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

Vol. 148 WASHINGTON, THURSDAY, JULY 18, 2002 No. 98 House of Representatives The House met at 10 a.m. WELCOMING REVEREND RONALD WELCOMING THE WORLD BASKET- The Reverend Ronald J. Jansen, Pas- A. JANSEN, HOLY CROSS LU- BALL CHAMPIONSHIPS TO INDI- tor, Holy Cross Lutheran Church, Col- THERAN CHURCH, COLLINS- ANA AND THE UNITED STATES linsville, Illinois, offered the following VILLE, ILLINOIS (Ms. CARSON of Indiana asked and prayer: was given permission to address the O Almighty God, You have given us (Mr. SHIMKUS asked and was given permission to address the House for 1 House for 1 minute and to revise and this good land as a place for us to live extend her remarks.) and serve You. We ask, Lord, that as minute and to revise and extend his re- marks.) Ms. CARSON of Indiana. Mr. Speak- You concern Yourself with the busy- er, I rise today to request that all of ness of Your universe, You would also Mr. SHIMKUS. Mr. Speaker, I would the Members join me in welcoming and give Your attention to the business of like to welcome my Pastor, Pastor recognizing the 16 national teams that this place, the House of Representa- Ronald Jansen, to the floor of the will be competing in the upcoming 2002 tives. May Your spirit so guide the House to open us up with prayer. world basketball championship for Members of this chamber that they re- Pastor Jansen grew up on a north- men. member they are representing the peo- western Wisconsin dairy farm and has For the first time in its 50-year his- ple of the United States of America. pastored in the Lutheran Church, Mis- tory, the world basketball champion- Bless them also with the knowledge souri Synod, for 35 years. He served in ship is being held in the United States, that they govern as Your representa- parishes in Winono and Albert Lee, and, appropriately, in the basketball tives to the people. Minnesota, Marshfield, Wisconsin, and capital of the world, my hometown, In- Be with the Members in their con- currently is at Holy Cross in Collins- dianapolis, Indiana. versation, their deliberations, and ville for the past 13 years. From August 29 to September 8, Indi- their votes, that they may serve You He is married to his wife Becky, a anapolis will play host to the largest and be a blessing to the people who public schoolteacher for 17 years. They and most prestigious basketball event dwell in this land. are accompanied by his 90-year-old fa- in the world. In total, 62 games will be In the name of the Risen Redeemer. ther Victor, and second oldest son and played over the course of the 11-day Amen. daughter-in-law, Dr. Aaron and Melissa event. It will bring ‘‘Hoosier Basket- Jansen. ball Hysteria’’ of the NBA finals and f Pastor Jansen is my pastor, and NCAA Final Four to a new inter- when I think about Pastor Jansen, I national scene with an expected visitor THE JOURNAL think about Ephesians 2:8–10, ‘‘For by capacity of 150,000 people from around The SPEAKER. The Chair has exam- grace are you saved through faith, and the world. The importance of continuing inter- ined the Journal of the last day’s pro- not of works, lest any man should national sporting events and fostering ceedings and announces to the House boast. For we are His workmanship, positive relationships between coun- his approval thereof. created for good works in Christ, who tries has never been more important. Pursuant to clause 1, rule I, the Jour- calls us to offer up ourselves a living Therefore, Mr. Speaker, I ask that nal stands approved. sacrifice.’’ Congress join me in supporting this im- Pastor Jansen preaches from the pul- portant resolution. f pit law and gospel, which is the hall- f mark of the Lutheran Church, Missouri PLEDGE OF ALLEGIANCE Synod. PROTECTING MISSING AND EXPLOITED CHILDREN The SPEAKER. Will the gentle- I want to thank Pastor Jansen for woman from Indiana (Ms. CARSON) calling us to a higher calling this (Mr. FOLEY asked and was given per- come forward and lead the House in the morning. mission to address the House for 1 Pledge of Allegiance. minute and to revise and extend his re- Ms. CARSON of Indiana led the Pledge f marks.) of Allegiance as follows: Mr. FOLEY. Mr. Speaker, yesterday I pledge allegiance to the Flag of the ANNOUNCEMENT BY THE SPEAKER the world discovered that another United States of America, and to the Repub- child, 5-year-old Samantha Runnion, lic for which it stands, one nation under God, The SPEAKER. The Chair will enter- who was violently abducted from out- indivisible, with liberty and justice for all. tain 15 1-minute speeches on each side. side her home while playing with a

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

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VerDate Jun 13 2002 00:46 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00001 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.000 pfrm17 PsN: H18PT1 H4876 CONGRESSIONAL RECORD — HOUSE July 18, 2002 friend, was sexually assaulted, stran- for 1 minute and to revise and extend HONORING U.S.-JAPAN MARITIME gled and left naked on the side of the her remarks.) YOUTH EXCHANGE PROGRAM California road. Ms. ROS-LEHTINEN. Mr. Speaker, I (Mr. GUTKNECHT asked and was The police in California said that this am proud to congratulate Captain Jo- given permission to address the House sick and deranged person may do this seph Nimmich and the rest of the men for 1 minute and to revise and extend terrible act again to another child and women of the United States Coast his remarks and include extraneous based on the way he left this poor Guard Group Key West for hosting a material.) child’s body on the side of the road. community outreach event on Trumbo Mr. GUTKNECHT. Mr. Speaker, They say this may be his calling card. Point in Key West. This event is spon- today I rise to honor the U.S.-Japan Parents throughout the Nation are sored by the Navy League Key West Maritime Youth Exchange Program. both shocked and frightened that this and the Key West Chamber of Com- This program brings together high could happen to their child. merce Military Affairs Committee. Over 2,000 children are reported miss- I am very proud to recognize this school age students from Japan and the ing to law enforcement every single group, because the work that they do is United States for a 3-week program of day. While Congress focuses on restruc- truly amazing and selfless. In the aver- travel and study in both countries. turing its homeland security, we must age month, the men and women of the It was developed and funded in 1996 be made aware of the incredible efforts Coast Guard Group Key West provide through a partnership between the U.S. that the FBI and other law enforce- the people of Florida with invaluable Navy Memorial Foundation here in ment agencies provide in retrieving services. Saving lives, conducting Washington and Mr. Kaoru Hasegawa, these children and finding their abduc- search-and-rescue missions and pro- an unsuccessful World War II Japanese tors. We must make sure that these viding marine exams and aids to navi- kamikaze pilot and now president of agencies have the manpower and re- gation are everyday activities for these Rengo Company, Limited, in Japan. sources necessary to continue these ef- brave and selfless individuals. Mr. Hasegawa was shot down and forts. This is a particularly special event, then rescued by the crew of the USS To that end, as cochairman of the because it also celebrates the Coast Callaghan back in World War II. When Congressional Missing and Exploited Guard’s 212th anniversary with the Key the survivors of the Callaghan invited Caucus, I will work with the gentleman West community. Mr. Hasegawa to attend their reunion from Texas (Mr. LAMPSON), the Com- I ask my Congressional colleagues to several years ago, it was a very emo- mittee on the Judiciary and the admin- join me in congratulating and com- tional reunion. The desire to share istration to ensure the work on legisla- mending Captain Nimmich and his col- their new-found goodwill and under- tion to increase both criminal and civil leagues on this special celebration. standing with the next generation of penalties for abductors and provide the f Americans and Japanese led to the cre- necessary funding for our law enforce- ation of the Maritime Youth Exchange ment agencies. PROVIDING CORPORATE Program. ACCOUNTABILITY AND REFORM f The program’s purpose is to teach (Mr. SANDLIN asked and was given STATE DEPARTMENT NOT HELP- participants about the historical, cul- permission to address the House for 1 ING RETRIEVE KIDNAPPED tural and economic factors that impact minute and to revise and extend his re- AMERICAN CHILDREN the two countries’ maritime policies marks.) and practices. With understanding, re- (Mr. LAMPSON asked and was given Mr. SANDLIN. Mr. Speaker, by now spect, teamwork and friendship, the permission to address the House for 1 we are all well aware of the recent minute and to revise and extend his re- program will work to create a healthy wave of corporate accounting scandals partnership for the future of these two marks.) and the consequent need for systemic Mr. LAMPSON. Mr. Speaker, I rise great countries. reform in this country. Though Mr. Speaker, I will leave the names today to continue my talks about Lud- WorldCom is only one of several high- wig Koons, the 9-year-old little United of all of the participants, and I con- profile cases of corporate abuse, the gratulate them and wish them the best States citizen who is being held in the sheer size of WorldCom’s alleged ac- country of Italy. of luck during their travels. counting ‘‘error’’ and the ease with Mr. Speaker, I include the list of par- Last week I met with Ambassador which the company perpetrated this Salleo of Italy, and I want to thank the ticipants for the RECORD. fraud have served as the catalysts for Ambassador from Italy, for he is trying Adam Meyer of Cary, North Carolina; long overdue and much-needed reform. to help this American citizen come Titus Wong of Des Plaines, Illinois; Juliet According to the Wall Street Jour- Bintliff of Corpus Christi, Texas; Caroline back home to the United States where nal, public pension funds, such as the he belongs. Toole of Mountain Home, Arkansas; Ashley teacher retirement system in Texas, This is more than I can say for our Thompson of Cincinnati, Ohio; Andrea own State Department. Two weeks ago mutual funds and insurance companies Claycomb of Euclid, Ohio; Tatsuaki the Washington Post ran a story on the in my home State of Texas, hold ap- Takanashi of Nagano, Japan; Terumi Tabata of Kagoshima, Japan; Shoko Ishigami of removal of Mary Ryan from her posi- proximately $870 million in WorldCom bonds that are virtually worthless as a Hyogo, Japan; Yuka Sakai of Saitama, tion at the State Department. Ms. Japan; and Akiko Hasebe of Tokyo, Japan. Ryan at one time was in charge of the result of imminent Chapter 11 bank- office that handles international ab- ruptcy filing. f Simply, the type of corporate behav- duction of children. I am asking the RAISING CONCERNS ABOUT ior that has led to WorldCom’s melt- State Department to look into the han- CORPORATE ACCOUNTABILITY dling of that office over the past years, down is outrageous. It must end right (Mr. LANGEVIN asked and was given just as they are doing other offices now. permission to address the House for 1 that Ms. Ryan was in charge of. WorldCom’s financial situation, when Jeff and Ludwig Koons, just like considered in the context of other re- minute and to revise and extend his re- thousands of other parents, are not cent corporate accounting scandals, marks.) getting concrete help from our State raises the troubling question of these Mr. LANGEVIN. Mr. Speaker, I rise Department. If the State Department scandals’ immediate impact on inves- today to express my deep concerns does not do something about it, then tor confidence, and potentially long- about corporate accountability and its Congress must. Please help us bring term impact on investors’ faith in the impact on our Nation’s economic fu- our children home. integrity of our capital markets. ture. Access to accurate financial informa- In the wake of recent corporate f tion is essential to the proper func- bombshells, investor confidence in our CONGRATULATING CAPTAIN JO- tioning of the markets, and as cor- financial markets has been badly shak- SEPH NIMMICH AND COAST porate America seems unwilling thus en. Congress cannot afford to wait for GUARD GROUP KEY WEST far to enact reasonable financial re- reports of another tragic example of (Ms. ROS-LEHTINEN asked and was forms, Congress must reform the sys- corporate deception, followed by more given permission to address the House tem. lost jobs and depleted pensions.

VerDate Jun 13 2002 23:47 Jul 18, 2002 Jkt 099060 PO 00000 Frm 00002 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.002 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4877 While I welcome the President’s com- Bush, have destroyed the retirement DO NOT EASE TRADE EMBARGO ments during his visit to Wall Street accounts of millions of Americans. But ON CUBA last week, this looming crisis requires rather than focus on legislation that (Mr. KINGSTON asked and was given a firm commitment from our adminis- will increase corporate account bills, permission to address the House for 1 tration to seriously address this prob- the President and House Republicans minute and to revise and extend his re- lem. But words, like stocks, lose their are pushing for another huge giveaway marks.) value when actions do not back them to corporate America, Fast Track Mr. KINGSTON. Mr. Speaker, I am up. trade legislation. very concerned about a proposal that We must hold those irresponsible few The Fast Track agreement opens the we may have on the floor today to ter- accountable for their actions now and door to expansion of NAFTA-style in- minate some of the trade embargo be- enact safeguards to protect our mar- vestor rules that empower foreign cor- tween the United States and Cuba. kets, our workers, our consumers and porations to sue State and local gov- Mr. Speaker, Cuba is not exactly reputations of companies who do play ernments for billions of dollars if con- your stereotypical, friendly next-door by the rules. Our economic recovery sumer and environmental laws inter- neighbor, and there are certain reasons and the future of millions of American fere with their profits. why this island nation has the honor, a families depend on it. A Canadian chemical company has very dubious honor, I want to say, of f used NAFTA to attack clean water being one of the seven terrorist-sup- laws in California. A U.S. toxic waste CONGRATULATING HOUSE FOR porting nations in the world by the handler successfully challenged the State Department. EARLY ACTION IN ADDRESSING right of a desperately poor Mexican CORPORATE RESPONSIBILITY In fact, let me quote what our intel- community to block the company from ligence community says. ‘‘The U.S. be- (Mr. KENNEDY of Minnesota asked building a toxic dump on top of their lieves that Cuba has at least a limited, and was given permission to address water supply. developmentally offensive biological the House for 1 minute and to revise A new study from Tufts University warfare research and development ef- and extend his remarks.) says NAFTA-style corporate lawsuits fort. Cuba has provided dual use tech- Mr. KENNEDY of Minnesota. Mr. will eventually line the pocket of glob- nology to rogue states. We are con- Speaker, today I rise to congratulate al corporations with $32 billion per cerned that such technology could sup- the House for their early action in ad- year in U.S. taxpayer funds. port biological warfare programs in dressing corporate responsibility and I urge this House to oppose Fast these states.’’ encourage the conferees to finish their Track when it returns to the House. Now, easing this trade embargo work quickly so that we can get a bill f would merely provide Castro the finan- to the President’s desk before the Au- LET DEPARTMENT OF DEFENSE cial capital he needs to fund his reign gust break. of terrorism and abuse. It would be In April, we acted on a strong bipar- DEFEND AMERICA tragic if the legislative actions of this tisan bill to strengthen the accounting (Mr. DUNCAN asked and was given Congress helped finance any attack on oversight of corporate America and permission to address the House for 1 its own citizens or any of the citizens punish corporate wrongdoing. Now, fi- minute and to revise and extend his re- around the world. nally, the Senate has acted. marks.) Corporate criminals must understand Mr. DUNCAN. Mr. Speaker, this Now is not the time for us to suc- that they will be prosecuted, we will morning’s Wall Street Journal has an cumb to the wishes of a maniacal ruler increase their jail time, we will take editorial which says this about the pro- and give in on our trade embargo. We away their ill-gotten gains. And the posed Homeland Security Department: have to keep the bar very, very high, money we recover will go to workers ‘‘It seemed like a good idea at the because with the terrorist threat and investors who were cheated, not to time. But the more we look at the hash around the world, this is one neighbor a trial lawyer windfall. Washington is making of President we have to be mindful of. Our economy is built on confidence, Bush’s proposal for a new Department f and because of a few dishonest execu- of Homeland Security, the more we AIRPORT SCREENING FOR tives, confidence in the market has think we would be wiser to call the AVIATION EMPLOYEES eroded. But let our actions send a sig- whole thing off.’’ nal to corporate America and the Steven Moore, in a column in today’s (Mr. SESSIONS asked and was given American people: The era of ‘‘every- Philadelphia Inquirer, said the new De- permission to address the House for 1 thing goes’’ is over. There is a new partment would probably cost $4 bil- minute and to revise and extend his re- sheriff in town. lion just in reorganization costs. Then marks.) Let me also say to those that I read he said, ‘‘There are, however, a number Mr. SESSIONS. Mr. Speaker, today I today and hear today would drag this of problems with the proposal. First, propose and ask the Transportation out as a partisan attempt for gain: and most important, we already have a Secretary to put in place a separate Playing politics with the lives, the jobs Department of Homeland Security and aviation employee screening process by and the retirement savings of millions it is called the Department of Defense. September 1 of this year that will of Americans is shameful and will not If Defense, which spends about $350 bil- allow airlines to safely and efficiently earn you people’s votes; only their con- lion a year, more than almost all of the comply with Federal law. tempt. other nations combined, if Defense This separate aviation employee Mr. Speaker, this is one of the most isn’t spending money on protecting the screening process would be uniform important issues this Congress is faced homeland, what is it spending these from airport to airport, performed by with. We must get our economy back funds on? The very reason we had a 9/ TSA personnel at separate portals from on track. This is an important step in 11 attack was that our government passenger screening, and must take ad- the process. wasn’t doing the one thing it is sup- vantage of the new aviation employee f posed to do: Keep us safe from foreign credentials that are presently under harm.’’ development. CORPORATE GREED This new department will simply I ask Transportation Secretary Norm (Mr. BROWN of Ohio asked and was make the Federal Government bigger, Mineta to appoint a task force to in- given permission to address the House more bureaucratic and much more ex- clude airline, labor and airport rep- for 1 minute and to revise and extend pensive, and it will not make it any resentatives to provide necessary and his remarks.) safer. We should not have to create a helpful real-world input and resources Mr. BROWN of Ohio. Mr. Speaker, Cabinet level department just to get in creating and implementing this blatant acts of fraud and government agencies to cooperate with process. misgovernance by executives of some each other. If we do, the Federal Gov- This task force can greatly enhance of America’s largest companies, most ernment is much worse than even I the government’s ability to meet the of them large contributors to President thought it was. proposed September 1 implementation

VerDate Jun 13 2002 23:47 Jul 18, 2002 Jkt 099060 PO 00000 Frm 00003 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.004 pfrm17 PsN: H18PT1 H4878 CONGRESSIONAL RECORD — HOUSE July 18, 2002 deadline and facilitate acceptance in tion to recommit with or without instruc- in an effective and efficient manner, the aviation community. tions. and I urge my colleagues to support f The SPEAKER pro tempore. The gen- both the rule and the underlying legis- tleman from Florida (Mr. DIAZ- lation. RECESS BALART) is recognized for 1 hour. Mr. Speaker, I reserve the balance of The SPEAKER pro tempore (Mr. Mr. DIAZ-BALART. Mr. Speaker, for my time. COOKSEY). Pursuant to clause 12 of rule purposes of debate only, I yield the cus- Ms. SLAUGHTER. Mr. Speaker, I I, the Chair declares the House in re- tomary 30 minutes to the gentlewoman yield myself such time as I may con- cess subject to the call of the Chair. from New York (Ms. SLAUGHTER); pend- sume, and I thank my colleague for Accordingly (at 10 o’clock and 23 ing which I yield myself such time as I yielding me the customary half hour. minutes a.m.), the House stood in re- may consume. During consideration of (Ms. SLAUGHTER asked and was cess subject to the call of the Chair. this resolution, all time yielded is for given permission to revise and extend purposes of debate only. her remarks.) f (Mr. DIAZ-BALART asked and was Ms. SLAUGHTER. Mr. Speaker, I rise b 1252 given permission to revise and extend in opposition to this rule. The measure leaves unprotected a provision of the AFTER RECESS his remarks.) Mr. DIAZ-BALART. Mr. Speaker, underlying bill authored by my col- The recess having expired, the House House Resolution 489 is a structured league, the gentleman from Virginia was called to order by the Speaker pro rule providing for the consideration of (Mr. MORAN). The unprotected provi- tempore (Mr. GILLMOR) at 12 o’clock H.R. 5121, the Legislative Branch Ap- sion withholds the release of $590,000, and 52 minutes p.m. propriations Act for fiscal year 2003. the amount the Joint Committee on Taxation requested above its fiscal 2002 f The rule provides for 1 hour of general debate evenly divided and controlled budget until the Joint Committee re- PROVIDING FOR CONSIDERATION by the chairman and ranking minority leases its Report on Expatriates. OF H.R. 5121, LEGISLATIVE My colleagues may remember this re- member of the Committee on Appro- BRANCH APPROPRIATIONS ACT, port. It was requested by one of our priations. 2003 former chairs, Mr. Archer, in 1999, to The rule further provides that the study the scope and the impact of Mr. DIAZ-BALART. Mr. Speaker, by amendment offered by the ranking mi- wealthy U.S. taxpayers who renounce direction of the Committee on Rules, I nority member of the subcommittee, their citizenship to avoid paying their call up House Resolution 489 and ask the gentleman from Virginia (Mr. for its immediate consideration. U.S. taxes. MORAN), be made in order. In the wake of recent corporate scan- The Clerk read the resolution, as fol- This is a fair rule that will allow all dals and in the wake of assertions by lows: Members ample opportunity to debate members of the majority leadership the important issues associated with H. RES. 489 that corporations moving their cor- this bill. I want to point out again, Mr. Resolved, That at any time after the adop- porations abroad do it only to avoid Speaker, that the gentleman from Vir- tion of this resolution the Speaker may, pur- taxes, which was the fault of our Tax suant to clause 2(b) of rule XVIII, declare the ginia had an amendment that he Code and not of the corporations, the House resolved into the Committee of the wished to make in order with regard to report has taken on an added impor- Whole House on the state of the Union for the issue of the Joint Committee on tance. consideration of the bill (H.R. 5121) making Taxation reducing some funds, I be- appropriations for the Legislative Branch for Earlier this year, the Wall Street the fiscal year ending September 30, 2003, and lieve it is $590,000, and even though this Journal ran a story suggesting the re- for other purposes. The first reading of the is a structured rule, we made it in port was largely completed. But de- bill shall be dispensed with. General debate order in the interest of absolute fair- spite repeated requests, the report has shall be confined to the bill and shall not ex- ness. yet to be released. Last night, the ceed one hour equally divided and controlled The underlying legislation funds Committee on Rules could easily have by the chairman and ranking minority mem- many important programs that work removed this potential roadblock to ber of the Committee on Appropriations. to keep our government functioning. After general debate the bill shall be consid- obtaining this report, but it chose not Some of these programs include $219 to. ered for amendment under the five-minute million for the Capitol Police, $422 mil- rule. The bill shall be considered as read Mr. Speaker, this, unfortunately, has through page 61, line 16. Points of order lion for the Library of Congress, $86 become a pattern with the majority against provisions in the bill for failure to million for the Congressional Research leadership. Reports in recent days have comply with clause 2 of rule XXI are waived Service, and $457 million for the Gen- suggested that the majority leadership except as follows: beginning with ‘‘Provided’’ eral Accounting Office. is joining forces with corporations who on page 11, line 4, through line 9; page 16, line At this time I think it is important abuse tax avoidance schemes in an ef- 21, through page 21, line 17. Where points of we highlight a particular item of this order are waived against part of a paragraph, fort to kill our attempts to close major bill. Since September 11, the Capitol tax loopholes, with the help of the points of order against a provision in an- Police have worked incredibly, tire- other part of such paragraph may be made Treasury. only against such provision and not against lessly, to ensure that we, the Members Specifically, the GOP leadership at- the entire paragraph. No amendment to the and all the staff here, and the Capitol tempted earlier this week to strip out bill shall be in order except the amendment itself be safe. Their efforts have al- a provision passed by Democrats in the printed in the report of the Committee on lowed us to do our jobs without any Committee on Appropriations that Rules accompanying this resolution and ex- safety concerns and worries, and I would prohibit government contracts cept pro forma amendments offered by the would like to take this opportunity to chairman or ranking minority member of from being issued to companies that commend the Capitol Hill Police, all of have reincorporated overseas specifi- the Committee on Appropriations or their the officers in that distinguished body, designees for the purpose of debate. The cally to avoid paying taxes. for their courage and their dedication. amendment printed in the report may be of- b 1300 fered only by a Member designated in the re- I would also like to thank the Com- port, shall be considered as read, shall be de- mittee on Appropriations for ensuring Accenture, formerly Andersen Con- batable for the time specified in the report that the brave men and women of the sulting, is spearheading a lobbying equally divided and controlled by the pro- Capitol Police will receive pay at least campaign, as their $43 million contract ponent and an opponent, and shall not be equal to other Federal law enforcement with the IRS could be affected. subject to amendment. At the conclusion of agencies. Accenture recently moved its head- consideration of the bill for amendment the I would also like to thank the chair- quarters to Bermuda to avoid paying Committee shall rise and report the bill to man of this subcommittee, the gen- U.S. taxes. The amendment to curtail the House with such amendment as may have been adopted. The previous question tleman from North Carolina (Mr. TAY- this practice is the first in a campaign shall be considered as ordered on the bill and LOR), and all the members of the sub- by the Committee on Appropriations to the amendment thereto to final passage committee. Mr. Speaker, this bill gives force the majority to confront cor- without intervening motion except one mo- us the tools to serve our constituents porate wrongdoing, worker pension

VerDate Jun 13 2002 00:46 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00004 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.005 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4879 raids by executives, and stockholder taxes in this country, then you cannot We tried to help out. Three years ago deception. It is my hope that the ma- expect to get contracts with the gov- there was a request by Chairman Bill jority will stop blocking the efforts to ernment of the country that you are Archer of the Committee on Ways and address these reform efforts. abandoning. Means to give Congress a report on the In other respects, however, the un- At the same time, the gentleman amount of money that expatriates are derlying bill is noncontroversial and from Virginia (Mr. MORAN) tried to sheltering overseas so they can avoid provides funds for all aspects of oper- point out in this bill that there is a their Federal income taxes. That was 3 ating the House of Representatives, in- study pending in the Joint Committee years ago. We have been waiting for cluding staff and committee salaries on Taxation which relates to the same this report, and we have not gotten it. and expenses, mail and security. It also nefarious practices, only those prac- We were not even getting a response covers congressional agencies such as tices are being engaged in apparently from the committee. the Library of Congress, the General by individuals rather than corpora- So what we tried to do is in the most Accounting Office, and the Botanical tions. So the gentleman from Virginia constructive way possible just suspend Gardens. (Mr. MORAN) tried to see to it that that the increase on the Joint Committee I would like to highlight the bill’s Joint Committee on Taxation study on Taxation; and as soon as we got the provisions designed to improve Capitol being done was released because it has report, they would get their increase. Police recruitment and retention. been held up. But the rule did not make that in Since September 11, the hours and Now what the Committee on Rules order. So now we are going to have an pressures of protecting staff and Mem- has done is to eliminate the protection amendment that we are going to have bers and the visiting public have in- under the rules for the Moran amend- to fight over. It is unfortunate. creased dramatically. It is imperative ment so that the House can hide from We do not know the specifics of what that we take steps to ensure that the this issue by having somebody move to is in this report, but we certainly can- Capitol Police have the resources to strike that language on a point of not figure out why the other side of the maintain this level of commitment. order. aisle would not want that information With this in mind, the bill contains a 5 I do not know what the majority is to be made public when the Federal percent merit pay raise for Capitol Po- trying to hide, and I do not know why taxpayer is paying for the Joint Com- lice officers, as well as a 4.1 percent after the steady stream of revelations mittee’s activities. That is the big cost-of-living increase. that we have had about the nefarious issue. The Committee works for us and I would also note that the measure conduct of corporations by hiding the we work for American citizens. provides language clarifying the struc- true nature of their balance sheets, I There was another issue that was not ture of the Capitol Police Board and do not know why the House is con- made in order, and again we were try- authorizing the Chief of Police to ap- tinuing to coddle individuals who are ing to do the right thing. We put in a point an executive director of the engaging in those practices; but evi- provision that allowed the chief of the board. Moreover, it authorizes the chief dently the House seems compelled to Capitol Police to have more direct con- to hire officers at a rate higher than do that. trol over his troops. It was something the minimum rate associated with that As long as that is the case, we feel that people who understand the issue position. The bill also includes lan- compelled to vote against this rule be- in terms of management felt was called guage authorizing the Capitol Police to cause we feel that language should for. So we put that in. It was some- run their own payroll services as op- have been protected. It would be funny thing that the Committee on House posed to having the House and Senate if it were not so sad. Administration should do and they did pay some of the officers out of their What I am reminded of, with apolo- not do. We understood that it was systems. gies to the gentleman from Massachu- something that they wanted us to do. We owe it to law enforcement to en- setts (Mr. FRANK), I was reminded yes- We did it, and now it is not made in sure that they and their families are terday by the gentleman of the lyrics order. provided for in this new and uncertain of a song done by the Beach Boys years There is a provision for student environment. We also owe it to the ago. Part of those lyrics go as follows: loans, to be able to pay off student thousands of visitors to the Capitol Aruba, Jamaica, ooo I wanna take you, To loans by working for the legislative each year so that they have confidence Bermuda, Bahama come on pretty mama, branch in the same way the executive that they are being protected to the ut- Key Largo, Montego, baby why don’t we go. branch provides incentive so we can ac- most of our ability. Ooo I wanna take you down to Kokomo. quire and retain the best personnel Mr. Speaker, I reserve the balance of Mr. Speaker, that seems to be the working for us. The Committee on my time. motto of the people in this House who House Administration has not brought Mr. DIAZ-BALART. Mr. Speaker, I are hiding the activities of the jet set, it up. We put it in this bill knowing we reserve the balance of my time. both individual and corporate. To me it were doing the right thing. Ms. SLAUGHTER. Mr. Speaker, I is a pretty sad day in the House. We tried to be constructive. We tried yield 5 minutes to the gentleman from So we will be voting against this not to be controversial. We certainly Wisconsin (Mr. OBEY). rule, not because of our objections to would not want to demagogue an issue Mr. OBEY. Mr. Speaker, I am frankly the core bill itself, but because sooner like this, but here we are in a situation not quite sure what to say on this rule. or later we believe that the majority where we have a rule that did not make I think we need to explain what is in- party leadership ought to join us in in order two very constructive provi- volved in our opposition to it. Last pursuing the public’s right to know sions. That is why we have to object to week the Committee on Appropriations which individuals and which corpora- the rule, unfortunately. expressed the fact that we were fed up tions are welching on their obligations Ms. SLAUGHTER. Mr. Speaker, I with corporations who, having received to support the government that has yield 4 minutes to the gentleman from support services from our commu- given them the opportunities to make New Jersey (Mr. HOLT). nities, law enforcement services, high- all of that money that they are now Mr. HOLT. Mr. Speaker, since Sep- ways, transportation, police protection trying to hide and protect. tember 11, Congress has been consid- and the like, we simply got fed up with Ms. SLAUGHTER. Mr. Speaker, I ering many issues related to terrorism corporations who were ostensibly mov- yield 3 minutes to the gentleman from and homeland security: detection of bi- ing their legal locations from the Virginia (Mr. MORAN). ological and chemical agents, develop- United States of America to other Mr. MORAN of Virginia. Mr. Speak- ment of new vaccines and therapeutic more exotic countries in order to avoid er, we had an opportunity to pass a drugs, aviation security, biometric paying taxes. rule in a nonpartisan fashion. This technologies for border security, com- We adopted the DeLauro amendment should have been a good bill that we munications systems for the public in committee, which I was pleased to could have all agreed on and passed health system, the psychological ef- cosponsor, to try to say that if you are within a few minutes. Unfortunately, fects of terrorism, and cybersecurity. a company and you walk out on your because of the rule, we have a problem I ask Members, particularly on the obligation to pay your fair share of with this bill. Republican side, do they feel confident

VerDate Jun 13 2002 23:47 Jul 18, 2002 Jkt 099060 PO 00000 Frm 00005 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.008 pfrm17 PsN: H18PT1 H4880 CONGRESSIONAL RECORD — HOUSE July 18, 2002 in their ability to analyze these tech- Mr. DIAZ-BALART. Mr. Speaker, I cost covered. Employees qualifying for nical issues? Can they name anyone on yield myself such time as I may con- this benefit must be working in the their staff, on their committee staff or sume. United States. personal staff, who is capable of ana- I was of the impression that our I attempted to have an amendment lyzing these issues? I can tell Members, friends on the other side of the aisle included that would have provided for a the answer for these technical issues perhaps had listened too much to the study to determine the feasibility of and other technical issues in transpor- Beach Boys and had a few too many providing child care services to low-in- tation, health care, agriculture, energy margaritas after hearing their argu- come employees of the legislative is no. ments this afternoon until I heard the branch. Unfortunately, that rule was Congress used to have scientific ex- gentleman from Wisconsin’s rendition not included. We need to create an af- pertise at its disposal. The Office of of the Beach Boys song. I think maybe fordable child care plan for legislative Technology Assessment was estab- a couple of more margaritas would im- branch employees. I could not under- lished in 1972 because lawmakers recog- prove the rendition. stand and still cannot understand why nized a need for the legislative branch But in all seriousness, Mr. Speaker, I such an amendment could not have to have its own source of technical am somewhat confused. The main alle- been included so that those individuals analysis. The OTA was defunded in gation being made is that the Com- could have the possibility of receiving 1995. During its existence, the OTA pro- mittee on Rules is not permitting the benefits that would assist them to have vided Congress with unbiased technical gentleman from Virginia’s issue to be their children in licensed day care pro- analysis. discussed. This is a structured rule grams. In analyzing technical issues, OTA that required us to make in order any For that reason, I too must vote adopted an interdisciplinary approach. amendments, and the Committee on against this rule because I think it It resulted in reports that were excel- Rules made in order an amendment by could have allowed certainly this lent and are still regarded as excellent. the gentleman from Virginia (Mr. amendment which would have done no And to ensure a balanced approach, a MORAN) precisely dealing with the harm to anything or anybody. bipartisan 12-member technology as- issue that the gentlewoman from New Ms. SLAUGHTER. Mr. Speaker, I sessment board comprised of six House York (Ms. SLAUGHTER) and he brought yield 3 minutes to the gentleman from and six Senate members, both Repub- up. The amendment is made in order. I New York (Mr. RANGEL). licans and Democrats equally rep- kind of wish we had not made it in (Mr. RANGEL asked and was given resented, governed the OTA. order, but we did. In the interest of full permission to revise and extend his re- The OTA should not have been abol- fairness and the opportunity to debate marks.) ished, but we can debate that. But no, issues, knowing the passion which the Mr. RANGEL. Mr. Speaker, I am re- we cannot debate that because this gentleman from Virginia feels on this sisting and voting against the rule be- rule does not allow it. In 1995, Congress issue, that amendment was made in cause it does not allow the House of voted to dissolve the OTA in a mis- order. Representatives an opportunity to guided attempt to institute govern- Maybe it is too many margaritas, I work its will. We have in this bill a ment reform. am not sure what, but I wanted to reit- provision that would allow us to hold I presented to the Committee on erate that the amendment was made in back the fundings of the Joint Com- Rules yesterday a very clean amend- order and that we look forward as we mittee on Taxation until such time ment. Members will not find a cleaner proceed, since we did make it in order, that they release to the Committee on amendment. This amendment would to debate on the gentleman from Vir- Ways and Means, and the House of Rep- have provided $4 million to refund the ginia’s amendment and obviously then resentatives, information which they OTA, which is still authorized. There on the underlying legislation. have that would tell us with some de- would be no legislating done here in Mr. Speaker, I reserve the balance of gree of accuracy the cost to the United the appropriations bill. The $4 million my time. States for companies that have decided would be taken without an offset Ms. SLAUGHTER. Mr. Speaker, I to leave the United States and to go against any other program, nobody’s yield 15 seconds to the gentleman from abroad in order to avoid paying United ox is gored, except perhaps the memory Virginia (Mr. MORAN). States taxes. I want to thank the gen- of a former Speaker of the House. But Mr. MORAN of Virginia. Mr. Speak- tleman from Virginia (Mr. MORAN) for no. This clean amendment was not er, I just want to respond to my friend using this vehicle for us to get what we ruled in order. from Florida. Our problem is that we are entitled to get. The Office of Technology Assessment did not want to have to cut the funding At the end of the day, we are not ask- could be revived, but because Repub- for the Joint Committee on Taxation. ing anyone to vote up or down. All we licans since 1995 have been denying this We just wanted to suspend the money are saying is that when a committee body unbiased technical analysis, they until we get the report. That is the that has been formed for the purpose of would rather depend on biased sources issue. We really do not want to be puni- providing information for us to work for their scientific advice. tive and cut the funding. You only gave our will based on that information, Mr. Speaker, this should not have us the option of cutting the funding. that we should have it. And whether we happened. The Republican leadership That is our problem with the decision are under Democratic leadership or Re- certainly has given up any claim to of the Committee on Rules. publican leadership, the ability to stop want to have informed decisions on Ms. SLAUGHTER. Mr. Speaker, I a legitimate committee from reporting technical issues here in this Congress. yield 2 minutes to the gentleman from that information is against the best in- Illinois (Mr. DAVIS). terests of the committee, the Congress b 1315 Mr. DAVIS of Illinois. Mr. Speaker, and, indeed, our country. When that This was an appropriate amendment, on November 12, 2001, President Bush flag is up and waving as a result of the a simple amendment. It could have signed permanent legislation which terrorists’ cowardly attack on the been debated. Perhaps they would like permits Federal agencies at their dis- United States of America, it would to defend their abolition of the Office cretion to use appropriated funds to as- seem to me that all of us have to find of Technology Assessment in 1995. sist their lower income employees with some sense of responsibility as to what Fine. Let us have that discussion. But the high cost of quality child care. In do we owe this great Republic, this do not pretend that you have here on order to qualify, the total family in- great country of ours. And even though Capitol Hill at your disposal the tech- come of the employee parent cannot I have not reached the position that it nical analysis to deal with biological exceed $60,000. Additionally, the chil- is a privilege to pay taxes, I do reach and chemical agents, vaccines, avia- dren cannot exceed the age of 13, 18 if the position it is a responsibility to tion security, biometrics, public health disabled, and must be placed in li- pay taxes in order to appreciate the communication and so forth. censed day care, home care or after- rights and the privileges that we have Mr. Speaker, I will vote against the school care. Employees meeting these in this great country. When someone rule for this reason and I urge my col- criteria could have had from 20 percent decides that they do not want to pay leagues to do the same. to 50 percent of their total child care taxes here, that they do not like our

VerDate Jun 13 2002 23:47 Jul 18, 2002 Jkt 099060 PO 00000 Frm 00006 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.011 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4881 tax laws, what they should be doing is Mr. DIAZ-BALART. Mr. Speaker, I Furthermore, we would like the GAO petitioning this Congress to change yield 5 minutes to the gentleman from to review and update an inspector gen- those laws, but not flee the jurisdiction Tennessee (Mr. WAMP). eral’s report on the Chattanooga out- of the United States and take the jobs (Mr. WAMO asked and was given per- patient clinic. This update should in- with them abroad just for the sole pur- mission to revise and extend his re- clude wait times for appointments, re- pose that they do not want to do it. marks.) ferral times to a VA hospital, staffing We are asking for information, and Mr. WAMP. Mr. Speaker, I rise to en- issues and physical capacity to accom- when we get so partisan that we do not gage Chairman Taylor in a colloquy. modate increasing patient load, spe- like the reports, that we tell the em- Mr. Chairman, in the Southeast we cialty care provided by the Chat- ployees we do not want to hear it, then are facing a major problem with a vet- tanooga outpatient clinic, and report it is up to us to say that we do not fund erans’ health care system that is out- back to the subcommittee and me as that type of activity. And when we are dated and no longer able to meet the soon as possible. able to persuade the committee to put needs of those who have placed their Mr. TAYLOR of North Carolina. Mr. it in there, then the least that you can lives on the line to preserve our free- Speaker, will the gentleman yield? expect from the Committee on Rules is dom. We have seen a recent trend of Mr. WAMP. I yield to the gentleman that they would protect us, because it veterans moving southward, yet the from North Carolina. is not Moran, it is not Democrats, it is medical facilities that are in place in Mr. TAYLOR of North Carolina. Mr. not Republicans, it is the integrity of these States seeing the greatest influx Speaker, I do share the gentleman’s this great House. are not sufficient to meet their needs. sentiments about the accessibility of In July of 2000, the Veterans’ Admin- Ms. SLAUGHTER. Mr. Speaker, I quality care for our Nation’s veterans. istration entered into a contract in my yield 2 minutes to the gentleman from North Carolina has also experienced an district with Erlanger Hospital in Massachusetts (Mr. NEAL). influx of veterans in recent years and Chattanooga, Tennessee that created a (Mr. NEAL of Massachusetts asked the failure of this VA pilot program is pilot project to provide quality medical a setback in our efforts to provide all and was given permission to revise and service to our veterans closer to home. extend his remarks.) veterans with quality and convenient There are currently veterans in my dis- health care. I am pleased to work with Mr. NEAL of Massachusetts. Mr. trict who are forced to wait months for Speaker, the gentleman from Florida you on this matter and look forward to appointments in Murfreesboro or Nash- receiving and reviewing the GAO said that the issue was too many ville when by utilizing services at Er- margaritas. The issue really is too few study. langer Medical Center, our regional Mr. WAMP. I commend and thank opportunities to vote on Bermuda. I am safety net public hospital, they can re- our distinguished chairman for work- in opposition to this rule today. I am duce their wait time as well as their ing with me on this important issue for going to continue to be in opposition to travel. our veterans in the Southeast. The re- these rules until there is an oppor- Since the inception of the program in cent migratory trends in our veteran tunity for this full House to vote on July 2000, I believe that the VA never population affect much of the South the issue of runaway corporations mov- truly committed to this contract. In and I know that the chairman shares ing offshore to avoid American taxes in the first year of this pilot program, my concern about the medical atten- a time of war. The President has re- there were only 24 referrals to Erlanger tion that they are being provided. quested $48 billion more for national from the VA. When Erlanger renewed defense, $38 billion for homeland secu- for a second year, we negotiated con- b 1330 rity, and these corporations in the tract changes to increase the volume of Ms. SLAUGHTER. Mr. Speaker, I dark of night are sneaking out of the veterans eligible to be referred to Er- yield 2 minutes to the gentleman from country without ample opportunity for langer. However, the second year of the Maryland (Mr. HOYER). this body to take a vote on stopping it. program saw only a meager increase in Mr. HOYER. Mr. Speaker, I thank Whether it is Stanley Tools running off referrals to 34. Despite the fact that the gentlewoman for yielding me this to Bermuda to avoid taxes or J. Paul Erlanger is being reimbursed at the time. Getty’s grandson turning in his U.S. Medicare rate, the VA refuses to refer I am going to support the underlying citizenship to avoid individual income the vast majority of the veterans in bill, as I know the ranking member and taxes, the American taxpayer wants us the area and instead forces them to certainly the chairman will. I will to act to stop these tax dodgers. make the long trip to the veterans’ speak at greater lengths on the sub- We have known that these penalties hospital 2 hours away. The current stance of the bill, which is excellent, are insufficient for those who renounce contract is set to expire next month, and I appreciate the gentleman from U.S. citizenship for tax purposes, but August 31, and the VA received zero North Carolina (Mr. TAYLOR) working since 1996 we have had no opportunity bids for their requests for proposals. with us. to do anything about it. These expatri- Mr. Chairman, I want to thank you Mr. Speaker, we are in an environ- ates still visit, work and even live here for agreeing to join me in sending a let- ment that is very dangerous. It is an while avoiding U.S. income taxes. The ter to the GAO requesting a study of environment in which secrecy in the Republicans have stopped this vote this pilot project and the reasons for marketplace has undermined the con- from coming up, and now they even its failure. We have asked the GAO to fidence of investors. It has undermined stop the report on individual expatri- undertake a study of the VA Tennessee the confidence of the investors to the ates from coming to the House floor. Valley Health Care System-Erlanger extent that the market has plum- We deserve a vote and I will predict Medical Center contract in Chat- meted, and millions of people have lost what I have said all along. Give us a tanooga, Tennessee. The focus of the very substantial amounts in their vote on the Bermuda tax dodge, what study should be for the GAO to evalu- 401(k)s, their Keoughs, and other sav- these corporate traitors are doing in ate the 2-year contract, the volume of ings plans. the dark of night, and 300 Members of referrals, system for referring veterans, One might say, well, that is inter- this body at a minimum will vote to do the funding allocated to the contract esting. What does it have to do with something about it. and the total amount expended. The this bill? What it has to do with this Stop blocking this opportunity. We study should also focus on the specific bill is that we ought to be in an envi- need the report to find out what is hap- reasons for contract termination, ad- ronment of making sure that investors, pening with these billionaires and our justments of future contracts, diag- in this case taxpayers who invest in tax revenues. Let me say this. We can nosis and medical services list, like America, know what is happening with stand here and hold hands and sing surgery, the number of veterans that their tax dollars, and know what is ‘‘God Bless America,’’ but part of the qualified under the terms of the con- happening with those around them in blessings that we enjoy in this country tract that were not referred, and the terms of contributing to the war on are paying for the benefits that we cost estimate to continue this contract terrorism, to homeland security, to have as well. Give us a vote on the Ber- with the focus on quality care closer to education, to health care, to the wel- muda tax dodge. home for veterans. fare and greatness of this Nation. That

VerDate Jun 13 2002 23:47 Jul 18, 2002 Jkt 099060 PO 00000 Frm 00007 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.014 pfrm17 PsN: H18PT1 H4882 CONGRESSIONAL RECORD — HOUSE July 18, 2002 is what the Moran amendment seeks to cause they want to thwart the efforts keep them weak, and then return to do. of Democrats to ensure that billion- government to police the same laws. Very frankly, self-respect, if nothing aires are paying their fair share. As I Mere requests in English to produce else, should compel us to adopt the said, in 1995, when this issue was up, this report for three years have been Moran amendment. Self-respect to the Newt Gingrich and the Republicans had unsuccessful, so we must talk in the extent that the House says to one of its as their agenda a ‘‘pattern of protec- only language that these folks under- committees, produce a report, in this tion of plutocrats’’ in what they called stand money: no report, no money. case, the Republican chairman of the the ‘‘Contract on America.’’ Support the Moran amendment. Committee on Ways and Means, not a Today, though, I offer a more humble Mr. DIAZ-BALART. Mr. Speaker, I Democrat. Notwithstanding that re- suggestion. Perhaps the Joint Com- would inquire, has all the time on the quest, and notwithstanding the fact mittee on Taxation is simply short- other side expired? that the Joint Committee on Taxation handed and understaffed, because too The SPEAKER pro tempore (Mr. conducted a study about tax abscond- many of its staff members have moved GILLMOR). Yes. All time of the gentle- ers, tax dodgers, that report is being on to greener, indeed, much greener woman from New York has expired. kept secret. pastures. Ken Kies, who was the chief Mr. DIAZ-BALART. I thank the Mr. Speaker, we ought to oppose this of staff of this very same committee Speaker for the clarification. rule and put the Moran amendment from 1995 to 1998 under the Repub- Mr. Speaker, I yield myself such time back in this bill. licans, left to join Pricewaterhouse as I may consume. Ms. SLAUGHTER. Mr. Speaker, I Coopers where, in 2000, he lobbied on Mr. Speaker, I want to point out yield 1 minute to the gentleman from behalf of the same Section 877 Coali- again, because I have been trying to Michigan (Mr. LEVIN). tion to weaken the already modest lim- follow the arguments that have been (Mr. LEVIN asked and was given per- itations on these billionaires, who re- coming from the other side, and I saw mission to revise and extend his re- nounce America. The Coalition mem- in one of the publications here on the marks.) bers, of course, like this Joint Com- Hill today that they have all gotten Mr. LEVIN. Mr. Speaker, there is mittee report, remained secret because their orders and they are going to talk just one basic issue relating to this he never revealed the clients, who were on this issue from now until eternity, rule: Why is the Republican majority paying for the lobbying in his official no matter what the matter at hand is hiding a report on individuals who flee lobbyist disclosure reports. about. America and give up their citizenship, Pricewaterhouse Coopers Consulting I want to point out that the amend- in a sense, in name, in order to avoid has since itself renounced America, re- ment from the gentleman from Vir- paying American taxes? Why are our emerged and reincorporated abroad to ginia (Mr. MORAN) was requested of the Republican colleagues hiding it? They dodge taxes under the unusual name Committee on Rules. We did not im- should use some of their time to an- ‘‘Monday.’’ pose it on the gentleman. We did not in Nor did Ken Kies devote all of his swer that question. the Committee on Rules say we are time in this manner. He took time out In 1999, the gentleman from New going to force the amendment down in March of this year, according to a York (Mr. RANGEL) tried to address onto the gentleman from Virginia (Mr. solicitation from the National Repub- this, and in order to avoid it, the Re- MORAN). He requested of us, and we lican Congressional Committee, to publican majority said there will be a made it in order. We have made the meet with contributors, together with study with a report back by 2000. As far Moran amendment in order precisely the chairman of the Committee on as I know, this is the year 2002. because of the fervor with which it was Ways and Means, the gentleman from Why are all other provisions that made clear that the gentleman from California (Mr. THOMAS), to, according have some legislating in them, why are Virginia (Mr. MORAN) wanted it to be to this solicitation, instruct those who they all protected except this one? I heard and discussed. were invited ‘‘how to cut your taxes With regard to the statement of a yield any remaining time to the gen- and stimulate your business.’’ No doubt colleague who got up, I forget who he tleman from Florida to respond. this was a most insightful presen- Ms. SLAUGHTER. Mr. Speaker, I was, and said that we were hiding tation. yield 4 minutes to the gentleman from Nor is Ken Kies the only former staff something, this report, not only are we Texas (Mr. DOGGETT). member of this particular committee not hiding anything, this report is of Mr. DOGGETT. Mr. Speaker, what to find greener pastures elsewhere. the Joint Tax Committee. The chair- does it mean to be an American? We all Barbara Angus, who served on this man of the Joint Tax Committee, it is have our personal reflections, some- Joint Committee on Taxation, moved my understanding, is Mr. BAUCUS, a times finding an answer in a school over to Price Waterhouse and joined Senator from, I believe it is Montana. I child’s essay, a veteran’s speech, or a the same coalition fighting on behalf of would hope and assume that they visit to the Lincoln Memorial. Most the billionaire ex-patriots. That, of would talk with the chairman of the Americans understand that freedom is course, is not where Republican Bar- committee that they think is hiding not free, and that the price of being a bara Angus is today. Today, President something. It happens to be a member part of the greatest Nation in the his- Bush has appointed her as the inter- of their party. But I saw in the paper tory of the world is accepting the re- national tax counsel for the United today what the strategy is, and that is sponsibility to pay for our security at States Department of Treasury, where part of the process. home and abroad. she is undoubtedly seeking to ensure But also part of the process is some- But some of our wealthiest Ameri- that her former clients pay their fair thing serious, which is the legislative cans have shirked their responsibility share. branch appropriations bill, including and fled to foreign shores. These indi- To protect the public Treasury, the the Capitol Police, that we have vidual ex-patriots, just like their cor- Bush Administration supported by its brought to the floor and, as I said be- porate cousins at Stanley Works, have allies here in Congress, is anointing fore, with commendations and admira- elected personal gain over patriotism. lapdogs instead of appointing watch- tion for the men and women of the Cap- More than three years have passed dogs. The same reason why the Repub- itol Police. So I would urge my col- since the Joint Committee on Taxation licans bar the public from reading this leagues to pass this rule and pass the was first asked to evaluate whether ex- report is why they are obstructing the underlying legislation, get on with the isting rules for these ex-patriots were legislation I have introduced on abu- business, despite what we see in the lit- being applied as we intended them here sive tax shelters and to end this Ber- tle papers about strategies and tactics in Congress. It only took Forbes Maga- muda tax dodge. Their watchword is and dreams; everyone is entitled to zine a short while. Three years ago, in ‘‘friends do not let friends pay taxes,’’ dreams. Let us get on with the Nation’s three words they concluded, ‘‘It ain’t or, in the memorable words of Leona business, and let us pass the rule. working.’’ And it is still not. Helmsley, ‘‘taxes are for the little peo- Mr. COLLINS. Mr. Speaker, will the Now, some cynics suggest that the ple.’’ gentleman yield? Joint Committee on Taxation has And there is a cycle: Draft weak Mr. DIAZ-BALART. I yield to the stonewalled and delayed this report be- laws. Lobby on behalf of billionaires to gentleman from Georgia.

