that the Mt. Vernon Register-News ar- ing after thirty-five years of dedicated daughters, not only how to play soft- ticle describing Christopher Simmons’ service. Throughout his career, Jack ball, but teach them how to be leaders act of heroism be printed in the has been a tireless servant of the State and serve their fellow citizens with the RECORD. of Tennessee and has worked to em- dignity and respect he has for so many The article follows: power individuals with disabilities to years.∑

VerDate Mar 15 2010 03:32 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00078 Fmt 4624 Sfmt 0634 E:\1998SENATE\S24FE8.REC S24FE8 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 24, 1998 CONGRESSIONAL RECORD — SENATE S943 ORDER OF BUSINESS was, what it was meant to be, what it The PRESIDING OFFICER. Without Mr. BURNS addressed the Chair. can be. objection, it is so ordered. The PRESIDING OFFICER. The Sen- And Mr. Paul Weyrich has over 30 f ator from Montana. years of experience with rail and mass transit issues. He also served on the PROGRAM f Amtrak Board of Directors during the Mr. BURNS. Mr. President, tomorrow EXECUTIVE CALENDAR NO. 380 Bush administration, and has published morning, at 11:30, under a previous con- RETURNED TO COMMITTEE numerous works on the subject. Mr. sent agreement, the Senate will debate Weyrich brings the hard-boiled sen- Mr. BURNS. As in executive session, the veto message to accompany H.R. sibilities of a newspaperman of the old I ask unanimous consent that Execu- 2631, the military construction appro- school, a newspaperman good at tive Calendar No. 380 be returned to priations bill. All Senators should be digging for the facts. Just the facts for committee. aware that although there is a 2-hour the ARC. The PRESIDING OFFICER. Without limitation on the veto message, that The selection of these three reflects objection, it is so ordered. rollcall vote will occur later in the day my desire to bring managerial exper- in an effort to accommodate those f tise to Amtrak’s oversight. The ARC Members attending the funeral of APPOINTMENT BY THE MAJORITY will ensure that Amtrak spends the former Senator Ribicoff. All Senators LEADER taxpayers’ money wisely. The ARC’s will be notified when that vote is set. first loyalty will be to the American Following the debate on the veto The PRESIDING OFFICER. The taxpay—not to the nostalgic sound of message, the Senate will resume de- Chair announces on behalf of the ma- passenger trains going down the bate on the pending legislation regard- jority leader, pursuant to Public Law tracks. ing campaign finance reform. Addi- 105–134, his appointment of the fol- Gil, Joe and Paul are executives who tional votes can be expected during lowing individuals to serve as members will take a good, hard look at Amtrak, Wednesday’s session relating to cam- of the Amtrak Reform Council: Gilbert and I expect them to exercise courage paign finance reform. E. Carmichael, of Mississippi, Joseph and leadership. The ARC has the re- Finally, as a reminder, three cloture Vranich, of Pennsylvania, and Paul M. sponsibility to offer sound judgment as motions were filed during today’s ses- Weyrich, of Virginia. they advise both the Administration sion to pending amendments and the Mr. LOTT. Mr. President, I am and the Congress. underlying bill, S. 1663. These votes pleased to announce the appointment I have no doubt the ARC will have a will occur on Thursday of this week. of three individuals to the Amtrak Re- key role in shaping Amtrak’s future. Mr. President, I thank my col- form Council—the ARC: Mr. Gilbert E. I’m pleased to announce