VerDate Jun 13 2002 23:47 Jul 18, 2002 Jkt 099060 PO 00000 Frm 00008 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.024 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4883 Mr. COLLINS. Mr. Speaker, I thank know of another country that has an But we have to say to American cor- the gentleman for yielding. alternative minimum tax, but we do. porations, they should pay their taxes Mr. Speaker, if I understand this Let us talk about those things and as they go. We say it with a unified bi- amendment correctly, it is to reduce what we can do in changing the tax partisan voice. We did it in the com- the Joint Committee on Taxation’s ap- law, or in the regulatory provisions mittee, a bipartisan vote. So before the propriation or budget by some $590,000, and costs that we impose on a business gentleman makes hay out of this all because of a report. That report is not that will do away with that corrective the way to November, understand we going to change why people expatri- to move offshore, to reincorporate in stand together in a bipartisan way to ated. Mr. Speaker, when they leave Bermuda, to sell out to a company in hold American corporations account- this country and go anywhere else in Europe or Asia. able. the world to make money, they are A plant in my district just sold to a Mr. DIAZ-BALART. Reclaiming my going to pay tax. The reason they are group in China. They are going to leave time, Mr. Speaker, we have made the doing so is because of a country that the plant there, hopefully. They may amendment of the gentleman from Vir- has less taxation. The liability is less. close it, because they are opening a ginia (Mr. MORAN) in order. I think it is That is America: freedom to go wher- plant, too, in China. I do not like that, appropriate that we get to the under- ever you want to. I do not like it. I do but this is not going to do any chang- lying legislation and that we fund the not like it because people are leaving. ing to it. It will not change it, I say to legislative branch, which is what the Stanley Works has been mentioned. the gentleman from Virginia (Mr. business of today is. Despite the hay If I read right, Stanley Works wants to MORAN), not at all. we have heard, they had more than half reincorporate in Bermuda. They would I would like to see the report, too. It their time on the floor here. save some $32 million based on the dif- is forthcoming, I hope. But I hope that Mr. Speaker, I yield back the balance ference in taxation. Does not that type this Congress will spit out that bitter of movement or reason to move or in- of my time, and I move the previous taste they have about business and question on the resolution. centive to move tell us that our tax profits and address the real problem, codes, our tax structure is penalizing The previous question was ordered. that is, the costs that we impose as a The SPEAKER pro tempore (Mr. people? Now, they are leaving the busi- Congress on business, to do business in ness here and the jobs here. They are GILLMOR). The question is on the reso- this country. It directly reflects the in- lution. moving taxation. I would rather they dividual worker here. The question was taken; and the stay here. But this $590,000, we could Mr. WAMP. Mr. Speaker, will the Speaker pro tempore announced that make it $1 million, it is not going to gentleman yield? change the reason. The reason is the Mr. DIAZ-BALART. I yield to the the ayes appeared to have it. environment. gentleman from Tennessee. Ms. SLAUGHTER. Mr. Speaker, I ob- Mr. Speaker, it bothers me when, Mr. WAMP. Mr. Speaker, I just want ject to the vote on the ground that a based on the current environment in the record to reflect and to be clear, we quorum is not present and make the this town, that the word ‘‘profit’’ or debated this expatriate issue at the full point of order that a quorum is not ‘‘profits’’ is a bad word. Profits only re- Committee on Appropriations. An over- present. late to people who are in business who whelming bipartisan vote took place The SPEAKER pro tempore. Evi- are greedy, commit fraud and do not do against expatriate corporations, and dently a quorum is not present. right with their bookkeeping. That is the gentlewoman from Kentucky (Mrs. The Sergeant at Arms will notify ab- not true. Profits of business, whether it NORTHUP) and myself led the Repub- sent Members. is a one-man operation, one-woman op- lican debate to hold these companies The vote was taken by electronic de- eration or a conglomerate, those prof- accountable; to say to expatriated vice, and there were—yeas 219, nays its relate directly to salaries, to in- companies, they cannot do business 206, not voting 9, as follows: come, to retirement, to savings, to with the Federal Government. It was a health care for their families. [Roll No. 319] defense measure, to say they could not YEAS—219 b 1345 contract with defense. I stood to say Aderholt Culberson Hart It all comes from profits. And we are we should go further. They should not Akin Cunningham Hastings (WA) penalizing business in this country do Medicare, Medicaid business, and Armey Davis, Jo Ann Hayes should not contract with the Federal Bachus Davis, Tom Hayworth with the high cost of taxation. All Baker Deal Hefley business does is collect it from the pri- Government. Ballenger DeLay Herger vate sector through their sales. This is not a Democrat or Republican Barr DeMint Hilleary I have been into a lot of businesses to issue. To me, this is an American issue. Bartlett Diaz-Balart Hobson I said that these corporations are un- Barton Doolittle Hoekstra buy a product, or even buy a vehicle or Bass Dreier Horn a major purchase. I have never been American that seek to set up shop in Bereuter Duncan Hostettler given two bills, one for the purchase foreign countries to avoid paying Biggert Dunn Houghton that I was making, and the other for taxes. We need to hold them account- Bilirakis Ehlers Hulshof Blunt Ehrlich Hunter the taxes they were making off of the able. Boehlert Emerson Hyde profit they were going to have to pay This amendment is about joint tax- Boehner English Isakson the government. It is all-inclusive. The ation, where they have connected this Bonilla Everett Issa issue. I hope we can reach agreement Bono Ferguson Istook end result is the consumer pays the Boozman Flake Jenkins bill. with the authorization committee to Brady (TX) Fletcher Johnson (CT) We have different tax provisions in accommodate the gentleman from Vir- Brown (SC) Foley Johnson (IL) this country than we will find in other ginia (Mr. MORAN). But this issue of ex- Bryant Forbes Johnson, Sam patriation, in a bipartisan way I be- Burr Frelinghuysen Jones (NC) parts of the world. We should look at Burton Gallegly Keller those areas. Some of the gentlemen lieve people of patriotic fervor will Buyer Ganske Kelly who have gotten up and spoken are on come together to say that we have to Callahan Gekas Kennedy (MN) the Committee on Ways and Means. say, if you are going to do business in Calvert Gibbons Kerns Camp Gilchrest King (NY) They know this as well as I do. America, be American, pay your taxes, Cannon Gillmor Kingston We double-tax dividends that compa- pull your load, do what is right for the Cantor Gilman Kirk nies pay to their investors. We were workers. Capito Goode Knollenberg Republicans and Democrats are going Castle Goodlatte Kolbe talking about the investors a minute Chabot Goss LaHood ago, the 401(k)s, the IRAs. We double- to hold corporate America to a stand- Chambliss Graham Latham tax those dividends. Other nations do ard; we are not going to regulate them Coble Granger LaTourette not do that. European nations do not into oblivion. The gentleman from Collins Graves Leach Combest Green (WI) Lewis (CA) do that. That is the reason we have Georgia is right, we cannot tax them, Cooksey Greenwood Lewis (KY) several who have located in Europe. regulate them, or litigate them too Crane Grucci Linder A lot of industrialized nations do not much or they will be strangled. We Crenshaw Gutknecht LoBiondo have capital gains tax; we do. I do not want the free enterprise system. Cubin Hansen Lucas (OK)

VerDate Jun 13 2002 00:46 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00009 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.019 pfrm17 PsN: H18PT1 H4884 CONGRESSIONAL RECORD — HOUSE July 18, 2002 Manzullo Radanovich Stearns Udall (CO) Watson (CA) Woolsey their remarks on the bill, H.R. 5121, McCrery Ramstad Stump Udall (NM) Watt (NC) Wu and that I may include tabular and McInnis Regula Sullivan Velazquez Waxman Wynn McKeon Rehberg Sununu Visclosky Weiner other extraneous material. Mica Reynolds Sweeney Waters Wexler The SPEAKER pro tempore. Is there Miller, Dan Riley Tancredo objection to the request of the gen- Miller, Gary Rogers (KY) Tauzin NOT VOTING—9 Miller, Jeff Rogers (MI) Taylor (NC) Bonior Fossella McCarthy (NY) tleman from North Carolina? Moran (KS) Rohrabacher Terry Carson (OK) Lowey McHugh There was no objection. Morella Ros-Lehtinen Thomas Cox Mascara Traficant f Myrick Roukema Thornberry Nethercutt Royce Thune b 1420 LEGISLATIVE BRANCH Ney Ryan (WI) Tiahrt APPROPRIATIONS ACT, 2003 Northup Ryun (KS) Tiberi Mr. DELAHUNT and Mr. MEEHAN Norwood Saxton Toomey changed their vote from ‘‘yea’’ to The SPEAKER pro tempore. Pursu- Nussle Schaffer Upton ‘‘nay.’’ ant to House Resolution 489 and rule Osborne Schrock Vitter Mr. SIMPSON changed his vote from Ose Sensenbrenner Walden XVIII, the Chair declares the House in Otter Sessions Walsh ‘‘nay’’ to ‘‘yea.’’ the Committee of the Whole House on Oxley Shadegg Wamp So the resolution was agreed to. the State of the Union for the consider- Paul Shaw Watkins (OK) The result of the vote was announced Pence ation of the bill, H.R. 5121. Shays Watts (OK) as above recorded. Peterson (PA) Sherwood Weldon (FL) b 1422 Petri Shimkus Weldon (PA) A motion to reconsider was laid on Pickering Shuster Weller the table. IN THE COMMITTEE OF THE WHOLE Pitts Simmons Whitfield Accordingly, the House resolved Platts Simpson Wicker f Pombo Skeen Wilson (NM) itself into the Committee of the Whole Portman Smith (MI) Wilson (SC) MAKING IN ORDER PRO FORMA House on the State of the Union for the Pryce (OH) Smith (NJ) Wolf AMENDMENTS DURING CONSID- consideration of the bill (H.R. 5121) Putnam Smith (TX) Young (AK) ERATION OF H.R. 5121, LEGISLA- Quinn Souder Young (FL) making appropriations for the Legisla- TIVE BRANCH APPROPRIATIONS tive Branch for the fiscal year ending NAYS—206 ACT, 2003 September 30, 2003, and for other pur- Abercrombie Gonzalez Millender- Mr. DIAZ-BALART. Mr. Speaker, I poses, with Mr. HANSEN in the chair. Ackerman Gordon McDonald ask unanimous consent that during the The Clerk read the title of the bill. Allen Green (TX) Miller, George consideration of H.R. 5121, pursuant to The CHAIRMAN. Pursuant to the Andrews Gutierrez Mink Baca Hall (OH) Mollohan House Resolution 489, pro forma rule, the bill is considered as having Baird Hall (TX) Moore amendments offered by the chairman been read the first time. Baldacci Harman Moran (VA) and ranking minority member of the Under the rule, the gentleman from Baldwin Hastings (FL) Murtha North Carolina (Mr. TAYLOR) and the Barcia Hill Nadler Committee on Appropriations or their Barrett Hilliard Napolitano designees for the purpose of debate gentleman from Virginia (Mr. MORAN) Becerra Hinchey Neal may be offered at any time. each will control 30 minutes. Bentsen Hinojosa Oberstar The SPEAKER pro tempore (Mr. The Chair recognizes the gentleman Berkley Hoeffel Obey Berman Holden Olver GILLMOR). Is there objection to the re- from North Carolina (Mr. TAYLOR). Berry Holt Ortiz quest of the gentleman from Florida? Mr. TAYLOR of North Carolina. Mr. Bishop Honda Owens There was no objection. Chairman, I yield myself such time as Blagojevich Hooley Pallone I may consume. Blumenauer Hoyer Pascrell f Borski Inslee Pastor Mr. Chairman, today we take up the Boswell Israel Payne MESSAGE FROM THE SENATE fiscal year 2003 legislative branch ap- Boucher Jackson (IL) Pelosi A message from the Senate by Mr. propriations bill; but before we begin, I Boyd Jackson-Lee Peterson (MN) Brady (PA) (TX) Phelps Monahan, one of its clerks, announced would like to thank the hard work of Brown (FL) Jefferson Pomeroy that the Senate has passed with an the Members of the subcommittee, es- Brown (OH) John Price (NC) amendment in which the concurrence pecially the gentleman from Virginia Capps Johnson, E. B. Rahall (Mr. MORAN), our ranking member. Capuano Jones (OH) Rangel of the House is requested a bill of the Cardin Kanjorski Reyes House of the following title: I would like to note that our sub- Carson (IN) Kaptur Rivers H.R. 5011. An act making appropriations committee has taken a reasoned ap- Clay Kennedy (RI) Rodriguez for military construction, family housing, proach to our increased needs in the Clayton Kildee Roemer Clement Kilpatrick Ross and base realignment and closure for the De- aftermath of September 11. I am Clyburn Kind (WI) Rothman partment of defense for the fiscal year end- pleased to note that we provided a Condit Kleczka Roybal-Allard ing September 30, 2003, and for other pur- modest 5 percent overall increase over Conyers Kucinich Rush poses. the current fiscal year in this bill. This Costello LaFalce Sabo Coyne Lampson Sanchez The message also announced that the is especially reasonable when one real- Cramer Langevin Sanders Senate insists upon its amendment to izes that well over 75 percent of our Crowley Lantos Sandlin the bill (H.R. 5011) ‘‘An Act making ap- costs are personnel related and the Cummings Larsen (WA) Sawyer propriations for military construction, Davis (CA) Larson (CT) Schakowsky cost-of-living component government- Davis (FL) Lee Schiff family housing, and base realignment wide this year is 4.1 percent. Price level Davis (IL) Levin Scott and closure for the Department of De- increases account for 1.8 and almost 2 DeFazio Lewis (GA) Serrano fense for the fiscal year ending Sep- percent of the government-wide spend- DeGette Lipinski Sherman Delahunt Lofgren Shows tember 30, 2003, and for other pur- ing increase this year. So, in real DeLauro Lucas (KY) Skelton poses,’’ requests a conference with the terms, we have kept our bill below the Deutsch Luther Slaughter House on the disagreeing votes of the rate of inflation and cost increases. Dicks Lynch Smith (WA) two Houses thereon, and appoints Mrs. Dingell Maloney (CT) Snyder We have provided the necessary and Doggett Maloney (NY) Solis FEINSTEIN, Mr. INOUYE, Mr. JOHNSON, sufficient funding in this bill for our Dooley Markey Spratt Ms. LANDRIEU, Mr. REID, Mr. BYRD, security needs, a police pay increase of Doyle Matheson Stark Mrs. HUTCHISON, Mr. BURNS, Mr. CRAIG, 5 percent, in addition to their COLA, Edwards Matsui Stenholm Engel McCarthy (MO) Strickland Mr. DEWINE, and Mr. STEVENS to be the and increased management flexibility Eshoo McCollum Stupak conferees on the part of the Senate. for our new chief. We provide the police Etheridge McDermott Tanner f with all the additional manpower that Evans McGovern Tauscher they acknowledge that they can re- Farr McIntyre Taylor (MS) GENERAL LEAVE Fattah McKinney Thompson (CA) cruit and train in the upcoming year. Filner McNulty Thompson (MS) Mr. TAYLOR of North Carolina. Mr. We have continued our commitment Ford Meehan Thurman Speaker, I ask unanimous consent that to digitalization at the Library of Con- Frank Meek (FL) Tierney Frost Meeks (NY) Towns all Members may have 5 legislative gress and gotten back on track with Gephardt Menendez Turner days within which to revise and extend their building program and storage

VerDate Jun 13 2002 23:47 Jul 18, 2002 Jkt 099060 PO 00000 Frm 00010 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.004 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4885 needs by asking the Corps of Engineers language in this bill which authorizes a Of course, without the steady hand of to take over the completion of the li- tuition reimbursement program for Liz Dawson, Chuck Turner and our brary’s storage facility at Fort Meade, House employees. dedicated, knowledgeable committee Maryland. Finally, I would like to thank all the staff, and Roger France of my staff, we We have directed the Congressional employees of this people’s House for all would not have the bill we have today. Research Service to join with the rest their hard work, their stamina, and the of the legislative branch to join the good spirits through this tough year. I Also, I would like to thank Scott Lilly, communications revolution to better know this Member appreciates them, Mark Murray, Mike Malone, and Tim enable them to communicate with and the American people appreciate Aikin for all their hard work and dedi- Members’ offices. We have included them as well. cation on this bill.

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VerDate Jun 13 2002 23:47 Jul 18, 2002 Jkt 099060 PO 00000 Frm 00019 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.039 pfrm17 PsN: H18PT1 Insert offset folio 277/8 here EH18JY02.008 H4894 CONGRESSIONAL RECORD — HOUSE July 18, 2002 Mr. Chairman, I reserve the balance is effective this fall. It includes a num- should be made toward helping to pro- of my time. ber of other provisions designed to re- tect the health of this historic tree. I Mr. MORAN of Virginia. Mr. Chair- duce officer attrition and improve re- pledge to work with the gentleman and man, I yield myself such time as I may cruitment and several administrative the Architect of the Capitol to ensure consume. and management reforms. every effort will be made to protect We have a good bill here. I was Let me close by expressing my praise this tree. pleased to work with the gentleman for how well the Congress, the staff, Mr. KUCINICH. I thank the chair- from North Carolina (Mr. TAYLOR) to and the legislative branch agencies man. craft a legislative branch appropriation have conducted themselves since the Mr. TAYLOR of North Carolina. Mr. bill that really ought to deserve strong terrorist attacks of September 11. Chairman, I reserve the balance of my bipartisan support. The 302(b) alloca- b 1430 time. tion of $3.4 billion that the sub- Mr. MORAN of Virginia. Mr. Chair- What we once took for granted, the committee received was fine. It may man, I yield 6 minutes to the very dis- continuous operation of this U.S. Con- sound like a high number, but it re- tinguished gentleman from Maryland gress, was threatened as it never has flects approximately a 5 percent in- (Mr. HOYER), the ranking member of been before, and I want to applaud the crease over last year’s appropriation. the Committee on House Administra- many selfless individuals and officers It largely covers the cost-of-living tion, who is also an invaluable member that worked often around the clock to adjustment for all the Members’ of- of our appropriations subcommittee. keep this institution in order and run- fices, committees and legislative Mr. HOYER. Mr. Chairman, I thank branch agencies. In terms of total Fed- ning through the attacks of September 11 and then the subsequent anthrax at- the gentleman for his comments and eral spending, it is a pretty small for yielding me this time. amount, approximately .18 percent of tack. This also is an opportunity to Mr. Chairman, the bill before us de- the fiscal year 2003 budget. In other thank the members of the D.C. Na- serves our support, and I want to con- words, if the whole budget was equal to tional Guard who filled in last fall to gratulate the gentleman from Virginia $1, this would be 18⁄100 of one penny, a help beef up our security. (Mr. MORAN) and the gentleman from small price to pay for the greatest It is always a privilege to serve on North Carolina (Mr. TAYLOR) for work- functioning democratic body in the the Subcommittee on Legislative. The ing together. I also want to congratu- world. dedication of thousands of legislative For as good or as bad as this institu- branch employees since September has late both Liz Dawson and Mark Mur- tion may operate, on certain days it is made it even more so. I do want to ray, as well as the other members of this Nation’s best check on tyranny thank those outstanding professionals the staff who worked on this bill. and one-man rule. It is the best oppor- who have worked on the legislative There are too many good provisions tunity for the views and concerns of branch, Mark Murray, Mike Malone, to discuss them all. One of the best, the public to be heard and addressed by Liz Dawson, Chuck Turner, Kelly however, is funding for all the new Cap- the Federal Government. Wade, Roger France, with Chairman itol police officers that the agency can Mr. Chairman, the bill before us Taylor’s office, and of course Tim recruit and train next year; a total of today will improve security and will Aiken, who is my legislative director 288 more. We certainly hope that the ensure that this institution is better and does this work for me, and David police can reach this goal and bring the prepared to respond to any future ter- Pomerantz, who always does a great force to a total of 1,454 sworn per- rorist threat. It ensures that the legis- job in whatever his assignment might sonnel. lative branch agencies have the re- be. All of our staff is invaluable. As our challenges of security have in- sources that they need next year to Mr. Chairman, I reserve the balance creased substantially, we need this maintain their high level of profes- of my time. complement of personnel to carry out sionalism and accountability. Mr. TAYLOR of North Carolina. Mr. their duties not only in terms of the se- I am also pleased to see that we were Chairman, I reserve the balance of my curity to the building and the people able to provide for legislative branch time. who visit and work here, but also with employees more equitable treatment Mr. MORAN of Virginia. Mr. Chair- respect to the safety of those officers. relative to their counterparts in the man, I yield 1 minute to the gentleman Our Capitol police have faced tremen- executive branch. By that, I mean a 4.1 from Ohio (Mr. KUCINICH). dous challenges since September 11. percent annual wage adjustment for all Mr. KUCINICH. Mr. Chairman, I rise They worked 12-hour shifts, 6 days a employees in the legislative branch ef- to enter into a colloquy with the chair- week for months. Now they are losing fective next January and funding for a man. I would like to bring to the chair- officers to other agencies, especially full $100 monthly transit benefit for eli- man’s attention the Cameron elm, the the Transportation Security Adminis- gible employees of all agencies. one we walk by every day on the way tration, which offers, frankly, more Authorization and funding are also to vote. It is one of the oldest and most money and benefits. included for a student loan repayment historic trees on the Capitol grounds In fiscal 2002, the Capitol police have program for the House which will re- and was named after Senator Simon already lost to other agencies over semble programs in the Senate, other Cameron, a Republican from Pennsyl- twice the number lost, on average, in legislative branch agencies and the ex- vania, who saved it from being cut the last 3 years. They will lose more ecutive branch, of course. This pro- down in the 1870s for a walkway. unless we act. Fortunately, this bill in- gram will, in particular, help Members, This is a strong and vibrant tree that cludes key provisions of the retention committees and House offices to at- has overcome many obstacles and can bill that the gentleman from Ohio (Mr. tract and to retain qualified employ- clearly thrive for many more years. I NEY) and I cosponsored, and which the ees. want to make sure that proper atten- House passed on June 26, including a 5 The Library of Congress, the GAO, tion is given to the Cameron elm to percent pay raise in the fall. It also in- General Accounting Office, the Con- prevent treatable health problems from cludes a tuition reimbursement pro- gressional Budget Office, and Govern- turning more severe. I would like to gram, expanded specialty pay, and re- ment Printing Office will largely re- work with the chairman to ensure that cruiting bonuses. ceive what they requested. the health of the Cameron elm is mon- As a matter of fairness, the bill The Capitol Police should be able to itored and maintained. makes whole those officers adversely hire and train all of the officers that Mr. TAYLOR of North Carolina. Mr. affected during the recent period of they need to protect Capitol Hill. The Chairman, will the gentleman yield? heavy overtime by limits on holiday current workforce of 1,166 officers will Mr. KUCINICH. I yield to the gen- and other premium pay. In addition, it be increased by 288, bringing the full tleman from North Carolina. provides for the cost-of-living adjust- complement to 1,454 sworn police offi- Mr. TAYLOR of North Carolina. Mr. ment of 4.1 percent in January. This re- cers. The bill makes funds available for Chairman, I thank the gentleman from stores roughly $350,000 that the officers a 5 percent pay increase for the Capitol Ohio for bringing this to my attention. earned in premium pay but were not Police, including all civilians, and that I agree with him that every effort paid.

VerDate Jun 13 2002 00:55 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00020 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.029 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4895 To these, the bill adds new provisions as impressive as are the other gate- the estimates of this important com- to encourage recruitment and reten- ways to our capital. The power plant mittee. Particularly at this very dif- tion, including authority for premium does not enhance that at this point in ficult time for our country in esti- pay in lieu of overtime and enhanced time. And as a good neighbor, we ought mating revenue, it would be uncon- professional training. With these provi- to work towards that end. scionable and irresponsible to cut the sions, Mr. Chairman, we intend to as- Finally, last year’s bill included a budget for the Joint Committee on sure Capitol police officers that we provision ending the Architect’s em- Taxation. value their service and we hope that ployment of temporary workers for So I urge Members to support the they will stay. We want to encourage long periods without benefits. While committee mark, and, in closing, I those young men and women who seek implementing the provisions, the Ar- again commend Chairman YOUNG and a career in law enforcement to seek a chitect of the Capitol faced several Subcommittee Chairman TAYLOR for position with the Capitol Police. technical obstacles to carrying out the crafting a bill that meets the needs of Another excellent feature is the au- original intent and sought our assist- the House in a manner that is con- thorization of a student loan repay- ance. sistent with the budget resolution. ment program for the House. The Com- The technical correction in this bill requires Mr. MORAN of Virginia. Mr. Chair- mittee on House Administration met the Architect to make employer contributions man, I am very pleased to yield 3 min- Wednesday and approved regulations so for benefits for AOC employees directly to en- utes to my distinguished colleague, the the Chief Administrative Officer can tities designated to receive such contributions. gentlewoman from Ohio (Ms. KAPTUR), have the program in place as soon as Those corrections are included in the ranking member of the Sub- we pass this bill. This program will this bill, and I appreciate again the committee on Agriculture, Rural De- help Members, committees, and offi- staff’s help on accomplishing that. velopment, Food and Drug Administra- cers recruit and retain qualified em- Mr. Chairman, this is a good bill. It tion and Related Agencies, as well as ployees. It is needed, in my opinion, to will meet the needs of the legislative being a member of the Subcommittee enable the House to stay competitive agencies in the coming year. The sub- on Legislative. Ms. KAPTUR. Mr. Chairman, I thank with other agencies, including the committee staff, and I have mentioned the ranking member, the gentleman United States Senate, which already Liz Dawson, but Chuck Turner, Mark from Virginia (Mr. MORAN), for yield- has such a program. Murray, Mike Malone, Tim Akin, of In this vein, Mr. Chairman, I want to the office of the gentleman from Vir- ing me this time, and I want to thank him for his cooperative efforts and highlight the work of our colleague, ginia (Mr. MORAN), and many others, the gentlewoman from California (Ms. including agency budget officers, have leadership on this bill, and also the chairman of the subcommittee, the LEE), who is seated to my left. She has done an excellent job. I also would be gentleman from North Carolina (Mr. promoted this program tirelessly. The neglectful if I did not mention my own TAYLOR), who is an historian of the gentlewoman introduced a bill last staffer Mike Harrison, who has worked House as well, for their very gracious year to bring this program to legisla- so diligently on this bill, and others. accommodation to so many of the tive branch agencies that did not have And I would urge an ‘‘aye’’ vote. needs of our Chamber and of this it. I will speak later on it, but I also House. I understand the Architect, the last want to speak to the Moran amend- I want to use this opportunity as a major agency without it, is certainly of ment, which I think will be a very im- member of the committee to thank all significant interest to her, to me, and I portant addition to this bill and which the personnel, especially over the last think to the House. I am hopeful that I hope passes. several months when there has been Mr. TAYLOR of North Carolina. Mr. as we move forward, and we expect to additional pressure on our officers and Chairman, I yield 2 minutes to the gen- have a colloquy on this issue, to in- all of the House staff, for the tremen- clude them as well. I look forward to tleman from Iowa (Mr. NUSSLE). dous cooperation and the patriotism Mr. NUSSLE. Mr. Chairman, I rise in working with the gentlewoman and that they have demonstrated. We have support of H.R. 5121, a bill to provide others to provide appropriate authority the public coming back into our Cham- promotions for the legislative branch. for the Architect, and I thank her for bers now, there is security beyond I want to compliment the gentleman her strong leadership in this area. what we had before. We have to do this from Florida (Mr. YOUNG) and the This bill also includes language au- for the moment, but we want to thank chairman of the subcommittee, the thorizing a program to facilitate em- all of them for their dedication to our ployment in the House of persons with gentleman from North Carolina (Mr. country and the cause of liberty. disabilities. As a sponsor of the Ameri- TAYLOR) for their cooperation in mak- I also want to say that in this bill we cans with Disabilities Act, this is a ing sure that this bill complies with have funds, obviously, for the Congres- particularly important provision to the House-passed budget resolution for sional Research Service and the Li- me, and I thank the gentleman from fiscal year 2003. It provides $2.7 billion brary of Congress, two of the most dis- North Carolina (Mr. TAYLOR) and the in budget authority and $2.9 billion for tinguished organizations in the world gentleman from Virginia (Mr. MORAN) outlays for fiscal year 2003. If this for the assembly of the documents, ma- for including it in the bill. I thank Ms. measure is enacted, spending will have terials, and analysis that represent us Dawson for her hard work on this pro- increased on an average of 11.1 percent as a free people. Without question, the gram as well. for each of the last 3 years. Library of Congress is the finest li- This bill also funds, of course, all leg- Consistent with longstanding prac- brary in the world, and we hope that islative employees, including the po- tice under which each House estab- we will make it even better with the lice, and extends to them the same 4.1 lishes its own priorities, the bill does appropriations in this bill. percent COLA that executive branch not include appropriations for the In addition to that, we appreciate the employees will receive next January. It other Chamber, which will be incor- openness of the head librarian, Dr. funds the same $100 cash transit benefit porated into the bill during conference. Billington, in looking at ethnic muse- for participants in that program. Fed- I am pleased that the bill is within ums across our country and their re- eral employees in the legislative the subcommittee’s 302(b) allocation spective archives and trying to bring branch deserve parity on these impor- and is fully consistent with the provi- those into some sort of coordinated af- tant benefits. sions of the 1974 Budget Act. It does filiation with the Library of Congress In addition to funding fire safety not designate any emergencies that where those types of affiliations are work in the complex, the bill calls for would increase the 302(b) allocation or sought. studying ways to beautify the power rescind any previously enacted budget We also want to thank Ranking plant in conjunction with the needed authority. Member Moran and Chairman Taylor capital improvements. Now, when I say Let me also mention the Moran for including report language dealing beautify, I am working very hard, Mr. amendment that will be on the floor to with enhancing our capability as the Chairman, with this committee and cut $590,000 from the Joint Committee chief legislative body for our country other committees to ensure that the on Taxation. As the chairman of the through expanded televideo confer- south capital gateway to our capital is Committee on the Budget, we rely on encing, where we can conference with

VerDate Jun 13 2002 00:55 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00021 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.032 pfrm17 PsN: H18PT1 H4896 CONGRESSIONAL RECORD — HOUSE July 18, 2002 our colleagues in parliaments around 2555 with the gentleman from Maryland porting this provision when we go to the world. Would that not be a contrib- (Mr. HOYER) as the lead cosponsor. This conference. utor to peace? Would it not be great if bill would have provided student loan In conclusion, I must thank my legis- we could do that in many places in the forgiveness for all legislative branch lative director, Danielle LeClair, for Middle East right now? We hope that employees. I tried to offer an amend- her diligence, her focus, and hard work by expanding these facilities and get- ment in last year’s legislative branch on this. Her staying the course did help ting recommendations through the re- appropriations bill, but it was not al- us get this far. I also thank Mike Har- port language that is in here that we lowed by the Committee on Rules. rison on the staff of the gentleman will leave those who follow us here in While I was pleased that subsequently from Maryland (Mr. HOYER) for his co- better condition than we found the in- Senate employees were included in the operation and hard work. Again, I stitution when we arrived. other body’s version of the legislative thank the ranking member for really branch appropriations act, and the carrying out the provisions which were b 1445 Capitol Police were included in other included in my legislation last year by Also regarding the renumbering of legislation last year, we had hoped that expanding the student loan forgiveness the offices in all of these buildings, so we could have included all Hill staff. program, and hope that we can work important to helping the general public Once again, I am very thankful to together as we move forward to include find their way around, we want to see the gentleman from North Carolina the AOC staff. a report on that. (Mr. TAYLOR), to the ranking member, Mr. HOYER. Mr. Chairman, will the And the continuing efforts to bring the gentleman from Virginia (Mr. gentlewoman yield? the works of artists to represent the MORAN), and the gentleman from Mary- Ms. LEE. I yield to the gentleman contributions of women to American land (Mr. HOYER) for their inclusion of from Maryland. life in this Capitol so that all of our so- loan forgiveness provisions this year. Mr. HOYER. Mr. Chairman, I thank ciety can see that they made a con- As a former House staff member and the gentlewoman for her leadership and tribution. This has a real place in our as the employer of a number of staffers extraordinary efforts on behalf of all of bill. who have a great deal of student loans, the employees of the legislative I thank the Capitol Police. We do not I strongly support loan forgiveness for branch. I know her deep concern for have a provision here in the bill, but all legislative branch employees. I be- the Architect’s office, which is a sort of we met with them regarding alter- lieve it is essential that we establish hybrid of the legislative branch. I ap- native fuel vehicles. We thank them for such a program for the legislative preciate very much the gentlewoman their leadership in assuring that the branch. Employees on Capitol Hill on giving credit to a lot of other people, new purchases of vehicles will help us average earn less than their executive but she has been the spark plug on this move this branch, and indeed our whole branch counterparts, but they still issue and the engine behind it. I wanted to also say that Liz Dawson country, to a noncarbon-based future, have the same student loan debt. Exec- of our committee was extraordinarily and hopefully moving us to a carbo- utive branch and Senate employees helpful in getting us to this point, as hydrate-based future. have loan forgiveness, and our congres- well as the other staffers that were In closing, I thank the gentleman sional employees should have it also. mentioned. from Virginia (Mr. MORAN) and the They work long hours, and they pro- And more importantly, I know that gentleman from North Carolina (Mr. vided the expertise for us to deliberate the employees of the House and of the TAYLOR) for their cooperation in help- public policy for the betterment of our Architect’s office and others on Capitol ing us build an even better legislative country and for the entire world. Hill appreciate the gentlewoman’s branch for our country. Loan forgiveness is really an excel- work. Mr. TAYLOR of North Carolina. Mr. lent tool for attracting and retaining Mr. MORAN of Virginia. Mr. Chair- Chairman, I reserve the balance of my the fantastic staff that we work with man, I yield 4 minutes to the gen- time. each and every day. It is also one of the tleman from Oregon (Mr. Mr. MORAN of Virginia. Mr. Chair- important ways that we can compete BLUMENAUER), who has been the na- 1 man, I yield 5 ⁄2 minutes to the gentle- with the private sector, which really tional leader on smart growth policies woman from California (Ms. LEE). does offer higher salaries and other and is probably going to suggest some Ms. LEE. Mr. Chairman, I thank our benefits. Many young people want to smart policies for the Congress. ranking member, the gentleman from come to work for the United States Mr. BLUMENAUER. Mr. Chairman, I Virginia (Mr. MORAN), for his leader- Congress and dedicate themselves to appreciate the hard work that has been ship, and also the gentleman from public service, but they cannot afford undertaken by the subcommittee deal- North Carolina (Mr. TAYLOR) for to when they owe tens of thousands of ing with the quality of life here on Cap- crafting a very excellent, bipartisan dollars in student loans. This new pro- itol Hill for our employees, for the tens bill. gram will make public service more at- of thousands of Washington, D.C. resi- I rise in strong support of H.R. 5121, tractive to them. dents, and for the millions of visitors this year’s legislative branch appro- Additionally, many support per- who come to the Capitol every year, priations act. I especially thank the sonnel in the legislative branch, many many of whom are outside right now as chairman and the ranking member for are Architect of the Capitol employees, we are deliberating in the Chamber. the provision which includes our stu- cannot afford to go to college in the I think it is important for the com- dent loan for House employees. I want first place. So a student loan forgive- mittee to continue its work in focusing to give a huge thanks to the lead co- ness program would be immensely on what is going on around the Capitol sponsor of a bill I introduced early last helpful in allowing them to take col- during these difficult times. I appre- year, H.R. 2555, which incorporated lege classes. The AOC staff work hard ciate the concern dealing with the se- these student loan provisions, to the each and every day to make sure that curity of our visitors, of our neighbors, gentleman from Maryland (Mr. HOYER). our offices are clean and our buildings our employees, and of the men and The gentleman’s work on both the Sub- are well taken care of. But, unfortu- women who are in Congress itself. At committee on Legislative Branch ap- nately, they are one of the few cat- times, however, some things happen propriations and as ranking member of egories of Hill staffers that were not that we find sort of mystifying. the Committee on House Administra- included in this loan forgiveness pro- As chairman of the Bicycle Caucus, I tion has been exemplary and tireless on gram, and I am delighted that the gen- have received some people who are sort this issue. We could not have done this tleman from Maryland (Mr. HOYER) is of mystified about the signage that has without the gentleman from Maryland committed to working with us to make appeared around Capitol Hill indi- (Mr. HOYER), so I want to say thanks to sure that we include them, or at least cating that no longer are bicycles wel- the gentleman. I am sure all of our attempt to once we get into con- comed on the Capitol grounds and House employees would like to thank ference. I think we owe it to the people streets surrounding the Capitol. It is the gentleman also today. who take care of us. We owe it to them somewhat ironic because bicycles have Just a bit of history on this provi- to add them to this program, and I been an important part of the circula- sion. Early last year, I introduced H.R. hope Members will join us in sup- tion around here. People wonder why

VerDate Jun 13 2002 23:47 Jul 18, 2002 Jkt 099060 PO 00000 Frm 00022 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.061 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4897 we are prohibiting in the name of secu- issue at hand is the production of a re- energy related expenditures. In this regard, it rity people who use this as an impor- port that may or may not be complete has come to my attention that the Capitol tant passageway. Many bicycle com- but which the general public, through Power Plant provides heat for buildings in the muters who live near the Capitol ride reports in the press, suspects is com- Capitol complex but is not currently used to to their downtown offices, staying off plete. generate electric power. It occurs to me that the streets, not contributing to conges- There are several issues involved there is an opportunity here to not only cap- tion and air pollution. One of the few here, but the principal issue is that a ture the efficiency benefits of Combined Heat bicycle lanes that has been available joint committee with the long record and Power but also to provide emergency has been through the Capitol grounds. of serving on a bipartisan, bicameral backup power for the Capitol complex in the One of the most convenient follows nature should not selectively withhold event of disruption of the local grid. It is my East Capitol right to the doorstep of information from Members. I rather understanding that funding provided in the bill the Capitol where some of our employ- suspect that the rules of the House give will allow the Architect of the Capitol to under- ees can come, and others have gone any Member of the House a right to go take the needed studies to determine the fea- around on down the Mall and to its in and look at committee records. That sibility of such a generation demonstration monuments. Now we have these signs is generally the case, and in the ab- project. that say people cannot do this any sence of any rules prohibiting that, it The Legislative Branch Appropriations bill more. could be done. It might raise a question includes $267.7 million in funding for various Mr. Chairman, I am hopeful we can of personal privilege in the House. It operational and maintenance activities under be sensitive to what this is doing to the ought not to. the jurisdiction of the Architect of the Capitol, people who enjoy cycling around here, Regardless of who has requested the $40.6 million below the amount requested by tourists or employees or commuters. reports or regardless of what the re- the President and $17.7 million below the Currently the only legal option for ports will say, it does not translate amount provided last year. These funds spe- bicyclists is to travel on heavily traf- into legislation. It ought not to dis- cifically include support for continued efforts to ficked, four-lane thoroughfares with no advantage anyone. Much of the infor- seek energy and operations savings such as shoulders around Capitol Hill. mation that is of an exciting nature this feasibility study. I would suggest that perhaps Con- has already been made public in Forbes Mr. BLUMENAUER. Mr. Chairman, today I gress can lead by example by making magazine. Whether it is accurate or voted for the fiscal year 2003 Appropriations sure that our campus is amenable to not, we do not know. Bill for the Legislative Branch. I am pleased men and women who use cycling to But for us to begin on a partisan with the focus Congress has given to livability commute. While we work to ensure basis to withhold information that is in this bill through increased funding for the safety and access for the surrounding produced by joint committees, whether Capitol Police, important provisions for staff, community and visitors alike, it is no it is the Congressional Budget Office or and the direction to improve the Capitol reason that we have to barricade these GAO or the joint committee, I think Grounds. The Capitol Police will receive additional grounds off to bicyclists. takes us down a road that we should all funding to help retain officers on the force and With the recent groundbreaking of be very hesitant to travel. the visitors center, it is clear that it is pay them for the significant overtime they b 1500 time to address long-term plans, in- have worked to protect the Capitol and visitors cluding, parking, circulation and cy- While the gentleman from Virginia’s since September 11. This bill includes tuition cling. I sincerely hope that we can use amendment is a harsh remedy, it could payment provisions that will help attract and retain both congressional staff and officers. the influence of this august sub- easily be solved by the chairman of the I am pleased to see the Legislative Branch committee to help the Capitol Police Committee on Ways and Means, who catch up with much of the rest of the Federal and the Architect of the Capitol de- also serves as chair of the Joint Com- mittee on Taxation, agreeing to make Government and private employers across the velop plans that accommodate cyclists country by providing funds to increase the and visitors. We must not ignore the that report available, at least to mem- bers of the Joint Committee on Tax- staff transit benefit to $100 per month. Transit need of local citizens who should have benefits are a valuable incentive that help re- input as well. We need to make sure ation. I am sure, given that kind of an assurance, the gentleman from Vir- duce traffic congestion, improve air quality, that we are working with the citizens and save transportation costs for hardworking who are our neighbors who were never ginia would withhold. That would seem to me to be a way to resolve it and not families. consulted. The Capitol grounds have been ransacked I hope that we can find language that start a precedent in the House of with- holding information because someone since September 11, first by excessive and ill Members can help us with that encour- thought out security measures and now by the ages a different approach so that we has the power to do it. I think it is a bad precedent. I am not sure the infor- beginning construction phases of the planned are aware that we are part of the com- Capitol Visitors Center. The bill contains lan- munity here in Washington, D.C., that mation we are talking about is going to make huge changes in the tax law, guage that directs that an English Elm Tree the impacts that we make affect the estimated to be 130 to 160 years old cannot health, safety and economy and overall but I think we are all entitled to it. I urge my colleagues to think about sup- be removed or cut down without approval of livability of tens of thousands of resi- the House and Senate Appropriations commit- dents on the Hill, millions of visitors porting the gentleman from Virginia’s amendment on the basis of not chang- tees. The committee is also working to ensure every year, and the fact that the bicy- there is a long-term vision for bicycle and pe- cle is not a terrorist threat. The bicy- ing a long-held precedent in the House of being able to rely on jointly pro- destrian accessibility on and around the Cap- cle provides an opportunity to improve itol grounds, which will improve the livability of the quality of life on the Hill for tour- duced, bipartisan, bicameral informa- tion that is useful to all of us. congressional employees, neighboring resi- ists, for employees, and for our neigh- dents, and visitors alike. bors. Mr. BARTLETT of Maryland. Mr. Chairman, For these reasons I support passage of this Mr. MORAN of Virginia. Mr. Chair- as the Chairman of the Subcommittee on En- bill. man, I yield 3 minutes to the gen- ergy of the House Science Committee, and as Mr. MORAN of Virginia. Mr. Chair- tleman from California (Mr. STARK). a conferee for the National Energy Strategy man, I yield back the balance of my (Mr. STARK asked and was given bill, I would like to thank the Subcommittee time. permission to revise and extend his re- Chairman and floor manager of the Legislative Mr. TAYLOR of North Carolina. Mr. marks.) Branch Appropriations bill. First, I want to Chairman, I yield back the balance of Mr. STARK. Mr. Chairman, I thank compliment the gentleman for providing the my time. the gentleman for yielding me this needed funding for the ongoing efforts of the The CHAIRMAN. All time for general time. Architect of the Capitol to improve the energy debate has expired. It is my understanding that the gen- efficiency of the buildings of the Capitol com- Pursuant to the rule, the bill is con- tleman from Virginia will be offering plex. It is important that we in the Congress sidered read for amendment through an amendment to reduce the amount of practice what we preach, both as an example page 61, line 16. funds for the Joint Committee on Tax- to others and to make the best use of tax- The text of the bill through page 61, ation of which I am a Member. The payer dollars by getting the most out of our line 16 is as follows:

VerDate Jun 13 2002 03:46 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00023 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.036 pfrm17 PsN: H18PT1 H4898 CONGRESSIONAL RECORD — HOUSE July 18, 2002 H.R. 5121 cer, $104,363,000, of which $7,693,000 shall re- provided by Members of the House of Rep- Be it enacted by the Senate and House of Rep- main available until expended; for salaries resentatives (including Delegates and Resi- resentatives of the United States of America in and expenses of the Office of the Inspector dent Commissioners to the Congress) to pur- Congress assembled, That the following sums General, $3,947,000; for salaries and expenses chase, lease, obtain, and maintain furniture are appropriated, out of any money in the of the Office of Emergency Planning, Pre- for their district offices. Treasury not otherwise appropriated, for the paredness and Operations, $6,000,000, to re- (b) Amounts in the Revolving Fund shall Legislative Branch for the fiscal year ending main available until expended; for salaries be used by the Chief Administrative Officer September 30, 2003, and for other purposes, and expenses of the Office of General Coun- without fiscal year limitation to purchase, namely: sel, $894,000; for the Office of the Chaplain, lease, obtain, and maintain equipment for of- $149,000; for salaries and expenses of the Of- fices of the House of Representatives and fur- TITLE I—CONGRESSIONAL OPERATIONS fice of the Parliamentarian, including the niture for the district offices of Members of HOUSE OF REPRESENTATIVES Parliamentarian and $2,000 for preparing the the House of Representatives (including Del- SALARIES AND EXPENSES Digest of Rules, $1,464,000; for salaries and egates and Resident Commissioners to the For salaries and expenses of the House of expenses of the Office of the Law Revision Congress). Representatives, $960,406,000, as follows: Counsel of the House, $2,168,000; for salaries (c) The Revolving Fund shall be treated as and expenses of the Office of the Legislative a category of allowances and expenses for HOUSE LEADERSHIP OFFICES Counsel of the House, $5,852,000; for salaries purposes of section 101(a) of the Legislative For salaries and expenses, as authorized by and expenses of the Corrections Calendar Of- Branch Appropriations Act, 1993 (2 U.S.C. law, $16,530,000, including: Office of the fice, $915,000; and for other authorized em- 95b(a)). Speaker, $1,979,000, including $25,000 for offi- ployees, $146,000. (d) This section shall apply with respect to cial expenses of the Speaker; Office of the ALLOWANCES AND EXPENSES fiscal year 2003 and each succeeding fiscal Majority Floor Leader, $1,899,000, including year, except that for purposes of making de- For allowances and expenses as authorized $10,000 for official expenses of the Majority posits into the Revolving Fund under sub- by House resolution or law, $183,372,000, in- Leader; Office of the Minority Floor Leader, section (a), the Chief Administrative Officer cluding: supplies, materials, administrative $2,309,000, including $10,000 for official ex- may deposit amounts provided by offices of costs and Federal tort claims, $3,384,000; offi- penses of the Minority Leader; Office of the the House of Representatives during fiscal cial mail for committees, leadership offices, Majority Whip, including the Chief Deputy year 2002 or any succeeding fiscal year. and administrative offices of the House, Majority Whip, $1,624,000, including $5,000 for SEC. 103. Effective with respect to fiscal $410,000; Government contributions for official expenses of the Majority Whip; Office year 2003 and each succeeding fiscal year, health, retirement, Social Security, and of the Minority Whip, including the Chief any amount received by House Information other applicable employee benefits, Deputy Minority Whip, $1,214,000, including Resources from any office of the House of $178,888,000; and miscellaneous items includ- $5,000 for official expenses of the Minority Representatives as reimbursement for serv- ing purchase, exchange, maintenance, repair Whip; Speaker’s Office for Legislative Floor ices provided shall be deposited in the Treas- and operation of House motor vehicles, inter- Activities, $446,000; Republican Steering ury for credit to the account of the Office of parliamentary receptions, and gratuities to Committee, $834,000; Republican Conference, the Chief Administrative Officer of the heirs of deceased employees of the House, $1,397,000; Democratic Steering and Policy House of Representatives. $690,000. Committee, $1,490,000; Democratic Caucus, SEC. 104. Section 3709 of the Revised Stat- $741,000; nine minority employees, $1,337,000; CHILD CARE CENTER utes of the United States (41 U.S.C. 5) does training and program development—major- For salaries and expenses of the House of not apply to purchases and contracts for sup- ity, $290,000; training and program develop- Representatives Child Care Center, such plies or services for any office of the House ment—minority, $290,000; Cloakroom Per- amounts as are deposited in the account es- of Representatives in any fiscal year. sonnel—majority, $340,000; and Cloakroom tablished by section 312(d)(1) of the Legisla- SEC. 105. (a) ESTABLISHMENT.—The Chief Personnel—minority, $340,000. tive Branch Appropriations Act, 1992 (40 Administrative Officer shall establish a pro- MEMBERS’ REPRESENTATIONAL ALLOWANCES U.S.C. 184g(d)(1)), subject to the level speci- gram under which an employing office of the fied in the budget of the Center, as sub- House of Representatives may agree to repay INCLUDING MEMBERS’ CLERK HIRE, OFFICIAL mitted to the Committee on Appropriations (by direct payment on behalf of the em- EXPENSES OF MEMBERS, AND OFFICIAL MAIL of the House of Representatives. ployee) any student loan previously taken For Members’ representational allowances, ADMINISTRATIVE PROVISIONS out by an employee of the office. For pur- including Members’ clerk hire, official ex- poses of this section, a Member of the House SEC. 101. (a) REQUIRING AMOUNTS REMAIN- penses, and official mail, $476,536,000. of Representatives (including a Delegate or ING IN MEMBERS’ REPRESENTATIONAL ALLOW- COMMITTEE EMPLOYEES Resident Commissioner to the Congress) ANCES TO BE USED FOR DEFICIT REDUCTION OR shall not be considered to be an employee of STANDING COMMITTEES, SPECIAL AND SELECT TO REDUCE THE FEDERAL DEBT.—Notwith- the House of Representatives. For salaries and expenses of standing com- standing any other provision of law, any (b) REGULATIONS.—The Committee on mittees, special and select, authorized by amounts appropriated under this Act for House Administration shall promulgate such House resolutions, $108,741,000: Provided, That ‘‘HOUSE OF REPRESENTATIVES—SALA- regulations as may be necessary to carry out such amount shall remain available for such RIES AND EXPENSES—MEMBERS’ REPRESENTA- the program under this section. salaries and expenses until December 31, TIONAL ALLOWANCES’’ shall be available only (c) AUTHORIZATION OF APPROPRIATIONS.— 2004. for fiscal year 2003. Any amount remaining There are authorized to be appropriated such after all payments are made under such al- COMMITTEE ON APPROPRIATIONS sums as may be necessary to carry out the lowances for fiscal year 2003 shall be depos- For salaries and expenses of the Com- program under this section during fiscal year ited in the Treasury and used for deficit re- mittee on Appropriations, $24,200,000, includ- 2003 and each succeeding fiscal year. duction (or, if there is no Federal budget def- ing studies and examinations of executive PROGRAM TO INCREASE EMPLOYMENT OPPORTU- agencies and temporary personal services for icit after all such payments have been made, for reducing the Federal debt, in such man- NITIES IN HOUSE OF REPRESENTATIVES FOR such committee, to be expended in accord- INDIVIDUALS WITH DISABILITIES ance with section 202(b) of the Legislative ner as the Secretary of the Treasury con- SEC. 106. (a) IN GENERAL.—In order to pro- Reorganization Act of 1946 and to be avail- siders appropriate). (b) REGULATIONS.—The Committee on mote an increase in opportunities for indi- able for reimbursement to agencies for serv- House Administration of the House of Rep- viduals with disabilities to provide services ices performed: Provided, That such amount resentatives shall have authority to pre- to the House of Representatives, the Chief shall remain available for such salaries and scribe regulations to carry out this section. Administrative Officer of the House of Rep- expenses until December 31, 2004. (c) DEFINITION.—As used in this section, resentatives is authorized to— SALARIES, OFFICERS AND EMPLOYEES the term ‘‘Member of the House of Rep- (1) enter into 1 or more contracts with non- For compensation and expenses of officers resentatives’’ means a Representative in, or governmental entities to provide for the per- and employees, as authorized by law, a Delegate or Resident Commissioner to, the formance of services for offices of the House $151,027,000, including: for salaries and ex- Congress. of Representatives by individuals with dis- penses of the Office of the Clerk, including SEC. 102. (a) There is hereby established in abilities who are employees of, or under con- not more than $13,000, of which not more the Treasury of the United States a revolv- tract with, such entities; and than $10,000 is for the Family Room, for offi- ing fund for the House of Representatives to (2) provide reasonable accommodations, in- cial representation and reception expenses, be known as the Net Expenses of Equipment cluding assistive technology devices and as- $20,032,000, of which $2,500,000 shall remain Revolving Fund (hereafter in this section re- sistive technology services, to enable such available until expended; for salaries and ex- ferred to as the ‘‘Revolving Fund’’), con- individuals to perform such services under penses of the Office of the Sergeant at Arms, sisting of funds deposited by the Chief Ad- such contracts. including the position of Superintendent of ministrative Officer of the House of Rep- (b) ELEMENTS OF PROGRAM.—The Chief Ad- Garages, and including not more than $3,000 resentatives from amounts provided by of- ministrative Officer of the House of Rep- for official representation and reception ex- fices of the House of Representatives to pur- resentatives, in entering into any contract penses, $5,097,000; for salaries and expenses of chase, lease, obtain, and maintain the equip- under subsection (a), shall seek to ensure the Office of the Chief Administrative Offi- ment located in such offices, and amounts that—

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00024 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.008 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4899 (1) traditional and nontraditional outreach CAPITOL POLICE in 1 fiscal year and ends in the next fiscal efforts are used to attract individuals with SALARIES year to the same extent as the head of an ex- disabilities for educational benefit and em- For the Capitol Police for salaries of offi- ecutive agency under the authority of sec- ployment opportunities in the House; cers, members, and employees of the Capitol tion 303L of the Federal Property and Ad- (2) the non-governmental entity provides Police, including overtime, hazardous duty ministrative Services Act of 1949 (41 U.S.C. adequate education and training for individ- pay differential, and Government contribu- 253l); and uals with disabilities to enhance such em- tions for health, retirement, Social Security, (2) enter into multi-year contracts for the ployment opportunities; and and other applicable employee benefits, acquisitions of property and nonaudit-re- (3) efforts are made to educate employing $175,675,000, to be disbursed by the Capitol lated services to the same extent as execu- offices in the House about opportunities to Police. tive agencies under the authority of section employ individuals with disabilities. GENERAL EXPENSES 304B of the Federal Property and Adminis- (c) FUNDING.—There are authorized to be trative Services Act of 1949 (41 U.S.C. 254c). For the Capitol Police for necessary ex- appropriated from the applicable accounts of SEC. 109. (a) Within the limits of available the House of Representatives $500,000 to penses, including motor vehicles, commu- appropriations, the Capitol Police may dis- carry out this section for each of the fiscal nications and other equipment, security pose of surplus or obsolete property of the equipment and installation, uniforms, weap- years 2003 through 2007. Capitol Police by inter-agency transfer, do- ons, supplies, materials, training, medical JOINT ITEMS nation, sale, trade-in, or any other appro- services, forensic services, stenographic serv- For Joint Committees, as follows: priate method. ices, personal and professional services, the (b) Any amounts received by the Capitol JOINT ECONOMIC COMMITTEE employee assistance program, not more than Police from the disposition of property pur- For salaries and expenses of the Joint Eco- $2,000 for the awards program, and not more suant to subsection (a) shall be credited to nomic Committee, $3,658,000, to be disbursed than $5,000 to be expended on the certifi- the account established for the general ex- cation of the Chief of the Capitol Police in by the Secretary of the Senate. penses of the Capitol Police, and shall be connection with official representation and JOINT COMMITTEE ON TAXATION available to carry out the purposes of such reception expenses, postage, communication For salaries and expenses of the Joint account during the fiscal year in which the services, travel advances, relocation of in- Committee on Taxation, $7,323,000, to be dis- amounts are received and the following fis- structor and liaison personnel for the Fed- bursed by the Chief Administrative Officer of cal year. the House: Provided, That $590,000 of such eral Law Enforcement Training Center, (c) This section shall apply with respect to amount shall not be made available until the $43,000,000, of which $7,632,000 shall remain fiscal year 2003 and each succeeding fiscal available until expended, to be disbursed by Joint Committee publicly releases the report year. on tax evasion by expatriates which was re- the Capitol Police or their delegee: Provided, SEC. 110. (a) TRANSFER OF DISBURSING quested by the Honorable William Archer, That $5,000,000 of the amount provided is FUNCTION.—(1) The Chief of the Capitol Po- the former chair of the Committee on Ways withheld from obligation subject to the ap- lice shall be the disbursing officer for the and Means of the House of Representatives. proval of the House and Senate Committees Capitol Police. Any reference in any law or For other joint items, as follows: on Appropriations: Provided further, That, resolution before the enactment of this sec- OFFICE OF THE ATTENDING PHYSICIAN notwithstanding any other provision of law, tion to funds paid or disbursed by the Chief the cost of basic training for the Capitol Po- For medical supplies, equipment, and con- Administrative Officer of the House of Rep- lice at the Federal Law Enforcement Train- tingent expenses of the emergency rooms, resentatives and the Secretary of the Senate ing Center for fiscal year 2003 shall be paid and for the Attending Physician and his as- relating to the pay and allowances of Capitol by the Secretary of the Treasury from funds sistants, including: (1) an allowance of $2,175 Police officers, members, and employees available to the Department of the Treasury. per month to the Attending Physician; (2) an shall be deemed to refer to the Chief of the allowance of $725 per month each to four ARCHITECT OF THE CAPITOL Capitol Police. medical officers while on duty in the Office CAPITOL POLICE BUILDINGS AND GROUNDS (2) Any statutory function, duty, or au- of the Attending Physician; (3) an allowance (INCLUDING TRANSFER OF FUNDS) thority of the Chief Administrative Officer of $725 per month to two assistants and $580 For all necessary expenses for the mainte- of the House of Representatives or the Sec- per month each not to exceed 11 assistants nance, care, and operation of buildings and retary of the Senate as disbursing officers on the basis heretofore provided for such as- grounds of the United States Capitol Police, for the Capitol Police shall transfer to the sistants; and (4) $1,414,000 for reimbursement $37,500,000, of which $36,500,000 shall remain Chief as the single disbursing officer for the to the Department of the Navy for expenses available until September 30, 2007: Provided, Capitol Police. incurred for staff and equipment assigned to That $13,000,000 of the amount provided is (3) Until such time as the Chief notifies the the Office of the Attending Physician, which withheld from obligation subject to the ap- Chief Administrative Officer of the House of shall be advanced and credited to the appli- proval of the Committees on Appropriations Representatives and the Secretary of the cable appropriation or appropriations from of the House of Representatives and Senate: Senate that systems are in place for dis- which such salaries, allowances, and other Provided further, That of this amount, not charging the disbursing functions under this expenses are payable and shall be available more than $3,500,000 may be used for study- subsection, the House of Representatives and for all the purposes thereof, $3,000,000, of ing, planning, designing, and architect and the Senate shall continue to serve as the dis- which $300,000 shall remain available until engineer services, except that this amount bursing authority on behalf of the Capitol expended, to be disbursed by the Chief Ad- may be increased to a greater amount deter- Police. (b) TREASURY ACCOUNTS.—(1) There is es- ministrative Officer of the House of Rep- mined by the Architect of the Capitol to be tablished in the Treasury of the United resentatives. necessary for such purposes if the Architect States a separate account for the Capitol Po- CAPITOL GUIDE SERVICE AND SPECIAL notifies the Committees on Appropriations lice, to be deposited appropriations received SERVICES OFFICE of the House of Representatives and Senate by the Chief of the Capitol Police and avail- For salaries and expenses of the Capitol of the determination, the greater amount, able for the salaries of the Capitol Police. Guide Service and Special Services Office, and the Architect’s reasons therefor: Pro- (2) There is established in the Treasury of $3,035,000, to be disbursed by the Secretary of vided further, That any amounts provided to the United States a separate account for the the Senate: Provided, That no part of such the Architect of the Capitol prior to the date Capitol Police, to be deposited appropria- amount may be used to employ more than 58 of the enactment of this Act for mainte- tions received by the Chief of the Capitol Po- individuals: Provided further, That the Cap- nance, care, and operation of buildings of the lice and available for the general expenses of itol Guide Board is authorized, during emer- United States Capitol Police which remain the Capitol Police. gencies, to employ not more than two addi- unobligated as of the date of the enactment (c) TRANSFER OF FUNDS, ASSETS, ACCOUNTS, tional individuals for not more than 120 days of this Act shall be transferred to the ac- RECORDS, AND AUTHORITY.—(1) The Chief Ad- each, and not more than 10 additional indi- count under this heading. ministrative Officer of the House of Rep- viduals for not more than 6 months each, for ADMINISTRATIVE PROVISIONS resentatives and the Secretary of the Senate the Capitol Guide Service. (INCLUDING TRANSFER OF FUNDS) are hereby authorized and directed to trans- STATEMENTS OF APPROPRIATIONS SEC. 107. Amounts appropriated for fiscal fer to the Chief of the Capitol Police all For the preparation, under the direction of year 2003 for the Capitol Police may be funds, assets, accounts, and copies of origi- the Committees on Appropriations of the transferred between the headings ‘‘SALA- nal records of the Capitol Police that are in Senate and the House of Representatives, of RIES’’, ‘‘GENERAL EXPENSES’’, and ‘‘ARCHI- the possession or under the control of the the statements for the second session of the TECT OF THE CAPITOL’’, ‘‘CAPITOL POLICE Chief Administrative Officer of the House of One Hundred Seventh Congress, showing ap- BUILDINGS AND GROUNDS’’, upon the approval Representatives or the Secretary of the Sen- propriations made, indefinite appropriations, of the Committees on Appropriations of the ate in order that all such items may be and contracts authorized, together with a Senate and the House of Representatives. available for the unified operation of the chronological history of the regular appro- SEC. 108. During fiscal year 2003 and any Capitol Police. Any funds so transferred priations bills as required by law, $30,000, to succeeding fiscal year, the Capitol Police shall be deposited in the Treasury accounts be paid to the persons designated by the may— established under subsection (b) and be chairmen of such committees to supervise (1) enter into contracts for the acquisition available to the Chief for the same purposes the work. of severable services for a period that begins as, and in like manner and subject to the

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same conditions as, the funds prior to the (B) by striking ‘‘United States Senate’’ and SEC. 112. (a) ADDITIONAL COMPENSATION FOR transfer. inserting ‘‘Capitol Police’’. EMPLOYEES WITH SPECIALTY ASSIGNMENTS (2) Any transfer authority existing prior to (i) EFFECTIVE DATE.—This section and the AND PROFICIENCIES.— the enactment of this Act granted to the amendments made by this section shall take (1) ESTABLISHMENT OF POSITIONS.—The Chief Administrative Officer of the House of effect October 1, 2002, or the date of the en- Chief of the Capitol Police may establish and Representatives or the Secretary of the Sen- actment of this Act, whichever is later. determine, from time to time, positions in ate for salaries, expenses, and operations of SEC. 111. (a) CONDITIONS FOR RECRUITMENT salary classes of officers, members, and em- the Capitol Police shall be transferred to the AND RELOCATION BONUSES.—Section 909(a) of ployees of the Capitol Police to be des- Chief. chapter 9 of the Emergency Supplemental ignated as employees with specialty assign- (d) UNEXPENDED BALANCES.—Notwith- Act, 2002 (40 U.S.C. 207b–2; Public Law 107– ments or proficiencies, based on the experi- standing the provisions of any other law, the 117; 115 Stat. 2320) (in this section referred to ence, education, training, or other appro- unexpended balances of appropriations for as the ‘‘Act’’) is amended— priate factors required to carry out the du- the fiscal year 2003 and succeeding fiscal (1) in paragraph (1), by striking ‘‘deter- ties of such employees. years that are subject to disbursement by (2) ADDITIONAL COMPENSATION.—In addition the Chief of the Capitol Police shall be with- mines that the Capitol Police would be like- ly, in the absence of such a bonus, to encoun- to the regularly scheduled rate of basic pay, drawn as of September 30 of the second fiscal each officer, member, or employee holding a year following the period or year for which ter difficulty in filling the position’’ and in- serting ‘‘, in the sole discretion of the Chief, position designated under this subsection provided. Unpaid obligations chargeable to shall receive a per annum amount deter- any of the balances so withdrawn or appro- determines that such a bonus will assist the mined by the Chief, except that— priations for prior years shall be liquidated Capitol Police in recruitment efforts’’; and (A) such amount may not exceed 25% of from any appropriations for the same gen- (2) by adding at the end the following: the member’s or employee’s annual rate of eral purpose, which, at the time of payment, ‘‘(6) DETERMINATIONS NOT APPEALABLE OR basic pay; and are available for disbursement. REVIEWABLE.—Any determination of the (e) HIRING AUTHORITY; ELIGIBILITY FOR Chief under this subsection shall not be ap- (B) such amount may not be paid in a cal- SAME BENEFITS AS HOUSE EMPLOYEES.—(1) pealable or reviewable in any manner.’’. endar year to the extent that, when added to The Chief of the Capitol Police, in carrying (b) CONDITIONS FOR RETENTION ALLOW- the total basic pay paid or payable to such out the duties of office, is authorized to ap- ANCES.—Section 909(b) of the Act is amend- officer, member, or employee for service per- point, hire, discharge, and set the terms, ed— formed in the year, such amount would cause conditions, and privileges of employment of (1) in paragraph (1)— the total to exceed the annual rate of basic officers, members, and employees of the Cap- (A) by striking subparagraphs (A) and (B); pay payable for level II of the Executive itol Police, subject to and in accordance with and Schedule, as of the end of such year. applicable laws and regulations. (B) by striking ‘‘if—’’ and inserting ‘‘if the (3) MANNER OF PAYMENT.—The additional (2) Officers, members, and employees of the Chief, in the sole discretion of the Chief, de- compensation authorized by this subsection Capitol Police who are appointed by the termines that such a bonus will assist the shall be paid to an officer or employee in the Chief under the authority of this subsection Capitol Police in retention efforts.’’; and same manner as the regular compensation shall be subject to the same type of benefits (2) in paragraph (3), by striking ‘‘the reduc- paid to the officer or employee. (including the payment of death gratuities, tion or elimination of a retention allowance (b) RECRUITMENT OF FORMER MILITARY AND the withholding of debt, and health, retire- may not be appealed’’ and inserting ‘‘any de- LAW ENFORCEMENT PERSONNEL WITHOUT RE- GARD TO AGE.— ment, Social Security, and other applicable termination of the Chief under this sub- (1) IN GENERAL.—The Chief of the Capitol employee benefits) as are provided to em- section, or the reduction or elimination of a ployees of the House of Representatives, and Police shall carry out any activities and pro- retention allowance, shall not be appealable any such individuals serving as officers, grams to recruit former members of the uni- or reviewable in any manner’’. members, and employees of the Capitol Po- formed services and former officers of other (c) TUITION REIMBURSEMENT.— lice as of the date of the enactment of this law enforcement agencies to serve as mem- (1) IN GENERAL.—Section 909 of the Act is Act shall be subject to the same rights, pro- bers of the Capitol Police without regard to amended— tections, pay, and benefits received prior to the age of such former members and former (A) by redesignating subsections (f) and (g) such date. officers. as subsections (g) and (h); and (f) WORKER’S COMPENSATION.—(1) There (2) RULE OF CONSTRUCTION.—Nothing in this (B) by inserting after subsection (e) the fol- shall be established a separate account in subsection may be construed to affect any lowing new subsection: the Capitol Police for purposes of making provision of law or any rule or regulation ‘‘(f) TUITION REIMBURSEMENT.— payments for officers, members, and employ- providing for the mandatory separation of ‘‘(1) IN GENERAL.—In order to recruit or re- ees of the Capitol Police under section 8147 of members of the Capitol Police on the basis of tain highly qualified personnel, the Chief of title 5, United States Code. age, or any provision of law or any rule or (2) Notwithstanding any other provision of the Capitol Police shall establish a tuition regulation regarding the calculation of re- law, payments may be made from the ac- reimbursement program for officers and tirement or other benefits for members of count established under paragraph (1) of this members of the Capitol Police who are en- the Capitol Police. subsection without regard to the fiscal year rolled in or accepted for enrollment in a de- (c) AUTHORIZING PREMIUM PAY TO ENSURE for which the obligation to make such pay- gree, certificate, or other program leading to AVAILABILITY OF PERSONNEL.— ments is incurred. a recognized educational credential at an in- (1) IN GENERAL.—The Chief of the Capitol (g) EFFECT ON EXISTING LAW.—(1) The pro- stitution of higher education in a course of Police may provide premium pay to officers visions of this section shall not be construed study relating to law enforcement. and members of the Capitol Police to ensure to reduce the pay or benefits of any officer, ‘‘(2) CONDITIONS FOR ELIGIBILITY.—In addi- member, or employee of the Capitol Police the availability of such officers and members tion to meeting any other conditions the for unscheduled duty in excess of a 40-hour whose pay was disbursed by the Chief Admin- Chief may by regulation impose, an officer istrative Officer of the House of Representa- work week, based on the needs of the Capitol or member of the Capitol Police may partici- Police, in the same manner and subject to tives or the Secretary of the Senate prior to pate in the tuition reimbursement program the enactment of this Act. the same terms and conditions as premium under this subsection only if— pay provided to criminal investigators under (2) All provisions of law inconsistent with ‘‘(A) the officer or member agrees in writ- this section are hereby superseded to the ex- section 5545a of title 5, United States Code ing, before receiving any reimbursement (subject to paragraph (2)). tent of the inconsistency. under the program, to remain in the service (h) CONFORMING AMENDMENTS.—(1) Section (2) CAP ON TOTAL AMOUNT PAID.—Premium of the Capitol Police for a period specified by 1821 of the Revised Statutes of the United pay for an officer or member under this sub- States (40 U.S.C. 206) is amended by striking the Chief (not less than 3 years), unless in- section may not be paid in a calendar year to the third sentence. voluntarily separated; and the extent that, when added to the total (2) Section 1822 of the Revised Statutes of ‘‘(B) the officer or member has not partici- basic pay paid or payable to such officer or the United States (40 U.S.C. 207) is repealed. pated, and agrees in writing not to partici- member for service performed in the year, (3) Section 9C of the Act entitled ‘‘An Act pate in, any student loan repayment pro- such pay would cause the total to exceed the to define the area of the United States Cap- gram covering the academic program in- annual rate of basic pay payable for level II itol Grounds, to regulate the use thereof, and volved. of the Executive Schedule, as of the end of for other purposes’’, approved July 31, 1946 ‘‘(3) CAP ON AMOUNT OF REIMBURSEMENT.— such year. (40 U.S.C. 207a) is amended by striking the The total amount reimbursed with respect to (d) INCREASE IN RATES APPLICABLE TO second sentence. any individual under the program estab- NEWLY-APPOINTED MEMBERS AND EMPLOY- (4) Section 111 of title I of the Act entitled lished under this subsection may not exceed EES.—The Chief of the Capitol Police may ‘‘Making supplemental appropriations for $40,000.’’. compensate newly-appointed officers, mem- the fiscal year ending September 30, 1977, and (2) DEADLINE FOR REGULATIONS.—Not later bers, and civilian employees of the Capitol for other purposes’’, approved May 4, 1977 (2 than 60 days after the date of the enactment Police at an annual rate of basic compensa- U.S.C. 64–3), is amended— of this Act, the Chief of the Capitol Police tion in excess of the lowest rate of com- (A) by striking ‘‘Secretary of the Senate’’ shall promulgate any regulations required to pensation otherwise applicable to the posi- and inserting ‘‘Chief of the Capitol Police’’; carry out the amendment made by paragraph tion to which the employee is appointed, ex- and (1). cept that in no case may such a rate be

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greater than the maximum annual rate of (1) EFFECTIVE DATE.—Except as otherwise (d) DOCUMENTATION.— basic compensation otherwise applicable to provided, this section shall apply with re- (1) FUNCTIONS AND PROCESSES.—The Capitol the position. spect to pay periods beginning on or after Police Board shall document its functions (e) OVERTIME COMPENSATION FOR OFFICERS the date of the enactment of this Act. and processes, including its mission state- AND MEMBERS AT RANK OF LIEUTENANT OR (2) DEADLINE FOR REGULATIONS.—Not later ment, policies, directives, and operating pro- HIGHER.— than 60 days after the date of the enactment cedures established or revised under sub- (1) IN GENERAL.—The Chief of the Capitol of this Act, the Chief of the Capitol Police section (a)(1) or (b), and make such docu- Police may provide for the compensation of shall promulgate any regulations required to mentation available for examination to the overtime work of officers and members of carry out this section. Speaker and minority leader of the House of the Capitol Police at the rank of lieutenant SEC. 113. (a) CAPITOL POLICE BOARD; COM- Representatives, the majority leader and mi- and higher. Nothing in this subsection may POSITION; REDEFINING MISSION.— nority leader of the Senate, the Capitol Po- be construed to affect the compensation of (1) PURPOSE.—The purpose of the Capitol lice, and the Comptroller General. overtime work of officers and members of Police Board is to oversee and support the (2) MEETINGS.—The Capitol Police Board the Capitol Police at any rank not described Capitol Police in its mission and to advance shall document Board meetings and make in the previous sentence. coordination between the Capitol Police and the documentation available for distribution (2) TERMS AND CONDITIONS.—In providing the Sergeants at Arms of the House of Rep- to the Speaker and minority leader of the for the compensation of overtime work under resentatives and the Senate, in their law en- House of Representatives and the majority this subsection, the Chief shall provide the forcement capacities, and the Congress. Con- leader and minority leader of the Senate. compensation in the same manner and sub- sistent with this purpose, the Capitol Police (e) ASSISTANCE OF COMPTROLLER GEN- ject to the same terms and conditions which Board shall establish general goals and ob- ERAL.—Upon request, the Comptroller Gen- are applicable to the compensation of over- jectives covering its major functions and op- eral shall provide assistance to the Capitol time work of officers and members of the erations to improve the efficiency and effec- Police Board in carrying out its responsibil- United States Secret Service Uniformed Di- tiveness of its operations. ities under this subsection. vision and the United States Park Police (2) COMPOSITION.—The Capitol Police Board (f) REFERENCES IN LAW; EFFECT ON OTHER who serve at the rank of lieutenant and shall consist of the Sergeant at Arms of the LAWS.—(1) Any reference in any law or reso- higher, in accordance with section 1 of the House of Representatives, the Sergeant at lution in effect as of the date of the enact- Act entitled ‘‘An Act to provide a 5-day week Arms of the Senate, the Chief of the Capitol ment of this Act to the ‘‘Capitol Police for officers and members of the Metropolitan Police, and the Architect of the Capitol. The Board’’ shall be deemed to refer to the Cap- Police force, the United States Park Police Chief of Capitol Police shall serve in an ex- itol Police Board as composed under sub- force, and the White House Police force, and officio capacity and be a non-voting member section (a)(2). (2) Nothing in this section shall be con- for other purposes’’, approved August 15, 1950 of the Board. strued to affect the jurisdiction, powers, or (sec. 5–1304, D.C. Official Code). (3) CHAIR POSITION.—The position of chair prerogatives of the Capitol Police Board or (f) TRAINING PROGRAMS FOR PERSONNEL.— of the Capitol Police Board shall rotate be- its individual members unless specifically (1) IN GENERAL.—Chapter 41 of title 5, tween the Sergeant at Arms of the House of provided herein. United States Code, is amended by adding at Representatives and the Sergeant at Arms of SEC. 114. (a) Subsection (c) of the first sec- the end the following new section: the Senate every other year. (b) INITIAL REVIEW AND REPORT.—Not later tion of Public Law 96–152 (40 U.S.C. 206–1) is ‘‘§ 4120. Training for officers, members, and than 180 days after the date of the enactment amended to read as follows: employees of the Capitol Police of this Act, the Capitol Police Board shall— ‘‘(c) The annual rate of pay for the Chief of ‘‘(a) The Chief of the Capitol Police may, (1) examine the mission of the Capitol Po- the Capitol Police shall be the amount equal by regulation, make applicable such provi- lice Board and, based on that analysis, rede- to $1,000 less than the lower of the annual sions of this chapter as the Chief determines fine the Capitol Police Board’s mission, mis- rate of pay in effect for the Sergeant-at- necessary to provide for training of officers, sion-related processes, and administrative Arms of the House of Representatives or the members, and employees of the Capitol Po- processes; annual rate of pay in effect for the Sergeant- lice. The regulations shall provide for train- (2) conduct an assessment of the effective- at-Arms and Doorkeeper of the Senate.’’. (b) Section 907(b) of the Emergency Supple- ing which, in the determination of the Chief, ness and usefulness of its statutory functions mental Act, 2002 (40 U.S.C. 206 note) is is consistent with the training provided by in contributing to the Capitol Police Board’s agencies under the preceding sections of this amended to read as follows: ability to carry out its mission and meet its ‘‘(b) The annual rate of pay for the Assist- chapter. goals, including an explanation of the rea- ant Chief of the Capitol Police shall be the ‘‘(b) The Office of Personnel Management sons for any determination that the statu- shall provide the Chief of the Capitol Police amount equal to $1,000 less than the annual tory functions are appropriate and advisable rate of pay in effect for the Chief of the Cap- with such advice and assistance as the Chief in terms of its purpose, mission, and long- itol Police.’’. may request in order to enable the Chief to term goals; and (c) The amendments made by subsections carry out the purposes of this section.’’. (3) submit to the Speaker and minority (a) and (b) shall apply with respect to the (2) CLERICAL AMENDMENT.—The table of leader of the House of Representatives and first pay period beginning on or after the sections for chapter 41 of such title is amend- the majority leader and minority leader of date of the enactment of the Act. ed by adding at the end the following: the Senate a report on the results of its ex- OFFICE OF COMPLIANCE ‘‘4120. Training for officers, members, and amination and assessment, including rec- SALARIES AND EXPENSES employees of the Capitol Po- ommendations for any legislation that the For salaries and expenses of the Office of lice.’’. Capitol Police Board considers appropriate Compliance, as authorized by section 305 of (g) APPLICATION OF PREMIUM PAY LIMITS ON and necessary. the Congressional Accountability Act of 1995 ANNUALIZED BASIS.— (c) EXECUTIVE DIRECTOR.— (2 U.S.C. 1385), $2,059,000, of which $254,000 (1) IN GENERAL.—Any limits on the amount (1) ESTABLISHMENT.—There shall be estab- lished in the Capitol Police an Executive Di- shall remain available until September 30, of premium pay which may be earned by offi- 2004. cers and members of the Capitol Police dur- rector for the Capitol Police Board to act as DMINISTRATIVE PROVISION ing emergencies (as determined by the Cap- a central point for communication and en- A itol Police Board) shall be applied by the hance the overall effectiveness and efficiency SEC. 115. (a) If any person files with the Of- Chief of the Capitol Police on an annual of the Capitol Police Board’s administrative fice of Compliance or the Board of Directors basis and not on a pay period basis. activities. of the Office of Compliance a written re- (2) EFFECTIVE DATE.—Paragraph (1) shall (2) APPOINTMENT; COMPENSATION.—The Ex- sponse to any decision or report of the Office apply with respect to hours of duty occur- ecutive Director shall be appointed by the or the Board (as the case may be), the Office ring on or after September 11, 2001. Chief of Police in consultation with the Ser- or the Board shall include such response in (h) CORRECTION OF DISPARITY WITHIN geant at Arms of the House of Representa- its final publication of the decision or report, CLASSES.— tives and the Sergeant at Arms of the Sen- unless the person directs the Office or the (1) IN GENERAL.—The Chief of the Capitol ate. The Executive Director shall be paid at Board to exclude the response from publica- Police shall adjust the basic pay of members an annual rate of compensation equal to the tion. of the Capitol Police to the extent necessary annual rate of basic pay payable under level (b) This section shall apply with respect to to ensure that all members within the same IV of the Executive Schedule. decisions and reports issued during fiscal year 2003 or any succeeding fiscal year. rank who are within the same service class (3) DUTIES.—The Executive Director shall are paid the same annual rate of basic pay, be assigned to, and report to, the Chairman CONGRESSIONAL BUDGET OFFICE except that no member of the Capitol Police of the Board. The Executive Director shall SALARIES AND EXPENSES may be subject to a reduction in the mem- assist the Capitol Police Board in devel- For salaries and expenses necessary for op- ber’s rate of basic pay as a result of this sub- oping, documenting, and implementing a eration of the Congressional Budget Office, section. clearly defined process for additional tasks including not more than $3,000 to be ex- (2) EFFECTIVE DATE.—Paragraph (1) shall assigned to the Capitol Police Board under pended on the certification of the Director of apply with respect to pay periods beginning this section, and shall perform any addi- the Congressional Budget Office in connec- on or after October 1, 2001. tional duties assigned by the Capitol Police tion with official representation and recep- (i) EFFECTIVE DATE; REGULATIONS.— Board. tion expenses, $32,390,000, of which not more

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00027 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.008 pfrm17 PsN: H18PT1 H4902 CONGRESSIONAL RECORD — HOUSE July 18, 2002 than $100,000 shall remain available until ex- buildings, $58,460,000, of which $23,110,000 (b) Any individual who exercised an option pended for the acquisition and partial sup- shall remain available until September 30, offered by the Architect of the Capitol under port for implementation of a Central Finan- 2007: Provided, That of this amount, not more section 133(a)(2) of the Legislative Branch cial Management System: Provided, That no than $10,020,000 may be used for studying, Appropriations Act, 2002, prior to the date of part of such amount may be used for the pur- planning, designing, and architect and engi- the enactment of this Act may revoke the chase or hire of a passenger motor vehicle. neer services, except that this amount may option during the 90-day period which begins ADMINISTRATIVE PROVISIONS be increased to a greater amount determined on the date of the enactment of this Act. by the Architect of the Capitol to be nec- (c) The amendments made by subsection SEC. 116. The Director of the Congressional essary for such purposes if the Architect no- (a) shall take effect as if included in the en- Budget Office may, by regulation, make ap- tifies the Committee on Appropriations of actment of section 133(a) of the Legislative plicable such provisions of section 3396 of the House of Representatives of the deter- Branch Appropriations Act, 2002. title 5, United States Code, as the Director mination, the greater amount, and the Ar- LIBRARY OF CONGRESS determines necessary to establish hereafter a chitect’s reasons therefor. program providing opportunities for employ- CONGRESSIONAL RESEARCH SERVICE CAPITOL POWER PLANT ees of the Office to engage in details or other SALARIES AND EXPENSES temporary assignments in other agencies, For all necessary expenses for the mainte- For necessary expenses to carry out the study, or uncompensated work experience nance, care and operation of the Capitol provisions of section 203 of the Legislative which will contribute to the employees’ de- Power Plant; lighting, heating, power (in- Reorganization Act of 1946 (2 U.S.C. 166) and velopment and effectiveness. cluding the purchase of electrical energy) to revise and extend the Annotated Constitu- and water and sewer services for the Capitol, SEC. 117. The Director of the Congressional tion of the United States of America, Senate and House office buildings, Library of Budget Office is hereafter authorized to $86,241,000: Provided, That no part of such Congress buildings, and the grounds about enter into agreements or contracts without amount may be used to pay any salary or ex- the same, Botanic Garden, Senate garage, regard to section 3709 of the Revised Stat- pense in connection with any publication, or and air conditioning refrigeration not sup- utes of the United States (41 U.S.C. 5). preparation of material therefor (except the plied from plants in any of such buildings; Digest of Public General Bills), to be issued ARCHITECT OF THE CAPITOL heating the Government Printing Office and by the Library of Congress unless such publi- CAPITOL BUILDINGS AND GROUNDS Washington City Post Office, and heating cation has obtained prior approval of either GENERAL ADMINISTRATION and chilled water for air conditioning for the the Committee on House Administration of Supreme Court Building, the Union Station SALARIES AND EXPENSES the House of Representatives or the Com- complex, the Thurgood Marshall Federal Ju- For salaries for the Architect of the Cap- mittee on Rules and Administration of the diciary Building and the Folger Shakespeare itol, the Assistant Architect of the Capitol, Senate. Library, expenses for which shall be ad- and other personal services, at rates of pay vanced or reimbursed upon request of the Ar- GOVERNMENT PRINTING OFFICE provided by law; for surveys and studies in chitect of the Capitol and amounts so re- CONGRESSIONAL PRINTING AND BINDING connection with activities under the care of ceived shall be deposited into the Treasury (INCLUDING TRANSFER OF FUNDS) the Architect of the Capitol; for all nec- to the credit of this appropriation, essary expenses for the general and adminis- For authorized printing and binding for the $107,173,000, of which $66,450,000 shall remain trative support of the operations under the Congress and the distribution of Congres- available until September 30, 2007: Provided, Architect of the Capitol including the Bo- sional information in any format; printing That not more than $4,400,000 of the funds and binding for the Architect of the Capitol; tanic Garden; electrical substations of the credited or to be reimbursed to this appro- Capitol, Senate and House office buildings, expenses necessary for preparing the semi- priation as herein provided shall be available monthly and session index to the Congres- and other facilities under the jurisdiction of for obligation during fiscal year 2003: Pro- the Architect of the Capitol; including fur- sional Record, as authorized by law (section vided further, That of this amount, not more 902 of title 44, United States Code); printing nishings and office equipment; including not than $450,000 may be used for studying, plan- more than $5,000 for official reception and and binding of Government publications au- ning, designing, and architect and engineer thorized by law to be distributed to Members representation expenses, to be expended as services, except that this amount may be in- the Architect of the Capitol may approve; for of Congress; and printing, binding, and dis- creased to a greater amount determined by tribution of Government publications au- purchase or exchange, maintenance, and op- the Architect of the Capitol to be necessary eration of a passenger motor vehicle, thorized by law to be distributed without for such purposes if the Architect notifies charge to the recipient, $90,143,000: Provided, $61,927,000, of which $6,450,000 shall remain the Committees on Appropriations of the available until September 30, 2007. That this appropriation shall not be avail- House of Representatives and Senate of the able for paper copies of the permanent edi- CAPITOL BUILDINGS determination, the greater amount, and the tion of the Congressional Record for indi- For all necessary expenses for the mainte- Architect’s reasons therefor. vidual Representatives, Resident Commis- nance, care and operation of the Capitol, ADMINISTRATIVE PROVISIONS sioners or Delegates authorized under sec- $32,062,000, of which $19,065,000 shall remain SEC. 118. Notwithstanding any other provi- tion 906 of title 44, United States Code: Pro- available until September 30, 2007: Provided, sion of law: (a) section 3709 of the Revised vided further, That this appropriation shall That of this amount, not more than $4,465,000 Statutes of the United States (41 U.S.C. 5) be available for the payment of obligations may be used for studying, planning, design- shall apply with respect to purchases and incurred under the appropriations for similar ing, and architect and engineer services, ex- contracts for the Architect of the Capitol as purposes for preceding fiscal years: Provided cept that this amount may be increased to a if the reference to ‘‘$25,000’’ in clause (1) of further, That notwithstanding the 2-year lim- greater amount determined by the Architect such section were a reference to ‘‘$100,000’’; itation under section 718 of title 44, United of the Capitol to be necessary for such pur- and (b) the Architect may procure services, States Code, none of the funds appropriated poses if the Architect notifies the Commit- equipment, and construction for security re- or made available under this Act or any tees on Appropriations of the House of Rep- lated projects in the most efficient manner other Act for printing and binding and re- resentatives and Senate of the determina- he determines appropriate. lated services provided to Congress under tion, the greater amount, and the Archi- SEC. 119. (a) Section 133(a) of the Legisla- chapter 7 of title 44, United States Code, may tect’s reasons therefor. tive Branch Appropriations Act, 2002 (Public be expended to print a document, report, or CAPITOL GROUNDS Law 107–68; 115 Stat. 581), is amended— publication after the 27-month period begin- For all necessary expenses for care and im- (1) by adding at the end of paragraph (2) ning on the date that such document, report, provement of grounds surrounding the Cap- the following new subparagraph: or publication is authorized by Congress to itol, the Senate and House office buildings, ‘‘(E) An individual who is covered by a col- be printed, unless Congress reauthorizes such and the Capitol Power Plant, $8,125,000, of lective bargaining agreement entered into by printing in accordance with section 718 of which $1,530,000 shall remain available until the Architect of the Capitol establishing title 44, United States Code: Provided further, September 30, 2007: Provided, That of this terms and conditions of employment which That any unobligated or unexpended bal- amount, not more than $330,000 may be used include eligibility for life insurance, health ances in this account or accounts for similar for studying, planning, designing, and archi- insurance, retirement, and other benefits.’’; purposes for preceding fiscal years may be tect and engineer services, except that this and transferred to the Government Printing Of- amount may be increased to a greater (2) by adding at the end the following new fice revolving fund for carrying out the pur- amount determined by the Architect of the paragraph: poses of this heading, subject to the approval ‘‘(4) The Architect of the Capitol shall Capitol to be necessary for such purposes if of the Committees on Appropriations of the make employer contributions for benefits for the Architect notifies the Committees on House of Representatives and Senate. employees of the Architect (including tem- Appropriations of the House of Representa- This title may be cited as the ‘‘Congres- porary employees) directly to any third tives and Senate of the determination, the sional Operations Appropriations Act, 2003’’. party designated to receive such contribu- TITLE II—OTHER AGENCIES greater amount, and the Architect’s reasons tions on behalf of the employees under a col- therefor. lective bargaining agreement, participation BOTANIC GARDEN HOUSE OFFICE BUILDINGS agreement, or any other arrangement en- SALARIES AND EXPENSES For all necessary expenses for the mainte- tered into by the Architect which provides For all necessary expenses for the mainte- nance, care and operation of the House office for such contributions.’’. nance, care and operation of the Botanic

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00028 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.008 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4903 Garden and the nurseries, buildings, grounds, amount appropriated, $500,000, shall remain Improvement Act of 2000 (Public Law 106–481; and collections; and purchase and exchange, available until expended, shall be transferred 2 U.S.C. 182c): Provided, That the total maintenance, repair, and operation of a pas- to the Abraham Lincoln Bicentennial Com- amount of such transfers may not exceed senger motor vehicle; all under the direction mission for carrying out the purposes of Pub- $1,900,000: Provided further, That the appro- of the Joint Committee on the Library, lic Law 106–173, of which amount $10,000 may priate revolving fund account shall reim- $5,936,000, of which $120,000 shall remain be used for official representation and recep- burse the Library for any amounts trans- available until September 30, 2007: Provided, tion expenses of the Abraham Lincoln Bicen- ferred to it before the period of availability That of this amount, not more than $120,000 tennial Commission: Provided further, That of the Library appropriation expires. may be used for studying, planning, design- of the total amount appropriated, $5,250,000 SEC. 203. NATIONAL DIGITAL INFORMATION ing, and architect and engineer services, ex- shall remain available until expended for the INFRASTRUCTURE AND PRESERVATION PRO- cept that this amount may be increased to a acquisition and partial support for imple- GRAM.—The Miscellaneous Appropriations greater amount determined by the Architect mentation of a Central Financial Manage- Act, 2001 (as enacted by section 1(a)(4) of of the Capitol to be necessary for such pur- ment System: Provided further, That of the Public Law 106–554, 114 Stat. 2763A–194), divi- poses if the Architect notifies the Commit- total amount appropriated, $10,000,000 shall sion A, chapter 9, under the heading ‘‘Li- tees on Appropriations of the House of Rep- remain available until expended for the pur- brary of Congress’’ ‘‘Salaries and Expenses’’ resentatives and Senate of the determina- pose of developing a high-speed data trans- is amended by striking ‘‘March 31, 2003’’ and tion, the greater amount, and the Archi- mission between the Library of Congress and inserting in lieu thereof ‘‘March 31, 2005’’. tect’s reasons therefor: Provided further, That educational facilities, libraries, or networks SEC. 204. Section 2(c)(3) of the History of this appropriation shall not be available for serving Western North Carolina. the House Awareness and Preservation Act (2 any activities of the National Garden. COPYRIGHT OFFICE U.S.C. 183(c)(3)) is amended by inserting ‘‘ex- LIBRARY OF CONGRESS cerpts of’’ after ‘‘dissemination of’’. SALARIES AND EXPENSES SALARIES AND EXPENSES For necessary expenses of the Copyright ARCHITECT OF THE CAPITOL For necessary expenses of the Library of Office, $44,876,000, of which not more than LIBRARY BUILDINGS AND GROUNDS Congress not otherwise provided for, includ- $24,911,000, to remain available until ex- STRUCTURAL AND MECHANICAL CARE ing development and maintenance of the pended, shall be derived from collections For all necessary expenses for the mechan- Union Catalogs; custody and custodial care credited to this appropriation during fiscal ical and structural maintenance, care and of the Library buildings; special clothing; year 2003 under section 708(d) of title 17, operation of the Library buildings and cleaning, laundering and repair of uniforms; United States Code: Provided, That the Copy- grounds, $35,319,000, of which $15,887,000 shall preservation of motion pictures in the cus- right Office may not obligate or expend any remain available until September 30, 2007 tody of the Library; operation and mainte- funds derived from collections under such and $5,500,000 shall remain available until ex- nance of the American Folklife Center in the section, in excess of the amount authorized pended: Provided, That of this amount, not Library; preparation and distribution of for obligation or expenditure in appropria- more than $2,958,000 may be used for study- catalog records and other publications of the tions Acts: Provided further, That not more ing, planning, designing, and architect and Library; hire or purchase of one passenger than $6,191,000 shall be derived from collec- engineer services, except that this amount motor vehicle; and expenses of the Library of tions during fiscal year 2003 under sections may be increased to a greater amount deter- Congress Trust Fund Board not properly 111(d)(2), 119(b)(2), 802(h), and 1005 of such mined by the Architect of the Capitol to be chargeable to the income of any trust fund title: Provided further, That the total amount necessary for such purposes if the Architect held by the Board, $358,797,000, of which not available for obligation shall be reduced by notifies the Committees on Appropriations more than $6,500,000 shall be derived from the amount by which collections are less of the House of Representatives and Senate collections credited to this appropriation than $31,102,000: Provided further, That not of the determination, the greater amount, during fiscal year 2003, and shall remain more than $100,000 of the amount appro- and the Architect’s reasons therefor. available until expended, under the Act of priated is available for the maintenance of GOVERNMENT PRINTING OFFICE June 28, 1902 (chapter 1301; 32 Stat. 480; 2 an ‘‘International Copyright Institute’’ in U.S.C. 150) and not more than $350,000 shall the Copyright Office of the Library of Con- OFFICE OF SUPERINTENDENT OF DOCUMENTS be derived from collections during fiscal year gress for the purpose of training nationals of SALARIES AND EXPENSES 2003 and shall remain available until ex- developing countries in intellectual property (INCLUDING TRANSFER OF FUNDS) pended for the development and maintenance laws and policies: Provided further, That not of an international legal information data- For expenses of the Office of Super- more than $4,250 may be expended, on the intendent of Documents necessary to provide base and activities related thereto: Provided, certification of the Librarian of Congress, in That the Library of Congress may not obli- for the cataloging and indexing of Govern- connection with official representation and ment publications and their distribution to gate or expend any funds derived from col- reception expenses for activities of the Inter- lections under the Act of June 28, 1902, in ex- the public, Members of Congress, other Gov- national Copyright Institute and for copy- ernment agencies, and designated depository cess of the amount authorized for obligation right delegations, visitors, and seminars. or expenditure in appropriations Acts: Pro- and international exchange libraries as au- BOOKS FOR THE BLIND AND PHYSICALLY vided further, That the total amount avail- thorized by law, $29,661,000: Provided, That HANDICAPPED able for obligation shall be reduced by the amounts of not more than $2,000,000 from amount by which collections are less than SALARIES AND EXPENSES current year appropriations are authorized the $6,850,000: Provided further, That of the For salaries and expenses to carry out the for producing and disseminating Congres- total amount appropriated, $10,886,000 is to Act of March 3, 1931 (chapter 400; 46 Stat. sional serial sets and other related publica- remain available until expended for acquisi- 1487; 2 U.S.C. 135a), $56,522,000, of which tions for 2001 and 2002 to depository and tion of books, periodicals, newspapers, and $20,256,000 shall remain available until ex- other designated libraries: Provided further, all other materials including subscriptions pended. That any unobligated or unexpended bal- ances in this account or accounts for similar for bibliographic services for the Library, in- ADMINISTRATIVE PROVISIONS cluding $40,000 to be available solely for the purposes for preceding fiscal years may be SEC. 201. Of the amounts appropriated to transferred to the Government Printing Of- purchase, when specifically approved by the the Library of Congress in this Act, not more Librarian, of special and unique materials fice revolving fund for carrying out the pur- than $5,000 may be expended, on the certifi- poses of this heading, subject to the approval for additions to the collections: Provided fur- cation of the Librarian of Congress, in con- ther, That of the total amount appropriated, of the Committees on Appropriations of the nection with official representation and re- House of Representatives and Senate. not more than $12,000 may be expended, on ception expenses for the incentive awards the certification of the Librarian of Con- program. GOVERNMENT PRINTING OFFICE REVOLVING gress, in connection with official representa- SEC. 202. (a) For fiscal year 2003, the FUND tion and reception expenses for the Overseas obligational authority of the Library of Con- The Government Printing Office is hereby Field Offices: Provided further, That of the gress for the activities described in sub- authorized to make such expenditures, with- total amount appropriated, $2,200,000 shall section (b) may not exceed $109,929,000. in the limits of funds available and in accord remain available until expended for the ac- (b) The activities referred to in subsection with the law, and to make such contracts quisition and partial support for implemen- (a) are reimbursable and revolving fund ac- and commitments without regard to fiscal tation of an Integrated Library System tivities that are funded from sources other year limitations as provided by section 9104 (ILS): Provided further, That of the total than appropriations to the Library in appro- of title 31, United States Code, as may be amount appropriated, $9,600,000 shall remain priations Acts for the legislative branch. necessary in carrying out the programs and available until expended for the purpose of (c) For fiscal year 2003, the Librarian of purposes set forth in the budget for the cur- teaching educators how to incorporate the Congress may temporarily transfer funds ap- rent fiscal year for the Government Printing Library’s digital collections into school cur- propriated in this Act under the heading Office revolving fund: Provided, That not ricula and shall be transferred to the edu- ‘‘LIBRARY OF CONGRESS—SALARIES AND more than $2,500 may be expended on the cer- cational consortium formed to conduct the EXPENSES’’ to the revolving fund for the tification of the Public Printer in connection ‘‘Joining Hands Across America: Local Com- FEDLINK Program and the Federal Re- with official representation and reception munity Initiative’’ project as approved by search Program established under section 103 expenses: Provided further, That the revolv- the Library: Provided further, That of the of the Library of Congress Fiscal Operations ing fund shall be available for the hire or