that today leagues. ‘‘Gil’’ Carmichael of Mississippi, Mr. the Speaker will also identify his three f Joseph Vranich of Pennsylvania, and selections. These selections together Mr. Paul M. Weyrich of Virginia. All will constitute the majority of the ADJOURNMENT UNTIL 10 A.M. three have years of rail transportation ARC. TOMORROW experience. All three understand and Mr. President, I want to thank my Mr. BURNS. Mr. President, if there is respect Amtrak’s contributions to the colleagues who gave me such a rich list no further business to come before the American economy. All three are truly of candidates to select from. The Senate, I now ask that the Senate committed to genuine railroad reform. choices were difficult. stand in adjournment under the pre- All three will serve for five years. All The Amtrak Board of Directors, the vious order. three will examine the fiscal perform- other managerial oversight body for There being no objection, the Senate, ance of Amtrak. Amtrak is to be renominated this sum- at 6:28 p.m., adjourned until Wednes- Each of these appointees bring many mer. I hope to see new faces, a fresh day, February 25, 1998, at 10 a.m. years of experience to this challenging look and a fresh approach. This would railroad issue. Each brings his own par- help Amtrak successfully deal with the f ticular approach to this transportation cultural shift required by the new reau- NOMINATIONS job. thorization statute. The combined syn- I’ve known Mr. Gil Carmichael for Executive nominations received by ergy of a new board and the ARC will the Senate February 24, 1998: many years. He is a dedicated public make a profound difference to the way DEPARTMENT OF STATE servant who has already served our na- America’s passenger rail service will tion as Federal Railroad Administrator GEORGE MCGOVERN, OF SOUTH DAKOTA, FOR THE enter the next millennium. RANK OF AMBASSADOR DURING HIS TENURE OF SERVICE for President Bush and served four I look forward to seeing ARC getting AS U.S. REPRESENTATIVE TO THE UNITED NATIONS years on the Amtrak Board of Direc- AGENCIES FOR FOOD AND AGRICULTURE. started on its important task. Amer- MARY BETH WEST, OF THE DISTRICT OF COLUMBIA, A tors. He also has an impressive depth ica’s passenger rail service will be well CAREER MEMBER OF THE SENIOR EXECUTIVE SERVICE, and breadth of knowledge on all facets FOR THE RANK OF AMBASSADOR DURING HER TENURE served by the ARC. OF SERVICE AS DEPUTY ASSISTANT SECRETARY OF of transportation—it was Gil who spon- f STATE FOR OCEANS AND SPACE. sored the first World Railways Con- THE JUDICIARY gress. It brought together senior rail ORDERS FOR WEDNESDAY, MELVIN R. WRIGHT, OF THE DISTRICT OF COLUMBIA, officials from around the world. so Gil FEBRUARY 25, 1998 TO BE AN ASSOCIATE JUDGE OF THE SUPERIOR COURT knows the rail business from the bot- Mr. BURNS. Mr. President, seeing no OF THE DISTRICT OF COLUMBIA FOR THE TERM OF FIF- TEEN YEARS, VICE HENRY HAROLD KENNEDY, JR., ELE- tom up, and he brings to the ARC that other Senators requesting time to VATED. good old every-day, common sense ap- speak, I ask unanimous consent that IN THE ARMY proach that we Mississippians are so when the Senate completes its business THE FOLLOWING NAMED OFFICER FOR APPOINTMENT proud of. today, it stand in adjournment until 10 IN THE UNITED STATES ARMY TO THE GRADE INDICATED Mr. Joseph Vranich helped create a.m. on Wednesday, February 25, and UNDER TITLE 10, U.S.C., SECTION 624: Amtrak while serving as the Executive immediately following the prayer, the To be major general Director of the National Association of routine requests through the morning BRIG. GEN. NANCY R. ADAMS, 0000. Railroad Passengers. He is a specialist hour be granted and there then be a pe- THE FOLLOWING NAMED OFFICER FOR APPOINTMENT IN THE UNITED STATES ARMY TO THE GRADE INDICATED on high-speed train travel, and lit- riod of morning business until 11:30 UNDER TITLE 10, U.S.C., SECTION 624: erally wrote the book on so-called a.m., with Senators permitted to speak To be major general ‘‘Supertrains.’’ Just late last year, he for up to 5 minutes each, with the fol- BRIG. GEN. JOHN S. PARKER, 0000. UTCH published the most important new lowing exceptions: Senator H - IN THE NAVY book on railroads, ‘‘Derailed: What INSON, 20 minutes; Senator GORTON, 5 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT Went Wrong and What to Do About minutes; Senator BROWNBACK, 10 min- IN THE NAVAL RESERVE TO THE GRADE INDICATED America’s Passenger Trains.’’ Mr. utes; Senator BYRD, 20 minutes; Sen- UNDER TITLE 10, U.S.C., SECTION 12203: Vranich brings to the ARC a broad vi- ator MIKULSKI, 15 minutes; Senator To be rear admiral sion of passenger rail service, what it GRAMM of Texas, 10 minutes. REAR ADM. (LH) ROBERT F. BIRTCIL, 0000.

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IN THE ARMY CASSONDRA K. AYERS, 0000 SCOTT B. CLIFTON, 0000 LAWRENCE A. BAUER, 0000 THOMAS E. CLINTON, JR., 0000 THE FOLLOWING NAMED ARMY NATIONAL GUARD OF BRAIN T. BECKWITH, 0000 ERIK E. COBHAM, 0000 THE UNITED STATES OFFICERS FOR APPOINTMENT TO DOUGLAS H. BIGGS, 0000 JOSEPH R. COLOMBO, 0000 THE GRADE INDICATED IN THE RESERVE OF THE ARMY JOSEPH G. BOWE, 0000 JEFFREY L. CONGLETON, 0000 UNDER TITLE 10, U.S.C., SECTIONS 12203 AND 12211: HERBERT A. BOWLDS, JR., 0000 GARLAND N. COPELAND, 0000 To be colonel GERALD R. BROWN, 0000 BRIAN G. COSGROVE, 0000 JACQUELINE BRYTT, 0000 JAMES A. COSMETIS, 0000 RICHARD W. MEYERS, 0000 TERRANCE L. BURNS, 0000 LANCE C. COSTA, 0000 CHARLES M. SINES, 0000 JOHN M. CAPPS, 0000 DANIEL P. CREIGHTON, 0000 CURT A. CAREY, 0000 RICHARD J. CREVIER, 0000 IN THE MARINE CORPS MARK D. CICALI, 0000 TIMOTHY S. CRONIN, 0000 VANCE L. CRYER 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT BIAGIO COLANDREO, JR., 0000 SCOTT R. CUBBLER 0000 TO THE GRADE INDICATED IN THE UNITED STATES MA- ROBERT J. DARLING, 0000 JEFFREY K. DANIELS 0000 RINE CORPS UNDER TITLE 10, U.S.C., SECTION 624: DANIEL J. DAUGHERTY, 0000 TIMOTHY J. FLANAGAN, 0000 BRENT R. DAVIS 0000 To be colonel JOHN J. FOLEY, 0000 HAROLD P. DAVIS 0000 CHARLES C. FURTADO III, 0000 JOHN B. DAVIS 0000 RAYMOND ADAMIEC, 0000 GLENN E. GERICHTEN, 0000 THOMAS E. DAVIS 0000 BRUCE A. ALBRECHT, 0000 YOLANDA DAVIS 0000 JOHN R. ALLEN, 0000 LAUREL D. GLENN, 0000 ROBERT C. GRAHAM, 0000 GARY E. DELGADO 0000 DAVID A. ANDERSON, 0000 JAMES W. DEMOSS JR. 0000 MICHAEL F. APPLEGATE, 0000 PATRICK A. GRAMUGLIA, 0000 PHILLIP D. HARWARD, 0000 TODD S. DENSON 0000 RAY A. ARNOLD, 0000 SCOTT T. DERKACH 0000 DOUGLAS F. ASHTON, 0000 FREDERICK J. HOPEWELL, 0000 KENNETH V. JANSEN, 0000 GERT J. DEWET 0000 BRIAN J. BACH, 0000 ANDREW L. DIETZ 0000 DENIS J. KIELY III, 0000 DENNIS T. BARTELS, 0000 JOHN T. DODD 0000 LARRY L. KNEPPER, 0000 JOHN R. BATES, 0000 THOMAS J. DODDS 0000 GREGORY G. KOZIUK, 0000 JEFFERY W. BEAROR, 0000 EDWARD A. DONOVAN III 0000 JEFFREY D. LEE, 0000 MICHAEL D. BECKER, 0000 BRIAN G. DOOLEY 0000 BRIAN K. MC CRARY, 0000 BRUCE E. BISSETT, 0000 LANCE S. DORMAN 0000 JON E. MC ELYEA, 0000 KENNETH D. BONNER, 0000 MICHAEL J. DOUGHERTY 0000 JAMES G. MC GARRAHAN, 0000 GREGORY K. BRICKHOUSE, 0000 CHRISTOPHE G. DOWNS 0000 JACK P. MONROE IV, 0000 BRUCE E. BRONARS, 0000 KEVIN C. DUGAN 0000 JAMES L. NORCROSS, 0000 LARRY K. BROWN, JR., 