VerDate Jun 13 2002 03:46 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00029 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.008 pfrm17 PsN: H18PT1 H4904 CONGRESSIONAL RECORD — HOUSE July 18, 2002

purchase of not more than 12 passenger ing activities of the Center for Russian Lead- ‘‘(1) IN GENERAL.—In addition to the pro- motor vehicles: Provided further, That ex- ership Development, $13,000,000. gram established under subsection (b), the penditures in connection with travel ex- TITLE III—GENERAL PROVISIONS Center shall establish a program to carry out penses of the advisory councils to the Public SEC. 301. No part of the funds appropriated activities (including the awarding of grants) Printer shall be deemed necessary to carry in this Act shall be used for the maintenance to enable emerging political leaders of the out the provisions of title 44, United States or care of private vehicles, except for emer- Federal Government and State and local Code: Provided further, That the revolving gency assistance and cleaning as may be pro- governments to visit the Russian Federation fund shall be available for temporary or vided under regulations relating to parking to study the operation of political institu- intermittent services under section 3109(b) of facilities for the House of Representatives tions, business organizations, and non- title 5, United States Code, but at rates for issued by the Committee on House Adminis- governmental organizations of the Russian individuals not more than the daily equiva- tration and for the Senate issued by the Federation. lent of the annual rate of basic pay for level Committee on Rules and Administration. ‘‘(2) ADMINISTRATION.—The provisions of V of the Executive Schedule under section SEC. 302. No part of the funds appropriated paragraphs (3) and (4) of subsection (b) shall 5316 of such title: Provided further, That the in this Act shall remain available for obliga- apply with respect to the program under this revolving fund and the funds provided under tion beyond fiscal year 2003 unless expressly subsection in the same manner as such pro- the headings ‘‘OFFICE OF SUPERINTENDENT OF so provided in this Act. visions apply to the program under sub- DOCUMENTS’’ and ‘‘SALARIES AND EXPENSES’’ SEC. 303. Whenever in this Act any office or section (b).’’. together may not be available for the full- position not specifically established by the (b) CONFORMING AMENDMENTS.—Section 313 time equivalent employment of more than Legislative Pay Act of 1929 is appropriated of such Act (2 U.S.C. 1151) is amended— 3,219 workyears (or such other number of for or the rate of compensation or designa- (1) in subsection (b)(1), by striking the pe- workyears as the Public Printer may re- tion of any office or position appropriated riod at the end and inserting the following: quest, subject to the approval of the Com- for is different from that specifically estab- ‘‘, and to establish and administer the pro- mittees on Appropriations of the House of lished by such Act, the rate of compensation gram described in subsection (c).’’.; and Representatives and Senate): Provided fur- and the designation in this Act shall be the (2) in subsection (i)(2) (as redesignated by ther, That activities financed through the re- permanent law with respect thereto: Pro- subsection (a)(1)), by striking ‘‘Subsection volving fund may provide information in any vided, That the provisions in this Act for the (g)’’ and inserting ‘‘Subsection (h)’’. format. various items of official expenses of Mem- (c) EFFECTIVE DATE.—The amendments GENERAL ACCOUNTING OFFICE bers, officers, and committees of the House made by this section shall take effect upon of Representatives and Senate, and clerk enactment of this Act. SALARIES AND EXPENSES hire for Senators and Members of the House SEC. 310. (a) The Librarian of Congress and For necessary expenses of the General Ac- of Representatives shall be the permanent the Director of the Congressional Research counting Office, including not more than law with respect thereto. Service shall take such steps as may be nec- $12,500 to be expended on the certification of SEC. 304. The expenditure of any appropria- essary to ensure that all materials of the the Comptroller General of the United States tion under this Act for any consulting serv- Congressional Research Service which are in connection with official representation ice through procurement contract, pursuant provided and available to Members of Con- and reception expenses; temporary or inter- to section 3109 of title 5, United States Code, gress and officers and employees of the mittent services under section 3109(b) of title shall be limited to those contracts where House of Representatives and Senate at the 5, United States Code, but at rates for indi- such expenditures are a matter of public United States Capitol and Congressional of- viduals not more than the daily equivalent record and available for public inspection, fice buildings (including materials provided of the annual rate of basic pay for level IV of except where otherwise provided under exist- through electronic means) may be provided the Executive Schedule under section 5315 of ing law, or under existing Executive order and available to such individuals in the same such title; hire of one passenger motor vehi- issued pursuant to existing law. manner and to the same extent at all other cle; advance payments in foreign countries SEC. 305. Such sums as may be necessary locations where such individuals carry out in accordance with section 3324 of title 31, are appropriated to the account described in their official duties. United States Code; benefits comparable to subsection (a) of section 415 of the Congres- (b) This section shall apply to materials of those payable under sections 901(5), 901(6), sional Accountability Act to pay awards and the Congressional Research Service which and 901(8) of the Foreign Service Act of 1980 settlements as authorized under such sub- are provided and available at any time after (22 U.S.C. 4081(5), 4081(6), and 4081(8)); and section. the date of the enactment of this Act. under regulations prescribed by the Comp- SEC. 306. Amounts available for adminis- SEC. 311. (a) Each office in the legislative troller General of the United States, rental trative expenses of any legislative branch branch which is responsible for preparing of living quarters in foreign countries, entity which participates in the Legislative any written statement furnished under part $453,534,000: Provided, That not more than Branch Financial Managers Council 3 of subchapter A of chapter 61 of the Inter- $2,210,000 of payments received under section (LBFMC) established by charter on March 26, nal Revenue Code of 1986 on behalf of an per- 782 of title 31, United States Code, shall be 1996, shall be available to finance an appro- son shall make the statement available to available for use in fiscal year 2003: Provided priate share of LBFMC costs as determined the person in an electronic format (at the di- further, That not more than $790,000 of reim- by the LBFMC, except that the total LBFMC rection of the person) which will enable the bursements received under section 9105 of costs to be shared among all participating person to provide the statement electroni- title 31, United States Code, shall be avail- legislative branch entities (in such alloca- cally to a tax preparer or other provider of able for use in fiscal year 2003: Provided fur- tions among the entities as the entities may financial services. ther, That this appropriation and appropria- determine) may not exceed $2,000. (b) Subsection (a) shall apply with respect tions for administrative expenses of any SEC. 307. The Architect of the Capitol, in to statements prepared for taxable years other department or agency which is a mem- consultation with the District of Columbia, ending on or after December 31, 2002. ber of the National Intergovernmental Audit is authorized to maintain and improve the The CHAIRMAN. Are there any Forum or a Regional Intergovernmental landscape features, excluding streets and points of order to that portion of the Audit Forum shall be available to finance an sidewalks, in the irregular shaped grassy bill? areas bounded by Washington Avenue, SW on appropriate share of either Forum’s costs as POINT OF ORDER determined by the respective Forum, includ- the northeast, Second Street SW on the west, Square 582 on the south, and the begin- Mr. NEY. Mr. Chairman, I raise a ing necessary travel expenses of non-Federal point of order against section 110 on participants: Provided further, That pay- ning of the I–395 tunnel on the southeast. ments hereunder to the Forum may be cred- SEC. 308. None of the funds made available page 16, line 21 through page 21, line 17 ited as reimbursements to any appropriation in this Act may be transferred to any depart- of H.R. 5121 on the ground that this from which costs involved are initially fi- ment, agency, or instrumentality of the provision changes existing law in viola- nanced: Provided further, That this appropria- United States Government, except pursuant tion of clause 2 of House rule XXI and tion and appropriations for administrative to a transfer made by, or transfer authority therefore is legislation included in a provided in, this Act or any other appropria- expenses of any other department or agency general appropriations bill. which is a member of the American Consor- tion Act. SEC. 309. (a) IN GENERAL.—Section 313 of The CHAIRMAN. Are there any Mem- tium on International Public Administration bers that desire to be heard on the (ACIPA) shall be available to finance an ap- the Legislative Branch Appropriations Act, propriate share of ACIPA costs as deter- 2001 (2 U.S.C. 1151), as enacted by reference in point of order? mined by the ACIPA, including any expenses section 1(a)(2) of the Consolidated Appropria- Mr. MORAN of Virginia. Mr. Chair- attributable to membership of ACIPA in the tions Act, 2001, is amended— man, I would like to be heard on this International Institute of Administrative (1) by redesignating subsections (c) point of order, because section 110 Sciences. through (h) as subsections (d) through (i); would improve the administration of and the Capitol Police in a couple of ways. PAYMENT TO THE RUSSIAN LEADERSHIP (2) by inserting after subsection (b) the fol- DEVELOPMENT CENTER TRUST FUND lowing new subsection: It eliminates the last vestiges of the For a payment to the Russian Leadership ‘‘(c) RUSSIAN EXCHANGE PROGRAM FOR old bifurcated payroll system from an Development Center Trust Fund for financ- AMERICAN LEADERSHIP.— earlier era in which some officers were

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00030 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.008 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4905 paid on the House payroll and others Mr. MORAN of Virginia. Yes, I do, controlled by the proponent and an op- on the Senate payroll in placing all Mr. Chairman. We were hoping that ponent, and shall not be subject to Capitol Police officers under a single, this would not be struck. I know the amendment. unified payroll. That is what we are gentleman listened to the debate on It is now in order to consider the trying to do in this bill. It also pro- the rule. It can become a partisan and amendment printed in House Report vides for vesting administrative re- contentious issue which we would pre- 107–586. sponsibility for the funds, for personnel fer to avoid. That is why we put this AMENDMENT OFFERED BY MR. MORAN OF and for other resources of the agency language in the committee. We do not VIRGINIA in the chief of the Capitol Police. If the want to be punitive. We do not even Mr. MORAN of Virginia. Mr. Chair- gentleman is successful in striking the want to be particularly divisive. All we man, I offer an amendment. language in this bill, you will continue wanted to do is to say this increase, be- The CHAIRMAN. The Clerk will des- the current inefficient system in which yond the $6,377,000 that is going to the ignate the amendment. some paychecks for Capitol Police offi- Joint Committee on Taxation, this in- The text of the amendment is as fol- cers are paid by the House administra- crease of $590,000 is simply suspended lows: tion office while other officers are paid until the Congress receives the report Amendment offered by Mr. MORAN of Vir- out of the Senate disbursing office. You that was requested 3 years ago and ginia: will have two payrolls which does not from what we understand was com- Page 11, line 3, after the dollar amount, in- make sense given that we have one po- pleted 2 years ago. If this language is sert the following: ‘‘(reduced by $590,000)’’. lice force that protects both the House not struck, then there is no more de- The CHAIRMAN. Pursuant to House and Senate. This is a serious adminis- bate, we conclude this bill, we get the Resolution 489, the gentleman from trative burden for the House, the Sen- report, the Joint Committee on Tax- Virginia (Mr. MORAN) and the gen- ate and the Capitol Police which we are ation gets its increase and we avoid a tleman from North Carolina (Mr. TAY- trying to correct in this bill. very contentious and perhaps embar- LOR) each will control 10 minutes. Currently officers may be posted on rassing debate for some people. We are The Chair recognizes the gentleman the House end of the Capitol and then not going to be embarrassed about it from Virginia (Mr. MORAN). moved to the Senate on another shift. because we know we are doing the Mr. MORAN of Virginia. Mr. Chair- Yet that same officer will be paid out right thing by simply getting the re- man, I yield myself such time as I may of one payroll office or the other. We port that we are told was done. I guess consume. are just trying to update, to modernize, I sound a little like I am suggesting As my colleagues know, I am reluc- to make more intelligent the system of that we try to save you from your- tant to offer this, but I see no other compensation and the system of man- selves, those people who really want to way to insist that this report be re- agement so that the chief of the Cap- have this debate. We are ready for the leased. After all, it has been 3 years itol Police has more direct authority debate, but we also think we ought to since the report was requested. In 1999, to prevent action on the gen- over his officers. That is why the lan- say we told you so, that if we go for- tleman from New York (Mr. RANGEL)’s guage is in. This should not be con- ward in this manner, I will raise an bill that would have restricted the abil- troversial language. This is construc- amendment, offer my amendment, it ity of people to renounce their Amer- tive language. I would urge the gen- is, of course, in order and we are going ican citizenship and go overseas to tleman to withdraw his point of order. to have an extended debate and a con- avoid paying taxes, the chairman of The CHAIRMAN. Are there other tentious one. Members who would like to speak to I would really suggest to the gen- the Committee on Ways and Means re- the point of order? tleman to avoid that divisiveness. I quested the Joint Committee on Tax- Mr. NEY. Mr. Chairman, I think this know he wants to see the report as ation to do a study and report on that is in the best interests of the entire much as I do. It is done. The taxpayers study the following year, 2000. We all force. It is not a matter of what has of America paid for it. I know they know we do that a lot. If we do not been completely historical but having would like to know who has denounced want to face up to actions that many elected officials of the House and the their U.S. citizenship and gone over- people feel necessary, we come up with Senate to have a say about payroll seas to avoid paying U.S. taxes. I know a compromise. We say, ‘‘Well, let’s do a versus turning it over to completely we would both like to see that. Let us study.’’ And so that study was accepted unelected individuals within this Cap- withdraw the point of order. Let us go by the gentleman from New York (Mr. itol. ahead, suspend the money and then the RANGEL) but not forgotten. He was I would ask for a ruling, Mr. Chair- Joint Committee can get all the money willing to have the study done, but he man. that they have asked for once they give feels very strongly, and I know he is The CHAIRMAN. The Chair is pre- us the report that was asked for 3 years going to want to speak for himself, pared to rule. ago. that some action needs to be taken. The general provision identified by The CHAIRMAN. Are there other The report has never been provided, the point of order—section 110 of the Members who want to speak to the presumably because its conclusions are bill—proposes to convey statutory au- point of order? If not, the Chair is pre- very disturbing. The gentleman from thorities, to establish new accounts in pared to rule. New York (Mr. RANGEL) has repeatedly the Treasury, and to directly change The proviso identified by the point of requested the results of this report. sundry existing laws. As such it con- order subjects a portion of the accom- The Joint Committee has refused to re- stitutes legislation, in violation of panying appropriation to a legislative lease it. These delays apparently have clause 2(b) of rule XXI. The point of condition precedent. It therefore con- been efforts to protect wealthy expatri- order is sustained, and section 110 is stitutes a violation of clause 2(b) of ates. We have heard some debate excus- stricken from the bill. rule XXI. ing that decision to denounce their Are there further points of order? The point of order is sustained, and American citizenship and to move POINT OF ORDER the proviso is stricken from the bill. overseas in order to avoid paying their Mr. HERGER. Mr. Chairman, I raise No amendment shall be in order ex- taxes to the United States Govern- a point of order against the provisions cept the amendment printed in House ment. The gentleman from Georgia contained in title I, section 106, page Report 107–586 and pro forma amend- suggested this was understandable be- 11, line 4 beginning with the word ments offered by the chairman and cause they have lower rates of tax- ‘‘Provided’’ through line 9 of this bill, ranking minority member of the Com- ation. Let me just say to the gen- H.R. 5121, on the grounds that this pro- mittee on Appropriations, or their des- tleman, for those people who have vision violates clause 2 of House rule ignees, for the purpose of debate. moved to Bermuda or to Barbados or to XXI because it is legislation included The amendment printed in the report Antigua or to any of these islands in a general appropriations bill. may be offered only by a Member des- where the taxes, granted, are much The CHAIRMAN. Are there Members ignated in the report, shall be consid- lower, I doubt that those individuals if who want to speak to the point of ered read, debatable for the time speci- they are ever attacked are going to order? fied in the report, equally divided and turn to the Bermuda navy to protect

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00031 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.045 pfrm17 PsN: H18PT1 H4906 CONGRESSIONAL RECORD — HOUSE July 18, 2002 them, or the Antigua air force, or the In another hearing, the Director of Joint Committee on Taxation is a bi- Jamaican marines. We pay for what we the Office of Management and Budget, partisan, nonpartisan research struc- get, the strongest military in the in commenting on the revenue esti- ture that is shared by both the House world, and we all ought to be willing to mating process, made the following ob- and the Senate. Some misstatements of pay for it. We all ought to be willing to servation: ‘‘We make the one assump- fact have been made and I want to put pay for the costs of this government tion that we know is wrong. That is, it in its proper context. that keeps this country as prosperous that lower taxes have a zero effect, and If anyone does not think this is not a and strong and free as it is. But free- honest people can differ about how big pure partisan political contest, they dom and democracy does not come the effect of any given measure might did not hear the gentleman from Vir- cheap. And it is wrong for these people be, but the answer we know is wrong is ginia. They have decided this now is an to denounce their citizenship because the one we use. And I am hopeful that issue that they can ride, and of all the they are so wealthy they do not want some progress will be made.’’ people to make the statement is the to pay their share of funding our Amer- This is not a criticism of the com- gentleman from Virginia. ican military, their share of funding mittee or its staff. Instead, it is a criti- The chairman of the Joint Com- the education of our workforce, their cism of the process that we as Members mittee on Taxation is the United share of the roads and the transpor- of Congress have allowed to develop States Senator from Montana, the tation systems that provide the infra- over the years to ensure that we do not Democrat, Senator BAUCUS. The re- structure for their businesses. It is get the most comprehensive revenue quest that was made to release this wrong. And the Committee found the estimates. statement cannot be a former Member specifics apparently to be very dis- Fundamental reform to the revenue- of Congress; it has to be a current turbing as to who has done this and estimating process which I am devel- Member of Congress. That request was how much money is being avoided. Yet oping must occur. A reduction in fund- made by the gentleman from New York the majority seems unwilling to re- ing to the joint committee will only (Mr. RANGEL). It has been said that the report has lease this information so we can act in lead to more incomplete estimates. been completed. That simply is not an informed way and take appropriate Mr. MORAN of Virginia. Mr. Chair- true. How in the world could a report legislative action on behalf of the man, I yield myself 1 minute, just to about ex-patriots started several years American people, on behalf of all the respond to the distinguished gentleman ago not be completed? The answer, other American taxpayers who are hav- from Illinois on the Committee on very simple. The primary reason people ing to pay more money because these Ways and Means. We want the Joint Committee on Taxation to perform its give up their citizenship is not to pay people, these cheats, are willing to go taxes, but, more importantly, not to overseas, denounce their citizenship legitimate function. We wanted them to get all of the increase they asked pay estate or death taxes. and avoid the responsibility of paying Somebody may have noticed last for. What we wanted to do was simply their fair share of taxes. It is not right. year, the United States House of Rep- suspend that increase until we get the We need to get this information, and it resentatives, the United States Senate report the Congress asked for. Chair- is time. Three years later, it is time to changed the estate or death taxes. man Bill Archer asked for it 3 years get this information. That is now the law of the land, a fun- Mr. Chairman, I reserve the balance ago. It was due in the year 2000. We damentally different way that we are of my time. keep getting newspaper reports about taxing death or estates. The committee Mr. TAYLOR of North Carolina. Mr. what was in it, but apparently, people had to go back and reevaluate the Chairman, I yield 2 minutes to the gen- do not want to reveal what is in it. question of who was and who was not Now, the majority, for some reason tleman from Illinois (Mr. CRANE). going to leave based upon a change in that eludes me, wants to help the com- 1515 the law. It is the Joint Committee on b mittee avoid this being revealed to the Mr. CRANE. Mr. Chairman, I thank Taxation, and the underlying tax public. It is the public’s money. Every structure changed, so they are not the gentleman for yielding me this single taxpayer in America is paying time. going to release a document based upon more money because some of the old law; they are going to offer a docu- Mr. Chairman, I rise in opposition to wealthiest people who are earning their the amendment to strike $595,000 in ment on new law, and it is just about money in the United States are de- here. funding for the Joint Committee on nouncing their citizenship and going So the statements saying it is fin- Taxation, a committee on which I overseas to these islands so that they ished are flat out not true. A Democrat serve. A reduction in funding will place do not have to pay their taxes. These asked for it, a Democrat is the chair- a terrible burden on Congress as it at- no tax countries do not have any mili- man of the Joint Committee on Tax- tempts to produce important and nec- tary, they do not have any infrastruc- ation, and is it not ironic that it is essary changes to the Tax Code. ture, they do not educate their people, Democrats who are going to punish That said, there is no doubt in my and they live there because they can nonpartisan, bipartisan professionals mind that the current revenue esti- afford to because they are making who they argue they are supportive of mating process is flawed. Estimates do money in the United States off the in terms of working conditions and re- not take into account the total effect taxes that the American taxpayer is quirements by cutting their money. of revenue changes on the economy, in- putting in to enable them to have an Now, if my colleagues understand it cluding wages, prices, and consumer economy that is the strongest in the is politics, they understand what this spending. We are locked into a model world. What parasites. They are safe amendment is all about. Ironically, it of estimating that only tips its hat to and secure because the other American was the gentleman from Virginia who our dynamic economy. taxpayers are paying for their military offered the motion that was declared In response to my inquiry during a that protects them. They make lots of out of order, passed by a voice vote of February hearing of the Committee on money because of the investment other the Committee on Appropriations, so Ways and Means, the Treasury Sec- American taxpayers have made in the Committee on Appropriations knew retary stated, ‘‘Since I have been at America’s infrastructure. what it was doing. It was violating the Treasury, we have been working hard Mr. Chairman, I reserve the balance Rules of the House in its own measure, on this, the subject of estimation and of my time. and now we are forcing him to offer an looking at ways that we can bring to Mr. TAYLOR of North Carolina. Mr. amendment and exposing the political the Congress and to the American peo- Chairman, I yield 3 minutes to the gen- nature of the amendment. ple not just the static estimates of the tleman from California (Mr. THOMAS). Mr. MORAN of Virginia. Mr. Chair- past but, as you characterize it, dy- (Mr. THOMAS asked and was given man, I yield 2 minutes to the gen- namic estimates so that everyone will permission to revise and extend his re- tleman from California (Mr. STARK), a have an opportunity to see the dif- marks.) distinguished member of the Com- ference and, as we go through time, we Mr. THOMAS. Mr. Chairman, I take mittee on Ways and Means. can see which estimates turn out to be the floor as Chairman of the Com- Mr. STARK. Mr. Chairman, I appre- more correct through this process.’’ mittee on Ways and Means because the ciate the gentleman yielding me this

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00032 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.049 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4907 time. I was wondering if the distin- the rule. Why? We had tried to work b 1530 guished chairman of the Committee on together, Republicans and Democrats; And here we are not even willing to Ways and Means would indulge me for the gentleman from North Carolina take it into consideration as a reason an inquiry which might put this to (Mr. TAYLOR) and I have worked very why the professionals at the Joint rest. well together. The gentleman is aware Committee on Taxation have to go I must plead that I am not familiar that he is the one that came in and back and completely rewrite the report with all of the details; I did not read said no, do not provide the waiver for on expatriation because of the prin- the Forbes article, so I am not sure this one issue on the study. cipal role of estate taxes. what is purported to be in the report. We do not want to punish the Joint Mr. TAYLOR of North Carolina. Mr. But it is my understanding that Mem- Committee on Taxation employees. Chairman, I yield 1 minute to the gen- bers of the House and certainly mem- What we wanted to do was provide tleman from Louisiana (Mr. MCCRERY). bers of the committee, which he and I their entire increase. We are providing Mr. MCCRERY. Mr. Chairman, I are, have the right to go in and look at the base level that is currently funding would say to the gentleman from Vir- committee files. Is that the gentle- their employees at $6.3 million, but the ginia, I do not disagree with the gentle- man’s understanding? increase, let us just suspend it so we man’s purpose here, but there seems to Mr. THOMAS. Mr. Chairman, will the can get the report, because for 3 years, be either some misunderstanding or gentleman yield? we have not gotten the report. some misstatement of fact by some- I do not know why the gentleman Mr. STARK. I yield to the gentleman body as to the status of the report. from California. does not want that report, He has the I think the gentleman from Cali- ability to get that report. If he was in- Mr. THOMAS. Mr. Chairman, Mem- fornia (Mr. STARK) said it correctly bers have a right to examine files. This terested in providing legislation to when he said that if the report is unfin- is a report that is in progress. If the stop these people who are denouncing ished, indeed, and it is not a matter of gentleman wishes to try to examine a their citizenship to avoid taxes, he has somebody withholding a finished prod- report that is in progress, which clear- the ability to get that legislation. It is uct, then maybe we could get to the only the gentleman from New York ly would not be conclusive, I think we bottom of it by inspecting the product (Mr. RANGEL) that has had to continue can arrange that, if that is the concern in its current state. that Members have. putting on the pressure to get this in- I was prepared to debate this based Mr. STARK. Mr. Chairman, I think formation. The American people want on our information from the Joint that if that were the case, and I do not this information. They deserve to get Committee on Taxation that the report know, somebody would have some idea, it. is indeed unfinished; that it was re- Mr. THOMAS. Mr. Chairman, will the it is certainly not secret. quested by Mr. Archer, and they began I yield to the gentleman from Cali- gentleman yield? Mr. MORAN of Virginia. I will yield work on it. When Mr. Archer left, they fornia (Mr. THOMAS). every time the gentleman has a right stopped work on it. Then the gen- Mr. THOMAS. Mr. Chairman, I think tleman from New York (Mr. RANGEL) the gentleman has an excellent idea, to expect me to yield, so I am not yielding, I am going to respond to his just a few months ago requested that and I think, in fact, if the goal is to get the report proceed, and indeed, they to the bottom of where the committee points. He has the opportunity and the re- are proceeding. In fact, we are told is and where it is not, that would solve sponsibility to deal legislatively with that the Joint Committee on Taxation the problem, but to cut the money of the millions, tens of millions, probably wrote the gentleman from Virginia these hard-working professionals is not hundreds of millions of dollars that are (Mr. MORAN). the answer. not being paid in to the American Mr. Chairman, I would ask that the Mr. STARK. Mr. Chairman, reclaim- Treasury because there are some peo- gentleman withdraw his amendment ing my time, as I say, that may very ple, parasites, who will take advantage and let us work together to get to the well be the solution to the gentleman’s of our economy and take advantage of bottom of this. I think there is a mis- concern, that if Members were able to our military while making all kinds of understanding. look at wherever the product is, it money off the taxpayers’ investments. Mr. TAYLOR of North Carolina. Mr. might satisfy the concerns that if there The CHAIRMAN. The time of the Chairman, I yield 1 minute to the gen- is something secret and untoward gentleman from Virginia (Mr. MORAN) tleman from Illinois (Mr. WELLER). being held there, it might very well be has expired. Mr. WELLER. Mr. Chairman, I rise in the solution. Mr. TAYLOR of North Carolina. Mr. opposition to the amendment of the Mr. THOMAS. Mr. Chairman, if the Chairman, I yield 1 minute to the gen- gentleman from Virginia. I consider gentleman will yield further, it is a tleman from California (Mr. THOMAS). myself a good friend of the gentleman fact that the report is not completed. Mr. THOMAS. Mr. Chairman, I would from Virginia (Mr. MORAN), but he is The argument that it is completed is agree with the gentleman from Vir- wrong by offering this amendment simply not so because of the change in ginia on the point that he indicates today. We all feel we are supporters of the tax law. But if someone wants to there are parasites in the system and our public employees. look at what is going on, we would as- there are people who live off of others’ Here is a situation: I, as a member of sume the proper approach would be to hard-earned money by the way in the Committee on Ways and Means, ask the people who are involved. which they conduct themselves. have a request in to the tax staff all The current chairman is the chair- I would tell the gentleman the reason the time, and sometimes they do not man of the Finance Committee, MAX we objected to legislating on an appro- move fast enough, I think, or give me BAUCUS, I would tell my colleague from priations bill, which is what the gen- the response that I want; but I am not California, but I am quite sure that we tleman was trying to do, is the gen- going to threaten their pay raise or can work it out if somebody really tleman does not let us appropriate on threaten to take away their money, or wants to look at the report rather than our legislative vehicles. So it seems to cut the number of staff in the Joint making some kind of a partisan ges- reasonable that if we get to legislate Committee on Taxation if they do not ture. and you appropriate, that we do not give me the result that I want. Mr. MORAN of Virginia. Mr. Chair- confuse the two. The gentleman from California man, as the person that represents the Let me then also say that this report (Chairman THOMAS) and, of course, I Committee on Ways and Means on the is coming out. If the gentleman’s con- assume the gentleman from Alabama Republican side very well knows, there cern is getting this report out, the gen- (Chairman BACHUS), would say the are more than 50 provisions in this bill tleman’s report is going to be gotten same thing, the Democrat who is the that required a waiver of a point of out but, surely, someone would notice Chairman of the Joint Committee on order. This provision did not get that the fundamental tax change, at least Taxation says the report is going waiver and stands out by exception. the gentleman often mentions it on the through the process and we are going Now, he makes a point about observ- floor about how big it is and how to receive it. ing the rules. The point is, from our sweeping it is, and perhaps we should But if I am not going to get the an- perspective, this was an exception to not have done it. swer I want when I request a revenue

VerDate Jun 13 2002 03:51 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00033 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.055 pfrm17 PsN: H18PT1 H4908 CONGRESSIONAL RECORD — HOUSE July 18, 2002 estimate on the proposal I have, wheth- Mr. TAYLOR of North Carolina. Mr. NOES—213 er it is to eliminate the marriage tax Chairman, reclaiming my time, it is Aderholt Goode Paul penalty or any other issue, I am not unfortunate that this argument has oc- Akin Goodlatte Pence going to threaten the staff and threat- curred for this bill. I hope we can get Armey Goss Peterson (PA) Bachus Graham Petri en to take away their cost-of-living in- some reconciliation in the future. But Baker Granger Pickering crease. we do not need to cut $590,000 for this Ballenger Graves Pitts That is what this amendment does. If study and these employees. Barr Green (WI) Platts we adopt this amendment, we are tak- Bartlett Greenwood Pombo The CHAIRMAN. The question is on Barton Grucci Portman ing away a cost-of-living increase for the amendment offered by the gen- Bass Gutknecht Pryce (OH) public servants, nonpartisan public tleman from Virginia (Mr. MORAN). Bereuter Hansen Putnam servants. The question was taken; and the Biggert Hart Quinn Bilirakis Hastings (WA) Radanovich I urge a ‘‘no’’ vote on this amend- Chairman announced that the noes ap- ment. Blunt Hayes Ramstad peared to have it. Boehlert Hayworth Regula Mr. TAYLOR of North Carolina. Mr. Boehner Hefley Rehberg RECORDED VOTE Chairman, I yield 1 minute to the gen- Bonilla Herger Reynolds tleman from Florida (Mr. FOLEY). Mr. MORAN of Virginia. Mr. Chair- Bono Hobson Riley Mr. FOLEY. Mr. Chairman, I rise man, I demand a recorded vote. Boozman Hoekstra Rogers (KY) A recorded vote was ordered. Brady (TX) Horn Rogers (MI) again in opposition to the Moran Brown (SC) Hostettler Rohrabacher amendment. It is very creative. In fact, The vote was taken by electronic de- Bryant Houghton Ros-Lehtinen if we did this on everything we were vice, and there were—ayes 206, noes 213, Burr Hulshof Royce unhappy with in this process, not only not voting 15, as follows: Burton Hunter Ryan (WI) Buyer Hyde Ryun (KS) would we balance the budget, we would [Roll No. 320] Callahan Isakson Saxton save the taxpayers billions of dollars. AYES—206 Calvert Issa Schaffer Mr. Chairman, we hear there is a dis- Camp Istook Schrock Abercrombie Hastings (FL) Olver Cannon Jenkins Sensenbrenner crepancy in the report, but I think Ackerman Hill Ortiz there has been a genuine effort on be- Cantor Johnson (CT) Sessions Allen Hilleary Owens Capito Johnson (IL) Shadegg half of the majority to try to work out Andrews Hilliard Pallone Castle Johnson, Sam Shaw the time schedule and advance this re- Baca Hinchey Pascrell Chabot Jones (NC) Shays Baird Hinojosa Pastor Chambliss Keller Sherwood port. Nobody is hiding anything. No- Baldacci Hoeffel Payne Coble Kelly Shuster body is shielding any report. In fact, Baldwin Holden Pelosi Collins Kennedy (MN) Simmons Barcia Holt we all want to see this very, very im- Peterson (MN) Combest Kerns Simpson Becerra Honda portant information. Phelps Cooksey King (NY) Skeen Bentsen Hoyer Pomeroy Cox Kingston Smith (MI) But I think, as the gentleman from Berman Inslee Price (NC) Crane Kirk Smith (NJ) Illinois just said, to cut salaries and Berry Israel Rahall Crenshaw Knollenberg Smith (TX) Bishop Jackson (IL) budgets and use money as a fulcrum Rangel Cubin Kolbe Souder Blagojevich Jackson-Lee point against hard-working employees Reyes Culberson LaHood Stump Blumenauer (TX) Rivers is unreasonable. Borski Jefferson Cunningham Latham Sullivan Rodriguez But if it is, in fact, reasonable under Boswell John Davis, Jo Ann LaTourette Sununu Roemer the gentleman’s amendment, let us Boucher Johnson, E. B. Davis, Tom Leach Sweeney Boyd Jones (OH) Ross Deal Lewis (CA) Tancredo offer it on every appropriations bill, on Brady (PA) Kanjorski Rothman DeLay Lewis (KY) Tauzin every expenditure. In fact, let us re- Brown (FL) Kaptur Roybal-Allard DeMint Linder Taylor (NC) duce the spending in government be- Brown (OH) Kennedy (RI) Rush Diaz-Balart Lipinski Terry Sabo Doolittle LoBiondo Thomas cause we are not satisfied, totally, with Capps Kildee Capuano Kilpatrick Sanchez Dreier Lucas (OK) Thornberry the reports. We could save billions of Cardin Kind (WI) Sanders Dunn Manzullo Thune dollars by doing it. Carson (IN) Kleczka Sandlin Ehlers McCrery Tiahrt This is not the appropriate time, not Clay Kucinich Sawyer Ehrlich McInnis Tiberi Emerson Mica Toomey the appropriate place. We will get the Clement LaFalce Schakowsky Clyburn Lampson Schiff English Miller, Dan Upton report, and we will answer the charges. Condit Langevin Scott Everett Miller, Gary Vitter The Joint Committee on Taxation Conyers Lantos Serrano Ferguson Miller, Jeff Walden needs the funding. They should not Costello Larsen (WA) Sherman Flake Moran (KS) Walsh Coyne Larson (CT) Shimkus Fletcher Morella Watkins (OK) have a punitive amendment on the Cramer Lee Shows Foley Myrick Watts (OK) floor today. Crowley Levin Skelton Forbes Nethercutt Weldon (FL) Mr. TAYLOR of North Carolina. Mr. Cummings Lewis (GA) Slaughter Frelinghuysen Ney Weldon (PA) Chairman, I yield myself the balance of Davis (CA) Lofgren Smith (WA) Gallegly Northup Weller Ganske Norwood Whitfield my time. Davis (FL) Lucas (KY) Snyder Davis (IL) Luther Solis Gekas Nussle Wilson (NM) Mr. RYAN of Wisconsin. Mr. Chair- DeFazio Lynch Spratt Gibbons Osborne Wilson (SC) man, will the gentleman yield? DeGette Maloney (CT) Stark Gilchrest Ose Wolf Mr. TAYLOR of North Carolina. I Delahunt Maloney (NY) Stearns Gillmor Otter Young (AK) yield to the gentleman from Wisconsin. DeLauro Markey Stenholm Gilman Oxley Young (FL) Deutsch Matheson Mr. RYAN of Wisconsin. Mr. Chair- Strickland Dicks Matsui Stupak NOT VOTING—15 man, I think there is a misunder- Dingell McCarthy (MO) Tanner Barrett Fossella McHugh standing. This is not about expatriates; Doggett McCollum Tauscher Dooley McDermott Berkley Hooley McKeon Taylor (MS) it is about whether or not we are going Doyle McGovern Bonior Lowey Roukema Thompson (CA) to cut the Joint Committee on Tax- Duncan McIntyre Carson (OK) Mascara Traficant Thompson (MS) Edwards McKinney Clayton McCarthy (NY) Wicker ation, a committee that is overworked Thurman Engel McNulty right now. They take about 4,500 Mem- Tierney Eshoo Meehan ber requests and process them. If we Etheridge Meek (FL) Towns b 1601 cut this back and deprive them of any Evans Meeks (NY) Turner cost-of-living adjustments, which Farr Menendez Udall (CO) Messrs. TOM DAVIS of Virginia, Fattah Millender- Udall (NM) JONES of North Carolina and EHLERS Members of Congress get, we are doing Velazquez Filner McDonald changed their vote from ‘‘aye’’ to ‘‘no.’’ a disservice to the revenue-estimating Ford Miller, George Visclosky function of this Congress. Frank Mink Wamp Messrs. ANDREWS, BLUMENAUER, The study is not done yet. There is Frost Mollohan Waters Watson (CA) PETERSON of Minnesota, new tax policy to factor. They are Gephardt Moore Gonzalez Moran (VA) Watt (NC) DELAHUNT, HILLIARD, BARCIA, going to get the study. We want to see Waxman Gordon Murtha HILLEARY, DUNCAN and HALL of the study. Let us not do this amend- Green (TX) Nadler Weiner Texas changed their vote from ‘‘no’’ to ment and cut this vital funding, be- Gutierrez Napolitano Wexler Hall (OH) Neal Woolsey ‘‘aye.’’ cause if we do, Congress will not be Hall (TX) Oberstar Wu well served in trying to do its job. Harman Obey Wynn So the amendment was rejected.

VerDate Jun 13 2002 03:51 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00034 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.058 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4909 The result of the vote was announced Hinojosa McNulty Schiff Fossella Lowey Roukema as above recorded. Hobson Meehan Schrock Graham Mascara Traficant Hoeffel Meek (FL) Scott Hastings (FL) McCarthy (NY) Waters The CHAIRMAN. The Clerk will read Hoekstra Meeks (NY) Serrano Hooley McHugh Wicker the final lines of the bill. Holden Menendez Sessions Lampson Pomeroy The Clerk read as follows: Honda Mica Shaw Horn Millender- Sherman b 1821 This Act may be cited as the ‘‘Legislative Hostettler McDonald Sherwood Mr. EVERETT and Mr. BARTLETT Branch Appropriations Act, 2003’’. Houghton Miller, Dan Shows of Maryland changed their vote from The CHAIRMAN. There being no fur- Hoyer Miller, Gary Shuster Hunter Miller, George ‘‘yea’’ to ‘‘nay.’’ ther amendments, under the rule, the Simmons Hyde Mink Simpson So the bill was passed. Committee rises. Inslee Mollohan Skeen The result of the vote was announced Accordingly, the Committee rose; Isakson Moran (VA) Skelton as above recorded. Issa Morella Slaughter and the Speaker pro tempore (Mr. Istook Murtha A motion to reconsider was laid on Smith (MI) GILLMOR) having assumed the chair, Jackson (IL) Myrick the table. Smith (NJ) Jackson-Lee Nadler Mr. HANSEN, Chairman of the Com- Smith (TX) Stated for: (TX) Napolitano mittee of the Whole House on the State Smith (WA) Mr. POMEROY. Mr. Speaker, on rollcall No. Jefferson Neal Snyder of the Union, reported that that Com- Jenkins Nethercutt 321, final passage of H.R. 5121, Legislative mittee, having had under consideration John Ney Solis Branch Appropriations for Fiscal Year 2003, I Johnson (CT) Northup Souder the bill (H.R. 5121) making appropria- Spratt was absent due to a meeting with a con- Johnson (IL) Nussle stituent. tions for the Legislative Branch for the Johnson, E. B. Oberstar Stark fiscal year ending September 30, 2003, Johnson, Sam Obey Stenholm Had I been present, I would have voted and for other purposes, pursuant to Jones (NC) Olver Strickland ‘‘yea’’. Stump House Resolution 489, he reported the Jones (OH) Ortiz Mr. LAMPSON. Mr. Speaker, on July 18, Kanjorski Osborne Stupak 2002, I missed rollcall vote No. 321. Had I bill back to the House. Kaptur Ose Sullivan The SPEAKER pro tempore. Under Keller Otter Sununu been able to record my vote, I would have the rule, the previous question is or- Kelly Owens Sweeney voted ‘‘yea’’ on rollcall vote No. 321. Kennedy (RI) Oxley Tanner f dered. Kildee Pallone Tauscher The question is on the engrossment Kilpatrick Pascrell Tauzin PERMISSION TO HAVE UNTIL MID- and third reading of the bill. King (NY) Pastor Taylor (NC) NIGHT, FRIDAY, JULY 19, 2002, TO Kingston Payne Terry The bill was ordered to be engrossed Kirk Pelosi Thomas FILE CONFERENCE REPORT ON and read a third time, and was read the Kleczka Pence Thompson (CA) H.R. 4775, 2002 SUPPLEMENTAL third time. Knollenberg Peterson (MN) Thompson (MS) APPROPRIATIONS ACT FOR FUR- The SPEAKER pro tempore. The Kolbe Peterson (PA) Thornberry THER RECOVERY FROM AND RE- Kucinich Pitts Thune question is on the passage of the bill. LaFalce Platts Thurman SPONSE TO TERRORIST ATTACKS Pursuant to clause 10 of rule XX, the LaHood Pombo Tiahrt ON THE UNITED STATES yeas and nays are ordered. Langevin Portman Tiberi Lantos Price (NC) Mr. YOUNG of Florida. Mr. Speaker, The vote was taken by electronic de- Tierney Larsen (WA) Pryce (OH) Towns I ask unanimous consent that the man- vice, and there were—yeas 365, nays 49, Larson (CT) Putnam Udall (CO) agers on the part of the House have not voting 20, as follows: Latham Quinn Udall (NM) until midnight, Friday, July 19, 2002, to LaTourette Radanovich [Roll No. 321] Upton file a conference report on the bill Leach Rahall Velazquez Lee Ramstad YEAS—365 Visclosky (H.R. 4775) making supplemental appro- Levin Rangel Vitter priations for further recovery from and Abercrombie Cannon Emerson Lewis (CA) Regula Walden Ackerman Cantor Engel Lewis (GA) Rehberg response to terrorists attacks on the Walsh Aderholt Capito English Lewis (KY) Reyes United States for the fiscal year ending Wamp Akin Capps Eshoo Linder Reynolds September 30, 2002, and for other pur- Allen Capuano Etheridge Watkins (OK) Lipinski Riley poses. Andrews Cardin Evans LoBiondo Rivers Watson (CA) Armey Carson (IN) Farr Lofgren Rodriguez Watt (NC) The SPEAKER pro tempore (Mr. Baca Castle Fattah Lucas (OK) Rogers (KY) Watts (OK) GILLMOR). Is there objection to the re- Bachus Chambliss Ferguson Lynch Rogers (MI) Waxman quest of the gentleman from Florida? Baird Clay Filner Maloney (CT) Rohrabacher Weiner There was no objection. Baker Clement Fletcher Maloney (NY) Ros-Lehtinen Weldon (FL) Baldacci Clyburn Foley Manzullo Ross Weldon (PA) f Baldwin Coble Forbes Markey Rothman Weller Ballenger Combest Ford Matsui Roybal-Allard Wexler REMOVAL OF NAME OF MEMBER Barcia Condit Frank McCarthy (MO) Rush Whitfield AS COSPONSOR OF H.R. 5059 Barton Conyers Frelinghuysen McCollum Ryun (KS) Wilson (NM) Mr. STEARNS. Mr. Speaker, I ask Bass Cooksey Frost McCrery Sabo Wilson (SC) Becerra Coyne Gallegly McDermott Sanchez Wolf unanimous consent that the name of Bentsen Cramer Ganske McGovern Sanders Woolsey the gentleman from North Carolina Bereuter Crenshaw Gekas McInnis Sandlin Wu (Mr. TAYLOR) be removed as a cospon- Berman Crowley Gephardt McIntyre Sawyer Wynn Biggert Cubin Gibbons McKeon Saxton Young (AK) sor of H.R. 5059. Bilirakis Culberson Gilchrest McKinney Schakowsky Young (FL) The SPEAKER pro tempore. Is there Bishop Cummings Gillmor objection to the request of the gen- Blumenauer Cunningham Gilman NAYS—49 Blunt Davis (CA) Gonzalez tleman from Florida? Boehlert Davis (FL) Gordon Barr Green (WI) Phelps There was no objection. Bartlett Hefley Pickering Boehner Davis (IL) Goss f Bonilla Davis, Jo Ann Granger Berry Holt Roemer Bono Davis, Tom Graves Blagojevich Hulshof Royce PROVIDING FOR CONSIDERATION Chabot Boozman DeFazio Greenwood Israel Ryan (WI) OF H.R. 5120, TREASURY AND Borski DeGette Grucci Collins Kennedy (MN) Schaffer Boswell Delahunt Gutierrez Costello Kerns Sensenbrenner GENERAL GOVERNMENT APPRO- Boucher DeLauro Gutknecht Cox Kind (WI) Shadegg PRIATIONS ACT, 2003 Crane Lucas (KY) Boyd DeLay Hall (OH) Shays Deal Luther Mr. LINDER. Mr. Speaker, by direc- Brady (PA) DeMint Hall (TX) Shimkus Doggett Matheson Brady (TX) Deutsch Hansen Stearns tion of the Committee on Rules, I call Duncan Miller, Jeff Brown (FL) Diaz-Balart Harman Tancredo up House Resolution 488 and ask for its Brown (OH) Dicks Hart Everett Moore Flake Moran (KS) Taylor (MS) immediate consideration. Brown (SC) Dingell Hastings (WA) Toomey The Clerk read the resolution, as fol- Bryant Dooley Hayes Goode Norwood Turner Burr Doolittle Hayworth Goodlatte Paul lows: Green (TX) Petri Burton Doyle Herger H. RES. 488 Buyer Dreier Hill Callahan Edwards Hilleary NOT VOTING—20 Resolved, That at any time after the adop- Calvert Ehlers Hilliard Barrett Bonior Clayton tion of this resolution the Speaker may, pur- Camp Ehrlich Hinchey Berkley Carson (OK) Dunn suant to clause 2(b) of rule XVIII, declare the

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00035 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.063 pfrm17 PsN: H18PT1 H4910 CONGRESSIONAL RECORD — HOUSE July 18, 2002 House resolved into the Committee of the priations or legislative provisions in an tions on this particular issue. This rule Whole House on the state of the Union for appropriations bill, except as specified leaves the DeLauro amendment vulner- consideration of the bill (H.R 5120) making in the resolution itself. able to a point of order, essentially appropriations for the Treasury Department, H. Res. 488 provides that the amend- stripping it from the bill. That is the United States Postal Service, the Execu- tive Office of the President, and certain ment printed in the Committee on wrong, Mr. Speaker, and this rule Independent Agencies, for the fiscal year Rules report accompanying the resolu- should be defeated because of it. ending September 30, 2003, and for other pur- tion may be offered only at the appro- The DeLauro amendment does not poses. The first reading of the bill shall be priate point in the reading of the bill, even seek to close the overseas loop- dispensed with. All points of order against shall be considered as read, and shall hole, which we should have done long consideration of the bill are waived. General not be subject to amendment. The rule ago and which Democrats have been debate shall be confined to the bill and shall provides that the Chairman of the trying to do for months. The gen- not exceed one hour equally divided and con- Committee of the Whole shall accord tleman from Massachusetts (Mr. NEAL) trolled by the chairman and ranking minor- ity member of the Committee on Appropria- priority in recognition of the gen- and the gentleman from Connecticut tions. After general debate the bill shall be tleman from Florida (Mr. GOSS) or his (Mr. MALONEY) introduced a bill to considered for amendment under the five- designee to offer the amendment print- eliminate the loophole over 4 months minute rule. Points of order against provi- ed in the report. ago. It has been languishing in this sions in the bill for failure to comply with The rule also waives all points of House ever since. That is why Members clause 2 of rule XXI are waived except as fol- order against the amendment printed right now are signing a discharge peti- lows: beginning with ‘‘Provided’’ on page 12, in the report. Further, the rule also au- tion to free the Neal-Maloney bill from line 19, through ‘‘2003’’ on line 23; beginning thorizes the Chair to accord priority in legislative purgatory. with ‘‘Provided’’ on page 74, line 15, through recognition to Members who have ‘‘law’’ on line 25; page 81, line 22, through All the DeLauro amendment says is page 82, line 7; page 102, line 19, through page preprinted their amendments in the that companies who shirk their respon- 103, line 10. Where points of order are waived CONGRESSIONAL RECORD. sibilities should not be rewarded with against part of a paragraph, points of order Finally, the rule provides one motion billions of American taxpayer dollars. against a provision in another part of such to recommit with or without instruc- For the life of me, I cannot figure out paragraph may be made only against such tions. what is so controversial about that. provision and not against the entire para- Once H. Res. 488 is approved, the Now, the majority will argue that graph. The Chairman of the Committee of House can begin its consideration of they are merely using the regular order the Whole shall accord priority in recogni- fiscal year 2003 Treasury, Postal Serv- tion to Representative Goss of Florida or his of the House; that there are jurisdic- designee to offer the amendment printed in ice appropriations bill, which is the tional issues between the Committee the report of the Committee on Rules accom- fifth regular appropriations bill to on Appropriations and the Committee panying this resolution, which may be of- come to the House floor. on Government Reform. H.R. 5120 provides roughly $18.5 bil- fered only at the appropriate point in read- b 1630 ing of the bill, shall be considered as read, lion in funding for a variety of Federal and shall not be subject to amendment. All departments and agencies. The com- Well, I find it extraordinary that the points of order against the amendment print- mittee included funding supporting majority has suddenly found religion ed in the report are waived. Except as other- State and local law enforcement ef- on the virtues of regular procedure, be- wise specified in this resolution, during con- forts, enhancements in Federal infor- cause for months we have watched sideration of the bill for amendment, the them treat regular order like the Chairman of the Committee of the Whole mation technology, and homeland se- may accord priority in recognition on the curity. skunk at the garden party. Major trade basis of whether the Member offering an I urge my colleagues to adopt the legislation has been written by a single amendment has caused it to be printed in the rule so that the House can proceed Member and then shoved through the portion of the Congressional Record des- with general debate and consideration House without hearings or proper com- ignated for that purpose in clause 8 of rule of the underlying bill. mittee action. Please, do not suddenly XVIII. Amendments so printed shall be con- Mr. Speaker, I reserve the balance of proclaim the virtues of following the sidered as read. At the conclusion of consid- my time. regular procedures of this House or eration of the bill for amendment the Com- Mr. MCGOVERN. Mr. Speaker, I want about the sanctity of committee pre- mittee shall rise and report the bill to the House with such amendments as may have to thank my colleague from Georgia rogatives. been adopted. The previous question shall be for yielding me the customary time, Now confronted with an issue that considered as ordered on the bill and amend- and I yield myself such time as I may they do not like and that scares the po- ments thereto to final passage without inter- consume. litical wits out of them, the Republican vening motion except one motion to recom- Mr. Speaker, I rise in very strong op- majority hides behind a parliamentary mit with or without instructions. position to this rule. My colleagues smoke screen. Well, I can see through The SPEAKER pro tempore. The gen- should know from the very outset of that smoke screen, my colleagues can tleman from Georgia (Mr. LINDER) is this debate that the vote on this rule is see through it, and the American peo- recognized for 1 hour. about one simple issue: The issue of ple can see through it. Mr. LINDER. Mr. Speaker, for pur- corporate accountability. Members Mr. Speaker, the Committee on Ap- poses of debate only, I yield the cus- must decide if they support giving bil- propriations, to their credit, decided to tomary 30 minutes to the gentleman lions of dollars of taxpayer money to act in an overwhelming bipartisan way. from Massachusetts (Mr. MCGOVERN); corporations that dodge their taxes by Sadly, the majority on the Committee pending which I yield myself such time running off to the Bahamas or to Ber- on Rules is attempting to dismantle as I may consume. During consider- muda. that bipartisan work, once again siding ation of this resolution, all time yield- During the Committee on Appropria- with the greediest and most self-serv- ed is for purposes of debate only. tions’ markup of the Treasury, Postal ing of corporate interests. Mr. Speaker, H. Res. 488 is an open appropriations bill, the gentlewoman The Republicans say this issue is rule providing for the consideration of from Connecticut (Ms. DELAURO) of- complicated. Complicated? What is so H.R. 5120, the fiscal year 2003 Treasury, fered an amendment to prohibit gov- complicated about it? What is so hard Postal Service appropriations bill. It ernment contracts from being awarded to understand? What do they not get? provides for 1 hour of general debate, to companies that reincorporate over- Is there ever a point when the leader- equally divided and controlled by the seas to avoid paying U.S. taxes. The ship on the other side of the aisle says chairman and ranking minority mem- Committee on Appropriations approved enough is enough? ber of the Committee on Appropria- her amendment by a bipartisan vote of We can give all of the speeches we tions, and it waives all points of order 41 to 17. want about how concerned we are, but against consideration of the bill. But the majority in the Committee talk is cheap. The time for action is H. Res. 488 also waives points of order on Rules, and I assume in consultation now, not tomorrow, not next week, not against provisions in the bill for failing with the Republican leadership, has de- after Labor Day, but now. Again, the to comply with clause 2 of rule XXI, cided that they do not like the work DeLauro amendment is modest in its which prohibits unauthorized appro- done by the Committee on Appropria- scope. It does not even try to close the

VerDate Jun 13 2002 03:46 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00036 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.037 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4911 loophole that allows companies to re- in tax revenue by fleeing for inter- rageous that this Congress does not nounce their citizenship while con- national tax havens, and this govern- have enough anger and enough guts tinuing to reap the benefits that come ment rewards these companies with and enough determination to stand up with it. billions of dollars in Federal contracts. to those actions and say enough is All this amendment says is that This is wrong. This is unpatriotic, and enough, buster, this is not going to those companies do not deserve to be this House should not run away from happen any more. rewarded with billions of dollars in its responsibility to the fiscal health of We ought to be taking that stand im- government contracts. They do not de- this Nation by ignoring this issue. mediately on this and every other ap- serve a pat on the back for bad behav- PARLIAMENTARY INQUIRY propriation bill so that no company ior. If there are legitimate technical Mr. LINDER. Mr. Speaker, par- that welches on their responsibility to issues with the drafting of this amend- liamentary inquiry. this country can do a dime’s worth of ment, they can be addressed in the con- The SPEAKER pro tempore (Mr. business with Uncle Sam. Until we ference committee. This issue is too GOODLATTE). The gentleman will state take that position, these kinds of out- important to keep sweeping it under it. rageous things are going to continue. I the rug. Mr. LINDER. Mr. Speaker, do those hope this House does the right thing on Mr. Speaker, the families in my dis- 30-second editorials work against their the rule. trict work hard and pay their taxes. time? Mr. LINDER. Mr. Speaker, I yield 3 The small businesses I represent in The SPEAKER pro tempore. They minutes to the gentleman from Geor- Worcester and Attleboro and Fall River certainly do. gia (Mr. KINGSTON). pay their fair share. I do not believe Mr. OBEY. Mr. Speaker, every week Mr. KINGSTON. Mr. Speaker, I want that their hard-earned tax dollars when I go home to my district and also to speak in favor of the rule and the should be funneled to corporations that here in my office, I talk to business bill itself. I want to say in this time of skip out on their responsibilities. This people who work hard, who worry uncertainty when homeland security is is about fairness. It is about respecting about their communities, their inves- foremost on everybody’s mind and the companies that actually play by tors, and their workers. They try to agenda, this bill is probably one of the the rules. produce a good product. They do their more significant votes we will take I say to my colleagues again, this duty as citizens. They pay their fair this year. issue is very clear. This vote is very share of taxes and they help pull the I have often heard Members say I am simple. The vote on this rule is a vote wagon, as a Senator from the other not going to vote for Treasury-Postal up or down on whether these Cayman body often describes it. They help pull Service because it is Washington, it is Island corporations that dodge their the wagon and meet their share of com- bureaucratic, it is something that does tax responsibilities deserve to receive munity and national responsibilities. not affect my constituents back home; billions of dollars in taxpayer money. When they see corporations maneu- but I want to remind Members about Let us draw the line in the sand ver the Tax Code and avoid paying some of the important government against corporate misbehavior. Let us taxes by ostensibly moving their ad- functions that are in this bill. send a signal to the American people dress while they do not move their op- One of the examples is the Federal that we in this Chamber actually get erations, they move their address to Law Enforcement Training Center, it, that we are taking steps to fix the exotic places such as Bermuda, they which is in New Mexico and Georgia problem. No more stalling. I urge Mem- ask me, What in God’s name are you which trains 71 law enforcement agen- bers to vote ‘‘no’’ on this rule. guys doing? When are you going to put cies in the government, the Drug En- Mr. Speaker, I reserve the balance of a stop to it? They resent carrying their forcement Agency, the Secret Service, my time. fair share of the load while somebody the Capitol Hill police, who we know Mr. LINDER. Mr. Speaker, I reserve else is ducking their responsibility to and love and work with every single the balance of my time. carry theirs. day. All that training takes place be- Mr. MCGOVERN. Mr. Speaker, I yield So the DeLauro amendment which cause of the Federal Law Enforcement 1 minute to the gentleman from Utah was offered in committee, which I was Training Center, which is in this bill. (Mr. MATHESON). pleased to cosponsor, simply said, and In these times of homeland security, Mr. MATHESON. Mr. Speaker, I rise it is an outrageous idea to some Mem- just look at all of the other things. today advocating a vote against the bers, I suppose, it simply said to these I am going to sort of bounce around, previous question, and doing so in op- companies, Look, buster, if you are but this bill affects the Treasury De- position to a Member pay raise. Today going to ignore your responsibilities to partment; Air Transportation Sta- we are considering a bill that is vital this society and the taxpayers who bilization; the Bureau of Alcohol, To- for the continued operation of our gov- help see to it that you get police pro- bacco and Firearms; the Bureau of En- ernment, the safety of our citizens, and tection, the transportation system graving and Printing; counterterrorism the security of our economy. But hid- that you need to sell and move your funding; and the Financial Crimes En- den deep within it is another congres- products, if they see those folks aban- forcement Network. Who would want sional pay raise. doning their duty, they want us to do to vote against that during these Mr. Speaker, since this session of something about it. And most of all, times? Congress began, the Dow has lost 15 they do not expect Uncle Sam to be The Internal Revenue Service, and I percent of its value. The Nasdaq has Uncle Sucker by continuing to do busi- can see why people may not be too lost almost a third of its value. Unem- ness with the companies that refuse to fired up about that, but, frankly, Mr. ployment is up. Profits are down. Re- pay taxes to the United States Govern- Speaker, we need to have the IRS. Con- tirement accounts are down. People are ment. tinuing on, the Interagency Crime hurting, and we in this Congress should Now, the rule under which this bill is Drug Enforcement Agency, the Office not be raising our pay. We cannot af- going to be considered will not protect of Inspector General, the U.S. Mint, ford it. the language of the DeLauro amend- the United States Secret Service. Last year’s government surpluses are ment, so there will be an easy way for Moving on, the White House is funded long gone. We are swimming in red ink. this House to avoid bringing those in this, and all of the security concerns We are fighting a war. We should not companies to heel. That is why you are of the White House to protect the be asking the taxpayers to pay us going to see a good many of us vote President of the United States is in more. I urge Members to vote against against the rule, because we believe this bill. The list goes on and on, Mr. the previous question. that one of the first responsibilities of Speaker. Mr. LINDER. Mr. Speaker, I reserve the most privileged of the taxpayers What I want to say, Is the rule per- the balance of my time. among us is to meet their own obliga- fect? No. In my 10th year in Congress, Mr. MCGOVERN. Mr. Speaker, I yield tions to this society. It is unpatriotic I can say that I have not seen a perfect 5 minutes to the gentleman from Wis- for those companies to change their ad- rule yet. Despite the good work of our consin (Mr. OBEY) because corporations dress in order to avoid pulling their very capable Committee on Rules, it is are cheating the U.S. out of $4 billion fair share of the load, and it is out- not always the way I would write it.

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00037 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.069 pfrm17 PsN: H18PT1 H4912 CONGRESSIONAL RECORD — HOUSE July 18, 2002 Is the bill perfect? Certainly not. ican government. Oppose this rule. propriations by a decisive vote of 41–17. There again, there are things I would More importantly, it is about opposing Why should we allow companies to change if I were the only Member of these corporations who truly do not move offshore to avoid Federal taxes this 435 body. But to nitpick this bill have the well-being of the American but nonetheless receive the benefits of and to nitpick this rule at this time is people at heart. When they are doing future government contracts? That is not the best thing in the security in- business and enjoying every single ben- not right, Mr. Speaker. terests of our country because this, as efit, they should not have the benefit It is unconscionable that the Com- I said before, is probably one of the of Federal contracts. mittee on Rules would refuse to pro- number one homeland security votes Mr. LINDER. Mr. Speaker, I reserve tect the DeLauro language from being we will take this year. the balance of my time. struck on a point of order. If any Mem- Mr. Speaker, I am going to support Mr. MCGOVERN. Mr. Speaker, I yield ber of this House believes that compa- the rule, and certainly I am going to 2 minutes to the gentleman from Mary- nies who incorporate outside the support the bill. land (Mr. HOYER). United States to avoid taxes should Mr. MCGOVERN. Mr. Speaker, I yield Mr. HOYER. Mr. Speaker, I appre- nonetheless receive Federal contracts 3 minutes to the gentlewoman from ciate the gentleman’s yielding time without limitation, then they should Connecticut (Ms. DELAURO). and I rise in opposition to the rule. offer an amendment to strike the Ms. DELAURO. Mr. Speaker, last The gentleman from Virginia (Mr. DeLauro language from this bill and we week the Committee on Appropriations MORAN) in the last rule talked about a should debate and vote on that par- adopted a bipartisan amendment that I missed opportunity. This is another ticular amendment. offered along with my colleague, the missed opportunity. We say, all of us, Instead, the Committee on Rules pro- gentleman from Wisconsin (Mr. OBEY), most of the people that I have heard poses to protect Republican Members to prohibit corporate expatriates from say that the act of moving overseas to who oppose controlling this type of winning Federal Government con- avoid participating in supporting the corporate abuse from casting the po- tracts. This rule wrongly strikes the government, our defense, our fight litically difficult vote that would be re- amendment from this legislation. against terrorism, our homeland secu- quired if they offered an amendment to These are corporations that set up an rity is an act which they condemn. strike the DeLauro language. It is un- operation overseas in order to avoid Each and every one of us have said derstandable why Members who want paying U.S. taxes. They enjoy all of the that. The American public thinks that to allow corporations to continue this benefits of corporate citizenship in that is an unpatriotic effort. The aver- type of tax abuse would want to remain America. They look like U.S. compa- age person in the street is not going to faceless and anonymous. What is not nies. The principal market that their move to Bermuda. The average person understandable, Mr. Speaker, is why stock is traded on is in the United in the street is not going to move to any of us who want to pass a rule that States. Their physical assets are pro- some far-off place so that they can would assist them in doing so. This tected by our police, our firemen, our avoid taxation. rule is an act of cowardice. Armed Forces. They just refuse to pay The chairman of the Committee on As a member of the Subcommittee on for the benefits as every other Amer- Ways and Means in the debate on the Treasury, Postal Service and General ican citizen and company does. last bill said, ‘‘Well, we’re changing Government of the Committee on Ap- My own State of Connecticut wit- that. We’re changing the death tax, propriations, I would like to be able to nessed this firsthand when Stanley which is why most people move over- support the rule so that we could move Works tried to incorporate itself in seas.’’ to consideration of our bill that deals Bermuda. They go to Bermuda, Bar- The average taxpayer, who does not with so many extremely important bados, the Cayman Islands, Switzer- have any liability for the death tax, issues, ranging from homeland security land and Luxembourg. Companies who has to pay a FICA tax, the average to tax collection, Federal employee put profit before patriotism, they con- working guy, and 50 percent of them benefits and election reform, but I can- tinue to enjoy one more benefit. They pay more FICA tax, Social Security not be a party to such fundamental un- still win hefty Federal contracts. Cor- tax, than they do income tax. They fairness. porate expatriates benefit from over $2 cannot move overseas to avoid that I say to all the Members, if you truly billion in lucrative government con- and, in fact, they do not. They pay believe that the DeLauro language is tracts. That is $2 billion of taxpayer their fair taxes. They do not want to improper, offer an amendment to money going to companies who avoid pay more than their fair share, but strike it and let us debate and vote on taxes here in the United States. they pay their fair share. it. Defeat this rule. Mr. Speaker, that is wrong. The gov- But what the gentlewoman from Con- Mr. LINDER. Mr. Speaker, I continue ernment should not be doing business necticut is speaking to and what this to reserve the balance of my time. with those who want all of the benefits amendment speaks to is saying that we Mr. MCGOVERN. Mr. Speaker, I yield of citizenship without any of the re- are not going to tolerate in America myself such time as I may consume. The silence on the other side is deaf- sponsibilities that come along with it. people who earn their money here, be- ening. I submit for insertion in the Congress must not allow these compa- come rich here, successful here, to RECORD an editorial that appeared in nies to leave individual Americans move overseas to avoid participating in today’s New York Times entitled Con- stuck with the tax bill while they put continuing to make this country strong and free. We ought not to miss gressional Cowardice. profits over patriotism. All we are say- The editorial referred to follows: ing is pay American taxes on American that opportunity. I would tell my [From the New York Times, July 18, 2002] profits. friends in this body that this amend- The President has told us that we are ment was adopted overwhelmingly and CONGRESSIONAL COWARDICE at a wartime footing, and we are: $45 bipartisanly in the Committee on Ap- While a panicky Congress has rushed in re- cent days to reform the business world, it billion for defense; $38 billion we want propriations. Reject this rule. Adopt a new one. has not entirely lost its well-developed in- to spend for homeland security. And stinct for catering to special interests. On when these companies leave the United Let us pass the DeLauro amendment. two issues critical to cleaning up corporate States, average American taxpayers Mr. LINDER. Mr. Speaker, I reserve malfeasance, Congress has opted to put the have to pick up the bill. the balance of my time. preferences of big business—and big cam- Mr. MCGOVERN. Mr. Speaker, I yield paign contributors—ahead of the public b 1645 2 minutes to the gentlewoman from good. I urge my colleagues, stand up to Florida (Mrs. MEEK). The first involves the notorious Bermuda these corporations who are unpatriotic. Mrs. MEEK of Florida. Mr. Speaker, I tax loophole that allows companies to avoid At a time in our lives when we are ask- rise in strong opposition to the pro- paying taxes by nominally moving their headquarters to Bermuda, even while they ing people to pull together to do what posed rule that will allow the DeLauro continue to operate from the United States. we need to do for America, they take amendment on corporate expatriates to This is a blatant scam that should be elimi- their business offshore and will not pay be struck on a point of order even nated. Closing the loophole would bring in an the taxes that are owed to the Amer- though it passed the Committee on Ap- estimated $6.3 billion over 10 years.

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00038 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.071 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4913 Democrats and Republicans in the House that you contribute, turning around reports that have been filed right here have introduced dueling bills. The Repub- and asking for government business in the Capitol by Pricewaterhouse Con- lican version would temporarily close the after they have refused to help finance sulting which declared a new day in the tax loophole, but it is also larded with spe- the government and our national secu- Caribbean by calling itself Monday, has cial-interest tax breaks that add up to al- most 10 times the amount that would be re- rity and our schools and all of our fled, is not paying its fair share of alized from doing so. General Motors and other needs in this country. taxes but has filed a lobby disclosure Ford would be among the big winners under I presented this same language in the report that it is up here lobbying ulti- the Republican bill, which would make it Committee on Ways and Means on an- mately for business from the new easier to accumulate untaxed profits over- other bill and the Bush administration homeland security agency that we were seas. was there, just like our Republican col- told originally would cost no new dol- Congress is also fearful of challenging cor- leagues, opposing that and defending lars but now is apparently going to porate practices in the awarding of stock op- these corporations that flee our coun- cost at least 3 billion new dollars? And tions, intimidated by the possibility that wealthy corporate executives will withhold try but ask for more money from the apparently though they do not want to campaign contributions from lawmakers government. I believe we need to take pay for our homeland security, they who dare to tinker with the current system. a pro-business stance. We need to level have already got their hand out look- Now that Coca-Cola and a few other compa- the playing field so that the thousands ing for some business from the tax- nies are moving to reform the system them- of businesses that stay here and pay payers with that new government selves by counting stock options as an ex- their fair share are not put at a com- agency. pense, Congressional action could speed the petitive disadvantage by those who flee Are you aware of that? changeover to a more responsible approach. to other shores and still have a hand Senator CARL LEVIN, Democrat of Michi- Mr. MCGOVERN. I thank the gen- gan, introduced an amendment that would out asking for assistance to work on tleman for making us all aware of that. require the Financial Accounting Standards government business. I should also point out that since he Board to review the issue within a year. It is Do not support those that give up on brought up PricewaterhouseCoopers, likely that the standards board, which sets America. Reject this rule. on March 27, 2002, Pricewaterhouse- the rules for corporate accounting practices, Mr. LINDER. Mr. Speaker, I yield Coopers fled from New York for Ber- will force companies to report options as ex- myself 30 seconds to note that the per- muda, but this company continues to penses. But amid intense lobbying by cor- missiveness that led to such problems porations—particularly Silicon Valley com- receive taxpayer dollars from the IRS, in this country with WorldCom and the Treasury Department, the GSA and panies, which rely heavily on options—the Enron and others was the permissive- Levin amendment was blocked earlier this the Postal Service, including three week. ness of the 1990s, and we know who was contracts worth up to $35.5 billion. The Senate majority leader, TOM DASCHLE, in charge of the institutions of regula- Mr. DOGGETT. Under the amend- has promised an eventual vote on the Levin tion during that time. ment that the gentleman is trying to amendment. That is a good start, but some Mr. Speaker, I reserve the balance of get added that our colleagues, a vote in Democrats who normally support the leader- my time. favor of this rule will be a vote to ap- ship, like Senator JOSEPH LIEBERMAN of Con- Mr. MCGOVERN. Mr. Speaker, I yield prove, of course, Pricewaterhouse, now necticut, are opposed to expensing stock op- 2 minutes to the gentleman from Mis- tions. If the amendment fails to pass backers called Monday, and all of these other sissippi (Mr. TAYLOR). corporations that will not pay their of tougher reform can add the Senate Demo- Mr. TAYLOR of Mississippi. Mr. crats to the list of politicians caving in to fair share, if you vote for the rule, you Speaker, in the 1,300 days that you pressure from big campaign contributors. are voting to do that, but under the have been Speaker, you will not let us It is always troubling when special inter- amendment, the reasonable amend- vote on a balanced budget amendment ests call the shots on Capitol Hill, but it is ment that you are advancing, that the particularly disturbing that they are being to the Constitution, yet you have gentleman from Wisconsin (Mr. OBEY) allowed to hijack significant reform legisla- added through your leadership and the gentlewoman from Connecticut tion. On matters like taxation, what’s good $511,040,208,939 to the Federal debt. (Ms. DELAURO) have advanced, we do for General Motors may not necessarily be That is more debt than was accumu- not punish those corporations, we sim- good for the country. lated from the day this Republic start- ply say, if I understand it correctly, Mr. Speaker, I yield 2 minutes to the ed to 1975. that they would not be able to seek gentleman from Texas (Mr. DOGGETT). You will not give us an up-or-down help from the government and do busi- Mr. DOGGETT. Mr. Speaker, silence vote on base closure. And now you will ness with the government at taxpayer is the only defense that our Republican not give us an up-or-down vote on expense if they did not want to con- colleagues can offer on this rule be- whether or not you want to reward tribute to the cost of the government. cause a vote for this rule is a vote for your buddies who move their corpora- more permissiveness, to condone those tions overseas in a paper transaction, Mr. MCGOVERN. The gentleman is corporations that abandon our country, so while the average Joe in Mississippi correct. The DeLauro amendment, and it is nothing but a vote in favor of pays his taxes, your big contributors which was approved by a bipartisan the same kind of permissive atmos- do not have to pay theirs. vote in the Committee on Appropria- phere that has resulted in investors, re- That is just one more reason why you tions, which the majority is now at- tirees and the Federal Treasury all suf- should not be Speaker. tempting to strip out of the bill, basi- fering as a result of ongoing corporate Mr. LINDER. Mr. Speaker, I continue cally refuses to reward bad corporate corruption. to reserve my time. behavior. A vote for this rule would Seven years ago, I stood here at this Mr. MCGOVERN. Mr. Speaker, I yield strip out of the bill the DeLauro lan- same podium to challenge the Gingrich myself such time as I may consume. guage which says that we will not give ‘‘Contract on America’’ as protection Mr. Speaker, let me again remind my government contracts to corporate tax for plutocrats. Today, little has colleagues what this vote is about. Es- dodgers, plain and simple. That is what changed, because our Republican col- sentially this vote says that no govern- this debate is all about. leagues through this rule are rushing ment contract shall be awarded to cor- So if you vote for this rule, you are to defend corporations who have fled to porate tax dodgers who go to Bermuda voting to strip out that provision from Bermuda and other isles in the Carib- or the Cayman Islands in order to es- this bill. bean, maintaining that these tax dodg- cape paying U.S. taxes. Mr. DOGGETT. One of these compa- ers deserve contracts with America. Mr. DOGGETT. Mr. Speaker, will the nies, Stanley Flees is the way one of If in a time of war these corporate gentleman yield? my neighbors refers to Stanley Tool citizens must put profits over patriot- Mr. MCGOVERN. I yield to the gen- Company that has left, moved its mail- ism and cash over country, then we tleman from Texas. box from Connecticut to Bermuda, need to talk to them in the only lan- Mr. DOGGETT. Mr. Speaker, next they would be under this amendment guage that they understand and that is week we are supposed to have com- in no way restricted from doing busi- money. They add insult to injury by pleted the work on the new homeland ness with the government of their fel- not only refusing to pay their fair security agency. Is the gentleman low citizens in Bermuda or if they share but for asking for your share aware that there are lobby disclosure moved to Luxembourg or Lichtenstein

VerDate Jun 13 2002 03:46 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00039 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.040 pfrm17 PsN: H18PT1 H4914 CONGRESSIONAL RECORD — HOUSE July 18, 2002 or one of these other tax havens, you head off to the Caribbean Isles and get the Senate and get to the President’s would not restrict them from doing a tan, but not a tax break or a govern- desk for signature. This is one of the business there, would you? ment contract. I certainly applaud the most important. It is the Treasury- Mr. MCGOVERN. The gentleman gentleman’s leadership and his work to Postal appropriations bill. It deals with brings up Stanley Tools. I should also see that this is done. Customs, Secret Service; it deals with point out for my colleagues that that It is not just corporations in the a wide range of very important issues is a company that left the U.S. in 1997 Northeast that have taken advantage that must be addressed. to deprive the U.S. of $30 million every of this loophole. We had one down in Now, I sort of inferred from the de- year. These funds could be used to pay Houston, Texas that did the same bate that I was listening to that we for the salaries and other costs of the thing, and it was the president of a were discussing a bill that will, at Secret Service as a result of the Sep- competing company who recently some point, possibly come from the tember 11 attacks. wrote me to express his outrage, be- Committee on Ways and Means. As I We need to get serious about holding cause he is loyal to this country. His have listened to a number of my col- some of these corporations responsible. workforce is here; his executive offices leagues argue that this has to do with These corporations that open up these are here. He is willing to pay his fair corporate greed and rewarding people little tax havens in Bermuda or in the share, but thinks it is mighty unfair who are less than patriotic, it is abso- Cayman Islands and in other countries, that this Congress will not stand up lutely ridiculous. they still take advantage of all the and level the playing field and give his If one looks at what has been de- benefits of this country. They still company the same fair basis for com- scribed by even people on the other enjoy all the benefits that this country peting as those who fled and have de- side of the aisle, Mr. Speaker, as a less than perfectly crafted amendment, this has to offer, but they are not paying cided they will not contribute their measure, as was pointed out to me by their fair share. In this time of war share of taxes. the chairman of the subcommittee just when we are all being asked to sac- I think it is also important to note a few minutes ago, deals not with cor- rifice, and everybody is sacrificing, I do that those who want to hide behind the porations, but with a subsidiary of that not think it is too much to ask that fiction that this is just to avoid double corporation here. So I think that the these big corporate interests pay their taxation on foreign earnings need look language in the amendment itself fair share. That is what this is about, no further than the prospectus on the makes it very clear that the Com- fairness. Stanley Tool, or Stanley Flees, Com- mittee on Ways and Means has to con- Mr. DOGGETT. When I offered this pany to note that they are planning to tinue the work that it has already same language in the Committee on save much more in taxes than they pay begun. Ways and Means, there was such con- in foreign taxes. I just really thank the Now, when I listened to the gen- cern by the chairman of that com- gentleman for his leadership on this tleman from Massachusetts, Mr. mittee that he accepted the amend- issue. Speaker, talk about the fact that if we ment. He did not want any Republican Mr. MCGOVERN. Mr. Speaker, re- vote for this rule, we are somehow vot- member on record against the amend- claiming my time, I appreciate the ing to reward corporate greed and all of ment. Perhaps they will try to hide, gentleman’s remarks. As always, he this sort of stuff, I cannot help but saying this is a procedural vote, but says it like it is. think about the fact that we have Mr. Speaker, again, I would like to there will probably not be another vote taken very strong and vigorous action on the floor of this House other than say to my colleagues that this vote here to deal with an issue that the this vote that is about to occur on turns on a very simple issue: Do you President is outraged about and that which Members can so clearly record believe that companies that incor- both Republicans and Democrats are their views on whether they approve of porate in other countries to avoid U.S. outraged about, and that happens to be corporations fleeing to Bermuda or Ja- taxes deserve billions of dollars in tax- corporate mismanagement and corrup- maica or Barbados. payer money or not? I believe they do tion that has taken place within the not. We are at war, Mr. Speaker. All of b 1700 corporate community. We know it is us need to contribute our fair share, there. I think there was a Beach Boys song and that includes big corporations. I will tell my colleagues, corporate about this some time back, but where There has been a lot of rhetoric and a CEOs, the President of the United they flee to one of these Caribbean is- lot of talk about corporate responsi- States, Members of Congress, the lands that they will be able to still do bility and the need for Congress to act. American people are outraged at those business here on unfair competitive Well, the time has come for this Con- who, in fact, have been responsible for grounds against those companies that gress to back up its rhetoric with real wrongdoing. They need to be convicted, have stayed here. There will not be a action. they need to do jail time. And guess clearer vote, will there, that we can Mr. Speaker, I urge my colleagues to what? By a vote of 391 to 28, we voted foresee? vote ‘‘no’’ on this rule, and I yield back in this House 2 days ago to move ahead Mr. MCGOVERN. This vote is crystal the balance of my time. with language to do that. Back on clear; there is no confusion. A vote for Mr. LINDER. Mr. Speaker, I am April 24, just a few weeks after the this rule is a vote for rewarding cor- pleased to yield such time as he may President asked us, as a Congress, to porate misbehavior, it is a vote to re- consume to the gentleman from Cali- step up to the plate and deal with the ward these corporations that dodge fornia (Mr. DREIER), the chairman of issue of corporate accountability, we paying their fair share of U.S. taxes. the Committee on Rules. passed a very good and a very strong There is no other way that this vote (Mr. DREIER asked and was given bill in this House that will deal with can be interpreted. permission to revise and extend his re- the issue of transparency. I am very The Committee on Rules could have marks.) happy, while it took several months, protected this language from a point of Mr. DREIER. Mr. Speaker, I rise in the United States Senate has now order like they do so many other provi- strong support of this very fair and bal- acted and, just last night, the Speaker sions, not only in this bill, but in other anced rule which will allow us to pro- of the House appointed conferees who bills, but they chose not to. I think it ceed with the very important work will be dealing with this issue. is unconscionable that after a strong that we have of appropriating the dol- So to somehow say that because we vote in the Committee on Appropria- lars that are necessary for our home- are proceeding with what is the proper tions, that this language is being scut- land security, among other things. order here; we are allowing committees tled. I think it is wrong. I think the Let me say to my colleagues that as of jurisdiction to deal with this very American people would be outraged I have listened to this debate, I think important question and doing it in a over the fact that this language is that some might conclude that we are proper way is the right thing to do. being stripped from this bill. dealing with something other than an Why? Because we do not want to jeop- Mr. DOGGETT. Mr. Speaker, if the appropriations bill here. This is one of ardize the free market process. gentleman will continue to yield, it is the 13 appropriations bills that must I will tell my colleagues that as okay for these corporate executives to pass the House of Representatives and angry as we are at those corporate

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00040 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.074 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4915 CEOs who are responsible for wrong- bated and voted on. However, I support the Pursuant to clause 9 of rule XX, the doing, we do not want to penalize the underlying bill and thank my colleagues on the Chair will reduce to 5 minutes the min- job-creators in this country. We do not subcommittee for continuing contraceptive imum time for electronic voting, if or- want to paint with a broad brush ev- coverage for all Federal employees. This im- dered, on the question of adoption of eryone who happens to believe in the portant provision ensures that prescription the resolution. free market process. That is why pro- contraceptives are covered by government The vote was taken by electronic de- ceeding with the language that was employees’ health plans, while it respects the vice, and there were—yeas 258, nays proposed and passed in the Committee rights of religious organizations. 156, not voting 20, as follows: on Appropriations would be very irre- Eighty-seven percent of Americans support sponsible. I will tell my colleagues that access to birth control because it’s smart pol- [Roll No. 322] even my very good friend from Mary- icy. Though I support this language, I regret YEAS—258 land, who is the ranking minority that it does not cover all necessary medical Ackerman Gonzalez Olver member of this subcommittee, said procedures. Similar women in the military, Akin Goodlatte Ortiz that it is his intent to work with the Federal employees, are prevented from ac- Andrews Goss Owens Committee on Ways and Means to cess to coverage for abortion. Armey Granger Oxley Baca Green (TX) Pallone make sure that we craft the kind of As the Nation’s largest employer, I hope Ballenger Greenwood Pascrell language that is addressed here. that the Federal Government will continue to Barcia Grucci Pastor So even he is acknowledging that work to consider all of the needs of its em- Barr Gutierrez Payne this kind of work needs to be done in Barton Gutknecht Pelosi ployees and their families. Bass Hall (OH) Pence the Committee on Ways and Means. So Mr. LAFALCE. Mr. Speaker, I rise today to Becerra Hansen Pombo that is why we are doing exactly what express very serious concerns about one pro- Bentsen Harman Portman the Framers of our Constitution want- vision in the legislation that affects the con- Bereuter Hastings (WA) Pryce (OH) Berman Hefley Putnam ed. They wanted this to be a delibera- sumers of financial services. Biggert Herger Quinn tive body. We can act quickly when we I am troubled by the restrictions this bill Bilirakis Hilliard Radanovich need to, but let us do it through the places on the First Accounts grants program. Bishop Hinchey Rahall legislative process itself. We need to The First Accounts program provides grants to Blumenauer Hinojosa Rangel Blunt Hobson Regula support this rule. It is a very balanced financial institutions and community groups to Boehlert Hoeffel Rehberg measure; it is the right thing to do. Let help bring the millions of un-banked American Boehner Hoekstra Reyes us get our appropriations work done on families into the financial mainstream. This Bonilla Honda Reynolds Bono Horn this measure so that we can proceed Treasury Appropriations legislation sets a Rodriguez Borski Houghton Roemer with the proper homeland security that completely arbitrary per account limit of $100 Boyd Hoyer Rogers (KY) we need to ensure that we will never for these grants. If this restriction were in Brady (PA) Hunter Rogers (MI) Brown (FL) Hyde Rohrabacher face the kind of threat again that we place in FY 2002, 13 of this year’s 15 recipi- Brown (OH) Issa faced this past September 11. ents would not have been eligible for grants. Ros-Lehtinen Brown (SC) Istook Rothman Mr. Speaker, I congratulate the gen- One of the keys to the long-term economic Burr Jackson (IL) Roybal-Allard Burton Jackson-Lee tleman from Georgia (Mr. LINDER) for security of lower- and middle-income families Rush Buyer (TX) Sabo his fine work on this. is easy access to affordable mainstream finan- Callahan Jefferson Sanders Mr. MALONEY of Connecticut. Mr. Speaker, cial institutions and community oriented finan- Calvert John Sawyer Camp Johnson, E. B. I urge my colleagues to oppose the rule. cial institutions. American families who operate Saxton Cannon Johnson, Sam During committee consideration of this im- outside of the financial services mainstream Schakowsky Cantor Jones (OH) Schrock portant legislation, my colleague from Con- are forced to rely on high-cost alternative fi- Capuano Kanjorski Scott necticut added an that would prohibit the Cardin Kennedy (RI) nancial services companies, which often sub- Serrano Clay Kerns awarding of Federal contracts to corporate ex- ject these families to predatory and abusive Sessions Clyburn Kilpatrick patriates who move their legal headquarters to practices. Research suggests that once an un- Combest King (NY) Shadegg a foreign tax haven. The rule before us today banked family enters the door of a mainstream Condit Kingston Shaw Conyers Kirk Shays will allow my colleagues from the other side of institutions for account services, they often be- Sherman the aisle to strip this provision from the under- come customers of the institution for loans Cox Kleczka Coyne Knollenberg Sherwood lying legislation. and other services, and they begin to save Crenshaw Kolbe Simpson I fail to see why the House would allow and accumulate assets. That is why we should Crowley LaFalce Skeen Skelton companies who abandon their corporate re- support programs like the First Accounts pro- Cubin Lampson Culberson Lantos Slaughter sponsibilities to our country to continue to be gram, which provides critical financial support Cummings Larson (CT) Smith (MI) awarded Federal contracts. Corporate expatri- for efforts to bring America’s un-banked fami- Cunningham LaTourette Smith (NJ) ates benefit from over $2 billion in lucrative lies into the financial mainstream. Davis (FL) Lee Smith (TX) Solis government contracts, from large consulting There has been no evidence of abuse of Davis (IL) Levin Davis, Tom Lewis (CA) Souder deals with U.S. government agencies, to First Account grants or other problems with Deal Lewis (GA) Stark equipping airport screeners, to helping the IRS the program that would justify the restrictive DeGette Lipinski Stenholm collect taxes. They turn their backs on Amer- language of this bill. I hope that these restric- Delahunt Lofgren Sununu DeLauro Lucas (OK) Sweeney ica at the same time that they reach their tions will be eliminated before the legislation is DeLay Manzullo Tancredo open hands out to America. Mr. Speaker, this sent to the President. Diaz-Balart Markey Tauscher is outrageous! Mr. LINDER. Mr. Speaker, I yield Dicks Matsui Tauzin Because of the efforts to stifle consideration back the balance of my time, and I Dingell McCarthy (MO) Taylor (NC) Doggett McCrery Thompson (CA) of this important issue on the floor of the move the previous question on the res- Dooley McDermott Thompson (MS) House, I filed a discharge petition yesterday, olution. Doolittle McKeon Thornberry and I urge those who have not already signed The SPEAKER pro tempore (Mr. Doyle McNulty Tiberi Towns it to do so. To those who have signed it, thank GOODLATTE). The question is on order- Dreier Meek (FL) Dunn Meeks (NY) Velazquez you. The discharge petition will force a straight ing the previous question. Ehlers Menendez Visclosky up or down vote on the Corporate Patriot En- The question was taken; and the Engel Millender- Walsh forcement Act, H.R. 3884, introduced by my- Speaker pro tempore announced that Eshoo McDonald Waters Farr Miller, Dan Watkins (OK) self and the gentleman from Massachusetts, the ayes appeared to have it. Fattah Miller, George Watson (CA) Mr. NEAL. Mr. MATHESON. Mr. Speaker, I ob- Filner Mollohan Watt (NC) Vote no on the resolution and tell tax evad- ject to the vote on the ground that a Foley Moran (VA) Watts (OK) ers that they will no longer be able to feed at quorum is not present and make the Frank Morella Waxman Frelinghuysen Murtha Weiner the Federal trough. If you leave this country to point of order that a quorum is not Frost Myrick Weldon (FL) evade your tax obligations, you are no longer present. Gallegly Nadler Weldon (PA) eligible to benefit from Federal contracts. The SPEAKER pro tempore. Evi- Ganske Neal Weller Mrs. MALONEY of New York. Mr. Speaker, dently a quorum is not present. Gephardt Nethercutt Wexler Gilchrest Ney Whitfield I rise in opposition to this rule which prohibits The Sergeant at Arms will notify ab- Gillmor Oberstar Wicker important amendments from being fairly de- sent Members. Gilman Obey Wilson (NM)

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00041 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.077 pfrm17 PsN: H18PT1 H4916 CONGRESSIONAL RECORD — HOUSE July 18, 2002 Wilson (SC) Woolsey Young (AK) A recorded vote was ordered. Crowley Kind (WI) Rangel Wolf Wynn Young (FL) Cummings Kleczka Reyes The SPEAKER pro tempore. This Davis (CA) Kucinich NAYS—156 Rivers will be a 5-minute vote. Davis (FL) LaFalce Rodriguez Abercrombie Hall (TX) Osborne The vote was taken by electronic de- Davis (IL) Lampson Roemer Aderholt Hart Ose vice, and there were—ayes 224, noes 188, DeFazio Langevin Ross Allen Hayes Otter DeGette Lantos Roybal-Allard Bachus Hayworth Paul not voting 22, as follows: Delahunt Larsen (WA) Rush Baird Hill Peterson (MN) [Roll No. 323] DeLauro Larson (CT) Sabo Baker Hilleary Peterson (PA) Dicks Lee Sanchez Doggett Levin Baldacci Holden Petri AYES—224 Sanders Baldwin Holt Phelps Dooley Lipinski Abercrombie Goodlatte Pallone Sandlin Bartlett Hostettler Pickering Doyle LoBiondo Akin Goss Pascrell Sawyer Berry Hulshof Pitts Edwards Lucas (KY) Andrews Graham Pastor Schaffer Blagojevich Inslee Platts Engel Luther Armey Granger Paul Boozman Isakson Pomeroy Eshoo Lynch Schakowsky Bachus Graves Pence Boswell Israel Price (NC) Etheridge Maloney (CT) Schiff Baldacci Green (WI) Peterson (PA) Boucher Jenkins Ramstad Farr Maloney (NY) Scott Ballenger Greenwood Petri Brady (TX) Johnson (CT) Riley Filner Markey Serrano Barr Grucci Pickering Bryant Johnson (IL) Rivers Flake Matheson Sherman Bartlett Gutierrez Pombo Capito Jones (NC) Ross Ford McCarthy (MO) Shows Barton Gutknecht Portman Capps Kaptur Frank McCollum Simmons Royce Bass Hansen Carson (IN) Keller Pryce (OH) Frost McGovern Skelton Ryan (WI) Bereuter Hart Castle Kelly Putnam Gephardt McIntyre Slaughter Ryun (KS) Berman Hastings (WA) Chabot Kennedy (MN) Quinn Gonzalez McKinney Smith (WA) Sanchez Biggert Hayes Chambliss Kildee Radanovich Green (TX) McNulty Sandlin Bilirakis Hayworth Snyder Clement Kind (WI) Regula Hall (OH) Meehan Schaffer Blunt Hefley Solis Coble Kucinich Rehberg Hall (TX) Meek (FL) Schiff Boehlert Herger Spratt Collins LaHood Reynolds Harman Meeks (NY) Sensenbrenner Boehner Hilleary Stark Cooksey Langevin Riley Hastings (FL) Millender- Shimkus Bonilla Hobson Stearns Costello Larsen (WA) Rogers (KY) Hill McDonald Shows Bono Hoeffel Stenholm Cramer Latham Rogers (MI) Hilliard Miller, George Shuster Boozman Hoekstra Strickland Davis (CA) Leach Rohrabacher Hinchey Mollohan Simmons Brady (PA) Horn Tanner Davis, Jo Ann Lewis (KY) Ros-Lehtinen Hinojosa Moore Smith (WA) Brady (TX) Hostettler Tauscher DeFazio Linder Rothman Holden Moran (VA) Snyder Brown (SC) Houghton Taylor (MS) DeMint LoBiondo Spratt Royce Holt Nadler Burr Hulshof Thompson (CA) Deutsch Lucas (KY) Stearns Ryan (WI) Honda Napolitano Burton Hunter Thompson (MS) Duncan Luther Strickland Ryun (KS) Hoyer Oberstar Buyer Hyde Thune Edwards Lynch Stupak Saxton Inslee Obey Callahan Isakson Thurman Emerson Maloney (CT) Schrock Israel Olver Sullivan Calvert Issa English Maloney (NY) Sensenbrenner Jackson (IL) Ortiz Tierney Tanner Camp Istook Etheridge Matheson Sessions Jackson-Lee Otter Towns Taylor (MS) Cannon Jenkins Evans McCollum Shadegg (TX) Owens Turner Terry Cantor John Everett McGovern Shaw Jefferson Payne Udall (NM) Thune Capito Johnson, Sam Ferguson McIntyre Shays Johnson (CT) Pelosi Velazquez Thurman Castle Kanjorski Flake McKinney Sherwood Johnson (IL) Peterson (MN) Visclosky Tiahrt Chambliss Keller Fletcher Meehan Shimkus Johnson, E. B. Phelps Waters Tierney Collins Kelly Forbes Mica Shuster Jones (NC) Pitts Waxman Toomey Combest Kennedy (MN) Ford Miller, Jeff Simpson Jones (OH) Platts Weiner Turner Cooksey Kerns Gekas Mink Skeen Kaptur Pomeroy Wexler Udall (CO) Costello King (NY) Gibbons Moore Smith (NJ) Kennedy (RI) Price (NC) Whitfield Udall (NM) Cox Kingston Goode Moran (KS) Smith (TX) Kildee Rahall Woolsey Upton Crane Kirk Gordon Napolitano Souder Kilpatrick Ramstad Wu Vitter Crenshaw Knollenberg Graham Northup Walden Cubin Kolbe Stupak Graves Norwood NOT VOTING—22 Wamp Culberson LaHood Sullivan Green (WI) Nussle Wu Cunningham Latham Sununu Baldwin Fossella Miller, Gary NOT VOTING—20 Davis, Jo Ann LaTourette Sweeney Barrett Gordon Neal Davis, Tom Leach Tancredo Berkley Hooley Roukema Barrett Fossella McInnis Deal Lewis (CA) Tauzin Bonior Lowey Smith (MI) Berkley Hastings (FL) Miller, Gary DeLay Lewis (GA) Taylor (NC) Carson (OK) Mascara Stump Bonior Hooley Roukema DeMint Lewis (KY) Terry Clayton McCarthy (NY) Traficant Carson (OK) Lowey Stump Deutsch Linder Thomas Ehrlich McHugh Clayton Mascara Thomas Diaz-Balart Lofgren Thornberry Evans McInnis Crane McCarthy (NY) Traficant Dingell Lucas (OK) Tiahrt Ehrlich McHugh Doolittle Manzullo Tiberi b 1752 b 1740 Dreier Matsui Toomey Duncan McCrery Udall (CO) Mr. BLUMENAUER changed his vote Messrs. COOKSEY, LINDER, MORAN Dunn McDermott Upton from ‘‘aye’’ to ‘‘no.’’ of Kansas, LEACH, SULLIVAN, JEFF Ehlers McKeon Vitter So the resolution was agreed to. MILLER of Florida, TIAHRT, GIB- Emerson Menendez Walden The result of the vote was announced English Mica Walsh BONS, TANNER, PETRI, PETERSON Everett Miller, Dan Wamp as above recorded. of Pennsylvania, OSBORNE, RILEY, Fattah Miller, Jeff Watkins (OK) A motion to reconsider was laid on SIMMONS, SCHAFFER, BACHUS, Ms. Ferguson Mink Watson (CA) the table. NAPOLITANO, and Mrs. NORTHUP Fletcher Moran (KS) Watt (NC) Foley Morella Watts (OK) f changed their vote from ‘‘yea’’ to Forbes Murtha Weldon (FL) ‘‘nay.’’ Frelinghuysen Myrick Weldon (PA) PERMISSION FOR COMMITTEE ON Ms. WOOLSEY, Mr. OWENS, Ms. Gallegly Nethercutt Weller STANDARDS OF OFFICIAL CON- PELOSI, and Messrs. DICKS, BROWN Ganske Ney Wicker Gekas Northup Wilson (NM) DUCT TO HAVE UNTIL MID- of Ohio, WELLER, ROHRABACHER, Gibbons Norwood Wilson (SC) NIGHT, FRIDAY, JULY 19, 2002, TO and WALSH changed their vote from Gilchrest Nussle Wolf FILE PRIVILEGED RESOLUTION Gillmor Osborne Wynn ‘‘nay’’ to ‘‘yea.’’ AND REPORT So the previous question was ordered. Gilman Ose Young (AK) The result of the vote was announced Goode Oxley Young (FL) Mr. HEFLEY. Mr. Speaker, as chair- as above recorded. NOES—188 man of the Committee on Standards of The SPEAKER pro tempore (Mr. Ackerman Blagojevich Cardin Official Conduct and with the concur- GOODLATTE). The question is on the Aderholt Blumenauer Carson (IN) rence of the gentleman from California resolution. Allen Borski Chabot (Mr. BERMAN), the ranking minority Baca Boswell Clay The question was taken; and the Baird Boucher Clement member on the committee, I ask unani- Speaker pro tempore announced that Baker Boyd Clyburn mous consent that the Committee on the ayes appeared to have it. Barcia Brown (FL) Coble Standards of Official Conduct be per- Becerra Brown (OH) Condit RECORDED VOTE mitted to submit a privileged resolu- Bentsen Bryant Conyers Mr. MCGOVERN. Mr. Speaker, I de- Berry Capps Coyne tion and report to the House by mid- mand a recorded vote. Bishop Capuano Cramer night, Friday, July 19, 2002.

VerDate Jun 13 2002 03:46 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00042 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.044 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4917 The SPEAKER pro tempore (Mr. PERSONAL EXPLANATION Mr. ARMEY. Mr. Speaker, if the gen- GOODLATTE). Is there objection to the Mr. HOLT. Mr. Speaker, I was absent tlewoman would continue to yield, I request of the gentleman from Colo- from the House on July 9 because of a thank the gentlewoman again for her rado? personal emergency, a house fire, and inquiry. It would be our suggestion There was no objection. was unable to vote. Had I been present, that pursuant to the colloquy that the gentlewoman and I had earlier related f I would have voted ‘‘yes’’ on rollcall votes 285, 286 and 287. to the agreement between the Speaker and the minority leader to propose a PERMISSION FOR PERMANENT SE- Also, Mr. Speaker, I was unable to rule to the Committee on Rules, it LECT COMMITTEE ON INTEL- vote for rollcall vote 311. Had I been would be my hope that they could LIGENCE TO FILE REPORT ON able to vote, I would have voted ‘‘yes’’ make their proposal in such time that H.R. 4628, INTELLIGENCE AU- on rollcall No. 311. the Committee on Rules could meet on THORIZATION ACT FOR FISCAL f Tuesday evening and issue a rule for YEAR 2003 LEGISLATIVE PROGRAM consideration of that bill, that I would Mr. GOSS. Mr. Speaker, I ask unani- (Ms. PELOSI asked and was given anticipate to be a fairly open rule. mous consent that the Permanent Se- permission to address the House for 1 b 1800 lect Committee on Intelligence may minute.) have until midnight tonight, July, 18, Ms. PELOSI. Mr. Speaker, I rise for And that having that rule for consid- 2002, to file a report on the bill, H.R. the purpose of determining the sched- eration and available on Wednesday, it 4628, to authorize appropriations for ule for next week, and I am pleased to would be my expectation that we could fiscal year 2003 for intelligence and in- yield to the distinguished majority then have some way of measuring the telligence-related activities of the leader. coordination of the bill, but to have United States Government, community Mr. ARMEY. Mr. Speaker, will the ample time on Wednesday, Thursday management account, the Central In- gentlewoman yield? and even Friday, if it is necessary, to telligence Agency retirement and dis- Ms. PELOSI. I yield to the gentleman consider that bill and any amendments ability system, and for other purposes. from Texas. proposed thereto. It is my expectation, Mr. Speaker, Mr. ARMEY. Mr. Speaker, I thank Ms. PELOSI. Mr. Speaker, I am that the committee will file H.R. 4628 a the gentlewoman for yielding; and Mr. pleased to hear the gentleman say that little later today. Once the committee Speaker, I am pleased to announce that he anticipates that the rule will be an has filed the bill, I invite and encour- the House has completed its legislative open rule so that we can have a debate age Members to come to H–405 in the business for the week. on many of the issues of concern of Capitol to review the classified annex The House will next meet for legisla- many Members here on both sides of and allow committee staff to explain tive business on Monday, July 22 at the aisle. the provisions or answer any questions 12:30 p.m. for morning hour and 2 Mr. ARMEY. Let me just remind the they may have about the bill. o’clock p.m. for legislative business. I gentlewoman, according to our col- This opportunity is offered to any will schedule a number of measures loquy, that this would be a proposal Member of the House. It does not in- under suspension of the rules, a list of made to the Committee on Rules by clude staff. Members will be asked to which will be distributed to Members’ the Speaker and the minority leader. I, sign the customary nondisclosure offices tomorrow. Recorded votes on for one, would not deign to speak for agreement prior to access to any clas- Monday will be postponed until 6:30 them. They clearly will speak for sified annex. That is the routine. It has p.m. themselves. But that is my anticipa- worked well over the years. On Tuesday and the balance of the tion; that it would be one that would Members may call Mr. Bill McFar- week, I have scheduled the following be more on the open side. land of the Permanent Select Com- measures for consideration in the Ms. PELOSI. Mr. Speaker, as one mittee on Intelligence, the committee House. who engaged in the colloquy at the staff director of security, if they would For Tuesday, H.J. Res. 101, dis- time of consideration of our select like to review this material. approving the extension of the trade committee, the anticipation was that Ms. PELOSI. Mr. Speaker, will the act waiver authority with respect to the Speaker and the minority leader gentleman yield? Vietnam; on Tuesday, H.R. 5117, the would agree to an open rule, and I look Mr. GOSS. I yield to the gentle- Defense and Homeland Security Sup- forward to that discussion. woman from California. plemental Appropriations Act Con- Does the gentleman anticipate late Ms. PELOSI. Mr. Speaker, I thank ference Report; and on Tuesday, com- nights next week? It sounds like it the gentleman. I support the request plete consideration for H.R. 5120, the from this schedule, but I did not know for us to hear the bill, but could the Treasury and Postal Operations Appro- if the gentleman had any insights he gentleman tell the Members how long priations Act. could share with us about the sched- that privilege to go upstairs to room Mr. Speaker, on Wednesday, we uling. 405 to review the bill will last until. would expect to do H.R. 4965, the Par- Mr. ARMEY. I thank the gentle- Mr. GOSS. Mr. Speaker, I believe the tial Birth Abortion Ban Act of 2002. We woman for her inquiry, and I especially answer to that question is until we would also expect on Wednesday to do, want to say I appreciate the gentle- take up the rule, and that will prob- or possibly Thursday to do, H.R. 4628, woman from California for all the late ably be later next week. So it should be the Intelligence Authorization Act, and nights she has already worked this a couple of days next week. on Wednesday, we would expect to week. Unfortunately, I would have to The SPEAKER pro tempore. Is there begin consideration of H.R. 5005, the advise the gentlewoman and the body objection to the request of the gen- Homeland Security Act of 2002. that we should expect to work late tleman from Florida? I would like to thank the gentle- nights Tuesday, Wednesday, and Thurs- There was no objection. woman for yielding. day of next week. Ms. PELOSI. Mr. Speaker, reclaim- Ms. PELOSI. Now, Mr. Leader, will f ing my time, I thank the distinguished we be perhaps working on Saturday of gentleman. I just want to clarify cer- next week as well? PERSONAL EXPLANATION tain things. Mr. ARMEY. I thank the gentle- Mr. NADLER. Mr. Speaker, I was un- On Tuesday, Vietnam, the supple- woman, and, again, if the gentlewoman able to be present for rollcall votes 296 mental Treasury-Postal. On Wednes- will continue to yield, it is my most through 318. Had I been present, I day, late-term abortion, intelligence fervent hope not. But, obviously, the would have voted ‘‘aye’’ on rollcall and beginning of the Homeland Secu- week before a recess period, a week votes 296, 297, 298, 299, 300, 301, 304, 308, rity Act. that has under consideration extremely 309, 310, 311, 312, 313, 315, 316 and 318. I What will be the procedure for the important work that will be of interest would have voted ‘‘no’’ on rollcall consideration of the homeland security to the entire body, is a week in which votes 302, 303, 305, 306, 307, 314 and 317. legislation? we must recognize that possibility.