0000 SCOTT P. DUNCAN 0000 DAVID L. BULAND, 0000 JEFFREY J. NYHART, 0000 JAMES M. DUPONT 0000 JOSEPH F. BURANOSKY, 0000 ROBERT R. PIATT, 0000 JOHN J. EDMONDS 0000 JAMES P. CAROTHERS, 0000 CHARLES B. RUMSEY, JR., 0000 JAMES P. EDMUNDS III 0000 ROXANNE W. CHENEY, 0000 JOHN B. STARNES, 0000 RODNEY S. EDWARDS 0000 PAUL C. CHRISTIAN, 0000 ALAN R. STOCKS, 0000 BRIAN D. EHRLICH 0000 HENRY J. COBLE, 0000 RICHARD A. STONES, 0000 KEITH L. FAUST 0000 JOHN C. COLEMAN, 0000 SUSAN C. SWANSON, 0000 WADE A. FELLER 0000 THOMAS L. CONANT, 0000 STEPHEN O. VIDAURRI, 0000 STEVEN L. FELTENBERGER 0000 DONALD G. CROOM, 0000 THOMAS M. VILAS, 0000 JAMES A. FENNELL 0000 RICHARD H. DUNNIVAN, 0000 RICHARD E. WILLIAMS, 0000 ROBERT S. FERGUSON 0000 RUSSELL A. EVE, 0000 JAMES G. WILSON, 0000 TAD J. FINER 0000 PHILIP J. EXNER, 0000 WINBON J. TWIFORD III, 0000 MARTIN J. FORREST IV 0000 EUGENE J. FRASER, 0000 To be captain DAVID C. FORREST 0000 LEE W. FREUND, 0000 TIMOTHY J. FRANK 0000 ANDREW P. FRICK, 0000 TIMOTHY L. ADAMS, 0000 ERIK G. FRECHETTE 0000 MICHAEL J. GODFREY, 0000 CURTIS M. ALLEN, 0000 LLOYD D. FREEMAN 0000 JEFF D. GRELSON, 0000 DEBBIE J. ALLEN, 0000 STEPHEN P. FREEMAN 0000 TERRY W. GRIFFIN, 0000 ROBERT J. ALLEN, 0000 THOMAS C. FRIES 0000 MYRON L. HAMPTON, 0000 DAWN R. ALONSO, 0000 BRYON J. FUGATE 0000 CHARLES T. HAYES, 0000 RONALD J. ALVARADO, 0000 TROY FULLER 0000 MICHAEL J. HEISINGER, 0000 ARNOLD L. AMPOSTA, 0000 JOHN M. FULTON 0000 CRAIG S. HUDDLESTON, 0000 RANDY L. ANDERSON, 0000 MATTHEW F. FUSSA 0000 PHILIP R. HUTCHERSON, 0000 STEVEN M. ANDERSON, 0000 PETER S. GADD 0000 MAURICE B. HUTCHINSON, 0000 MARCUS B. ANNIBALE, 0000 GREGORY CALBATO 0000 ANTHONY L. JACKSON, 0000 TRAY J. ARDESE, 0000 JESUS M. GARCIA 0000 KEVIN P. JANOWSKY, 0000 ARTHUR K. ARMANI, 0000 EDWARD A. GARLAND 0000 WESLEY A. JARMULOWICZ, 0000 RICHARD J. ASHBY, 0000 SCOTT R. GARTON 0000 WILLIAM F. JOHNSON, 0000 GAMAL F. AWAD, 0000 WILLIAM W. GERST, JR., 0000 KEVIN B. JORDAN, 0000 CHARLES R. BAGNATO, 0000 STEPHEN P. GHOLSON, 0000 CHRISTOPHER K. JOYCE, 0000 ANTHONY J. BANKS, 0000 ROBERT R. GICK, 0000 DENNIS JUDGE, 0000 CRAIG A. BARRETT, 0000 JOSEPH C. GIGLIOTTI, 0000 BRENDAN P. KEARNEY, 0000 RANDELL D. BECK, 0000 BRIAN S. GILDEN, 0000 WILLIAM R. KELLNER, JR., 0000 STEWART G. BECKER, 0000 MARK A. GIVENS, 0000 JOHN F. KELLY, 0000 DOUGLAS C. BEHEL, 0000 WILLIAM E. GLASER IV, 0000 MICHAEL J. KELLY, 0000 THOMAS J. BEIKIRCH, 0000 SEAN M. GODLEY, 0000 LEELLEN KUBOW, 0000 BRUCE E. BELL, 0000 JAMES M. GOETHE, 0000 ROBERT F. KUHLOW, 0000 DANIEL L. BELL, 0000 ADRIAN S. GOGUE, 0000 RANDALL W. LARSEN, 0000 AARON E. BENNETT, 0000 JOHN C. GOLDEN IV, 0000 ROBERT R. LOGAN, 0000 MARLIN C. BENTON, JR., 0000 SCOTT A. GONDEK, 0000 JAMES M. LOWE, 0000 ANDREW J. BERGEN, 0000 FLAY R. GOODWIN, 0000 RICHARD W. LUEKING, 0000 JOHN J. BERGERON, 0000 CARL W. GOUAUX, 0000 MICHAEL A. MALACHOWSKY, 0000 JESSICA M. BERGMANN, 0000 KENNETH G. GRAHAM, 0000 DAVID W. MUALDIN, 0000 GREGORY D. BIGALK, 0000 DAVID I. GRAVES, 0000 RICHARD P. MILLS, 0000 JOHN R. BINDER III, 0000 MICHAEL T. GRAVES, 0000 GARY E. MUELLER, 0000 FRED W. BISTA III, 0000 JERAMY GREEN, 0000 WILLIAM J. MULLENS, JR., 0000 TIMOTHY H. BOETTCHER, 0000 TRAVIS L. GREENE, 0000 MICHAEL C. O’NEAL, 0000 DEMETRIUS J. BOLDUC, 0000 WILLIAM B. GREER, 0000 RENE P. ORTIZ, 0000 LLOYD E. BONZO II, 0000 DAVID E. GRIBBLE, 0000 RICHARD J. PACKARD, 0000 DAVID C. BORKOWSKI, 0000 DAVID M. GRIESMER, 0000 FRANK A. PANTER, JR., 0000 BRADLEY R. BORMAN, 0000 STEPHEN M. GRIFFITHS, 0000 PHILIP S. PARKHURST, 0000 BRIAN J. BRACKEN, 0000 JOSEPH S. GROSS, 0000 CHARLES S. PATTON, 0000 STEPHAN L. BRADICICH, 0000 LOUIS S. GUNDLACH, 