VerDate Jun 13 2002 03:46 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00043 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.082 pfrm17 PsN: H18PT1 H4918 CONGRESSIONAL RECORD — HOUSE July 18, 2002 While I do so, I do not anticipate that in order under the Calendar Wednesday an enormous advantage to the public possibility. rule be dispensed with on Wednesday to have somebody who knows about the Ms. PELOSI. Mr. Speaker, I just have next. securities business and the securities one other concern that I wish to dis- The SPEAKER pro tempore. Is there law as I do, and it would be unthink- cuss with the distinguished majority objection to the request of the gen- able to deprive people of my exper- leader. tleman from Texas? tise.’’ That was Mr. Pitt. As the gentleman knows, and we There was no objection. So the man who represented these miscreants, the man who lobbied have discussed before, there is a crisis f in our country, and it is the confidence against the tougher rules for account- in our markets that we want to re- GENERAL LEAVE ing firms, the man who has had to store. One way we can do that is by Mr. PENCE. Mr. Speaker, I ask unan- recuse himself as the chief law enforce- taking up the Sarbanes accounting re- imous consent that all Members may ment officer of the Securities and Ex- form bill and the conference report be- have 5 legislative days within which to change Commission appointed by fore going home for recess. I would revise and extend their remarks and to George Bush, and basically George hope that this bill would be coming to include extraneous material on the Bush has continually expressed his ut- most faith in Mr. Pitt, he has had to, 29 the floor next week. subject of the special order of the gen- times in 10 months, in enforcement ac- Does the majority leader have any tleman from Florida (Mr. BILIRAKIS). plans to bring the conference report to tions, recuse himself. The SPEAKER pro tempore. Is there That means that people did not pay the floor? objection to the request of the gen- fines or get prosecuted by the SEC. In Mr. ARMEY. Well, again, I want to tleman from Indiana? one case, unfortunately, both Mr. Pitt thank the gentlewoman for that in- There was no objection. and one other Bush appointee both had quiry, and as the gentlewoman knows, f to recuse themselves. So only one com- we will always make available time on missioner, who is a Clinton holdover, the floor for conference reports as soon SPECIAL ORDERS was left. He voted to fine the company, as we can obtain them. I have had, just The SPEAKER pro tempore. Under Ernst & Young, but an administrative in the past hour, a very encouraging the Speaker’s announced policy of Jan- law judge threw it out because they conversation with Chairman OXLEY uary 3, 2001, and under a previous order had to have two votes. Well, they could about that conference. It meets tomor- of the House, the following Members not have two votes. Is this not a won- row morning at 10:30. will be recognized for 5 minutes each. derful Catch 22? The agency that is It is clear that the conferees from f supposed to get tough and clean this up both bodies are committed to getting cannot even vote to prosecute or fine this work done as quickly as possible, The SPEAKER pro tempore (Mr. SHUSTER). Under a previous order of people because they are so com- and I daresay we might hope and ex- promised, the appointees of President pect possibly to see that work. It will the House, the gentleman from New York (Mr. HINCHEY) is recognized for 5 Bush are so compromised because these certainly be, I believe I am clear in my are their friends, they are their clients, understanding, the desire of these con- minutes. (Mr. HINCHEY addressed the House. they are their benefactors, and they ferees to complete that work as soon as have worked for them and represented possible. They are quite concerned and His remarks will appear hereafter in the Extension of Remarks.) them for years. It borders on being hu- committed to it. morous. Ms. PELOSI. Of course, Mr. Speaker, f But, actually, it is quite sad. It is one important option that we have, in ON THE CHIEF OF THE S.E.C. quite sad for the millions of Americans order to restore confidence to the mar- who have lost money in their stock The SPEAKER pro tempore. Under a kets and diminish the crisis, is to bring funds, their 401(k)s, their retirements; previous order of the House, the gen- the Sarbanes accounting reform bill di- the thousands who have lost their jobs tleman from Oregon (Mr. DEFAZIO) is rectly to the floor for consideration. I when these firms were bankrupted. It recognized for 5 minutes. hope that the majority leader will con- is an incredible tragedy. This is the Mr. DEFAZIO. Mr. Speaker, we usu- sider that option, because time is of best that President Bush can do. Tell ally do not think about The New York the essence. We must move quickly. me that out of a country of 270 million Times like we would The Onion, pro- As the gentleman knows, every day people the best he can find is someone viding humor for America, but today is a problem for America’s families who lobbied for and put in place the there is an extraordinarily humorous with their savings, hopes and aspira- policies that brought about these scan- tions for their children and the retire- story on the front page. It says, ‘‘Chief dals and this fraud on the American ment of their parents. So I appreciate of S.E.C.,’’ the Securities and Exchange people. Since he knows how to trick the gentleman saying it may be pos- Commission, ‘‘Is Set to Pursue Former people, how to defraud people, and how sible we would bring a conference re- Clients.’’ to, in fact, make sure there is no real port. I hope it is also possible we would Now, let us think about that for a regulation, he is the best man for the bring the Sarbanes bill directly to the minute. This gentleman, who made a job. floor. career out of lobbying for the securi- He also said in one of his earliest ties industry and the accounting indus- f speeches, he fully intended, as head of try, opposing reforms, representing the SEC, to make it a place that was ADJOURNMENT TO MONDAY, JULY them in their misdeeds, is now going to kinder and gentler for accountants. 22, 2002 pursue them. He is the best we can do Does that sound like a pit bull? He Mr. ARMEY. Mr. Speaker, I ask in a country of 270 million people. The went on to say that he thought a regu- unanimous consent that when the President cannot find anybody who latory agency was best that regulated House adjourns today it adjourn to knows about securities, who is not to- least. Does that sound like a pit bull? meet at 12:30 p.m. on Monday next for tally ethically and morally com- And he had to recuse himself 29 times morning hour debates. promised from being the chief watch- from voting because these were his The SPEAKER pro tempore (Mr. dog. former clients. They are the people he GOODLATTE). Is there objection to the Here is the vision of Mr. Pitt as the goes to lunch with. They are the people request of the gentleman from Texas? pit bull. Of course, that is a toy poodle, he goes down to visit their $10 million, There was no objection. but it says he is going to get tough. $20 million homes in Florida, that are f Well, if anyone believes that, I have exempt under the bankruptcy laws, several bridges I would like to talk to even if they got the money by fraud, DISPENSING WITH CALENDAR you about afterwards. taking money from the stockholders, WEDNESDAY BUSINESS ON Now, here are some quotes from the the pensioners and the employees who WEDNESDAY NEXT story. This is Mr. Pitt talking to The were defrauded. Mr. ARMEY. Mr. Speaker, I ask New York Times. ‘‘This will inevitably We know in America we can do better unanimous consent that the business sound self-serving, but the fact is it is than this, and President Bush should

VerDate Jun 13 2002 03:46 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00044 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.084 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4919 do better than this. Mr. Pitt should be was that 23-year-old American leader tleman from Illinois (Mr. DAVIS) is rec- removed and we should put in place at from the Virginia militia. ognized for 5 minutes. the Securities and Exchange Commis- The colonel assembled what re- Mr. DAVIS of Illinois. Mr. Speaker, a sion someone who will provide justice mained of his men and retreated to few days ago a good friend of mine, Syd to American pensioners, stockholders, Fort Cumberland on the western side of Finley, died at the Central DuPage and employees. Maryland. There he wrote a letter to Hospital in Winfield, Illinois. But be- f his family explaining what had hap- fore his death, his life personified that pened. He recounted the battle, the of a premier activist. He made effective GEORGE WASHINGTON AND THE death of his men, the British officers, use of himself to bring about positive HAND OF PROVIDENCE IN AMER- and how he had removed his jacket and progressive change. ICA’S HISTORY after the battle and found four bullet After graduating from high school The SPEAKER pro tempore. Under a holes in it. Four horses had been shot and Knox College in Galesburg, Illinois, previous order of the House, the gen- out from underneath George Wash- he began work as a recreational thera- tleman from Indiana (Mr. PENCE) is ington that day. Bullet fragments were pist for the State. He served in the recognized for 5 minutes. in his hair. And he wrote a letter to his military and fought in the Korean War Mr. PENCE. Mr. Speaker, in the next family that he was completely and was awarded the Bronze Star with few moments this evening, I want to unharmed, and said, ‘‘By the all power- two oak leaf clusters, the Combat share a story about a remarkable act of ful dispensations of Providence I have Medic Badge, United Nations Service providence in American history. By re- been protected beyond all human prob- Medal, National Defense Service Medal markable providence, I mean an exam- ability or expectation.’’ and the Merit Unit Citation. ple of one of those small twists and Fifteen years later, in a time of In 1961, he was appointed Midwest di- turns in history that could have turned peace, he would return to that same rector of the NAACP and moved his out otherwise but did not. And as a battlefield, and an Indian chief trav- family from Galesburg to what was function of that, in so many ways, we eled a great distance to see him. That then segregated Wheaton. Real estate are gathered here today in a city that Indian chief had preyed upon those Vir- brokers only took him to the parts of bears the name of a man named Wash- ginia militiamen that day. He had or- town where African American families ington. dered his men to shoot every officer. lived, and African American children It was the year 1755, 20 years before But as Washington would recount were not bused to school like white the American Revolution. The British many times later in life, the Indian children, and businesses would not con- were fighting the French over territory chief had sat him down and told him sider hiring blacks. along the Ohio and Mississippi Rivers. that he had come to meet him to pay Therefore, Syd started meeting with And I think of a 23-year-old soldier who homage ‘‘to the man who is a par- the school board and city council mem- found himself in the midst of a con- ticular favorite of heaven; a man who bers. Mr. Finley’s style of operating flagration. could never die in battle.’’ proved to be quite effective; and he not The Americans were sided, Mr. Mr. Speaker, George Washington’s only brought about change in his Speaker, with the British, and most of life would lead him from those humble neighborhood, but he also brought the Indians sided with the French. Ten- 23-year-old miraculous events in battle about change for thousands of others sions grew, diplomatic solutions failed, to greater things. He always under- through his work at the NAACP. so Great Britain sent 2,300 soldiers to stood throughout his life, with a deep Mr. Finley took his children to civil join the rugged untrained American Christian humility, that he was part of rights marches in Selma, St. Louis, militias to fight the French. a grand design. A grand design for Milwaukee, and Washington, D.C. As a A 23-year-old colonel led the Virginia America. leader of the NAACP’s Fair Program in militia, about 100 buckskins who had the 1980s, Mr. Finley got hundreds of volunteered to fight. The British sol- b 1815 people hired into management jobs at diers joined them, and over a thousand A design yet to be fulfilled. That Fortune 500 companies and was ap- men made their way north toward Fort made him humble and grateful to be pointed Illinois Governor Jim Thomp- Duquesne, now known as the City of one such man that would shape the son’s Assistant for Minority Affairs. Pittsburgh. It was a long march in the lives of millions to come. Like George Syd worked at Argonne National summer, a few hundred miles along Washington, I believe that every one of Laboratory from 1973 to 1980; and under wooded paths. The Red Coats and mili- our lives is guided by that invisible his leadership, minority employment tia could not have been more different; hand, that everything happens for a increased from 9 percent to 14 percent one orderly and disciplined, dressed in reason. That in every moment from our and female employment from 12 per- red wool and uniforms, another a rag- greatest trials to our greatest tri- cent to 24 percent. tag bunch of young farmers, driven by umphs, from small unanticipated Mr. Finley joined Medical Manage- passion, adventure, and a love of free- events can come the great unimagi- ment of America in 1994 and became dom. The differences would be impor- nable feats of history, discovering land, vice president of Community and tant in what was about to confront freeing slaves, defeating tyranny, and Media Relations for Doctor’s Hospital them. maybe even defeating the mindlessness of Hyde Park. He was a founder of the Seven miles from the fort on July 9, of terrorism. Behind each great turning DuPage African Methodist Episcopal 1755, the soldiers were ambushed in a point in history, I will always believe, Church in 1979. He led a full and com- wooded ravine. They were trapped on as George Washington did, that there is plete life. He leaves to mourn and cherish his every side. The French and Indians a providential hand leading willing memory his wife, Mary Lou; three chil- fired shots from behind rocks and deep hearts. in the woods from high in the trees and dren, Sidney Finley, III; Robin Hines; behind the brush. The British tried to f and William Christopher Finley; two line up in traditional military lines, The SPEAKER pro tempore (Mr. sisters, Dorothy Newman and Delores shoulder to shoulder, but the shots SHUSTER). Under a previous order of Ford; and two grandchildren. came from behind them and above the House, the gentleman from Ohio Syd Finley was indeed a unique per- them. They were familiar with open (Mr. BROWN) is recognized for 5 min- son and able to influence the thinking field fighting, not ambushes deep in the utes. and behavior of others. He was an effec- woods. (Mr. BROWN of Ohio addressed the tive leader and a great American. We Over 700 British and American troops House. His remarks will appear here- revere his life, mourn his passing, and died, compared to only 30 French and after in the Extensions of Remarks.) shall cherish his memory. Indians. Eighty-six officers fought in f f the battle, according to historian The SPEAKER pro tempore. Under a David Barton, and only one of those of- HONORING SYD FINLEY previous order of the House, the gen- ficers remained unhurt after the am- The SPEAKER pro tempore. Under a tleman from Indiana (Mr. BURTON) is bush, and still bestride his horse. It previous order of the House, the gen- recognized for 5 minutes.

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00045 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.087 pfrm17 PsN: H18PT1 H4920 CONGRESSIONAL RECORD — HOUSE July 18, 2002 (Mr. BURTON of Indiana addressed tive, President Bush seeks to cut mer- woman from New York (Mrs. MALONEY) the House. His remarks will appear cury emissions up to 69 percent and is recognized for 5 minutes. hereafter in the Extensions of Re- create the first-ever national cap for Mrs. MALONEY of New York. Mr. marks.) mercury emissions. Mercury emissions Speaker, it is my distinct honor and f will be cut from current emissions privilege to commemorate the 28th an- from 48 tons to a cap of 26 tons in 2010, niversary of the 1974 illegal Turkish in- STOP MERCURY EMISSIONS and 15 tons in 2018. Likewise, two simi- vasion of Cyprus. I have commemo- The SPEAKER pro tempore. Under a lar proposals in Congress will seek to rated this day since I came to Con- previous order of the House, the gen- cap mercury emissions for the first gress; and unfortunately, each year the tleman from Illinois (Mr. KIRK) is rec- time ever for air quality improve- occupation continues. ognized for 5 minutes. ments. PSEKA, the International Coordi- Mr. KIRK. Mr. Speaker, the Great In my district, Lake Michigan is the nating Committee Justice for Cyprus; Lakes are under attack from many en- source of our drinking water, and the the Cyprus Federation of America, an vironmental threats, such as invasive lake provides recreation in the sum- umbrella organization representing the species, PCB contamination, and other mertime, and once provided fish for Cypriot American community in the aquatic pollutants. In the next week, eating. We now know that Lake Michi- United States; SAE, the World Council along with the gentleman from Michi- gan fish are harmful because of the of Hellenes Abroad; and the Federation gan (Mr. UPTON), the gentleman from toxins they contain. According to the of Hellenic Societies, are all primarily Michigan (Mr. STUPAK), and the gen- EPA, each year over 3,000 pounds of located in the 14th Congressional Dis- tleman from Wisconsin (Mr. KIND), I mercury pollution are dumped into trict, which I am fortunate to rep- will be introducing the Great Lakes Lake Michigan, and 86 percent of that resent. Mercury Reduction Act, which will comes from direct atmospheric deposi- These individuals refuse to believe prohibit the issuance of new permits tion. Recently, the North Shore Sani- that peace will not come to Cyprus and under the Clean Air Act that will re- tary District obtained a permit from have chosen to commemorate this sult in the deposition of any additional the Illinois Environmental Protection event in very special ways. mercury into the Great Lakes. Agency to build a sludge sewage incin- On Saturday, July 20, and Sunday, Our legislation seeks to halt new erator on the shores of Lake Michigan July 21, in the spirit of remembrance mercury pollution sources that would in Waukegan, Illinois. If construction and commemoration, a concert will be deposit further amounts of mercury commences, the mercury emitted from held on July 20 at the Summer Stage in into the Great Lakes. Currently, the this sludge incinerator will be the first Central Park, New York, with the par- technology does not exist to stop mer- new source of mercury pollution in the ticipation of two artists from Greece, cury emissions from already-permitted Great Lakes in over a decade. Dionyssios Savopoulos and Alkinoos My top environmental goal in this sources. Therefore, we should not allow Ioannides. Congress is to protect Lake Michigan These remarkable performers have construction of new mercury pollution and the Great Lakes. Earlier this year, been strong advocates against the divi- sources. I chaired the Nuclear Fuel Safety Cau- sion of Cyprus and the human rights Our legislation will not affect exist- cus, which sought the safe removal of violations by the Turkish Army in Cy- ing sources already permitted under nuclear waste from key environmental prus. the Clean Air Act, but rather, will halt ecosystems in the Great Lakes bur- On July 21, memorial services will be addition of new sources of mercury dened with nuclear waste on our held for the victims of the Turkish in- that will further degrade the Great shores. The approval of the nuclear vasion and occupation of Cyprus at the Lakes with mercury pollution. Air- waste resolution in this Congress will Cathedral of Holy Trinity in Manhat- borne mercury is the dominant source make our 10th district nuclear free tan. His Eminence, Archbishop of mercury in the Great Lakes; and ac- upon completion of the National Nu- Demetrios, Primate of the Greek Or- cording to the Lake Michigan Federa- thodox Church in America, will offi- 1 clear Waste Repository. But now, Con- tion, ⁄70 of a teaspoon of mercury can gress must focus its attention on mer- ciate. contaminate a 25-acre lake. Mercury cury pollution in the Great Lakes. The fundamental fact is that the con- quickly bioaccumulates, contami- Airborne mercury pollution is an tinued presence of Turkish troops rep- nating the food chain and making the issue which the Federal Government resents a gross violation of human fish of the lakes inedible by humans. has ignored in years past. Further mer- rights and international law. Since The Federal Government must ad- cury pollution of the Great Lakes will they invaded Cyprus in July, 1974, dress mercury pollution, because suffi- irreparably damage our fragile eco- Turkish troops have continued to oc- cient reduction limits were not set in system. cupy 37 percent of Cyprus. This is in di- the Clean Air Act Amendments in 1990. I urge Members to support our bipar- rect defiance of numerous United Na- The act only contained large general tisan legislation. We joined in this ef- tions resolutions and has been a major national emission numbers, and con- fort to end mercury pollution in the source of instability in the eastern trol studies monitoring the growing Great Lakes just this week, but pas- Mediterranean. problems with mercury pollution. sage of our bill will go a long way to The new peace initiatives embarked While the Clean Air Act required ex- fulfilling our international commit- upon by Cyprus, Greece and Turkey tensive studies of the potential dangers ments to our Canadian allies and fulfill continue to say there is hope. I support of mercury, it deferred much of the the promise of President Bush’s Clear President Bush, like his predecessor, work on limiting mercury emissions to Skies Initiative on mercury. But most President Clinton, in saying that true the States. importantly, Mr. Speaker, it will pro- human rights are the goal of the In 1997, the United States and Can- tect the mothers and children of the United States Government. A unified ada, as part of the Great Lakes Bina- Midwest who are most at risk for mer- Cyprus would promote a stable Medi- tional Toxics Strategy, met to address cury pollution. terranean, economic stability and jus- strategies for eliminating toxic sub- f tice with a comprehensive and fair set- stances in the Great Lakes. These The SPEAKER pro tempore. Under a tlement. Now is the time for a solu- talks resulted in each nation agreeing previous order of the House, the gen- tion. to address a number of toxic emissions, tleman from New York (Mr. GILMAN) is More than 20 years ago, the leaders of including mercury. According to this recognized for 5 minutes. the Greek and Turkish Cypriot commu- agreement, the United States will seek (Mr. GILMAN addressed the House. nities reached two high-level agree- to reduce airborne emissions of mer- His remarks will appear hereafter in ments which provided for the establish- cury by 50 percent, and Canada by 90 the Extensions of Remarks.) ment of a bicommunal, bizonal federa- tion. Even though these agreements percent by the year 2006. f President Bush and the Congress were endorsed by the U.N. Security both made the elimination of mercury TURKISH INVASION OF CYPRUS Council, there has been no action on pollution an environmental priority of The SPEAKER pro tempore. Under a the Turkish side to fill in the details or this Congress. In his Clear Skies Initia- previous order of the House, the gentle- to reach a final agreement.

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00046 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.092 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4921 Instead, for the past 28 years, there their remarks on the subject of my spe- ish people, we hope that the Cyprus ne- has been a Turkish Cypriot leader pre- cial order. gotiations will not be undermined by siding over a regime recognized only by The SPEAKER pro tempore (Mr. election year politics. We hope that all Turkey and condemned as legally in- JEFF MILLER of Florida). Is there objec- parties running for Parliament will de- valid by the U.N. Security Council. Cy- tion to the request of the gentlewoman clare their support for a resolution of prus has been divided by the Green from New York? the Cyprus problem before the end of Line, a 113-mile barbed wire fence that There was no objection. the year so that a united Cyprus can runs across the island. Greek-Cypriots f enter the EU. Despite the division of the island are prohibited from visiting the towns CYPRUS and communities where their families constantly taking center stage, the Re- have lived for generations. The SPEAKER pro tempore. Under a public of Cyprus has flourished and With 35,000 Turkish troops illegally previous order of the House, the gen- grown as an economy and society. It is stationed on the island, it is one of the tleman from Florida (Mr. BILIRAKIS) is a Europe-oriented nation that is of most militarized areas in the world. recognized for 5 minutes. strategic, economic and political im- This situation has also meant the fi- Mr. BILIRAKIS. Mr. Speaker, as I portance to the region and to the rest nancial decline of the once-rich north- have done every year and as the gentle- of the world. Sadly, the people living in ern part of Cyprus to just one-quarter woman from New York just did, we the northern part of the island con- of its former earnings. usually do this together, I rise again tinue to be mired in poverty as a direct result of their leadership’s and Tur- Perhaps the single most destructive today to reiterate my fierce objection key’s separatist policies. Cyprus is one element of Turkey’s fiscal and foreign to the illegal occupation of the island of the leading candidate nations to join policy is its nearly 28-year occupation of Cyprus by Turkish troops and de- the EU in the next round of enlarge- of Cyprus. We now have an atmosphere clare my grave concern for the future ment. European Union membership has where there is no valid excuse for not of the area. The island’s 28 years of in- the potential to act as a catalyst for resolving this long-standing problem. ternal division make the status quo ab- resolving the problem of Cyprus which Cyprus is set for entrance into the Eu- solutely unacceptable. has been poisoning the relations among ropean Union in 2004, and I am hopeful In July 1974, Turkish troops captured the parties to the conflict and their that this reality will act as a catalyst the northern part of Cyprus, seizing over a third of the island. The Turkish NATO allies and the United States. for a lasting solution of the Cyprus It would also be in the best interest challenge. EU membership for Cyprus troops expelled 200,000 Greek Cypriots from their homes and killed 5,000 citi- of Turkey to cooperate with the U.N. will clearly provide important eco- on Cyprus in order to advance its own nomic, political, and social benefits for zens of the once peaceful island. Over a quarter of a century later, about 1,500 membership in the European Union. all Cypriots, both Greek and Turkish Northern Cyprus will perhaps be the alike. Greek Cypriots remain missing, includ- ing four Americans. The Turkish inva- greatest beneficiary of Cypriot mem- This is why both sides must continue bership and resolution of the entire af- to negotiate. There is also a new cli- sion was a conscious and deliberate at- tempt at ethnic cleansing. Turkey pro- fair. It is currently in a state of eco- mate of cooperation between Turkey nomic distress which is being exacer- and Greece with many positive signs. ceeded to install 35,000 military per- sonnel. Today these troops, in conjunc- bated by Turkish intransigence. Tur- More has been achieved in the past 2 key spends more than $200 million an- years than in many years before. tion with the United Nations peace- keeping forces, make the small island nually to sustain northern Cyprus. With settlement on the matter of Cy- b 1830 of Cyprus one of the most militarized prus, this huge financial obligation While the U.S., the EU, Greece and areas in the world. Turkey is the only would be eliminated. By joining the Cyprus have all acted to accommodate nation, Mr. Speaker, in the world rest of Cyprus, northern Cyprus would Turkish concerns, it is time for Turkey which recognizes the Turkish Northern become part of an already progressive to complete the peace process in good Republic of Cyprus. economy, eliminating its financial de- faith. Make no mistake about it, if Twenty-eight years later, the forced pendence on Turkey. Turkey wants the Cyprus problem re- separation of these two communities We are all standing at the threshold solved, it will happen. Now is the time still exists despite efforts by the of an historic opportunity that will for a solution to the Cyprus problem. It United Nations and G–8 leadership to shape the futures of generations of will take diligent work by both sides, mend this rift between north and Cypriots, Greeks and Turks. We have a but with U.S. support and leadership, I south. The U.N., with the explicit sup- responsibility to these ensuant genera- am hopeful that we will reach a peace- port of the United States, has spon- tions to secure their futures by con- ful and fair solution soon. Twenty- sored several rounds of proximity talks tributing to the efforts to create a eight years is too long to have a coun- between the President of the Republic peaceful world. It is precisely, Mr. try divided, it is too long to be kept of Cyprus, Mr. Glafcos Clerides, and Speaker, to express the above stated from your home, and it is too long to Mr. Rauf Denktash, the self-proclaimed points that I have felt compelled to in- be separated from your family. leader of the occupied northern part of troduce House Concurrent Resolution We have seen many tremendous changes the island. 164, a bill which expresses the U.S.’s around the world. In January 2002, direct negotiations support for Cyprus’ admission to the It is time for the Cypriots to live in peace between President Clerides and Mr. European Union according to the Hel- and security, with full enjoyment of their Denktash began. Thus far, these nego- sinki Conclusions of 1999. These specifi- human rights. tiations have not produced any break- cally state that while a solution to the I am hopeful that their desire for freedom throughs. Regrettably, the progress on political crisis in Cyprus is preferable will one day be fulfilled. an agreement has been thwarted by the prior to EU accession, it is not a pre- In recognition of the spirit of the people of intransigent position taken by Mr. condition for entry. Cyprus, I ask my colleagues to join me in hon- Denktash with the full backing of the Mr. Speaker, we have a moral and oring the Cyprus Federation of America, and Turkish government. However, it is en- ethical obligation to use our influence in solemnly commemorating the twenty-eighth couraging that the two leaders are con- as Americans, as defenders of democ- anniversary of the invasion of Cyprus. tinuing their direct talks which main- racy and as defenders of human rights I hope that this anniversary will mark the ad- tains the possibility that a comprehen- to reunify Cyprus. There have been 28 vent of true freedom and peace for Cyprus. sive settlement can still be reached. years of illegitimate occupation, vio- f The recent political events in Turkey lence and strife. Let us not make it 29. and the decision to hold early elections Mr. BAIRD. Mr. Speaker, I would like to GENERAL LEAVE in November of this year will have a di- thank the Co-Chairs of the Hellenic Caucus, Mrs. MALONEY of New York. Mr. rect effect on the outcome of the Cy- Representatives MICHAEL BILIRAKIS and CARO- Speaker, I ask unanimous consent that prus negotiations. While we support LYN MALONEY for organizing this special orders all Members may have 5 legislative the call for elections in Turkey and on Cyprus and for their leadership on this im- days within which to revise and extend trust the democratic voice of the Turk- portant issue.

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00047 Fmt 4634 Sfmt 9920 E:\CR\FM\K18JY7.095 pfrm17 PsN: H18PT1 H4922 CONGRESSIONAL RECORD — HOUSE July 18, 2002 Twenty-eight years ago, on July 20, 1974, a violent and foreign invasion. The end result international outcry. Since June 1974, Turkey Turkish troops advanced into the Republic of was the alienation and isolation of neighbor has occupied the northern third of this beau- Cyprus and forcefully occupied the island. from neighbor, family member from family tiful Mediterranean island—although no other Today, Cyprus remains divided with heavily member. country recognizes the occupation as legiti- armed Turkish troops occupying approximately Mr. Speaker, I applaud the persistent efforts mate. Cypriot President Glafcos Clarides and 37 percent of the Island. Over the past twenty- of my colleagues, MICHAEL BILIRAKIS and Turkish Cypriot Leader Rauf Denktash have eight years there have been signs of hope CAROLYN MALONEY, for calling this special re-engaged in peace talks aimed at reconciling only to be shattered by statements or displays order and arduously maintaining the plight of the two communities of Cyprus since January. of aggression resulting in increased tensions the people of Cyprus, particularly those who A resolution is not yet in sight, however, de- and little progress toward resolving the conflict endure under Turkish control, in the minds of spite the incentive of accession to the Euro- over Cyprus. In 1999, the U.N. Security Coun- their fellow Members of Congress. pean Union for both Turkey and Cyprus. We cil passed resolution 1251 calling for ‘‘. . . all It is shameful that, as we stand here today must now hope that a compromise will be States to respect the sovereignty, independ- marking this 28th anniversary of the Turkish reached soon, to ensure that Cyprus achieves ence and territorial integrity of the Republic of invasion of Cyprus, Turkey has not only its potential as a prosperous, progressive na- Cyprus, and requesting them, along with the threatened to annex the north of the island, tion. parties concerned, to refrain from any actions but has increased its military presence there. I was fortunate enough to visit Cyprus last which might prejudice that sovereignty, inde- Last month’s increase of 5,500 troops in the summer. It was an eye-opening experience to pendence and territorial integrity, as well as north bolsters the Turkish presence there to be on the Green Line in Nicosia and then to from any attempt at partition of the island or more than 40,000 soldiers—by some accounts walk a few blocks into the heart of a success- its unification with any other country.’’ the highest degree ever. ful European Capital. This dramatic contrast— The Republic of Cyprus has on many occa- Twenty eight years ago, when Turkey in- where conflict and normalcy can co-exist with- sions offered an olive branch to end this con- vaded, 200,000 Greek Cypriots—victims of a in a few city blocks—reinforces the need to flict. The Republic of Cyprus has offered to policy of ethnic cleansing—were forced from find a solution to this dispute that removes ha- demilitarize the entire island, and has can- their homes and became internally displaced tred and division from the heart of Cyprus. celed an order of a surface-to-air missile sys- people, essentially refugees in their own coun- Today, Cyprus faces many challenges. The tem. Turkey has rejected these overtures and try. They were pushed out to accommodate island is split across the middle by a barbed in fact continues to upgrade its military pres- over 80,000 settlers from mainland Turkey. wire fence over one hundred miles long. Thir- ence on Cyprus. The U.S. Committee for Refugees calls the in- ty-five thousand Turkish troops illegally occupy Mr. Speaker, throughout its history the ternal displacement of people in Cyprus the a third of the island, in what some consider United States has stood firmly against the ‘‘longest standing in the [European] region.’’ one of the world’s most militarized zones. Two forces of oppression and aggression across Furthermore, Turkish armed forces respon- hundred thousand Greek Cypriot refugees the globe. We should continue to advocate sible for the disappearance of 1,463 Greek want to return to their homes in the north of and support a peaceful resolution to the prob- Cypriots, including four Cypriot-Americans, the island but cannot as a result of the Turkish lem in Cyprus. As a cosponsor of both H. have remained protected by the impunity the occupation. Turkish government has afforded them, de- Con. Res. 164 and 269, I urge the President Behind these disturbing statistics, there is a spite its obligations under the UN Declaration to take steps to end the restrictions of free- fundamental disagreement on the ultimate ob- on the Protection of All Persons from Enforced doms on the enclaved people of Cyprus by jective. Greek Cypriots seek a bi-zonal bi-com- Disappearances. the Turkish-Cypriots and to work with our al- munal federation—a solution endorsed by the In addition, just over a year ago the Euro- lies to support Cyprus’ efforts of accession to United States, the European Union and the pean Court of Human Rights rendered a deci- the European Union (EU). United Nations. The Turkish Cypriot leader- sion, finding Turkey guilty of violating 14 arti- It is my sincere hope that we will see signifi- ship, however, seeks a loose confederation of cles of the European Convention on Human cant progress toward a unified Cyprus ob- two independent Cypriot states. Turkey has, to Rights, and of being an illegal and illegitimate tained by peaceful means. This can only im- date, rejected the UN Security Council’s reso- occupying force in Cyprus. prove the economic and political stability of lutions, which call for the withdrawal of both As Cyprus continues on its ensured path to- the region, which is undoubtedly in the na- Turkish troops and the 115,000 Turkish set- wards EU accession, it boggles the mind that tional security and economic interests of the tlers introduced to the north since 1974. It is Turkey—a NATO member—continues to oc- United States. clear that consensus will not be easily Mr. Speaker, let me close by thanking my cupy one-third of Cyprus. If a settlement to reached, but the leadership of both sides must colleagues in the Hellenic Caucus for their ex- Cyprus is not reached by the end of the year, work diligently to implement a solution, as or- ceptional work. I look forward to working with when the island is expected to join Europe, dinary Cypriots on both sides of the barbed all of them to ensure that some day soon, the Turkey will be occupying European territory wire continue to suffer. unification, not the division of Cyprus, will be and hampering its chances of attaining that commemorated by this body. same status during its volatile economic and Congress must remain committed to helping Ms. ROS-LEHTINEN. Mr. Speaker, for too political crisis. the two sides settle this twenty-eight year old many years this Congress has been making Mr. Speaker, the government of Turkey and dispute. its opinion known about the heinous reality Denktash are to be held responsible for the First and foremost, the island must be re- that persists on the divided island of Cyprus. continual separation of the country of Cyprus. united as a bi-zonal, bi-communal federal Cy- Twenty eight years ago this week, Cypriot citi- Despite the progress that has been made in prus on the basis of UN Security Council reso- zens became refugees within their own coun- the settlement talks that began in December lutions. try. Homeowners became homeless. Families of last year, they have halted development It is also crucial that the north of the island were divided. Hundreds were killed or dis- keeping the whole of the Cypriot community be de-militarized and that the two hundred appeared, as they ran for their lives. The di- from a life of peace and freedom. However, thousand Greek Cypriot refugees be allowed vide that endures in Cyprus is one that be- hold-ups with the talks, increased deployment to return safely to their homes. comes more evident with every anniversary of of Turkish troops to northern occupied Cyprus, In addition, the Turkish Cypriot leadership the Turkish occupation of the north. and threats of annexation have proven futile in must address the plight of Greek Cypriots liv- Last night, in the Rayburn Building, I hosted eroding international support of Cyprus’ EU ing in northern enclaves. During my trip last a briefing and film viewing on Cyprus’ reunifi- accession, settlement, or Clerides’ govern- year, I attempted to visit Cypriots trapped in cation. That movie, Beyond Division: Reuni- ment. such enclaves, but was prevented from doing fying the Republic of Cyprus, began with a We cannot let this body forget the terror and so by the Turkish Cypriot Authorities. I have very powerful quote which read, ‘‘My father fear that Turkey struck in every Cypriot’s heart co-sponsored House Concurrent Resolution says love your country. My country is divided when they invaded in 1974. As the fifth round 269, which calls for an end to restrictions on into two. Which part should I love?’’ It is taken of the latest settlement talks commenced this Greek Cypriots living in the North, because I from a poem entitled Love Your Country by week, we remain watchful, as well as hopeful, believe that the human rights of this commu- Neshe Yashin, a Turkish Cypriot who fled her that peace may finally reach Cyprus and join nity must be respected by the Turkish Cypriot birthplace in search of safety. both sides. leadership. These words capture perfectly the history Mr. CROWLEY. Mr. Speaker, twenty-eight Furthermore, the Administration should con- that plagued Cyprus. A fraternal, peaceful, and years ago this week, Turkey invaded Cyprus, tinue its annual allocation of $15 million to pro- bi-communal society was divided and torn by violating international law and provoking an mote confidence-building measures aimed at

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00048 Fmt 4634 Sfmt 9920 E:\CR\FM\A18JY7.025 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4923 bringing the Greek and Turkish Cypriot com- of more than 1400 Greek Cypriots missing Mr. GILMAN. Mr. Speaker, I wish to thank munities together. This small investment in since the occupation remain uncertain. This the gentleman from Florida, (Mr. BILIRAKIS), peace will prove to yield enormous dividends. tragedy is remembered by Greek Cypriots and the gentlewoman from New York, (Mrs. And finally, I urge the Administration and my around he world as one of the blackest days MALONEY), for organizing this special order on colleagues in Congress to continue to support in their people’s history. I share the outrage of Cyprus, and providing us with the opportunity Cyprus’ accession to the European Union. EU my Greek Cypriot friends and firmly believe to reflect on the 28th anniversary of the Turk- membership will provide access to new mar- Turkey must withdraw its troops from Cyprus ish invasion of Cyprus. kets and permit the free movement of goods and allow reunification to take place. The Cyprus conflict remains one of longest and people. The European Council has made Unfortunately, Turkey has continued to pour lasting issues of concern to the international it clear that reunification will not be a pre- salt on this deep wound. In 1983, again in fla- community that remains unresolved to this condition for accession; indeed, membership grant violation of international law, Turkey uni- day. For years, Cyprus has been divided by a may even prove to be a catalyst toward the laterally declared independence in the area of 113–mile barbed wire fence, in effect sealing resolution of the Cypriot dispute. It is clearly in Cyprus under its military occupation. The UN off the residents of Cyprus one side from the the interest of the Turkish Cypriot community Security Council, including the United States, other. to move forward in peace talks so the entire condemned this declaration and called for Tur- The presence of 35,000 Turkish troops on island can benefit from EU membership. key’s withdrawal. To date, Turkey is the only the island is unacceptable, and has contrib- On this important anniversary, I urge all country in the world to recognize the so-called uted to a militarized atmosphere that is far Cypriots to consider the merits of reunification, ‘‘Turkish Republic of Northern Cyprus.’’ Turkey from conducive to a life of peace and coopera- and I urge Congress and the Administration to has also attempted to change the demo- tion for all of its inhabitants. Overall, this con- remain committed to resolving this issue. The graphic structure of occupied Cyprus by trans- flict has been very costly for both the Greek United States must continue to work with ferring 115,000 Turkish settlers to northern and the Turkish Cypriot communities, resulting Greek Cypriots and Turkish Cypriots as they Cyprus and allowing them to live in the homes in untold human and economic losses. strive for peace, after twenty-eight years of of expelled Greek Cypriots. conflict. Despite the occupation, Cyprus has Our goal must be to seek the reunification Mr. VISCLOSKY. Mr. Speaker, as a mem- achieved remarkable economic growth. It’s of Cyprus within the framework of a bi-zonal, ber of the Hellenic Caucus since its inception people enjoy one of the world’s highest stand- bi-communal federation, guaranteeing free- in 1995, I rise today to mark the 28th anniver- ards of living and Cyprus is now a leading dom, human rights, and political equality for all sary of Turkey’s invasion, and subsequent oc- candidate for membership in the European of its citizens regardless of their backgrounds. cupation of, Cyprus. Union. It is also a thriving democracy that I am encouraged by the UN-brokered efforts In 1960, Cyprus gained its political inde- maintains the highest regard for the rule of law earlier this year that represented the first time pendence from the British Empire. Fourteen and human rights. that the two sides agreed to hold indirect talks short years later, however, this independence In recent months, Turkey has issued threats since the 1974 invasion. was shattered when 6,000 Turkish troops and in response to Cyprus’ prospective EU entry. I applaud the personal efforts of the UN 40 tanks invaded the north coast of Cyprus Most worrisome is Turkey’s threat to annex Secretary General, Kofi Annan, to advance the and proceeded to occupy nearly 40 percent of the occupied areas of Cyprus. The world must negotiating process, although I am dis- the island. The ensuing fighting killed thou- not sit still for such dangerous saber rattling. appointed that despite his visit to the island in sands of Cypriots and forced hundreds of Fortunately, it has not. The EU has stated that May, the two sides failed to meet the June tar- thousands from their homes. Today, there are it will not be held hostage to such threats and get date for an agreement. 1,619 people still missing, five of whom are Cyprus’ movement toward EU membership As Cyprus prepares its candidacy for acces- United States citizens. continues. The U.S. has also stated emphati- sion to the European Union in advance of the Twenty-eight years after the invasion, we cally that it opposes Turkish annexation and EU’s December summit in Copenhagen, it has are gathering to remember those who died believes such threats are destabilizing. Unfor- become increasingly essential that the two and to ensure that the world never forgets that tunately, Turkey has not backed off its threats sides once again engage in serious negotia- Cyprus is a land divided. More than 35,000 and continues to take positions that fly in the tions with the goal of a political settlement of Turkish troops continue to occupy Cyprus in face of the world community’s aspirations for their differences and the ultimate unification of violation of international law. A barbed wire peace. the island. fence cuts across the island, separating fami- The U.N. Security Council has proposed a As we continue to press for peace, the US lies from their property and splitting this once peace agreement that would create a single and the international community must pay beautiful country in half. state with two politically equal communities in heed to the anxieties and legitimate concerns Over the course of the 107th Congress, I a bi-zonal and bi-communal federation. The of both Greek and Turkish Cypriots. Indeed, a have petitioned the Bush Administration to Turkish Cypriot side, backed by Ankara, has political settlement of the Cyprus issue in ac- take positive steps to help end the occupation rejected this internationally supported pro- cordance with United Nations resolutions of Cyprus, requesting that both President posal. Cyprus supports this proposal and, not- would benefit all parties involved, as well as Bush and Secretary of State Powell make the withstanding Turkish opposition, it continues to strengthening relations between Greece and reunification of Cyprus a top priority. make overtures in an attempt to resolve this Turkey, two of our key NATO allies. Mr. Speaker, I am proud to join with my col- longstanding conflict. The U.S. has supported The US must make it clear to Turkey that leagues in standing up against Turkish op- Cyprus’ peace aims but we must do more to they stand to benefit, alongside Turkish Cyp- pression in Cyprus. I would especially like to press Turkey to allow peace negotiations to riot authorities, in promoting the UN’s vision extend my sincere thanks to the dedicated co- move forward. for a negotiated settlement to the Cyprus dis- chairs of the Hellenic Caucus, Rep. BILIRAKIS Cyprus has been a reliable U.S. ally since pute in the near future. A solution to the con- and Rep. MALONEY, for their tireless work to its independence from Britain in 1960. Our ensure that the people of Cyprus are not for- countries share deep commitments to democ- flict in Cyprus would promote regional eco- gotten. Twenty-eight years is a long time to racy, human rights, free markets and equal nomic opportunities, and would increase the wait, but it is my sincere hope that our actions justice under law. Following September 11, likelihood for Turkish accession to the Euro- will help persuade Turkey to end its unlawful Cyprus President Glafcos Clerides imme- pean Union where it would join Cyprus and occupation of Cyprus. diately condemned the terrorist attacks and of- much of the rest of Europe as the new century Mr. HINCHEY. Mr. Speaker, I rise today to fered his country’s assistance in our efforts to unfolds. recognize one of the most egregious acts of fight terrorism. I am one of the few Members of Congress the 20th century—the Turkish invasion of Cy- This Saturday, at 5:30 a.m., sirens will be who was serving in the House 28 years ago prus. This Saturday, July 20, will mark the sounded across Cyprus to remember the mo- and I very much regret that on this, the final 28th anniversary of the invasion of Cyprus and ment when Turkish troops invaded their home- opportunity I will have to participate on the the 28th year of Turkish occupation of north- land. I urge my colleagues to take a moment House floor in a commemoration of this anni- ern Cyprus. this weekend to recognize the enormous injus- versary, the ugly scar that divides Cyprus has On July 20, 1974, 30,000 Turkish troops in- tice that has persisted in Cyprus at the hands not yet been erased. vaded northern Cyprus in flagrant violation of of our NATO ally Turkey. The U.S. must do all And yet, Mr. Speaker, I hope that soon, per- international law. More than 200,000 Greek it can to end this conflict and restore the right haps before the year is out, a breakthrough Cypriots were forcibly expelled from their to live in a unified Cyprus for all Greek Cyp- may yet occur. That is my hope for peace for homes and nearly 5000 were killed. The fates riots. the people of Cyprus.

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00049 Fmt 4634 Sfmt 9920 E:\CR\FM\A18JY7.027 pfrm17 PsN: H18PT1 H4924 CONGRESSIONAL RECORD — HOUSE July 18, 2002 The SPEAKER pro tempore. Under a hopefully will continue to be, then we struggle, actually managed to balance previous order of the House, the gen- can make a difference in the produc- the budget. And we had surpluses. Peo- tleman from California (Mr. FILNER) is tivity of a lot of people in this country ple were saying that we would be able recognized for 5 minutes. and give a great deal back to our Na- to pay off our accumulated debt by the (Mr. FILNER addressed the House. tion. year 2011. There was euphoria. Even on His remarks will appear hereafter in I look forward to listening to the re- Wall Street they took down the debt the Extensions of Remarks.) marks of other colleagues. clock. What I would like to say to all f f the Bush administration friends on SOCIAL SECURITY The SPEAKER pro tempore. Under a Wall Street, you ought to put the debt clock back, because the party that rep- The SPEAKER pro tempore. Under a previous order of the House, the gen- resents your big business interests, previous order of the House, the gen- tleman from California (Mr. GEORGE they are just increasing the debt again. tleman from Texas (Mr. LAMPSON) is MILLER) is recognized for 5 minutes. So why do you not put the debt clock recognized for 5 minutes. (Mr. GEORGE MILLER of California Mr. LAMPSON. Mr. Speaker, I appre- addressed the House. His remarks will up? I would actually go and put one of ciate the opportunity to take just a appear hereafter in the Extensions of those hooks in the wall at Times few minutes and join my colleagues, Remarks.) Square myself if I could find out who and I wanted to talk about the issue of f had that old clock. Social Security and what we are facing Not even 11⁄2 years later, the Congres- CLOCKING REPUBLICAN RAID ON with changes. I know that one of my sional Budget Office is projecting that SOCIAL SECURITY TRUST FUND colleagues soon, the gentlewoman from under the Republican budget passed in Ohio (Ms. KAPTUR), will be talking spe- The SPEAKER pro tempore. Under a March of this year, there will be a $1.8 cifically about this and thought it previous order of the House, the gentle- trillion on-budget deficit over the next might be appropriate to remind people woman from Ohio (Ms. KAPTUR) is rec- 10 years. I have been asking myself, of what some of the benefits of this ognized for 5 minutes. why does the Republican leadership of program are to certain individuals and Ms. KAPTUR. Mr. Speaker, I want to this House love this red ink so much? when it is done right, the significant acknowledge the compelling story of They are taking money out of the So- opportunities that it presents not only this incredible Member of Congress cial Security trust fund in order to to the individuals but for the gain for from Texas, NICK LAMPSON, who placed give these big tax cuts. I thought, well, our country. on the RECORD the story of his family maybe they love to issue Federal debt We want to produce productive citi- and what Social Security has meant securities because who sells those debt zens. That opportunity came for me not just to seniors but to the disability securities? Twenty big bond houses on insurance program and the insurance when I was but a young kid. When my Wall Street make all the fees. They do program for widows caring for children father died at my age of 12 years old, not sell savings bonds to average he was 54, leaving six children and a or widowers and millions of people. We Americans. Try to buy a savings bond wife who did not have an opportunity never really know if we will be the one and have it sent to your house. It will for employment because she had very out of five families struck in America not happen. You have to go fill out a little or no education earlier in her with tragedy beyond our ability to con- special form, then they send it over to own life. Had it not been for the sup- trol and whether we will have the in- whoever you say should be the recipi- port that our community gave us, this surance to weather bad times. And is it ent a month later. They have actually family, with the six kids, with one of not a credit to his mother and their taken away the right of individual citi- them being in a wheelchair because of family that every one of those six chil- zens to buy savings bonds conveniently an illness that left her paralyzed, this dren has matured into a productive and in this country. They prefer to sell family would not have been able to really priceless citizen for our country. debt securities through the 20 bond stay together. But through the support We need more citizens like NICK houses on Wall Street because they of Social Security, as long as we were LAMPSON in this Chamber. We would students, up until the age of 21 years build a different and better country make all the fees, which we pay for out old at that time, we could get that with that kind of sensitivity and un- of our tax dollars. help. It gave us the opportunity to stay derstanding. So instead of paying off the debt by together as a family. It gave us the op- Mr. Speaker, I rise tonight to con- 2011, under the Republican budget our portunity to be able to get an edu- tinue what has become my weekly tra- publicly held debt is scheduled to in- cation because otherwise we would dition of clocking the Republican raid crease by $2.8 trillion by fiscal year have split up and more than likely on the Social Security trust fund. 2011 and they are covering it over right have been spending our time earning a Since early June, I have been coming now by borrowing from what is left in living so that those of us who needed to down here showing how much money the Social Security trust fund to cover would be able just to survive. they are taking out of the Social Secu- the difference. The biggest reason for Today, one of us is a very good physi- rity trust fund and using for other pur- this radical reversal in our Nation’s fi- cian in a State in the South, in Lou- poses, such as huge tax cuts to the nancial health is the Bush administra- isiana, another is retired from a major richest 1 percent of people in this coun- tion tax cut. How do you feel about $858 position in a pharmaceutical company, try. When I started these remarks, being taken out of your pocket and but my point is that all six of my they were borrowing, as of early June, then given to a corporation like Enron mother’s children became successful $208 billion. Every single week they this year which is going to take over because of the assistance that our com- have dipped into it more. It went up to $350 million in the form of a tax rebate munity gave us. And more importantly $212 billion, then $218 billion, then $223 because of the Bush administration tax than anything, we have to realize that billion. By July 9 they were at $235 bil- bill? as these benefits come to people lion. Then at $241 billion. The line of Or how about this: Your money is throughout our country, the benefits of increase into the trust fund is every going to the top 1 percent of the Social Security, we cannot forget, we week growing at geometric propor- wealthiest people in this country who cannot pull the ladder up behind us and tions. That amounts to already $858 say it is not good for someone else. It being taken out of your pocket as an no longer have to pay an inheritance made a difference for me. It helped me American citizen from your Social Se- tax. They are taking your money. That become the productive citizen that I curity payments. is what is happening to the Social Se- believe that I am. And if we protect What is the Republican House leader- curity trust fund. this, this wonderful institution, make ship doing about this? Nothing. This What is the effect on all of this? The sure that it is there for our kids and House leadership has simply refused to Republicans said they voted. They our grandkids and their children and address the ongoing raid in the Social voted seven times not to do this. It is on down the line as the security blan- Security trust fund. In January of 2001, true, they did vote. But they are not ket that it can be and has been and our Nation had finally, after a 12-year keeping their promise.

VerDate Jun 13 2002 03:46 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00050 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.098 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4925 b 1845 ror that were inflicted upon thousands riot leader Denktash to alter his cur- They told us they wanted to assure of innocent Americans in New York rent uncompromising stance. It is time that not a penny of the Social Security and Washington, it is important that for Denktash to negotiate in good faith surplus would be used for other pro- this Congress and the American people in order to reach a comprehensive set- grams. But, in fact, their promises recognize the events in Cyprus 28 years tlement within the framework provided have not met the true test of time. ago as an act of terror. Turkey ille- for by the relevant United Nations Se- So I would say I will be back next gally used American-supplied air- curity Council’s resolutions. These res- week. It is time for the Republicans to planes, bombs, and tanks in an act of olutions establish a bizonal, stop the raid on Social Security’s trust terror against the people of Cyprus. bicommunal federation with a single fund, and we are going to stop them This terror did not end with the inva- international personality and sov- come November’s election. sion of the island. Instead, more than ereignty and a single citizenship for all 200,000 people were forcibly displaced of Cyprus. f from their homes and a large number f The SPEAKER pro tempore (Mr. of Cypriot people who were captured JEFF MILLER of Florida). Under a pre- The SPEAKER pro tempore. Under a during the invasion are still missing previous order of the House, the gentle- vious order of the House, the gentle- today. woman from Hawaii (Mrs. MINK) is rec- woman from the District of Columbia Last year, the European Court of ognized for 5 minutes. (Ms. NORTON) is recognized for 5 min- Human Rights rebuked the Turkish (Mrs. MINK of Hawaii addressed the utes. government when the court over- House. Her remarks will appear here- (Ms. NORTON addressed the House. whelmingly found them guilty of mas- after in the Extensions of Remarks.) Her remarks will appear hereafter in sive human rights violations over the the Extensions of Remarks.) last 28 years in a scathing 146-page de- f f cision. In the case of Cyprus v. Turkey, FOOD CRISIS IN SOUTHERN The SPEAKER pro tempore. Under a the court concluded Turkey has not AFRICA done enough to investigate the where- previous order of the House, the gen- The SPEAKER pro tempore. Under tleman from New York (Mr. CROWLEY) abouts of Greek-Cypriot missing per- sons who disappeared during life- the Speaker’s announced policy of Jan- is recognized for 5 minutes. uary 3, 2001, the gentlewoman from (Mr. CROWLEY addressed the House. threatening situations after the occu- pation. The court also found Turkey California (Ms. WATERS) is recognized His remarks will appear hereafter in for 60 minutes as the designee of the the Extensions of Remarks.) guilty of refusing to allow the return of any displaced Greek-Cypriots to their minority leader. f homes in Northern Cyprus. Families Ms. WATERS. Mr. Speaker, I come The SPEAKER pro tempore. Under a continue to be separated by the 113- this evening to talk about a very seri- previous order of the House, the gen- mile barbed wire fence that runs across ous problem in this world. Last tleman from Rhode Island (Mr. the island. evening, I watched in horror as ABC, LANGEVIN) is recognized for 5 minutes. Mr. Speaker, it is expected that by the Ted Koppel Show, depicted the food (Mr. LANGEVIN addressed the the end of this year, Cyprus will be ap- crisis in southern Africa. I watched as House. His remarks will appear here- proved for accession into the European one woman was identified as having after in the Extensions of Remarks.) Union. The United States has strongly lost one of her twin babies to hunger, f supported the Cyprus EU bid. EU mem- died from hunger, while the other baby The SPEAKER pro tempore. Under a bership will bring significant benefits was clinging to her breast, attempting previous order of the House, the gen- to both the Greek-Cypriot and Turk- to get milk that was not there. I watched as a man was shown sitting on tleman from Washington (Mr. BAIRD) is ish-Cypriot communities. recognized for 5 minutes. Last year, a bipartisan House Resolu- the ground sifting dirt to eat, and the (Mr. BAIRD address the House. His tion was introduced in the House ex- man said he was eating the dirt be- remarks will appear hereafter in the pressing the sense of Congress that se- cause it would fill up his stomach and Extensions of Remarks.) curity, reconciliation, and prosperity help to do away with the hunger pains. for all Cypriots can be best achieved I watched little children eating bugs f within the context of membership in and insects and others trying to find a The SPEAKER pro tempore. Under a the European Union, which will provide morsel of some kind in the weeds. I previous order of the House, the gentle- significant rights and obligations for watched all of this in horror because I woman from Indiana (Ms. CARSON) is all Cypriots, and for other purposes. I have been working on this issue. recognized for 5 minutes. am hopeful that this Congress will ap- I have met with Mr. Natsios on two (Ms. CARSON of Indiana addressed prove that resolution as a strong sign different occasions. I went to the Com- the House. Her remarks will appear of support for Cyprus’s accession to the mittee on International Relations, hereafter in the Extensions of Re- European Union. even though I am not a member of that marks.) Officials from the EU continue to re- committee, but I wanted to sit in on a f iterate that a peace settlement is not a hearing that was being held about the precondition to Cyprus’s accession to food crisis in southern Africa. Mr. TURKISH INVASION OF CYPRUS the European Union. Regardless of Natsios was there. I heard him testify, The SPEAKER pro tempore. Under a whether or not an agreement is I believe at that time, that he was on previous order of the House, the gen- reached, the entire island of Cyprus top of it. Mr. Natsios is in charge of tleman from New Jersey (Mr. PALLONE) will be recognized as one country with- USAID, and he said that they were on is recognized for 5 minutes. in the European Union. Ideally, a set- top of it, that they were in front of it, Mr. PALLONE. Mr. Speaker, tonight tlement will be reached later on this that they had organized the food that I want to join my colleagues on the year. was to be shipped there, and that they House floor, the gentleman from Flor- Now, we know that hopes of a settle- were not worried about people dying, ida (Mr. BILIRAKIS) and the gentle- ment continue, but at the end of dis- that we would not have the kind of woman from New York (Mrs. cussions last month, the President of devastation that we had seen during MALONEY), to remember a horrific act the Republic of Cyprus, Clerides, said the starvation crisis in Ethiopia some taken by Turkey against the citizens of the peace talks with Turkish Cypriot years ago. Cyprus 28 years ago. leader Denktash were at a deadlock I was concerned about that, because On July 28, 1974, the nation of Turkey and that large differences remain. at that time, I was getting information violated international law when it bru- Mr. Speaker, the time has come for that people were already dying. But he tally invaded the sovereign Republic of the Bush administration to apply pres- said that he was on top of it. We had Cyprus. sure on the Turkish side and, in par- some of the agencies testifying there Mr. Speaker, in the aftermath of Sep- ticular, on the Turkish government so who are responsible for distribution of tember 11 and the horrific acts of ter- that they can convince Turkish Cyp- the food, but they seemed to talk in

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00051 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.102 pfrm17 PsN: H18PT1 H4926 CONGRESSIONAL RECORD — HOUSE July 18, 2002 more cautious terms. They seemed to International Relations, and we have Malawi, Mozambique, Swaziland, and speak about this crisis with the hope gone to people sitting on the appro- Zimbabwe. The effects of the food cri- that we would be able to keep people priate subcommittees of the Com- sis has been exacerbated by the AIDS from starving and dying, but I did not mittee on Appropriations to talk with pandemic in sub-Saharan Africa. The hear the kind of confidence in their them about this issue. So I know a AIDS pandemic has created many or- tone and in their voices that I was number of people have been trying. phan children and left large numbers of looking for. So I continued to monitor So I certainly did not expect to see African families with fewer productive what was going on. those images broadcast on ABC last family members to produce food or Just last week I went to a meeting evening. I certainly did not want to be generate income with which to pur- that was held where all of the ambas- told by a television program that peo- chase food. sadors from the countries that are in ple were already dying, and I did not Furthermore, high rates of HIV infec- crisis attended. There was the ambas- want to see that the food is not getting tion have caused many Africans to sador from Lesotho, from Malawi, from up to the villages, and I did not want to have increased vulnerability to the ef- Mozambique, from Swaziland and see a woman who walked many miles fects of malnutrition and related dis- Zimbabwe and, again, Mr. Natsios from to get a sack of grain that she placed eases, such as cholera and malaria. The USAID was at that meeting. I chal- on her head and walked back to her vil- World Food Program estimates that 1.2 lenged him about our actions in these lage with, only to have it distributed million metric tons of food assistance countries, told him of my concern, and among all of the villagers, and she will be needed over the next 9 months I said to him that I was proposing to ended up with a 2-day supply, knowing to meet the minimum food consump- put $200 million in the supplemental that there would be no more food com- tion requirements of these six coun- appropriations bill to make sure we ing for another month or more. She tries. Yet, as of July 12, the United would have enough money for the grain will probably be dead by the time the States government has provided a total and for the corn, for the food that we next supply comes, and her babies will of 132,710 metric tons, and that is about were going to dispatch to these hungry be dead. 11 percent of the need. Clearly, we can countries and get ahead of the curve so We could have avoided this. We could do more. that when the rains come in October, avoid this by, number one, making sure In the midst of this crisis, the admin- we would not have to be worried about that we do what we can to appropriate istration is proposing to cut the total the trucks not being able to get where the dollars that we can afford to appro- spending on food assistance programs they needed to go. I wanted to get priate, that we talk with the other na- by 18 percent. This would reduce food ahead of starvation so that we could tions that should be contributing, that assistance from over $2 billion in fiscal get the food to the villages, so that we we give some leadership to this prob- year 2002 to less than $1.7 billion in fis- could get the grain in the grain store- lem. We know that we need some more cal year 2003. There it is. This is what we did in houses. I wanted to avoid precisely money and we have a supplemental ap- propriation that is coming up, and we 2001, $2,125,100,000; and in 2002, what I saw last evening. I did not want know that we are placing money in $2,021,500,000. But now, for 2003, we are ever in my life again to see the kind of that supplemental appropriations bill only getting from the administration starvation, the kind of death, the kind for any number of countries. We know $1,652,000,000. This is unacceptable, and of devastation that I have witnessed and we understand that there will be it is unexplainable. Furthermore, it is too many times as I have watched the money in there for Afghanistan, and it unconscionable. stories coming back to us from poor should be. We know that there will be On June 20, 2002, I sent a letter to the countries across this world. money in there for Israel, and it should conferees on H.R. 4775, the Supple- Mr. Speaker, I wanted the United be. We know that there will be money mental Appropriations Act for fiscal States to be in the forefront of helping in there for many countries, because year 2002, asking them to provide an people in the world, and I want us to there are emergencies in the world. But emergency supplemental appropriation use the bully pulpit of this great Na- why we have not been able to get the of $200 million to respond to the food tion to say to other countries that can support from this administration to crisis in southern Africa. An emer- be of assistance that they must join. gency appropriation is essential to en- The Super 8 powers of the world, with make sure that we can meet the needs of the food crisis of these very, very able the United States Government to all of the resources, must join together poor countries, I will never understand. provide desperately needed assistance to help the poor people of this world. As a matter of fact, when I said to to millions of starving people. This is how people define us. This is Mr. Natsios at the last meeting that I Sixty-two Members of Congress how people determine whether or not wanted to know if he would support signed my letter, but I have not heard we are caring people. As a matter of $200 million in the supplemental appro- anything. Today, I brought this up in a fact, this is the best kind of diplomacy priation, he said flat out, no. And he meeting that was being held, I believe that we could ever employ. When we followed it up with saying, you are not it was a whip meeting this morning. show that we care about people, that going to cause me to lose my job. Well, Most of the people in that meeting we are willing to stop little babies from that simply means he does not have were alarmed, and they said they did starving to death, that we are willing the support of this administration. not know about it and immediately to lend a helping hand, I think it does I did not wish to come to the floor to said they wanted to do something to more for us than silly negotiations have to talk about this. I have tried in help. I went to the conference com- where people are not getting anywhere the best fashion possible to address mittee immediately following the whip or getting people to believe much of this at every possible point that one meeting this morning, and I gave the anything. can inject an issue like this in the Con- information out once again. Mr. Speaker, my grandmother always gress of the United States. I have been told that, oh, I am a lit- said, it is not what you say, it is what tle bit late; that somehow, we cannot b 1900 you do. get back to that section, that we would So I watched in horror last evening But Mr. Speaker, there is a food cri- have to take this up in the conference for precisely that which I was trying so sis and people are dying. The children committee. hard to avoid. of these countries are already dying. I am not late. I sent this letter in It is not just I who was concerned Southern Africa is facing its worst food June to this conference committee. about this issue. The gentlewoman crisis in nearly 60 years. Almost 13 mil- I am not late. I had 62 Members of from North Carolina (Mrs. CLAYTON), lion people in southern Africa are in Congress sign this letter. the gentleman from Massachusetts danger of starvation. In Zambia, people I am not late because I went to the (Mr. MCGOVERN), and many others have have turned to some of the desperate Committee on International Relations begun to work on this in different measures that I have alluded to, and over 2 months ago. ways. I know some people were trying they are even eating potentially poi- I am not late because I have been to work over on the Committee on Ag- sonous wild foods. working on this issue long enough for riculture. Some people have tried to The crisis, as I have identified, very this issue now to be taken up in the work from within the Committee on much affects the people of Lesotho, supplemental appropriations bill.

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00052 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.110 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4927 Why are we not getting a response? we are going to do for Africa while we to call Mr. Natsios and bug him one We are not getting a response because have a crisis going on. The proof of the more time; and he is going to hear my I suppose people just do not pay enough pudding is in the eating: get the food to sharp tones, as he did today, every day. attention to countries that are not po- these six countries. Let us get some I am going back to the supplemental litically powerful. I suppose Africa is grain to the farmers, so they can plant conference committee. I am going to still at the bottom of the list. the seeds, so they can get ahead of the keep on working this at every turn I have lived long enough to see star- famine. Let us give some support so until I can try and get a real response. vation on the continent. I have lived they can dig the wells and have the ir- f long enough to see 1 million people rigation. killed in a senseless war in Rwanda. I Part of what is wrong now in these HOUSE BILLS AND JOINT RESOLU- have lived long enough to watch this countries is the fact that there is a TIONS APPROVED BY THE PRESI- pandemic, where Africa is at the top of drought. They have been devastated, DENT the world with HIV and AIDS infec- first by flood, then by drought. The President notified the Clerk of tions. Then, I want to know about the the House that on the following dates I am watching as we have worked so International Monetary Fund and why he had approved and signed bills and hard over the years to get rid of apart- they told the leaders of Malawi to sell joint resolutions of the following titles: heid in South Africa, and still there are the grain to pay off their debt. I want January 23, 2002: Africans who have no place to live, who to know why they are part of helping H.R. 2884. An act to amend the Internal are living up in huts, and even last to drive this country into starvation. Revenue Code of 1986 to provide tax relief for night as they showed the people of Ma- There are a lot of powerful forces at victims of the terrorist attacks against the lawi living in grass huts, one little work in the world. Whether we are United States, and for other purposes. space for families with children, with talking about the World Bank or the H.R. 3447. An act to amend title 38, United nothing but a few pots and pans and IMF or any of these entities, they can States Code, to enhance the authority of the Secretary of Veterans Affairs to recruit and dirt floors. find a way to lend money to major cor- retain qualified nurses for the Veterans Well, I said to myself a long time porations to build pipelines in Africa so Health Administration, to provide an addi- ago, I may be one person in the Con- American corporations can get richer tional basis for establishing the inability of gress of the United States, and I may and richer; but they cannot find a way veterans to defray expenses of necessary not be able to get the assistance that to irrigate the land and to help bring medical care, to enhance certain health care Africa needs, I may not be able to con- water in so that people can have crops programs of the Department of Veterans Af- vince my colleagues, I may not be able during times of crisis. We have not fairs, and for other purposes. to get the appropriations, but I will found a way to give agricultural assist- January 24, 2002: never stop trying. I will never be quiet. H.R. 3392. An act to name the national ance so we can fertilize the land and we cemetery in Saratoga, New York, as the Ger- I will never go away. I will never allow can have the people plant the seeds so ald B.H. Solomon Saratoga National Ceme- this kind of devastation to take place they can produce the food that they tery, and for other purposes. and pretend it is not happening. will need. So we have a crisis and peo- February 6, 2002: The people of Africa, many of them ple are dying. H.R. 400. An act to authorize the Secretary in many of these places that I am talk- This administration must step for- of the Interior to establish the Ronald ing about may be poor, uneducated, ward and must provide some leader- Reagan Boyhood Home National Historic may not have anything, and do not ship; must use its prestige in the world Site, and for other purposes. know how to lobby these major coun- to reach out to other countries and get H.R. 1913. An act to require the valuation on nontribal interest ownership of sub- tries of the world. They may not have them to do what they should be doing. surface rights within the boundaries of the representatives that are doing the best I am going to talk about this ad Acoma Indian Reservation, and for other job. But that does not matter. Those of nauseum. I am going to talk about it purposes. us who are here who claim to care until I cannot talk about it anymore. February 12, 2002: about people, who claim to be about I want to say to my colleagues that H.R. 700. An act to reauthorize the Asian the business of humanitarian assist- we cannot sit back and watch these im- Elephant Conservation Act of 1997. ance to the least of these, must speak ages of dying children continue to H.R. 1937. An act to authorize the Sec- out. We must talk about this starva- come on television and say that we are retary of the Interior to engage in certain feasibility studies of water resource projects tion. We must talk about this devasta- legislators doing our job on the domes- in the State of Washington. tion. tic and the international agenda. I February 14, 2002: Oh, yes, there are problems in Africa, know that we can do better than this. H.J. Res. 82. Joint resolution recognizing and some of them are political. And, I know that we know it is a crisis. the 91st birthday of Ronald Reagan. yes, they have, in some places in Afri- I know that Mr. Natsios now knows March 9, 2002: ca, leaders who do not always do the that he is not ahead of this problem. As H.R. 300. An act to provide tax incentives right thing by their people. When we a matter of fact, it is going to get for economic recovery. look at Zimbabwe and the problems worse. When the time comes, after the March 11, 2002: they are having, there is a lot that we rains, when the trucks cannot get up H.R. 2998. An act to authorize the estab- lishment of Radio Free Afghanistan. can criticize Mugabe for. into the villages, many, many people March 13, 2002: But the little people who are hungry are going to die. H.R. 1892. An act to amend the Immigra- and dying are also at the mercy of the So I come this evening to share this tion and Nationality Act to provide for the leadership. They are not making the information and to sound the alarm, acceptance of an affidavit of support from decisions. They cannot be blamed for and to alert all those within my voice another eligible sponsor if the original spon- the sins of Mugabe and anybody else. to join me in urging and pressing this sor has died and the Attorney General has The babies do not deserve that. The administration, to join me in getting determined for humanitarian reasons that families do not deserve that. We cannot my colleagues to move, to join me in the original sponsor’s classification petition should not be revoked. punish the hungry and the weak and making this Congress what it could be H.R. 3699. An act to revise certain grants the ignorant and the uneducated and and what it should be. for continuum of care assistance for home- the poor because they happen to have I am very, very concerned, frus- less individual and families. leaders that perhaps we do not like. We trated, and unhappy about what is March 25, 2002: cannot ignore these countries because going on; and I am not going to allow H.R. 3986. An act to extend the period of they do not have the sophisticated lob- this frustration to cause me to walk availability of unemployment assistance bying power and the communications away. Even though I will go to bed to- under the Robert T. Stafford Disaster Relief and the ability to get people to act. night dissatisfied, frustrated, and even and Emergency Assistance Act in the case of I am challenging this administration upset, I am going to get up tomorrow victims of the terrorist attacks of September 11, 2001. to do the right thing. It is not enough morning and start all over again. I am March 27, 2002: to go to the big G–8 conference and going to get with my leadership again. H.R. 2356. An act to amend the Federal stand with one leader from Africa, as I am going to talk with the leaders on Election Campaign Act of 1971 to provide bi- was done recently, and talk about what the other side of the aisle. I am going partisan campaign reform.

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00053 Fmt 4634 Sfmt 0634 E:\CR\FM\K18JY7.111 pfrm17 PsN: H18PT1 H4928 CONGRESSIONAL RECORD — HOUSE July 18, 2002 April 4, 2002: agency post quarterly on its public Web site, at 1590 East Joyce Boulevard in Fayetteville, H.R. 1499. An act to amend the District of certain statistical data relating to Federal Arkansas, as the ‘‘Clarence B. Craft Post Of- Columbia College Access Act of 1999 to per- sector equal employment opportunity com- fice Building’’. mit individuals who enroll in an institution plaints filed with such agency; and for other June 19, 2002: of higher education more than 3 years after purposes. H.R. 4560. An act to eliminate the dead- graduating from a secondary school and indi- May 17, 2002: lines for spectrum auctions of spectrum pre- viduals who attend private historically black H.R. 495. An act to designate the Federal viously allocated to television broadcasting. colleges and universities nationwide to par- building located in Charlotte Amalie, St. June 25, 2002: ticipate in the tuition assistance programs Thomas, United States Virgin Islands, as the H.R. 3275. An act to implement the Inter- under such Act, and for other purposes. ‘‘Ron de Lugo Federal Building’’. national Convention for the Suppression of H.R. 2739. An act to amend Public Law 107– H.R. 819. An act to designate the Federal Terrorist Bombings to strengthen criminal 10 to authorize a United States plan to en- building located at 143 West Liberty Street, laws relating to attacks on places of public dorse and obtain observer status for Taiwan Medina, Ohio, as the ‘‘Donald J. Pease Fed- use, to implement the International Conven- at the annual summit of the World Health eral Building’’. tion of the Suppression of the Financing of Assembly in May 2002 in Geneva, Switzer- H.R. 3093. An act to designate the Federal Terrorism, to combat terrorism and defend land, and for other purposes. building and United States courthouse lo- the Nation against terrorist acts, and for H.R. 3985. An act to amend the Act entitled cated at 501 Bell Street in Alton, Illinois, as other purposes. ‘‘An Act to authorize the leasing of re- the ‘‘William L. Beatty Federal Building and June 28, 2002: stricted Indian lands for public, religious, United States Courthouse’’. H.R. 327. An act to amend chapter 35 of educational, recreational, residential, busi- H.R. 3282. An act to designate the Federal title 44, United States Code, for the purpose ness, and other purposes requiring the grant building and United States courthouse lo- of facilitating compliance by small business of long-term leases’’, approved August 9, cated at 400 North Main Street in Butte, concerns with certain Federal paperwork re- 1955, to provide for binding arbitration Montana, as the ‘‘Mike Mansfield Federal quirements, to establish a task force to ex- clauses in leases and contracts related to Building and United States Courthouse’’. amine information collection and dissemina- reservation lands of the Gila River Indian May 20, 2002: tion, and for other purposes. Community. H.R. 2048. An act to require a report on the f April 18, 2002: operations of the State Justice Institute. H.R. 1432. An act to designate the facility H.R. 2305. An act to authorize certain Fed- SENATE BILLS AND JOINT RESO- of the United States Postal Service located eral officials with responsibility for the ad- LUTIONS APPROVED BY THE at 3698 Inner Perimeter Road in Valdosta, ministration of the criminal justice system PRESIDENT of the District of Columbia to serve on and Georgia, as the ‘‘Major Lyn McIntosh Post The President notified the Clerk of Office Building’’. participate in the activities of the District of H.R. 1748. An act to designate the facility Columbia Criminal Justice Coordinating the House that on the following dates of the United States Postal Service located Council, and for other purposes. he had approved and signed bills and at 805 Glen Burnie Road in Richmond, Vir- H.R. 4156. An act to amend the Internal joint resolutions of the Senate of the ginia, as the ‘‘Tom Bliley Post Office Build- Revenue Code of 1986 to clarify that the par- following titles: ing’’. sonage allowance exclusion is limited to the February 8, 2002: H.R. 1749. An act to designate the facility fair rental value of the property. S. 1762. An act to amend the Higher Edu- of the United States Postal Service located May 29, 2002: cation Act to 1965 to establish fixed interest at 685 Turnberry Road in Newport News, Vir- H.R. 4592. An act to name the chapel lo- rates for student and parent borrowers, to ginia, as the ‘‘Herbert H. Bateman Post Of- cated in the national cemetery in Los Ange- extend current law with respect to special al- fice Building’’. les, California, as the ‘‘Bob Hope Veterans lowances for lenders, and for other purposes. H.R. 2577. An act to designate the facility Chapel’’. S. 1888. An act to amend title 18 of the of the United States Postal Service located H.R. 4608. An act to name the Department United States Code to correct a technical at 310 South State Street in St. Ignace, of Veterans Affairs Medical and Regional Of- error in the codification of title 36 of the Michigan, as the ‘‘Bob Davis Post Office fice Center in Wichita, Kansas, as the ‘‘Rob- United States Code. Building’’. ert J. Dole Department of Veterans Affairs February 14, 2002: H.R. 2876. An act to designate the facility Medical and Regional Office Center’’. S. 737. An act to designate the facility of of the United States Postal Service located May 30, 2002: the United States Postal Service located at in Harlem, Montana, as the ‘‘Francis H.R. 1840. An act to extend eligibility for 811 South Main Street in Yerington, Nevada, Bardanouve United States Post Office Build- refugee status of unmarried sons and daugh- as the ‘‘Joseph E. Dini, Jr. Post Office’’. ing’’. ters of certain Vietnamese refugees. S. 970. An act to designate the facility of H.R. 2910. An act to designate the facility H.R. 4782. An act to extend the authority of the United States Postal Service located at of the United States Postal Service located the Export-Import Bank until June 14, 2002. 39 Tremont Street, Paris Hill, Maine, as the at 3131 South Crater Road in Petersburg, Vir- June 10, 2002: ‘‘Horatio King Post Office Building’’. ginia, as the ‘‘Norman Sisisky Post Office H.R. 3167. An act to endorse the vision of S. 1026. An act to designate the United Building’’. further enlargement of the NATO Alliance States Post Office located at 60 Third Ave- H.R. 3072. An act to designate the facility articulated by President George W. Bush on nue in Long Branch, New Jersey, as the ‘‘Pat of the United States Postal Service located June 15, 2001, and by former President Wil- King Office Building’’. at 125 Main Street in Forest City, North liam J. Clinton on October 22, 1996, and for March 12, 2002: Carolina, as the ‘‘Vernon Tarlton Post Office other purposes. S. 1206. An act to reauthorize the Appa- Building’’. June 12, 2002: lachian Regional Development Act of 1965, H.R. 3379. An act to designate the facility H.R. 3448. An act to improve the ability of and for other purposes. of the United States Postal Service located the United States to prevent, prepare for, March 14, 2002: at 375 Carlls Path in Deer Park, New York, and respond to bioterrorism and other public S.J. Res. 32. Joint Resolution Congratu- as the ‘‘Raymond M. Downey Post Office health emergencies. lating the United States Military Academy Building’’. June 18, 2002: at West Point on its bicentennial anniver- May 13, 2002: H.R. 1366. An act to designate the United sary, and commending its outstanding con- H.R. 2646. An act to provide for the con- States Post Office building located at 3101 tributions to the Nation. tinuation of agricultural programs through West Sunflower Avenue in Santa Ana, Cali- March 19, 2002: fiscal year 2007, and for other purposes. fornia, as the ‘‘Hector G. Godinez Post Office S. 1857. An act to encourage the negotiated May 7, 2002: Building’’. settlement of tribal claims. H.R. 861. An act to make technical amend- H.R. 1374. An act to designate the facility March 31, 2002: ments to section 10 of title 9, United States of the United States Postal Service located S. 2019. An act to extend the authority of Code. at 600 Calumet Street in Lake Linden, Michi- the Export-Import Bank until April 30, 2002. H.R. 4167. An act to extend for 8 additional gan, as the ‘‘Philip E. Ruppe Post Office May 1, 2002: months the period for which chapter 12 of Building’’. S. 2248. An act to extend the authority of title 11 of the United States Code is reen- H.R. 3789. An act to designate the facility the Export-Import Bank until May 31, 2002. acted. of the United States Postal Service located May 14, 2002: May 14, 2002: at 2829 Commercial Way in Rock Springs, S. 1094. An act to amend the Public Health H.R. 3525. An act to enhance the border se- Wyoming, as the ‘‘Teno Roncalio Post Office Service Act to provide for research, informa- curity of the United States, and for other Building’’. tion, and education with respect to blood purposes. H.R. 3960. An act to designate the facility cancer. May 15, 2002: of the United States Postal Service located May 21, 2002: H.R. 169. An act to require that Federal at 3719 Highway 4 in Jay, Florida, as the ‘‘Jo- S. 378. An act to redesignate the Federal agencies be accountable for violations of seph W. Westmoreland Post Office Building’’. building located at 3348 South Kedzie Ave- antidiscrimination and whistleblower pro- H.R. 4486. An act to designate the facility nue, in Chicago, Illinois, as the ‘‘Paul Simon tection laws; to require that each Federal of the United States Postal Service located Chicago Job Corps Center.’’

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00054 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.033 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4929 June 14, 2002: The motion was agreed to; accord- 8086. A letter from the Principal Deputy S. 1372. An act to reauthorize the Export- ingly (at 7 o’clock and 13 minutes Associate Administrator, Environmental Import Bank of the United States. p.m.), under its previous order, the Protection Agency, transmitting the Agen- June 24, 2002: House adjourned until Monday, July 22, cy’s final rule — Revisions to the California S. 2431. An act to amend the Omnibus State Implementation Plan; Bay Area Air Crime Control and Safe Streets Act of 1968 to 2002, at 12:30 p.m., for morning hour de- Quality Management District; South Coast ensure that chaplains killed in the line of bates. Air Quality Management District [CA 243- duty receive public safety officer death bene- f 0357a; FRL-7232-6] received June 26, 2002, pur- fits. EXECUTIVE COMMUNICATIONS, suant to 5 U.S.C. 801(a)(1)(A); to the Com- June 28, 2002: mittee on Energy and Commerce. S. 2578. An act to amend title 31 of the ETC. 8087. A letter from the Chairman, Council United States Code to increase the public Under clause 8 of rule XII, executive of the District of Columbia, transmitting a debt limit. communications were taken from the copy of D.C. ACT 14-412, ‘‘Cable Television Reform Amendment Act of 2002’’ received f Speaker’s table and referred as follows: July 18, 2002, pursuant to D.C. Code section 8077. A letter from the Principal Deputy 1—233(c)(1); to the Committee on Govern- LEAVE OF ABSENCE Associate Administrator, Environmental ment Reform. Protection Agency, transmitting the Agen- By unanimous consent, leave of ab- 8088. A letter from the Chairman, Council cy’s final rule — Clarified Hydrophobic Ex- sence was granted to: of the District of Columbia, transmitting a tract of Neem Oil; Pesticide Tolerance; Tech- Mr. MASCARA (at the request of Mr. copy of D.C. ACT 14-411, ‘‘Approval of the nical Correction [OPP-2002-0073; FRL-6835-1] GEPHARDT) for today on account of per- Franchise of Comcast Cablevision of the Dis- received June 26, 2002, pursuant to 5 U.S.C. trict to Provide Cable Service in the District sonal reasons. 801(a)(1)(A); to the Committee on Agri- of Columbia Act of 2002’’ received July 18, Mr. NADLER (at the request of Mr. culture. GEPHARDT) for July 17 on account of 8078. A letter from the Principal Deputy 2002, pursuant to D.C. Code section 1— family matters. Associate Administrator, Environmental 233(c)(1); to the Committee on Government Reform. Mr. UNDERWOOD (at the request of Protection Agency, transmitting the Agen- cy’s final rule — Cyhalofop-butyl; Pesticide 8089. A letter from the Executive Director, Mr. GEPHARDT) for today on account of Tolerance Technical Correction [OPP-2002- District of Columbia Retirement Board, official business. 0087; FRL-7185-1] received June 26, 2002, pur- transmitting the personal financial disclo- f suant to 5 U.S.C. 801(a)(1)(A); to the Com- sure statements of Board members, pursuant mittee on Agriculture. to D.C. Code section 1—732 and 1— SPECIAL ORDERS GRANTED 8079. A letter from the Chairman and Chief 734(a)(1)(A); to the Committee on Govern- By unanimous consent, permission to Executive Officer, Farm Credit Administra- ment Reform. tion, transmitting notification of the 2002 8090. A letter from the Executive Director, address the House, following the legis- Federal Labor Relations Authority, trans- lative program and any special orders compensation program adjustments, includ- ing the Agency’s current salary range struc- mitting a copy of Fiscal Year 2001 inventory heretofore entered, was granted to: ture and the performance-based merit pay of commercial activities performed by Fed- (The following Members (at the re- matrix; to the Committee on Agriculture. eral employees pursuant to the provisions of quest of Mr. PALLONE) to revise and ex- 8080. A communication from the President the Federal Activities Inventory Reform tend their remarks and include extra- of the United States, transmitting notifica- Act; to the Committee on Government Re- neous material:) tion of the intention to reallocate funds form. within the Department of Defense previously 8091. A letter from the Deputy Director, Mr. HINCHEY, for 5 minutes, today. transferred from the Emergency Response Federal Mediation and Conciliation Service, Mr. BROWN of Ohio, for 5 minutes, Fund; (H. Doc. No. 107—246); to the Com- transmitting the FY 2001 report pursuant to today. mittee on Appropriations and ordered to be the Federal Managers’ Financial Integrity Mr. DEFAZIO, for 5 minutes, today. printed. Act, pursuant to 31 U.S.C. 3512(c)(3); to the Mrs. MALONEY of New York, for 5 8081. A letter from the Secretary, Depart- Committee on Government Reform. minutes, today. ment of Education, transmitting a report 8092. A letter from the Deputy Archivist, National Archives and Records Administra- Mr. FILNER, for 5 minutes, today. concerning surplus Federal real property dis- posed of to educational institutions, pursu- tion, transmitting the Administration’s final Mr. GEORGE MILLER of California, for ant to 40 U.S.C. 484(o); to the Committee on rule — NARA Regulations; Technical 5 minutes, today. Education and the Workforce. Amendments (RIN: 3095-AB15) received June Ms. NORTON, for 5 minutes, today. 8082. A letter from the Deputy Assistant 27, 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to Ms. KAPTUR, for 5 minutes, today. Administrator, Office of Diversion Control, the Committee on Government Reform. Mr. CROWLEY, for 5 minutes, today. Department of Justice, transmitting the De- 8093. A letter from the Deputy Archivist, Mr. LANGEVIN, for 5 minutes, today. partment’s final rule — Exemption From National Archives and Records Administra- Mr. BAIRD, for 5 minutes, today. Control of Certain Industrial Products and tion, transmitting the Administration’s final Materials Derived From the Cannabis Plant rule — National Historical Publications and Ms. CARSON of Indiana, for 5 minutes, [DEA-206] (RIN: 1117-AA55) received April 15, Records Commission Grant Regulations today. 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the (RIN: 3095-AA93) received June 27, 2002, pur- Mr. DAVIS of Illinois, for 5 minutes, Committee on Energy and Commerce. suant to 5 U.S.C. 801(a)(1)(A); to the Com- today. 8083. A letter from the Principal Deputy mittee on Government Reform. Mr. PALLONE, for 5 minutes, today. Associate Administrator, Environmental 8094. A letter from the Deputy Archivist, Mrs. MINK of Hawaii, for 5 minutes, Protection Agency, transmitting the Agen- National Archives and Records Administra- today. cy’s final rule — Interim Final Determina- tion, transmitting the Administration’s final The following Members (at the re- tion that State has Corrected the Rule Defi- rule — NARA Facilities; Addresses and ciencies and deferral of Sanctions, Ventura Hours (RIN: 3095-AB08) received June 27, 2002, quest of Mr. PENCE) to revise and ex- County Air Pollution Control District, State pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- tend their remarks and include extra- of California [CA 266-0358c, FRL-7235-7] re- mittee on Government Reform. neous material: ceived June 18,2002, pursuant to 5 U.S.C. 8095. A letter from the Assistant Secretary, Mr. PENCE, for 5 minutes, today. 801(a)(1)(A); to the Committee on Energy and Land and Minerals Management, Depart- Mr. ROGERS of Michigan, for 5 min- Commerce. ment of the Interior, transmitting the De- utes, July 22. 8084. A letter from the Principal Deputy partment’s final rule — Prospecting for Min- Mr. FOLEY, for 5 minutes, July 22. Associate Administrator, Environmental erals Other Than Oil, Gas, and Sulphur on Protection Agency, transmitting the Agen- the Outer Continental Shelf (RIN: 1010-AC48) Mr. FERGUSON, for 5 minutes, July 22. cy’s final rule — Idaho: Final Authorization received July 16, 2002, pursuant to 5 U.S.C. Mr. TIAHRT, for 5 minutes, July 22. of State Hazardous Waste Management Pro- 801(a)(1)(A); to the Committee on Resources. (The following Member (at his own gram Revision [FRL-7239-7] received June 26, 8096. A letter from the Assistant Secretary, request) to revise and extend his re- 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the Land and Minerals Management, Depart- marks and include extraneous mate- Committee on Energy and Commerce. ment of the Interior, transmitting the De- rial:) 8085. A letter from the Principal Deputy partment’s final rule — Oil and Gas and Sul- Mr. LAMPSON, for 5 minutes, today. Associate Administrator, Environmental phur Operations in the Outer Continental Protection Agency, transmitting the Agen- Shelf-Document Incorporated by Reference- f cy’s final rule — OMB Approvals Under the API RP 14C (RIN: 1010-AC93) received July 16, ADJOURNMENT Paperwork Reduction Act; Technical Amend- 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the ment [FRL-7237-5] received June 26, 2002, pur- Committee on Resources. Ms. WATERS. Mr. Speaker, I move suant to 5 U.S.C. 801(a)(1)(A); to the Com- 8097. A letter from the Director, Office of that the House do now adjourn. mittee on Energy and Commerce. Surface Mining, Department of the Interior,

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00055 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.031 pfrm17 PsN: H18PT1 H4930 CONGRESSIONAL RECORD — HOUSE July 18, 2002 transmitting the Department’s final rule — thorize assistance for research and develop- PUBLIC BILLS AND RESOLUTIONS New Mexico Regulatory Program [NM-042- ment of innovative technologies for such Under clause 2 of rule XII, public FOR] received July 16, 2002, pursuant to 5 purposes; with an amendment (Rept. 107–587, U.S.C. 801(a)(1)(A); to the Committee on Re- Pt. 1). Referred to the Committee of the bills and resolutions of the following sources. Whole House on the State of the Union. titles were introduced and severally re- 8098. A letter from the Assistant Secretary, Mr. SMITH of New Jersey: Committee on ferred, as follows: Indian Affairs, Department of the Interior, Veterans’ Affairs. H.R. 4940. A bill to amend By Mr. RAHALL (for himself, Mr. KIL- transmitting the Department’s final rule — title 38, United States Code, to enact into DEE, Mr. GEORGE MILLER of Cali- Law and Order on Indian Reservations (RIN: law eligibility requirements for burial in Ar- fornia, Mr. FALEOMAVAEGA, Mr. 1076-AE33) received June 27, 2002, pursuant to lington National Cemetery, and for other PALLONE, Mr. UDALL of New Mexico, 5 U.S.C. 801(a)(1)(A); to the Committee on purposes (Rept. 107–588). Referred to the Mr. CARSON of Oklahoma, Ms. MCCOL- Resources. Committee of the Whole House on the State LUM, Mr. KENNEDY of Rhode Island, 8099. A letter from the Assistant Secretary, of the Union. and Mr. BALDACCI): Indian Affairs, Department of the Interior, Mr. SMITH of New Jersey: Committee on H.R. 5155. A bill to protect sacred Native transmitting the Department’s final rule — Veterans’ Affairs. H.R. 5055. A bill to author- American Federal lands from significant Distribution of Fiscal Year 2002 Indian Res- ize the placement in Arlington National damage; to the Committee on Resources. ervation Roads Funds (RIN: 1076-AE28) re- Cemetery of a memorial honoring the World By Mrs. CUBIN: ceived June 27, 2002, pursuant to 5 U.S.C. War II veterans who fought in the Battle of H.R. 5156. A bill to amend the Outer Conti- 801(a)(1)(A); to the Committee on Transpor- the Bulge (Rept. 107–589). Referred to the nental Shelf Lands Act to protect the eco- tation and Infrastructure. Committee of the Whole House on the State nomic and land use interests of the Federal 8100. A letter from the Chief, Regulations of the Union. Government in the management of outer and Administrative Law, USCG, Department Mr. GOSS: Permanent Select Committee continental shelf lands for energy-related of Transportation, transmitting the Depart- on Intelligence. H.R. 4628. A bill to authorize and certain other purposes, and for other ment’s final rule — Security Zones; Port of appropriations for fiscal year 2003 for intel- purposes; to the Committee on Resources. Palm Beach, Palm Beach, FL; Port Ever- ligence and intelligence-related activities of By Mr. YOUNG of Alaska (for himself, glades, Fort Lauderdale, FL; Port of Miami, the United States Government, the Commu- Mr. OBERSTAR, Mr. PETRI, Mr. BOR- Miami, FL, and Port of Key West, Key West, nity Management Account, and the Central SKI, Mr. ENGLISH, Mr. PITTS, Mr. Florida; Hutchinson Island Power Plant, St. Intelligence Agency Retirement and Dis- OTTER, Mr. COBLE, Mr. KINGSTON, Mr. Lucie, Florida, and Turkey Point Power ability System, and for other purposes; with MCGOVERN, Mr. ACEVEDO-VILA, Mr. Plant, Florida City, FL [COTP MIAMI-02-054] an amendment (Rept. 107–592). Referred to CRAMER, Mr. FRANK, Mr. THORN- (RIN: 2115-AA97) received July 16, 2002, pur- the Committee of the Whole House on the BERRY, Mr. DEFAZIO, Mr. FOLEY, Mr. suant to 5 U.S.C. 801(a)(1)(A); to the Com- State of the Union. COMBEST, Mr. HOLDEN, Mr. FORBES, Mr. SIMPSON, Mrs. BONO, Mr. mittee on Transportation and Infrastruc- DISCHARGE OF COMMITTEE LOBIONDO, Mrs. TAUSCHER, Mr. TAY- ture. Pursuant to clause 2 of rule XII the 8101. A letter from the Chief, Regulations LOR of Mississippi, Mrs. KELLY, Mr. and Administrative Law, USCG, Department Committee on Science discharged from CALVERT, Ms. WOOLSEY, Mr. BOYD, of Transportation, transmitting the Depart- further consideration. H.R. 1070 re- Mr. MALONEY of Connecticut, Mr. ment’s final rule — Special Local Regula- ferred to the Committee of the Whole HALL of Texas, Mr. THOMPSON of Cali- tions; Deerfield Beach Super Boat Race, House on the State of the Union. fornia, Mr. GEKAS, Mr. LYNCH, Ms. Deerfield Beach, FL [CGD07-02-013] (RIN: HOOLEY of Oregon, Mr. BEREUTER, 2115-AE46) received July 16, 2002, pursuant to f Mr. MANZULLO, Mr. GILCHREST, Mr. 5 U.S.C. 801(a)(1)(A); to the Committee on GOSS, and Mr. LEWIS of California): Transportation and Infrastructure. REPORTED BILL SEQUENTIALLY H.R. 5157. A bill to amend section 5307 of 8102. A letter from the Chief, Regulations REFERRED title 49, United States Code, to allow transit and Administrative Law, USCG, Department systems in urbanized areas that, for the first of Transportation, transmitting the Depart- Under clause 2 of rule XII, bills and time, exceeded 200,000 in population accord- ment’s final rule — Drawbridge Operation reports were delivered to the Clerk for ing to the 2000 census to retain flexibility in Regulations; Atlantic Intracoastal Water- printing, and bills referred as follows: the use of Federal transit formula grants in fiscal year 2003, and for other purposes; to way, mile 1069.4 Dania Beach, Broward Coun- Mr. OXLEY: Committee on Financial Serv- the Committee on Transportation and Infra- ty, FL [CGD07-01-143] (RIN: 2115-AE47) re- ices. H.R. 1701. A bill to amend the Consumer structure. ceived July 1, 2002, pursuant to 5 U.S.C. Credit Protection Act to assure meaningful By Mr. THOMPSON of California (for 801(a)(1)(A); to the Committee on Transpor- disclosures of the terms of rental-purchase himself, Mr. BROWN of Ohio, Mr. tation and Infrastructure. agreements, including disclosures of all costs BLUMENAUER, Mr. HALL of Ohio, Ms. 8103. A letter from the Chairman, Inter- to consumers under such agreements, to pro- SLAUGHTER, Mr. FILNER, Mrs. THUR- agency Coordination Committee on Oil Pol- vide certain substantive rights to consumers MAN, Ms. MCKINNEY, and Mr. GEORGE lution Research, Department of Transpor- under such agreements, and for other pur- tation, transmitting the Department’s re- MILLER of California): poses, with an amendment; referred to the H.R. 5158. A bill to establish a grant and port on the Interagency Coordinating Com- Committee on Judiciary for a period ending fee program through the Environmental Pro- mittee on Oil Spill Pollution Research, pur- not later than September 9, 2002, for consid- tection Agency to encourage and promote suant to 33 U.S.C. 2761(e); to the Committee eration of such provisions of the bill and the recycling of used computers and to pro- on Science. amendment as fall within the jurisdiction of mote the development of a national infra- 8104. A letter from the Regulations Coordi- that committee pursuant to clause 1 (K), structure for the recycling of used com- nator, Department of Health and Human rule X (Rept. 107–590, Pt. 1). puters, and for other purposes; to the Com- Services, transmitting the Department’s Mr. SENSENBRENNER: Committee on the mittee on Energy and Commerce. final rule — Medicare Program; Criteria for Judiciary. H.R. 3215. A bill to amend title 18, By Mrs. JO ANN DAVIS of Virginia: Submitting Supplemental Practice Expense United States Code, to expand and modernize H.R. 5159. A bill to authorize States to reg- Survey Data Under the Physician Fee Sched- the prohibition against interstate gambling, ulate the receipt and disposal of out-of-State ule [CMS-1223-IFC] (RIN: 0938-AL99) received and for other purposes, with an amendment; municipal solid waste; to the Committee on June 27, 2002, pursuant to 5 U.S.C. referred to the Committee on Energy and Energy and Commerce. 801(a)(1)(A); jointly to the Committees on Commerce for a period ending not later than By Mr. GEPHARDT (for himself, Mr. Ways and Means and Energy and Commerce. July 19, 2002, for consideration of such provi- SHOWS, Mr. HOLDEN, Mr. PHELPS, Ms. f sions of the bill and amendment as fall with- CARSON of Indiana, Mr. RANGEL, Mr. in the jurisdiction of that committee pursu- LAFALCE, Mr. CONYERS, Mr. GEORGE REPORTS OF COMMITTEES ON ant to clause 1(f), rule X (Rept. 107–591, Pt. MILLER of California, Mr. MATSUI, PUBLIC BILLS AND RESOLUTIONS 1). Ms. LEE, Mr. DICKS, Mr. WAXMAN, Ms. SLAUGHTER, Mr. CARDIN, Mr. Under clause 2 of rule XIII, reports of f committees were delivered to the Clerk TIERNEY, Mr. LYNCH, Mr. BONIOR, Mr. BARRETT, and Mr. FRANK): for printing and reference to the proper TIME LIMITATION OF REFERRED H.R. 5160. A bill to promote corporate re- calendar, as follows: BILL sponsibility; to the Committee on Financial Mr. YOUNG of Alaska: Committee on Pursuant to clause 2 of rule XII the Services, and in addition to the Committees Transportation and Infrastructure. H.R. 1070. on Ways and Means, the Judiciary, and Edu- A bill to amend the Federal Water Pollution following action was taken by the cation and the Workforce, for a period to be Control Act to authorize the Administrator Speaker: subsequently determined by the Speaker, in of the Environmental Protection Agency to H.R. 1070. Referral to the Committee on each case for consideration of such provi- make grants for remediation of sediment Science extended for a period ending not sions as fall within the jurisdiction of the contamination in areas of concern and to au- later than July 18, 2002. committee concerned.