0000 MARTIN D. PEATROSS, 0000 RICHARD T. BRADY, 0000 RYAN R. GUTZWILLER, 0000 REYNOLDS B. PEELE, 0000 CHARLES R. BRANDICH III, 0000 JOHN J. HADDER, 0000 ROSS D. PENNINGTON, 0000 FREDERICK W. BREMER, 0000 MARK E. HAHN, 0000 NICHOLAS C. PETRONZIO, 0000 BENJAMIN T. BREWER, 0000 THOMAS R. HALL, 0000 MARTIN POST, 0000 BRUCE L. BRIDGEWATER, 0000 WILLIAM G. HALL, 0000 JOHN C. RADER, 0000 MARCELINO L. BRITO, 0000 HUGH M. HALLAWELL, 0000 STEVEN W. RAWSON, 0000 SCOTT E. BROBERG, 0000 ROBERT J. HALLETT, 0000 JOHN D. REARDON, 0000 PHILLIP V. BROOKING, 0000 HOLMES HARDEN, JR., 0000 ERVIN RIVERS, 0000 DAREN L. BROWN, 0000 THOMAS J. HARMON, 0000 STEPHEN C. ROBB, 0000 GLENN F. BROWN, 0000 HARRY A. HARNETT IV, 0000 MASTIN M. ROBESON, 0000 ROBERT J. BRUDER, 0000 TIMOTHY A. HARP, 0000 BONNIE J. ROBISON, 0000 TODD M. BURCH, 0000 JOHN D. HARRILL III, 0000 PHILIP C. RUDDER, 0000 HEATHER M. BURGESS, 0000 CARROLL N. HARRIS III, 0000 JONATHAN T. RYBERG, 0000 JOHN P. BURTON, 0000 JEFFREY A. HARRISON, 0000 BENNETT W. SAYLOR, 0000 PAUL A. BUTA, 0000 PAUL W. HART II, 0000 HOWARD P. SCHICK, 0000 JEFFREY R. CALLAGHAN, 0000 SEAN D. HAYES, 0000 ROBERT E. SCHMIDLE, JR., 0000 EZRA CARBINS, JR., 0000 LEE G. HELTON, 0000 DANIEL C. SCHULTZ, 0000 JUDE F. CAREY, JR., 0000 MARK J. HENDERSON, 0000 JACK K. SPARKS, JR., 0000 CURTIS W. CARLIN, 0000 STANLEY D. HESTER, 0000 STEPHEN P. TAYLOR, 0000 MATTHEW J. CARROLL, 0000 MARK B. HEVEL, 0000 BRADLEY E. TURNER, 0000 RONNIE A. CARSON, JR., 0000 WALTER R. HIBNER III, 0000 THOMAS D. WALDHAUSER, 0000 TODD M. CARUSO, 0000 MARTIN J. HINCKLEY, 0000 JAMES C. WALKER, 0000 BRIAN T. CASKEY, 0000 RUSSELL J. HINES, 0000 CLARENCE L. WALLACE, JR., 0000 MICHAEL J. CASSIDY, 0000 EVERETT J. HOOD, 0000 ROBERT M. WEIDERT, 0000 MICHAEL V. CAVA, 0000 WILLIAM W. HOOPER, 0000 RUSSELL C. WOODY, 0000 DONALD L. CERRI, 0000 THEODORE J. HORSE, 0000 GERALD A. YINGLING, JR., 0000 MATTHEW G. CHALKLEY, 0000 WILLIAM S. HOWELL, 0000 To be major NATHAN D. CHAMBERLAIN, 0000 MICHAEL D. HOYT, 0000 ROBERT M. CLARK, 0000 COLT J. HUBBELL, 0000 ANTHONY P. ALFANO, 0000 STEVEN B. CLAYTON, 0000 ROBERT O. HUBBELL, 0000

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DANIEL P. HUDSON, 0000 WARREN L. RAPP, 0000 MATTHEW H. ANDERSON, 0000 CHRISTOPHE W. HUGHES, 0000 KYLE G. RASH, 0000 MARY N. ANICH, 0000 DAVID A. HUMPHREYS, 0000 THOMAS R. RAYNOR, 0000 COURTNEY ARRINGTON, 0000 LANDON R. HUTCHENS II, 0000 WILLIAM G. RICE IV, 0000 ANDREW A. AUSTIN, 0000 CLAUDE O. HUTTON, JR., 0000 CARL A. RICHARDSON, 0000 PATRICIA S. BACON, 0000 THOMAS J. IMPELLITTERI, 0000 COLLEEN B. RICHARDSON, 0000 LARRY A. BAILEY, JR., 0000 ALBERT B. INTILLI, 0000 DANIEL R. RICHARDSON, 0000 AISHA M. BAKKARPOE, 0000 BERNARDO IORGULESCU, 0000 MICHAEL D. RIDDLE, 0000 CARNEL BARNES, 0000 WILLIAM J. JACOBS, 0000 RYAN S. RIDEOUT, 0000 DANIEL L. BATES, 0000 DAVID K. JARVIS, 0000 LARRY A. RISK, 0000 WILLIAM T. BELL, III 0000 MATTHEW J. JAVORSKY, 0000 DONALD A. ROACH, 0000 ROMAN V. BENITEZ 0000 BRADLEY S. JEWITT, 0000 WHITNEY S. ROACH, 0000 DANIEL G. BENZ, 0000 SCOTT R. JOHNSON, 0000 LENNIS R. ROBBINS, 0000 ELLERY L. BLAKES, 0000 TERRY M. JOHNSON, 0000 JOHN W. ROBERTS, 0000 CAVAN N. BRAY, 0000 JASON A. JOHNSTON, 0000 EDWARD J. RODGERS, 0000 ALVIN BRYANT, JR., 0000 MICHAEL T. KAMINSKI, 0000 TIMOTHY W. ROGERS, 0000 DUNCAN J. BUCHANAN, 0000 WILLIAM F. KEEHN, 0000 ERIC S. ROTH, JR., 0000 KEITH E. BURKEPILE, 0000 GREGORY R. KELLY, 0000 SCOTT R. ROYS, 0000 CHRISTOPHE M. BURT, 0000 LEONARD L. KERNEY, JR., 0000 PETER S. RUBIN, 0000 CHRISTOPHE W. BUSHEK, 0000 PETERJOHN H. KERR, 0000 JOAQUIN A. SALAS, 0000 BRINSON L. BYRDSONG, 0000 ROBERT L. KIMBRELL II, 0000 JAMES L. SAMMON, 0000 MICHAEL J. BYRNE, 0000 JAMES J. KIRK, 0000 BRIAN G. SANCHEZ, 0000 CHRISTOPHE T. CANNAVARO, 0000 BRENDAN M. KLAPAK, 0000 ELEAZAR O. SANCHEZ, 0000 KEVIN T. CARLISLE, 0000 GLENN M. KLASSA, 0000 FRANK SANDERS, 0000 PATRICK L. CARTER, JR., 0000 DAVID T. KLAVERKAMP, 0000 BRIAN P. SANDYS, 0000 ROBERT R. CHESHIRE, 0000 DOUGLAS W. KLEMZ, 0000 OWEN A. SANFORD, 0000 JAMES CHUNG, 0000 PAUL H. KLINK III, 0000 ROBERT E. SAWYER, 0000 CLAUDE E. CLARK,JR., 0000 CHRISTOPHE A. KOLOMJEC, 0000 PAUL D. SAX, 0000 DANIEL C. CLARK, 0000 TODD A. LAGRECO, 0000 RICHARD J. SCHMIDT, 0000 RICHARD A. CLEMENS, JR., 0000 TROY D. LANDRY, 0000 ROBERT E. SCHUBERT, JR., 0000 BRIAN K. COCKRIEL 0000 DOUGLAS K. LANG, 0000 MICHAEL B. SCHWEIGHARDT, 0000 JENNIFER E. COE, 0000 STUART C. LANKFORD, 0000 DOUGLAS J. SCOTT, 0000 JEFFREY R. COLEY, 0000 TERRENCE H. LATORRE, 0000 KEVIN R. SCOTT, 0000 NORBERTO COLON, 0000 PETER N. LEE, 0000 DAVID J. SEBUCK, 0000 JOHN G. CORBETT, 0000 JOSEPH P. LEVREAULT, 0000 ANTHONY T. SERMARINI, 0000 HUGH C. CURTRIGHT, IV, 0000 REGINALD LEWIS, 0000 MILO L. SHANK, 0000 CHRISTOPHE H. DALTON, 0000 MARK A. LIVINGSTON, 0000 THOMAS T. SHAVER, 0000 RICHARD M. DAVIS, JR., 0000 JOSEPH A. LORE, 0000 HECTOR SHEPPARD, JR., 0000 BRANDON A. DAVIS, 0000 MELVIN L. LOVE, 0000 DANIEL L. SHIPLEY, 0000 SHAWN B. DAVIS, 0000 DAVID G. LOYACK, 0000 TIMOTHY A. SILKOWSKI, 0000 JOHNNY L. DAY, 0000 JOHN M. LOZANO, 0000 THOMAS K. SIMPERS, 0000 DANIEL S. DEWITT, 0000 KENNETH E. LUCAS, 0000 DUNCAN D. SMITH, JR., 0000 CHRISTOPHE B. DOODY, 0000 BRIAN M. LUKACZ, 0000 MARTY L. SMITH, 0000 TIMOTHY T. DOUGLAS, 0000 CHARLES N. LYNK III, 0000 SHEILA M. SMITH, 0000 JASON C. DRAKE, 0000 JOHN F. MACEIRA, 0000 MATTHEW D. SPICER, 0000 GORDON R. DYKES, 0000 GONZALO MADRID, JR., 0000 BRIAN K. SPIEGEL, 0000 EDWARD J. EIBERT, JR., 0000 NATHAN MAKER, 0000 THOMAS M. STACKPOLE, JR., 0000 ROBERT G. ENSLEY, 0000 BRYAN T. MANGAN, 0000 JEFFREY P. STAMAN, 0000 MATTHEW W. ERICKSON, 0000 MICHAEL J. MARTIN, 0000 BRIAN C. STAMPS, 0000 NATHANIEL G. FAHY, 0000 DANIEL R. MARTINEAU, 0000 PAUL A. STEELE, 0000 DAVID M. FALLON, 0000 RUBEN A. MARTINEZ, 0000 PAUL L. STOKES, 0000 RAUL J. FELICIANO, 0000 JOHN D. MARTINKO, 0000 IAN L. STONE, 0000 LINDA N. FERRELL, 0000 GEORGE A. MASSEY, 0000 VIRGIL G. STRONG, 0000 JOHN L. FINCH, 0000 JULIA S. MATHIS, 0000 MATT D. STRUBBE, 0000 GREGORY P. FLAHERTY, 0000 NICOLE L. MAUERY, 0000 WILLIAM H. SWAN, 0000 SETH W. FOLSOM, 0000 DAVID H. MAYHAN, 0000 JAMES B. SWIFT, JR., 0000 KEVIN J. FOSKEY 0000 TODD L. MC ALLISTER, 0000 PATRICIO A. TAFOYA, 0000 MARC D. FREESE, 0000 DAVID L. MC CAFFREE, JR., 0000 GREGORY W. TAYLOR, 0000 BRIAN T. FULKS, 0000 JOHN T. MC CLOSKEY, 0000 DAVID A. TEIS, 0000 DENISE M. GARCIA, 0000 JOHN M. MC DERMOTT, 0000 DONALD G. TEMPLE, 0000 LUIS GARZA III, 0000 JOHN A. MC DONALD, 0000 ROBERT E. THIEN, 0000 JEFFREY W. GARZA, 0000 MATTHEW J. MC DONALD, 0000 JAMES W. THOMAS, JR., 0000 PATRICK A. GAUGHAN, 0000 CLEVE D. MC FARLANE, 0000 GEORGE A. THOMAS, 0000 MICHAEL T. GIBBS, 0000 LESLIE A. MC GEEHAN, 0000 BRIAN J. THOMPSON, 0000 BRIAN L. GILMAN, 0000 JAMES T. MC HUGH, JR., 0000 TOMMY J. THOMPSON, 0000 DENNY W. GINGERICH, 0000 NEIL S. MC MAIN, 0000 DONALD J. TOMICH, 0000 PAUL M. GOMEZ, 0000 SEAN D. MC NULTY, 0000 JOHN C. TREPKA, 0000 RUFINO H. GOMEZ, 0000 SEAN C. MC PHERSON, 0000 PATRICK W. TRIMBLE, 0000 JONATHAN W. GOOD, 0000 CHARLES D. MC VEY, 0000 BRENT C. TROUSLOT, 0000 WENDY T. GORDON, 0000 ROGER C. MEADE, 0000 MICHAEL A. TUCKER, 0000 RUSSELL R. GRAHAM, 0000 FRANCISCO J. MELERO, 0000 LARRY E. TURNER, JR., 0000 JOSHUA K. GREENE, 0000 CHRISTOPHE E. MICKEY, 0000 CARLOS O. URBINA, 0000 BRENT A. GREGOIRE, 0000 DANIEL E. MILLER, 0000 ANDREW M. VADYAK, 0000 KRISTINA K. GRIFFIN, 0000 WILLIAM C. MILLER, 0000 CESAR A. VALDESUSO, 0000 GREGORY L. GRUNWALD, 0000 PATRICK S. MITCHELL, 0000 GABRIEL L. VALDEZ III, 0000 PAUL GULBRANDSEN, 0000 ROBERT P. MITCHELL, 0000 MICHAEL C. VARICAK, 0000 MICHAEL P. HADLEY, 0000 JAMES E. MITILIER, 0000 SALVATORE VISCUSO III, 0000 HOWARD F. HALL, 0000 MICHEL W. MONBOUQUETTE, 0000 GORDON R. VOGEL, 0000 TREVOR HALL, 0000 MICHAEL C. MONTI, 0000 ROBERT M. VOITH, 0000 ANDREW D. HAMILTON, 0000 JERRY R. MORGAN, 0000 PETER C. WAGNER, 0000 JOHN W. HARMAN, 0000 JOSEPH W. MURPHY, 0000 WILLIAM WAINWRIGHT, 0000 JAMES A. HARRIS IV, 0000 JOSEPH C. MURRAY, 0000 RICHARD E. WALKER III, 0000 DENNIS J. HART, 0000 CORNELL, MYATT, 0000 JAMES K. WALKER, 0000 EMILY H. HAYDON, 0000 DAVID B. NICKLE, 0000 TYRONE WALLS, 0000 GINA D. HEALD, 0000 NEAL D. NOEM, 0000 BENNETT W. WALSH, 0000 HERRINGTON, 0000 KEVIN A. NOVAK, 0000 DAVID C. WALSH, 0000 CHARLES R. HINTON, JR., 0000 EDWARD L. O’CONNOR, 0000 NEIL E. WALSH, 0000 RANDALL S. HOFFMAN, 0000 CLAYTON G. OGDEN, 0000 ROBERT T. ARSHEL, 0000 DANNY L. HOWARD, JR., 0000 PAUL D. OLDENBURG, 0000 MICHAEL R. WATERMAN, 0000 SAMUEL K. HOWARD, 0000 KENNETH A. OLDHAM, 0000 JAMES W. WATERS, 0000 EMILY S. HOWELL, 0000 VICTOR M. O’LEAR, 0000 CLARK E. WATSON, 0000 MATTHEW F. HOWES, 0000 ROGELIO OLIVAREZ, JR., 0000 HENRY D. WEEDE, 0000 CHRISTOPHE D. HRUDKA, 0000 JEFFREY P. OLSON, 0000 GUY M. WEST, 0000 NICOLE K. HUDSPETH, 0000 CHRISTOPHE H. O’NEILL, 0000 WILLIAM L. WHEELER JR., 0000 PATRICK M. HUGHES, 0000 THOMAS E. OWEN, 0000 RAYMOND M. WHITE III, 0000 LANCE A. JACKOLA, 0000 PRISCILLA A. PAEPCKE, 0000 BROOKE A. WHITE, 0000 WILLIAM J. JAEGER, 0000 PAUL T. PATRICK, 0000 RYDER A. WHITE, 0000 LARRY M. JENKINS, JR., 0000 SCOTT A. PAYNE, 0000 TERENCE H. WHITE, 0000 JOSEPH W. JONES, 0000 JOHN PERSANO III, 0000 TIMOTHY K. WHITE, 0000 ROBERT C. KAMEI, 0000 ROBERT A. PETERSON, 0000 ZACHARY M. WHITE, 0000 STEPHEN F. KEANE, 0000 JOHN R. PETERWORTH, 0000 ARTHUR L. WIGGINS, JR., 0000 WILLIAM J. KEHOE, 0000 ANDREW J. PETRUCCI, 0000 KYLE S. WILBUR, 0000 JOSHUA A. KEISLER, 0000 MICHAEL D. PHILLIPS, 0000 JOHN N. WILKIN, 0000 PATRICK M. KELLY, 0000 BRIAN N. PINCKARD, 0000 SEAN P. WILLMAN, 0000 STEPHEN J. KHOOBYARIAN, 0000 STEVEN A. PLATO, 0000 JUSTIN W. WILSON, 0000 SEAN C. KILLEEN, 0000 CLARK A. POLLARD, 0000 CARL D. WINGO, 0000 CATHERINE A. KING, 0000 CURTIS A. POOL, 0000 ROBERT A. WINSTON, 0000 SHARON E. KING, 0000 FORREST C. POOLE III, 0000 THOMAS A. WOLLARD, 0000 THOMAS T. KING, 0000 THOMAS P. PREIMESBERGER, 0000 CRAIG R. WONSON, 0000 ERICK V. KISH, 0000 THOMAS E. PRENTICE, 0000 BENJAMIN Z. WOODWORTH, 0000 JAMES V. KNAPP II, 0000 ROMAN T. PRZEPIORKA, 0000 KIMBERLY A. WYLIE, 0000 KARL K. KNAPP, 0000 ERIC A. PUTMAN, 0000 ROBERT W. ZACHRICH II, 0000 KEITH F. KOPETS, 0000 JAMES E. QUINN, 0000 PAUL F. ZADROZNY, JR., 0000 JOHN A. KRALIK, 0000 INN QUIROZ, 0000 STACEY S. ZDANAVAGE, 0000 THOMAS G. LACROIX, 0000 JON D. RABINE, 0000 To be first lieutenant MICHAEL L. LANDREE, 0000 CHRISTOPHE T. RADFORD, 0000 STEPHEN J. LAVELLE, 0000 MINTER B. RALSTON IV, 0000 CLINTON E. AMBROSE, 0000 JAMES R. LEACH, 0000

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FRANCIS X. LILLY, JR., 0000 MICHAEL R. RENZ, 0000 CRAIG W. WIGGERS, 0000 BART W. LOGUE, 0000 EDWIN R. RICH II, 0000 VERNON J. WILLIAMS, 0000 MARK C. LOMBARD, 0000 CHARLES R. RIVENBARK, JR., 0000 SAMUEL G. WILLIAMSON, 0000 CHARLES M. LONG, JR., 0000 GARY T. ROESTI, 0000 ANDREW R. WINTHROP, 0000 NICHOLAS J. LOURIAN, 0000 JAMES M. ROSE, 0000 JAY V. WIRTS, 0000 BENJAMIN J. LUCIANO, 0000 KEVIN C. ROSEN, 0000 BRETT C. WITTMAYER, 0000 JEFFREY AL T. MAC FARLANE, 0000 WILLIAM E. RUDD, 0000 DONALD R. WRIGHT, 0000 JAMES D. MAHONEY, 0000 EDWIN O. RUEDA, 0000 GREGORY A. WYCHE, 0000 ROBERT K. MALDONADO, 0000 BRIAN K. RUPP, 0000 GREGORY A. WYNN, 0000 NICO MARCOLONGO, 0000 JEFFREY K. SAMMONS, 0000 KEVIN E. YEO, 0000 GRANT D. MARK, 0000 FRANKLIN V. SANNICOLAS, 0000 ERIC K. YINGST, JR., 0000 GEORGE W. MARKERT, 0000 JASON A. SANTAMARIA, 0000 PATRICK J. ZIMMERMAN, 0000 BRIAN P. MATEJA, 0000 SCOTT N. SCHMIDT, 0000 THOMAS F. MAZZELLA, 0000 DANIEL A. SCHMITT, 0000 To be second lieutenant COREY E. MC CLAIN, 0000 WILLIAM J. SCHOUVILLER, 0000 DAVID J. MC CLOY, 0000 JOEL V. SEWELL, 0000 DANN V. ANGELOFF, JR., 0000 TRACY L. MC GARVIE, 0000 PATRICK S. SEYBOLD, 0000 DEREK M. BRANNON, 0000 MAURA A. MC GEE, 0000 BILLY J. SHORT JR., 0000 PAUL R. BULLARD, 0000 CATHLEEN M. MC KINNEY, 0000 PATRICK E. SIMON, 0000 ROBERT S. BURRELL, 0000 JAMES A. MC LAUGHLIN, 0000 MATTHEW M. SKIRMONT, 0000 DAVID E. COOPER, 0000 STEPHEN J. MC NAMARA, 0000 GERASIMOS J. SKORDOULIS, 0000 MARK A. CUNNINGHAM, 0000 TIMOTHY E. MC WILLIAMS, JR., 0000 CHARLES E. SMITH, 0000 CHRISTOPHE E. DEANTONI, 0000 PAUL M. MELCHIOR, 0000 DOUGLAS W. SMITH, 0000 NEAL W. DUCKWORTH, 0000 JESSE E. MENDEZ, 0000 MICHELLE R. SMITH, 0000 JOHN F. GRIFFIN, 0000 BRIAN L. MILAN, 0000 WILLIAM R. SPEIGLE II, 0000 MARK E. HALVERSON, 0000 SCOTT H. MILLER, 0000 RYAN W. SPRINGER, 0000 ROBERT M. HANCOCK, 0000 JOSEPH F. MOFFATT III, 0000 ANTHONY R. STARNER JR., 0000 WILLIAM C. HENDRICKS, IV, 0000 IVAN I. MONCLOVA, 0000 TIMOTHY STEFANICK, 0000 GORDON L. HILBUN, 0000 BILLY R. MOORE, JR., 0000 DEAN M. STEFFEN, 0000 MICHAEL P. HOWARD, 0000 SAMUEL K. MOORE, 0000 MARCUS L. STEWART, 0000 ROB L. JAMES, 0000 MATTHEW T. MORRISSEY, 0000 ROBERT E. STPETER, 0000 DOUGLAS K. KELLER, 0000 KIRK D. MULLINS, 0000 ANDREW J. STRALEY, 0000 JAMES H. KELLER, 0000 KAIZAD J. MUNSHI, 0000 ADAM T. STRICKLAND, 0000 KEVIN R. KORPINEN, 0000 FERNANDO T. NATER, 0000 MARK A. SULLO, 0000 KEVIN J. LEGGE, 0000 LEONARD E. NEAL, 0000 SHAWN M. SWANSON, 0000 JOSEPH F. MAHONEY, III, 0000 DAVID R. NETTLES, 0000 DANIEL R. TAYLOR, 0000 SCOTT D. MANNING, 0000 JENIFER NOTHELFER, 0000 TERRANCE L. THOMAS, 0000 DONALD G. MARASKA, 0000 JAMES J. OLSON, 0000 JAMES R. THOMPSON, 0000 JACOB M. MATT, 0000 JOSEPH R. ONIZUK, 0000 TRUETT A. TOOKE, 0000 DARREN W. MILTON, 0000 MARK A. OSWELL, 0000 KEVIN C. TRIMBLE, 0000 DAVID B. MOORE, 0000 PAUL R. OUELLETTE, 0000 PATRICK M. TUCKER, 0000 BRIAN W. MULLERY, 0000 SEAN W. PASCOLI, 0000 CLIFTON L. TURNER, 0000 DANIEL M. O’CONNOR, 0000 RYAN W. PATERSON, 0000 JOON H. UM, 0000 SEAN T. QUINLAN, 0000 MARK P. PATTERSON, 0000 DAVID T. VANBENNEKUM, 0000 SEAN P. RILEY, 0000 JOHN G. PAYNE, JR., 0000 JEFFREY A. VANDAVEER, 0000 CLAIBORNE H. ROGERS, 0000 ADIN M. PFEUFFER, 0000 MICHAEL C. VANHORN, JR., 0000 KELLY D. ROYER, 0000 ROBERT C. PIDDOCK, 0000 JOHN T. VAUGHAN, 0000 DENNIS A. SANCHEZ, 0000 JASON T. POWELL, 0000 TIMOTHY B. VENABLE, 0000 JOSEPH G. SCHMITT, 0000 STEPHEN M. POWELL, 0000 BRIAN J. VENTURA, 0000 SCOTT D. SEEDER, 0000 SAMUEL A. PRICE, 0000 KEVIN S. WADA, 0000 KRAIG D. SMITH, 0000 ERIC R. QUEHL, 0000 ROBERT R. WAFFLE, 0000 WILLIAM A. THOMAS, II, 0000 AMY L. RAINES, 0000 ERIC D. WARBASSE, 0000 ERIC N. THOMPSON, 0000 JAMES R. READY, 0000 DEREK J. WASTILA, 0000 BRADFORD W. TIPPETT, 0000 GARY R. REIDENBACH, 0000 PATRICK D. WAUGH, 0000 DAVID J. VANLANEN, 0000 MICHAEL D. REILLY, 0000 STEPHAN F. WHITEHEAD, 0000 FRANCIS M. WALD, 0000 JUSTIN R. REIMAN, 0000 JAMES B. WHITLOCK, JR., 0000 JAMES R. WENZEL, 0000

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