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00056 Fmt 4634 Sfmt 0634 E:\CR\FM\L18JY7.000 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4931

By Mr. DEUTSCH (for himself and Ms. fits which are required in the case of spouses H.R. 134: Mr. MATHESON. ROS-LEHTINEN): and surviving spouses who are also receiving H.R. 168: Mr. HERGER. H.R. 5161. A bill to provide for the transfer certain Government pensions shall be equal H.R. 257: Mr. HYDE and Mr. GRAHAM. of certain real property by the Secretary of to the amount by which the total amount of H.R. 267: Mr. JOHN. Housing and Urban Development; to the the combined monthly benefit (before reduc- H.R. 439: Mr. UNDERWOOD. Committee on Government Reform. tion) and monthly pension exceeds $1,200; to H.R. 488: Mr. KENNEDY of Rhode Island. By Mr. GUTIERREZ: the Committee on Rules. H.R. 548: Mr. TIERNEY. H.R. 5162. A bill to treat arbitration By Mrs. MORELLA (for herself, Mr. H.R. 632: Mr. GONZALEZ, Mr. STEARNS, and clauses which are unilaterally imposed on EHRLICH, Mr. GILCHREST, Mr. TOM Mr. FOSSELLA. consumers as an unfair and deceptive trade DAVIS of Virginia, Mr. WOLF, Mr. H.R. 690: Mr. LEVIN. practice and prohibit their use in consumer BOEHLERT, Mr. MORAN of Virginia, H.R. 699: Mr. HILLEARY. transactions, and for other purposes; to the and Mr. WYNN): H.R. 737: Ms. MCKINNEY. Committee on Financial Services. H. Res. 494. A resolution honoring the H.R. 792: Mr. NADLER and Mr. SMITH of New By Mr. HAYWORTH (for himself and United States Youth Soccer National Cham- Jersey. Mr. PASTOR): pionships at the Maryland SoccerPlex in H.R. 951: Ms. SLAUGHTER, Mr. LIPINSKI, and H.R. 5163. A bill to approve the settlement Germantown, Maryland; to the Committee Mr. WALSH. of the water rights claims of the Zuni Indian on Government Reform. H.R. 1005: Mr. PHELPS. Tribe in Apache County, Arizona, and for H.R. 1021: Mr. SHIMKUS. f other purposes; to the Committee on Re- H.R. 1155: Mr. LINDER. sources. MEMORIALS H.R. 1213: Mr. BEREUTER. H.R. 1233: Mr. UNDERWOOD. By Mrs. MALONEY of New York (for Under clause 3 of rule XII, memorials herself, Mr. SERRANO, Mr. WEINER, H.R. 1360: Mr. BECERRA and Mr. CARSON of and Mr. MCNULTY): were presented and referred as follows: Oklahoma. H.R. 5164. A bill to amend the Robert T. 334. The SPEAKER presented a memorial H.R. 1490: Ms. RIVERS. Stafford Disaster Relief and Emergency As- of the Senate of the State of Louisiana, rel- H.R. 1556: Mr. SKELTON. sistance Act to improve Federal response ef- ative to Senate Resolution No. 58 memori- H.R. 1581: Mr. PUTNAM and Mr. BOSWELL forts after a terrorist strike or other major alizing the United States Congress to enact H.R. 1609: Mr. FROST and Mr. SKELTON. disaster affecting homeland security, and for legislation to ensure that deserving victims H.R. 1908: Mr. BRYANT. other purposes; to the Committee on Trans- of asbestos exposure receive compensation H.R. 2021: Mr. PETERSON of Minnesota. portation and Infrastructure, and in addition for their injuries; to the Committee on the H.R. 2219: Mr. BISHOP and Mr. ENGEL. to the Committee on Energy and Commerce, Judiciary. H.R. 2220: Mr. BAIRD. H.R. 2316: Mr. HEFLEY. for a period to be subsequently determined 335. Also, a memorial of the Legislature of H.R. 2320: Mr. CARSON of Oklahoma. by the Speaker, in each case for consider- the State of Louisiana, relative to Senate H.R. 2462: Mr. STUPAK. ation of such provisions as fall within the ju- Concurrent Resolution No. 16 memorializing H.R. 2748: Ms. SOLIS. risdiction of the committee concerned. the United States Congress to impose a H.R. 2817: Mr. PHELPS. By Mr. PLATTS (for himself, Mr. JEN- quota on certain imported seafood such as H.R. 2905: Mr. LOBIONDO. KINS, and Mr. SOUDER): shrimp; jointly to the Committees on Agri- H.R. 3154: Mr. SMITH of New Jersey. H.R. 5165. A bill to amend the Internal Rev- culture and Ways and Means. H.R. 3183: Mr. BONIOR. enue Code of 1986 to provide for an enhanced 336. Also, a memorial of the Legislature of H.R. 3246: Mr. MCDERMOTT. deduction for qualified residence interest on the State of Hawaii, relative to Senate Con- H.R. 3320: Mr. HERGER. acquisition indebtedness for heritage homes; current Resolution No. 69 memorializing the H.R. 2350: Mr. CRAMER, Mr. COLLINS, Mr. to the Committee on Ways and Means. United States Congress to request that the MATHESON, and Mr. HILLEARY. United Nations consider the establishment By Mr. PORTMAN (for himself, Mr. H.R. 3585: Mr. LEVIN. in Hawaii, of a Center for the Health, Wel- ARMEY, Mr. CRANE, Mr. HOUGHTON, H.R. 3645: Mr. SHOWS, Ms. BERKLEY, Mr. fare, and Education of Children, Youth and Mr. CAMP, Ms. DUNN, Mr. ENGLISH, PICKERING, and Mr. RODRIGUEZ. Families for Asia and the Pacific; jointly to Mr. WATKINS, Mr. WELLER, Mr. LEWIS H.R. 3710: Mr. SNYDER, Mr. BRYANT, Mr. the Committees on International Relations of Kentucky, and Mr. FOLEY): JEFFERSON, Mr. LARSON of Connecticut, Mr. H.R. 5166. A bill to simplify the Internal and Energy and Commerce. RANGEL, and Mr. OWENS. 337. Also, a memorial of the Senate of the Revenue Code of 1986; to the Committee on H.R. 3747: Mr. GEORGE MILLER of Cali- Ways and Means. State of Louisiana, relative to Senate Reso- fornia. lution No. 62 memorializing the United By Mr. STARK: H.R. 3770: Mr. BALDACCI and Mr. ENGLISH. H.R. 5167. A bill to amend title XVIII of the States Congress to convene a summit meet- H.R. 3372: Ms. MCKINNEY. Social Security Act with respect to reform of ing to discuss a long range, strategic plan for H.R. 3782: Ms. HARMAN and Ms. MILLENDER- payment for drugs and biologicals under the future economic development of the utility, MCDONALD. Medicare Program; to the Committee on En- communication, and transportation industry H.R. 3795: Mr. EVANS and Mr. ABERCROMBIE. ergy and Commerce, and in addition to the in Louisiana; jointly to the Committees on H.R. 3804: Mr. HALL of Ohio, Mr. NADLER, Committee on Ways and Means, for a period Transportation and Infrastructure, Financial Ms. NORTON, and Mr. LEVIN. to be subsequently determined by the Speak- Services, and Energy and Commerce. H.R. 3880: Mr. SWEENEY. er, in each case for consideration of such pro- 338. Also, a memorial of the Legislature of H.R. 3884: Ms. VELAZQUEZ, Mr. KUCINICH, visions as fall within the jurisdiction of the the State of Colorado, relative to Senate Mr. BOSWELL, Mr. FORD, Mr. ROTHMAN, and committee concerned. Joint Resolution No. 02-008 memorializing Mr. THOMPSON of Mississippi. By Mr. TAYLOR of North Carolina: the United States Congress and President H.R. 3973: Mr. FOSSELLA. H.R. 5168. A bill to provide a process for the Bush for his decision to protect the United H.R. 3974: Mr. RUSH. establishment of the Blue Ridge National States steel industry and continue to express H.R. 3992: Mr. CARSON of Oklahoma. Heritage Area in the State of North Caro- support for the federal Steel Revitalization H.R. 4010: Mr. COOKSEY. lina, and for other purposes; to the Com- Act of 2001 and the emergency measures that H.R. 4029: Mr. UNDERWOOD. mittee on Resources. need to be taken to save the American Steel H.R. 4030: Mr. WHITFIELD. By Mr. FOSSELLA (for himself, Mrs. Industry; jointly to the Committees on Ways H.R. 4058: Mr. CROWLEY AND MRS. MORELLA. MCCARTHY of New York, Mr. HIN- and Means, Financial Services, and Edu- H.R. 4515: Mr. FROST. CHEY, Mr. GRUCCI, Mr. GILMAN, Mr. cation and the Workforce. H.R. 4555: Mr. FOSSELLA and Ms. BROWN of RANGEL, Mrs. MALONEY of New York, 339. Also, a memorial of the Legislature of Florida. Mr. TOWNS, Mr. NADLER, Mr. KING, the State of Hawaii, relative to Senate Con- H.R. 4599: Mr. PHELPS and Ms. NORTON. Mr. QUINN, Mrs. KELLY, Mr. ACKER- current Resolution No. 127 memorializing H.R. 4600: Mrs. KELLY and Mrs. CUBIN. MAN, Mr. WEINER, Mr. HOUGHTON, Mr. the United States Congress to appropriate H.R. 4614: Mr. WEXLER. ISRAEL, Mr. ENGEL, and Mr. BOEH- adequate financial impact assistance for H.R. 4646: Mr. DEUTSCH and Mr. SCHIFF. LERT): health, education, and other social services H.R. 4683: Ms. BALDWIN, Mr. DEFAZIO, and H. Res. 492. A resolution expressing grati- for Hawaii’s Freely Associated States citi- Ms. RIVERS. tude for the 10-month-long World Trade Cen- zens; jointly to the Committees on Agri- H.R. 4691: Mr. BURTON of Indiana, Mr. ter cleanup and recovery efforts at the Fresh culture, Ways and Means, Financial Serv- PETRI, Mr. OBERSTAR, Mr. CANTOR, Mr. KEN- Kills Landfill on Staten Island, New York, ices, and Energy and Commerce. NEDY of Minnesota, Mr. HOEKSTRA, Mr. following the terrorist attacks of September SCHROCK, and Mr. TOM DAVIS of Virginia. f 11, 2001; to the Committee on Government H.R. 4697: Mr. FOLEY and Mr. BROWN of Reform. ADDITIONAL SPONSORS Ohio. By Mr. JEFFERSON: Under clause 7 of rule XII, sponsors H.R. 4720: Mr. GORDON. H. Res. 493. A resolution providing for con- H.R. 4738: Mr. EHRLICH, Mrs. BONO, and Mr. sideration of the bill (H.R. 664) to amend were added to public bills and resolu- WHITFIELD. title II of the Social Security Act to provide tions as follows: H.R. 4740: Mr. UDALL of New Mexico and that the reductions in Social Security bene- H.R. 31: Mr. SULLIVAN. Mr. THOMPSON of California.

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00057 Fmt 4634 Sfmt 0634 E:\CR\FM\L18JY7.100 pfrm17 PsN: H18PT1 H4932 CONGRESSIONAL RECORD — HOUSE July 18, 2002

H.R. 4742: Mr. HOYER. H. Res. 87: Mr. CUMMINGS. William J. Jefferson, Michael F. Doyle, H.R. 4764: Mr. PHELPS and Mr. COSTELLO. H. Res. 117: Mr. MCDERMOTT, Mr. DOGGETT, Charles B. Rangel, Melvin L. Watt, Darlene H.R. 4777: Mr. QUINN, Mr. HILL, and Ms. and Mr. INSLEE. Hooley, Maxine Waters, Baron P. Hill, Mike MILLENDER-MCDONALD. H. Res. 410: Mr. PLATTS. Thompson, Barney Frank, Gene Green, Sam H.R. 4793: Mr. CUMMINGS and Mr. PASCRELL. H. Res. 453: Mr. DOYLE. Farr, Eliot L. Engel, Fortney Pete Stark, H.R. 4814: Mr. ACEVEDO-VILA. H. Res. 484: Mr. BISHOP, Mr. BOYD, Mr. John D. Dingell, Henry A. Waxman, Robert H.R. 4843: Mr. PENCE, Mr. SOUDER, Mr. DAVIS of Illinois, Mrs. MINK of Hawaii, Mr. C. Scott, Silvestre Reyes, Robert A. Borski, PLATTS, Mr. LEACH, Mr. BRYANT, Mr. DAVIS ETHERIDGE, Mr. WEXLER, Ms. EDDIE BERNICE Tony P. Hall, Howard L. Berman, Stephanie of Illinois, Mr. BLAGOJEVICH, Mr. MANZULLO, JOHNSON of Texas, Mr. LYNCH, and Mr. GREEN Tubbs Jones, Martin Olav Sabo, Harold E. Mr. HILLEARY, Mr. BURTON of Indiana, and of Texas. Ford, Jr., Sander M. Levin, Betty McCollum, Mr. PRICE of North Carolina. Ed Pastor, James L. Oberstar, Norman D. f H.R. 4887: Mr. KLECZKA and Mr. DEUTSCH. Dicks, Richard A. Gephardt, Peter Deutsch, H.R. 4904: Ms. SCHAKOWSKY, Mr. BONIOR, DELETIONS OF SPONSORS FROM Jerrold Nadler, Neil Abercrombie, Ellen O. and Mr. ROTHAM. PUBLIC BILLS AND RESOLUTIONS Tauscher, Joseph Crowley, Lloyd Doggett, H.R. 4925: Mr. MALONEY of Connecticut. Mike McIntyre, Rod R. Blagojevich, and Eli- H.R. 4940: Mr. UDALL of New Mexico, Mr. Under clause 7 of rule XII, sponsors jah E. Cummings. GIBBONS, and Mr. CALLAHAN. were deleted from public bills and reso- H.R. 4950: Mr. GRAHAM, Mr. SCHROCK, and lutions as follows: f Mr. BROWN of South Carolina. H.R. 5059: Mr. TAYLOR of North Carolina. H.R. 4965: Mr. GANSKE, Mr. GOSS, Mr. DISCHARGE PETITIONS— PLATTS, and Mr. POMBO. f ADDITIONS OR DELETIONS H.R. 5023: Ms. LEE, Mr. LANGEVIN, Mr. The following Members added their DOGGETT, Mr. FROST, Mr. FILNER, Mr. DISCHARGE PETITIONS names to the following discharge peti- TIERNEY, Mr. LIPINSKI, Mr. WAXMAN, Ms. Under clause 2 of rule XV, the fol- tions: SCHAKOWSKY, Mr. BONIOR, and Mr. MCGOV- lowing discharge petition was filed: ERN. Petition 7, by Ms. THURMAN on House Petition 8. July 17, 2002, by Mr. MALONEY of H.R. 5026: Mr. FOSSELLA. Resolution 425: Melvin L. Watt, and Martin Connecticut on House Resolution 456, was H.R. 5031: Ms. LOFGREN and Mr. DEUTSCH. Olav Sabo. signed by the following Members: James H., H.R. 5033: Mr. SCHROCK, Mr. KELLER, Mr. Maloney, Lois Capps, Nick Lampson, Shelley GALLEGLY, and Mr. PETERSON of Pennsyl- f vania. Berkley, Nancy Pelosi, Martin Frost, John H.R. 5055: Mr. PICKERING. B. Larson, Robert Menendez, Adam B. Schiff, AMENDMENTS Gergory W. Meeks, Ciro D. Rodriguez, Diane H.R. 5064: Mr. RILEY. Under clause 8 of rule XVIII, pro- H.R. 5085: Mr. LEVIN and Mrs. JO ANN E. Watson, Richard E. Neal, Rosa L. DeLauro, Vic Snyder, Brad Carson, John posed amendments were submitted as DAVIS OF VIRGINIA. follows: H.R. 5104: Ms. MCKINNEY, Mr. KILDEE, Mr. Lewis, Max Sandlin, Benjamin L. Cardin, MCDERMOTT, and Mr. FROST. Hilda L. Solis, Louise McIntosh Slaughter, AGRICULTURE APPROPRIATIONS BILL H.R. 5107: Ms. MCCARTHY of Missouri, Mr. Collin C. Peterson, Bart Stupak, Barbara OFFERED BY: MR. HEFLEY Lee, Stephen F. Lynch, Marcy Kaptur, Lynn ACKERMAN, Mr. ANDREWS, Mr. BARRETT, Ms. AMENDMENT NO. 2: At the end of the bill, C. Woolsey, Julia Carson, Susan A. Davis, BERKLEY, Mr. BLAGOJEVICH, Mr. CLEMENT, before the short title, insert the following Loretta Sanchez, Diana DeGette, Michael M. Ms. DELAURO, Mr. GILMAN, Ms. ESHOO, Mr. new section: Honda, Patrick J. Kennedy, Martin T. Mee- EVANS, Mr. FALEOMAVAEGA, Mr. FATTAH, Mr. SEC. ll. Each amount appropriated or han, Dale E. Kildee, Bobby L. Rush, Dennis FILNER, Mr. FORD, Mr. GREEN of Texas, Mr. otherwise made available by this Act that is J. Kucinich, Bill Pascrell, Jr., Robert T. GUTIERREZ, Mr. HINCHEY, Mr. INSLEE, Mr. not required to be appropriated or otherwise Matsui, Ron Kind, Peter A. DeFazio, Nydia KENNEDY of Rhode Island, Mr. KUCINICH, Mr. made available by a provision of law is here- M. Velazquez, Gary L. Ackerman, Ike Skel- LEWIS of Georgia, Mr. LIPINSKI, Ms. LOFGREN, by reduced by 1 percent. Mr. LUTHER, Mrs. MCCARTHY of New York, ton, David D. Phelps, Thomas M. Barrett, AGRICULTURE APPROPRIATIONS BILL Mr. MCNULTY, Mr. MEEKS of New York, Mr. Karen McCarthy, Tom Udall, Tom Sawyer, GEORGE MILLER of California, Mr. NADLER, Janice D. Schakowsky, Lane Evans, Karen OFFERED BY: MS. WATERS Mr. ROTHMAN, Ms. ROYBAL-ALLARD, Mr. L. Thurman, Danny K. Davis, Jim AMENDMENT NO. 3: In title V, in the item UDALL of Colorado, Ms. VELAZQUEZ, Ms. WA- McDermott, James R. Langevin, John F. relating to ‘‘Public Law 480 Title II Grants’’ TERS, and Mr. WEINER. Tierney, Grace F. Napolitano, Ruben add at the end the following new paragraph: H.R. 5112: Mr. UNDERWOOD. Hinojosa, Juanita Millender-McDonald, ‘‘In addition for such purposes, to be used H.R. 5122: Mr. BURTON of Indiana. Sherrod Brown, Steve Israel, Maurice D. Hin- to provide seeds, tools, water control sys- H.R. 5147: Mrs. MYRICK, Mr. CANNON, Mr. chey, James P. Moran, Thomas H. Allen, tems, and other agricultural inputs for small MANZULLO, Mr. WAXMAN, Ms. MCCARTHY of John W. Olver, Edward J. Markey, Rush D. farmers in southern African countries af- Missouri, Mr. REHBERG, Mr. WHITFIELD, Mr. Holt, Nita M. Lowey, Marion Berry, Major R. fected by the current food crisis, including ADERHOLT, and Mr. LEWIS of California. Owens, Jose E. Serrano, Frank Pallone, Jr., Lesotho, Malawi, Mozambique, Swaziland, H.J. Res. 105: Mr. BALLENGER. Michael R. McNulty, Zoe Lofgren, Eddie Ber- Zambia, and Zimbabwe, $100,000,000: Provided, H.J. Res. 106: Mr. AKIN, Mr. BALLENGER, nice Johnson, Bob Filner, Robert E. An- That the entire amount shall be available and Mr. BARCIA. drews, Edolphus Towns, Rick Larsen, Bill only to the extent an official budget request, H. Con. Res. 4: Mr. MALONEY of Con- Luther, Xavier Becerra, Jim Turner, Mike that includes designation of the entire necticut. Ross, Lynn N. Rivers, Bob Etheridge, Leon- amount of the request as an emergency re- H. Con. Res. 20: Mr. LYNCH, Mr. FILNER, ard L. Boswell, Joe Baca, Bernard Sanders, quirement as defined in the Balanced Budget and Mrs. BONO. Carolyn B. Maloney, Anna G. Eshoo, Eva M. and Emergency Deficit Control Act of 1985, H. Con. Res. 164: Mr. FRANK. Clayton, Tom Lantos, Wm. Lacy Clay, as amended, is transmitted by the President H. Con. Res. 269: Ms. ESHOO, Mr. GEKAS, Tammy Baldwin, Sheila Jackson-Lee, Den- to the Congress: Provided further, That such Mr. GILCHREST, Mr. GUTIERREZ, Mrs. nis Moore, Ted Strickland, Robert Wexler, amount is designated by the Congress as an MORELLA, Ms. RIVERS, and Mr. SNYDER. Steven R. Rothman, Joseph M. Hoeffel, Al- emergency requirement pursuant to section H. Con. Res. 297: Mr. LARSON of Con- bert Russell Wynn, Carolyn C. Kilpatrick, 251(b)(2)(A) of such Act. necticut, Mrs. MORELLA, Mr. FROST, Mrs. Chet Edwards, John M. Spratt, Jr., Earl F. AGRICULTURE APPROPRIATIONS BILL MINK of Hawaii, Mr. ROHRABACHER, Mr. BARR Hilliard, Anthony D. Weiner, Donald M. of Georgia, and Mr. FOSSELLA. Payne, Cynthia A. McKinney, Carrie P. OFFERED BY: MS. WATERS H. Con. Res. 436: Ms. SOLIS. Meek, Sanford D. Bishop, Jr., Jim Matheson, AMENDMENT NO. 4: In title V, in the item H. Con. Res. 437: Mr. DICKS, Mr. ROHR- Jay Inslee, Lucille Roybal-Allard, Mark relating to ‘‘Public Law 480 Title II Grants’’ ABACHER, Mr. DEUTSCH, and Mr. ENGLISH. Udall, Steny H. Hoyer, Nick J. Rahall II, add at the end the following new paragraph: H. Con. Res. 438: Mrs. JONES of Ohio, Mr. Patsy T. Mink, Gene Taylor, Gary A. Condit, ‘‘In addition for such purposes, $200,000,000: LEWIS of Georgia, and Mr. FRANK. David R. Obey, Jim Davis, Brad Sherman, Provided, That the entire amount shall be H. Con. Res. 439: Mr. WAXMAN, Mr. WALSH, John J. LaFalce, Carolyn McCarthy, John available only to the extent an official budg- Mrs. MORELLA, Mr. OBERSTAR, Mr. KOLBE, Conyers, Jr., James P. McGovern, George et request, that includes designation of the Mr. STARK, Mr. HOYER, Mr. DICKS, Mr. COM- Miller, Alcee L. Hastings, Corrine Brown, entire amount of the request as an emer- BEST, Mr. SKEEN, Mr. MCDERMOTT, Mr. TAN- Tim Holden, James A. Barcia, Michael E. gency requirement as defined in the Bal- NER, Mr. NEAL of Massachusetts, Mr. BER- Capuano, David Wu, Bennie G. Thompson, anced Budget and Emergency Deficit Control MAN, and Ms. NORTON. James E. Clyburn, Jesse L. Jackson, Jr., Act of 1985, as amended, is transmitted by H. Con. Res. 442: Mr. SHUSTER, Mr. OTTER, Robert A. Brady, Robert E. (Bud) Cramer, the President to the Congress: Provided fur- Mr. ISAKSON, Mr. MORAN of Kansas, Mr. Jr., Luis V. Gutierrez, Solomon P. Ortiz, Wil- ther, That such amount is designated by the GRAVES, Mr. COBLE, Mr. EHLERS, Mr. liam D. Delahunt, Jerry F. Costello, Bart Congress as an emergency requirement pur- REHBERG, and Mr. ROGERS of Michigan. Gordon, William J. Coyne, Chaka Fattah, suant to section 251(b)(2)(A) of such Act.

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00058 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.017 pfrm17 PsN: H18PT1 July 18, 2002 CONGRESSIONAL RECORD — HOUSE H4933 H.R. 5120 (b)(1)(i), or (b)(2) of title 31, Code of Federal agency to establish, apply, or enforce any OFFERED BY: MR. FLAKE Regulations. numerical goal, target, or quota for sub- AMENDMENT NO. 20: At the end of the bill, H.R. 5120 jecting the employees of the agency to pub- insert after the last section (preceding the lic-private competitions or converting such OFFERED BY: MR. MORAN OF VIRGINIA short title) the following new section: employees or the work performed by such SEC. ll. None of the funds made available AMENDMENT NO. 21: At the end of title VI employees to private contractor performance in this Act may be used to enforce any re- (page ll, line ll), insert the following: under Office of Management and Budget Cir- striction on remittances to nationals of Cuba SEC. ll. None of the funds made available cular A–76 or any other administrative regu- covered by section 515.570(a)(1)(i), (a)(2), in this Act may be used by an executive lation, directive, or policy.

VerDate Jun 13 2002 02:14 Jul 19, 2002 Jkt 099060 PO 00000 Frm 00059 Fmt 4634 Sfmt 0634 E:\CR\FM\A18JY7.024 pfrm17 PsN: H18PT1 E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 107 CONGRESS, SECOND SESSION

Vol. 148 WASHINGTON, THURSDAY, JULY 18, 2002 No. 98 Senate The Senate met at 9:30 a.m. and was to the Senate from the President pro ator STABENOW is here, but also Sen- called to order by the Honorable JOHN tempore (Mr. BYRD). ator SPECTER is here. Senator SPECTER F. KERRY, a Senator from the State of The legislative clerk read the fol- has a conference at 10 o’clock. We are Massachusetts. lowing letter: entitled to the time. If Senator STABE- U.S. SENATE, NOW has a time situation, she should PRAYER PRESIDENT PRO TEMPORE, proceed. I do not know if she would The Chaplain, Dr. Lloyd John Washington, DC, July 18, 2002. have time to give the Senator from Ogilvie, offered the following prayer: To the Senate: Pennsylvania 10 minutes or so. I know Under the provisions of rule I, paragraph 3, Gracious God, our prayer is not to he asked for 15 minutes. Maybe that is of the Standing Rules of the Senate, I hereby a little too much. overcome Your reluctance to help us to appoint the Honorable JOHN F. KERRY, a Sen- Mr. President, will Senator STABE- know You and to do Your will, for You ator from the State of Massachusetts, to per- have created us to love, and serve, and form the duties of the Chair. NOW tell me how she feels? Ms. STABENOW. Mr. President, I obey Your guidance. Rather, our pray- ROBERT C. BYRD, will be pleased to yield some time to er is to lay hold of Your willingness to President pro tempore. my friend from Pennsylvania. I am not accomplish Your plans through us. You Mr. KERRY thereupon assumed the sure what he is asking for at this point. have told us to call on You, to trust chair as Acting President pro tempore. I need to preside at 10 a.m., and I know You completely, to put You first in our f we have other colleagues coming, but I priorities, and to express our devotion will be happy to yield. to You in our patriotism. Sometimes, RECOGNITION OF THE ACTING MAJORITY LEADER Mr. REID. Mr. President, I ask unan- pride blocks our response, and we find imous consent that the order be The ACTING PRESIDENT pro tem- it difficult to turn the control of our changed and that the Republican time lives over to You. When we are self-suf- pore. The distinguished assistant ma- begin with Senator SPECTER now tak- jority leader is recognized. ficient, we do not pray; when we are ing 15 minutes. Is that what he wants? self-satisfied, we will not pray; and f Mr. SPECTER. Mr. President, I will when we are self-righteous, we cannot SCHEDULE try to abbreviate my remarks. pray. And yet, Father, when we are Mr. REID. If the Senator can do it in Mr. REID. I thank the Chair. The honest with ourselves, we know that, 10 minutes, that will allow Senator Chair will announce very briefly that by ourselves, we are insufficient. We STABENOW time to speak before she there will be a period for morning busi- admit our profound need for Your pres- takes the chair. ence, Your wisdom, and Your solutions ness until 10:30 a.m., at which time we Mr. SPECTER. I thank my distin- to our problems. Continue to guide the will take up the military construction guished colleague from Nevada, and I discussion of the crucial issue of af- bill with 15 minutes of debate. All will endeavor to limit myself to 10 fordable prescription drugs for Amer- Members are advised this should be a minutes. ica. May this be a great day, lived to busy day. We have many things we The ACTING PRESIDENT pro tem- the fullest, trusting You each step of need to accomplish on legislation now pore. Without objection, it is so or- the way. Through our Lord and Sav- before the Senate. dered. We have a number of other issues we iour. Amen. f need to have resolved. I have notified f staff for the minority that I am going MORNING BUSINESS PLEDGE OF ALLEGIANCE to again propound a unanimous con- The ACTING PRESIDENT pro tem- The Honorable JOHN F. KERRY led the sent request to appoint conferees on pore. Under the previous order, there Pledge of Allegiance, as follows: the terrorism insurance bill. We have will now be a period for the transaction I pledge allegiance to the Flag of the been held up doing this for weeks and of morning business according to the United States of America, and to the Repub- weeks. The business community is unanimous consent agreement just en- lic for which it stands, one nation under God, going deeper and deeper into trouble tered into, and time shall not extend indivisible, with liberty and justice for all. because of our not coming forward with beyond the hour of 10:30 a.m., with Sen- f legislation. We cannot do that until ators permitted to speak for up to 10 the minority allows us to appoint con- minutes each. The control will be as APPOINTMENT OF ACTING ferees. the distinguished acting majority lead- PRESIDENT PRO TEMPORE Mr. President, the first half of the er just described. The PRESIDING OFFICER. The time under the order of last evening is The Senator from Pennsylvania is clerk will please read a communication under the control of the majority. Sen- recognized.

∑ 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 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6968 CONGRESSIONAL RECORD — SENATE July 18, 2002 Mr. SPECTER. I thank the Chair and grudge that profit margin, but if we are that—I would support more—they take the Senator from Michigan and the going to have the next generation of that basic research, and they then de- Senator from Nevada. new lifesaving medications, we need to velop their drugs. We give them tax (The remarks of Mr. SPECTER per- see that R&D is the focus and that pre- credits and tax writeoffs to develop taining to the introduction of S.J. Res. scriptions are affordable. If they are through research. We also give them 41 are printed in today’s RECORD under not affordable, they are not available. tax writeoffs for their administration, ‘‘Statements on Introduced Bills and That is not acceptable. This is about their sales, their marketing. We give Joint Resolutions.’’) trying to get some balance in the sys- them a 20-year patent so they are pro- The ACTING PRESIDENT pro tem- tem. Pfizer had 1.5 times more in profit tected from competition for their name pore. The Senator from Michigan is last year than what they spent on brand so they can recover their costs recognized for a period of 10 minutes. R&D. They spent more on advertising for R&D. What do we get at the end? f than on R&D. The highest prices in the world, and an In the context of what we are talking effort to fight everything we are trying PRESCRIPTION DRUGS about right now with corporate respon- to do in the Senate—to increase com- Ms. STABENOW. Mr. President, I ap- sibility, and companies where execu- petition and to lower prices and to pro- preciate very much being recognized tives take the dollars and run, leaving vide Medicare benefit. and having an opportunity this morn- the shareholders or employees holding Then to add insult to injury, we see ing to speak regarding the situation I the bag, my concern is that while we those at the top of the companies that believe we are in and the challenges are talking about the need to stop pre- who are fighting us earning $75 million right now as they relate to moving for- scription drug prices from rising three a year, $40 million a year, $28 million, ward on addressing prices and cost con- times the rate of inflation, which is the $23 million, $15 million a year. We see tainment in the pharmaceutical indus- average right now—the average drug unexercised stock options. At the top try. used by seniors last year went up three is Merck, $93 million in unexercised We heard a lot of discussion yester- times the rate of inflation. Our seniors stock options; $76 million; $60 million; day. We had the opportunity to debate do not have insurance coverage and are $56 million; $46 million. whether to open the border to Canada paying the highest prices in the I could live on that. I think every- to have more competition between the world—but these companies are mak- body within the sound of my voice to- prices that American companies charge ing top profits in the world today, and gether could live on that. I don’t be- in the United States and those in Can- we find astounding salaries in com- grudge that. But I do begrudge people ada. I was pleased we were able to pensation for the CEOs. I do not be- in that category heading companies move forward and come together on a grudge it, but I do when our average that fight everything we do. They have plan to open the border, and now we senior is deciding this morning: Do I put more money into their lobbying place it in the hands of the Secretary eat breakfast or do I take my medi- corporation than anybody else. For of Health and Human Services to cer- cine? Companies are saying, no, they every one Senator there are six drug tify the difference in prices which we cannot lower prices; they could not company lobbyists who spend their know are there and the fact that there possibly have more competition, they time more on sales and marketing than is no safety risk, which we know is the cannot open to Canada, they cannot anything else. case. So I look forward to moving allow more generics on the market, Let me speak from the standpoint of ahead. they cannot possibly handle more com- our future health care discoveries. In A lot came up during that debate and petition, or lowering prices without Money and Investing, the Wall Street I did want to, as we set the stage to de- cutting R&D. Journal, there was an article about a bate additional efforts today to lower I am offended when I look at the merger this week, and one of the dis- prices, speak as to how I view the situ- numbers, when we are seeing more on turbing parts of that was this: ation in our country right now with promotion and advertising, more on After falling for 5 years, new drug ap- our most profitable industry. I wel- the sales machine than on research and plications to the Food and Drug Ad- come the fact that we have a very prof- developing new drugs, more in profits, ministration are expected this year to itable, successful prescription drug in- way more in profits than R&D, and slide further. Through the first 5 dustry. There are new lifesaving drugs more in the compensation for those at months of this year, the FDA had re- being created that keep people out of the top. ceived just two new applications for the hospital and living longer. We cele- I will not name individuals, but we new drugs. Last year, total new drug brate that. see the five highest paid executives in applications dropped to 24, less than Over the last several years, we have the industry, and the top at Bristol- half the 53 received in 1996. Many in the seen more and more of a focus on sell- Myers, with a salary of almost $75 mil- industry say that past mergers may be ing and marketing and promotion than lion last year in direct compensation, among these reasons for these drops in creating the next generation of life- not counting unexercised stock op- new drug discoveries. saving drugs. That is of great concern tions. Compare that to the average sen- What I see is an effort more and more to me. When we talk about reducing ior who is either not getting their med- to focus on the fast, easy money, the prices, we hear that means reducing re- icine, cutting their pills in half, or tak- quarterly report. Eighty percent of the search and development. Yet there is ing them every other week; families new applications for patents now at nothing today that indicates that is who are struggling; small businesses FDA are not for new lifesaving discov- factually accurate. whose premiums are skyrocketing and eries that increase our longevity and Yesterday, Family USA produced an- are having trouble affording health deal with health challenges, but they other study showing the companies are care for their employees because of 30 are, instead, what are called ‘‘me too’’ spending 2.5 times more on advertising, to 40 percent premium increases, most- drugs; 80 percent of the patents. A pur- promotion, marketing and administra- ly because of prescription drugs, and ple pill becomes a pink bill, a daily tion than they do on research and de- employees are told they cannot get a dose becomes a weekly dose, or maybe, velopment. The blue on my chart is pay raise next year because the com- to add insult to injury, the packaging R&D and the gold is advertising and pany has to cover more in medical pre- changes. marketing. For each of the top drug miums. I believe that company is sin- I urge, as I draw to a conclusion, that companies, the gold line is much high- cere in having to struggle with those as we look at the issues before the Sen- er than the blue line. We know there is benefits, those prices. ate on increasing competition and low- more being spent in this effort. Put that picture together with that ering prices, we do so understanding We also know when you look overall of the drug companies, one of the most there is a lot of room to bring down at the profits versus R&D, we see stark highly subsidized industries in the prices without ever touching R&D. I numbers. Merck is a successful com- world: $23.5 billion we as taxpayers put argue we need to do everything pos- pany in the United States. Their profit into the National Institutes of Health sible to change the incentives to a was three times more than what they this year. So the companies can take longer view, to more research and de- spent on R&D last year. I do not be- that basic research, and I support velopment. This industry is out of

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6969 whack, just as the other industries we All of us know it is time to act. We cerned. It needs to be addressed under were talking about, the system of ac- need to ensure that seniors can afford any circumstances. counting and auditing, the whole proc- their prescription drugs. We have heard I also ask those who have criticized ess that has now put us in a position the refrain that we should not be forc- the cost of the Democratic package where the incentives are to run right ing people into these hard choices, and that they consider the high cost of not up to the line or over the line, to push it is a reality. Anyone who is in public providing comprehensive drug cov- for the quarterly profit statement, to life, who interfaces with our senior erage. They call that a cost-benefit look for the intermediate gain, the im- citizens around our country—just as analysis. It is well known that pre- mediate cash rather than the long- much in New Jersey as anyplace else— scription drugs reduce the number of term view. knows that these are real world choices hospital admissions, surgical proce- Unfortunately, this is not a pair of for people: Whether they can afford dures, and doctor visits. They also can shoes. It is not even a new car—and I their lifesaving, quality-of-life-pro- reduce costly admissions to nursing want everybody to buy a new car. This ducing prescription drugs or whether homes, helping seniors to stay home is not an optional buy. This is life- they have to choose between that and longer. Those are real savings that will saving medicine. The research is heav- other aspects of quality of life, includ- come. I do not think we have fully ap- ily subsidized and paid for by tax- ing the simple things such as house and preciated that or explained those or payers, and I think we deserve better. I home, and their ability to have quality factored those into our thinking. think that is what this debate is about. of life in general, which our Nation can Needless to say, this is not just about We want a healthy industry, we want afford, absolutely, including putting saving money, it is about improving R&D, but we want the American tax- food on the table. the quality of life for our seniors, al- payers to get their money’s worth and The fact is, this is a choice far too lowing them to lead longer, healthier, be able to afford the medicines they many of our seniors are having to and more productive lives. This is re- have invested in and helped to create, make, and it is time for us to move to form that Medicare needs. It is one we medicines that will help them and make these costly drugs available so cannot afford not to address, not to their families be able to be healthy. our seniors can lead that independent, deal with, not to move on. The ACTING PRESIDENT pro tem- productive life that I think all of us In my own State of New Jersey, we pore. The Senator from New Jersey. hope for, for our families, our parents, recognized this need about 25 years ago Mr. CORZINE. Madam President, I and certainly we want for our genera- when we created a pharmaceutical ben- ask to speak for 10 minutes in morning tion as well. efit for seniors—probably the best in business. the Nation. By the way, we have to The PRESIDING OFFICER (Mrs. That is why I support this bill. I will be very aggressive in getting out and make sure that as we legislate here, we STABENOW). The Senator has that right engineer this legislation in a way that and is recognized for a period of 10 min- trying to promote it, not only here in it is supportive of the prescription drug utes. the Chamber but actually among those Mr. CORZINE. Madam President, I in the industry so we can move for- program we have in New Jersey, which rise today to support passage of a ward. is designed to serve the low- and mid- Medicare prescription drug benefit and This effort truly does guarantee pre- dle-income seniors in an extraordinary express my strong belief that the time scription drug coverage for every sen- way. has come when a Medicare prescription ior—it is universal—rather than rely- But I have to say it is almost uncon- drug benefit that provides affordable ing on the private insurance industry scionable that States such as New Jer- and meaningful coverage for all our to provide that coverage. That is what sey and Pennsylvania—I think it has a Nation’s seniors should be imple- the alternative House bill is all about. similar program—have stepped to the mented. We have a historic oppor- I think many of us think that is going plate to provide this important health tunity to reform our Medicare pro- to leave a lot of folks out of the sys- care benefit to seniors while the Fed- grams and put in place something that tem. eral Government has failed to do it. As I think we all know is necessary and The Democratic package also ensures a matter of fact, it makes New Jersey important for our Nation’s well-being. that seniors will have coverage all a magnet for seniors—a positive ele- I particularly also thank Senator year. It does not have to deal with so- ment in our society. But people have STABENOW, the Presiding Officer, for called doughnut holes, or black holes, recognized this fundamental need and her extraordinary leadership in raising two-thirds of the calendar year where have voted with their feet with respect the level of awareness, the level of con- people are left out of any kind of cov- to the follow-through on this. cern and consideration, not only inside erage. That is certainly the case with The Democratic plan will help States the Chamber but across the country. the proposal that is coming out of the such as New Jersey expand, if we are She has done a remarkable job of ele- House, the Republican proposal. careful about how we write this legisla- vating the quality of debate on the sub- Under that proposal, a senior would tion, and improve that prescription ject. pay $400 a month for her or his pre- drug program for everyone. By con- Furthermore, and equally so, I thank scriptions, but they would essentially trast, the Republican proposal does my colleagues, Senator BOB GRAHAM, be out of coverage for nearly two- nothing. As a matter of fact, it will in- Senator KENNEDY, and Senator MILLER, thirds of the calendar year. I think crease—if we are to meet the con- for their efforts to bring forward a real that is a major flaw that needs to be straints that are put down in the bill— and meaningful prescription drug pro- addressed. I think it is very effectively co-pays and coverage under our PAAD gram. It is one that I think all of us done in the Graham-Kennedy proposal. Program, which is what our benefit should get behind and support. It is Furthermore, the Republican pro- program is called. That is simply unac- measured but certain. posal threatens to undermine the pri- ceptable and will require a lot of resist- I have yet to speak out on specific vate insurance market. This is really a ance from those of us who care about programs. As the Chair knows, the in- perverse economic impact. Their pro- our seniors—in New Jersey specifically. dustry which you just so eloquently posal would have the effect of encour- Last year, the Senate passed a Pa- spoke about is an important part of the aging employers to drop prescription tients’ Bill of Rights to ensure that community which I represent. It has drug coverage from employer-provided Americans with private health insur- been important, in my view, to find a health plans. In 10 minutes I am not ance have access to prescription drugs response to this great need in our Na- going to go through this, but the fact and medical procedures they need to tion that also does not undermine all is, individual workers facing cata- maintain their health. Should we not the elements that I think make the in- strophic drug costs would not have offer the same protection to our sen- dustry so important to our Nation and their drugs provided by the Govern- iors, millions of whom currently lack so entrepreneurial. In fact, I think the ment if their employer paid for some access to essential medicines? It is a Graham-Kennedy-Miller program has portion of those drug costs. It is a real- fundamental flaw of Medicare. It is one found that balance. It is for that rea- ly serious flaw about which I think al- we need to deal with, particularly be- son I also want to make sure I am on most anyone who has analyzed the pro- cause Medicare was designed before the record expressing my support. posal coming from the House is con- explosive growth of medications, so the

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6970 CONGRESSIONAL RECORD — SENATE July 18, 2002 use of medicines is not covered where context of what kind of country we spite these ethical guidelines, drug they are now being applied. want to be. What kind of values do we company representatives have at- We have an opportunity and a re- espouse? How are we going to ensure tempted to circumvent and flout them. sponsibility to correct this flaw by en- that people not only have the percep- With the multibillion-dollars that acting a prescription drug benefit. tion but the reality that our system drug companies spend annually on drug I want to work with my colleague in works for everybody, not just for the promotion and on physicians, this the Chair, my friend from New York, rich and the powerful, not just for the shocks me, I have to tell you. I said to and all of those who truly care about big companies but for the small busi- my staff: You have to go and making our society one where access to nesses and for the average citizen? triplecheck this. I couldn’t believe it. quality of life that America can offer is There is a connection. I think that con- But with the money they spend on drug made available to all citizens. It is ab- nection deserves to be drawn. I thank promotion mostly directly to physi- solutely essential that we move for- you for doing so. cians, their spending exceeds the ward. The legislation we are discussing this amount of money that we spend as a Lastly, it concerns me that we are week addresses not just a top health nation educating all medical students willing to spend $4 trillion to make last priority but a fundamental value of and medical residents in our Nation. year’s tax cuts permanent, which es- who we are as Americans. Will we or That just isn’t right. We have a vol- sentially goes to a lot of those people will we not provide access to affordable untary set of guidelines that are sup- the Chair was talking about who are prescription drugs for our seniors? Will posed to control it, but, unfortunately, making $70 million and $40 million, the we or will we not make equivalent ge- as with a lot of human nature, those well off in our society, and we don’t neric drugs available for all Ameri- voluntary guidelines don’t have enough think we have the resources to pass a cans? Simple question; complicated an- teeth in them to make it happen. $100 billion prescription drug benefit swer. That is what we are attempting I am also concerned about the ero- for senior citizens in our Nation. to work out today. sion of privacy. Drug companies are It is time for us to act. Those people The prescription drug issue is well doing everything they can to convince have worked hard, paid their taxes, and known to any of us who have had to fill patients—that is you and me—to try supported our Nation in all kinds of a prescription in the last several years. the drug. In addition to convincing ways. It is time to get a prescription Prescription drug costs have been ris- physicians with all of their money, drug benefit, get it through this Cham- ing at an annual rate of 20 percent, far they are spending a heck of a lot of ber, get it to the House and to the outpacing inflation and more than dou- money trying to convince us to try President’s desk. bling in the last 5 years. something. We set a goal a couple of years ago to I thank the Chair. I look forward to A friend of mine said she didn’t even double NIH funding within 5 years, but working with you and all my col- know she had a problem until she saw instead we have seen the doubling of leagues to make sure this comes to an advertisement. And all of a sudden, drug industry costs. she now thinks she has a problem. She pass as soon as possible. Costs have increased for a number of talked to her doctor. Her doctor said The PRESIDING OFFICER. The Sen- reasons. People have begun to use more ator from New York. of these so-called lifestyle drugs in ad- she really didn’t need it. She said: I am Mrs. CLINTON. Madam President, I dition to the lifesaving drugs. Costs are not sure. She said: Should I listen to commend my colleague from New Jer- also increasing because of drug com- the doctor or should I listen to the ad- sey for his statement, which I think all pany marketing efforts to shift pa- vertising? I said: For Heaven’s sake, of us recognize was arrived at after tients away from older, less expensive you wouldn’t do that on anything else. considerable study and thought since drugs to newer, costlier, so-called ‘‘me Why would you do it on this? he does represent a State which has a too’’ drugs which have had an impact. Advertising really works. It gets into concentration of our finest pharma- ‘‘Me too’’ drugs are copycat drugs that our psyche. It kind of convinces us of ceutical companies. His statement actually do little or nothing more than things and makes us feel that we are today, which shows a balance and a the existing drugs we already have, but not doing what we should unless we go very thoughtful approach to policies they are more expensive because they out and buy a new product. That is the that affect us, is a great addition to are new. It is like when you go to the same with new drugs. this debate. supermarket and they say new and im- The privacy aspect is different than Madam President, I ask unanimous proved, new and different. These are going out and being convinced that you consent to speak for up to 12 minutes new but not necessarily improved need a different car or that you should as in morning business. drugs. They are copycat drugs. try a different detergent. The PRESIDING OFFICER. Without We have recently heard examples of Under the Bush administration, pri- objection, it is so ordered. Vioxx and Celebrex, expensive, new, vacy regulations previously issued by Mrs. CLINTON. Thank you, Madam heavily advertised drugs that doctors the Secretary of Health and Human President. now tell us may be no better than the Services have been changed. These Madam President, I wish to pick up kinds of drugs you get across the changes make it easier for drug compa- on a comment that you made at the counter for which you don’t need a pre- nies to acquire patient information end of your remarks before assuming scription. about us and then to use that patient the Chair. Drug companies are also spending up information they get from doctors, I, as all of our colleagues, deeply re- to $13,000 per doctor annually trying to pharmacists, or health provider organi- spect the leadership you have provided influence research results and pre- zations without our full knowledge, on this issue. You are down here on the scribing patterns. Think about it. and certainly without our prior con- floor day after day making the case on Every doctor in America has a $13,000 sent. behalf of the need for prescription drug allocation from drug companies that Several weeks ago, we heard about a coverage and reform that would pro- flood his or her offices with salespeople woman in Florida who received an un- vide the lifesaving quality-of-life drugs with all kinds of inducements—with solicited prescription drug, Prozac, in to our seniors and open the doors to trips and dinners and the like in order the mail. She believes her privacy was others who are not yet of Medicare eli- to convince the doctor to use this dif- violated. I think she is right. It was gibility but who have very high pre- ferent drug than the doctor has been violated. Can you imagine, all of a sud- scription drug costs. using or to try the new and improved den, into your mailbox come drugs that At the end of your remarks you said copycat drug. This is going on despite you never asked for, that were never this was connected to the debate that the ethics and gift guidelines that the prescribed for you? I do not think any we finished last week concerning the American Medical Association has de- drug company should have access to a serious issues about accounting and veloped and that the pharmaceutical patient’s records or be able to use that corporate governance to which we have association—known as PhRMA—has kind of intimate information without a to pay special attention. I agree with agreed to follow. patient’s full agreement and consent. that. We may be debating prescription Many of my physician constituents So I worry about the combination of drug coverage, but it is in the larger continue to complain to me that, de- the Bush administration weakening

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6971 privacy regulations and the drug com- that makes it work for asthma—in ad- tle bit about pharmaceuticals. Obvi- panies using that information, which is dition to all the patents on the com- ously, there are different ideas about extremely personal, to try to sell us pound, on its use, and on its formula- that. Indeed, there should be. We are something. tion, they have a patent on the con- on the floor again, however, without I do not have any argument with the tainer, which is in what is called the having a committee suggestion to fol- lifesaving benefits that are provided to Orange Book. The container may be a low, so it will be difficult for us. But all of us because of the work done by really nice container, it may look certainly we need to do that. pharmaceutical manufacturers. Their great inside your medicine chest, but I suggest that the tripartisan bill role in the American health system is when a generic company is seeking to that is before us is probably the one not only vital but should be rewarded make a pill for asthma, it is not trying that is most likely to get support. In- through exclusive patents on their dis- to make the bottle, it is trying to deed, it is the only bipartisan plan in covery for the full patent term of up to make the pill. So a patent on the bot- the Senate. 20 years, as set forth by one of our col- tle should not prevent the generic We truly talk about finding common leagues and a colleague from the House version of the drug from coming to ground traditionally between the in the Hatch-Waxman bill passed years market. views. I think that is a good idea. This ago. In addition, we know that some drug bill reforms Medicare and provides pre- However, Hatch-Waxman represented companies make sweetheart deals with scription drug benefits which will en- a carefully crafted balance designed to generic companies, literally paying sure that seniors do have coverage. make the American consumer—the them—I would say bribing them—to The proposal, if it had been debated, American patient—the ultimate bene- stay off the market, which under one of I think would have come out of the ficiary. On the one hand, Hatch-Wax- the loopholes in the current law means committee as the one selected. The man established full restoration of the that other generics also have to stay tripartisan bill spends about $330 bil- monopoly patent time for a brand out of the market. lion over 10 years for drugs, which is name drug as an incentive for real in- So generic X comes and says, we are more than some of the bills, but is con- novation. On the other hand, Hatch- going to the market with this drug, siderably less than the one the Demo- Waxman ensured that after the monop- and the big drug company says, we will crats have put forth. So this, perhaps, oly term ended, the consumer would pay you not to; and they say, OK, we is a reasonable compromise between get the benefit of competition because will not. That means nobody can come those proposals. there would no longer be an exclusive with a competitive drug that will do I think the Democrat bill is unoffi- right to manufacture and market that the same thing at a lower price. cially scored at $500 billion for 5 years, drug. I support adequate patent terms for and then it expires. So I think that is We know the consumer will get bene- pharmaceutical manufacturers to con- one of the difficulties, the idea that it fits with lower drug prices and generic duct research and development, which expires. versions which are just as good as the all of us know is high risk and high The tripartisan bill also spends $40 brand name patented versions. Generic stakes, but the best way to encourage billion to make some long overdue drugs share the same active ingredi- that research and development is a pro- changes in Part B and Part A so sen- ents as the brand name drugs but, as spective approach rather than a patent iors will have health coverage. So there this chart shows, the generics are usu- extension after the fact. seems to be quite more available there ally considerably less expensive. Ge- Companies, as we know, have been than in the alternatives. I hope we do neric drugs have also increased in price maneuvering at the 11th hour just as something. but at a much slower rate than brand their patents are about to expire. This Just to comment, one of the things name drugs have. legislation, the underlying Schumer- that, of course, we are dealing with— Generic drugs help keep prices down, McCain legislation, is intended to pre- we have talked about, and I think has particularly for our seniors. If you look vent that. merit—is the idea of reimportation. at this next chart, it is a chart showing So let’s do the right thing. Let’s get That is kind of what is on the floor at the costs that are involved in manufac- our generic manufacturers a level play- the moment. I think there is some turing and advertising drugs. It is very ing field. Let’s get a prescription drug merit in that. I do not believe it is the clear that the amount of money that is benefit for our seniors. And let’s send a final solution. Indeed, as it gets into spent to market these drugs goes right message to America that we want to operation, we may find it more dif- into the cost of them. That $13,000 per treat people fairly in this great coun- ficult than it has been. doctor, that has to be paid by some- try of ours. I think the Cochran amendment, that body, and we are the ones who end up Thank you, Madam President. was passed yesterday, is very useful in paying for it. The PRESIDING OFFICER. The Sen- terms of safety as it relates to the bill. It is important to protect innovation. ator’s time has expired. I do think we ought to go a bit further; Nobody wants to undermine innova- Mr. THOMAS. Madam President, how that is, I think there ought to be some tion. But in recent years, drug compa- much time is remaining on the division labeling so that consumers have the nies have clearly taken advantage of in morning business? opportunity to choose whether or not these loopholes to keep generics off the The PRESIDING OFFICER. Five they want to take on the reimported market. What we have found is that minutes is remaining in morning busi- drugs that have gone through Canada, the brand name manufacturers are ness. that may or may not have come from frivolously listing patents not because Mr. THOMAS. That is the share the the United States in the beginning. So the generics will infringe on the pat- Republicans have? I do think perhaps we ought to con- ents but simply to force generics to The PRESIDING OFFICER. That is sider the idea, which can be very sim- certify that those patents are invalid the current share, yes. ple, to have it labeled that it is im- in order to get the lower priced generic Mr. THOMAS. I wish we could have ported from Canada so people can, in drugs to market. The reason is that divided the time up if we say we are fact, make those kinds of choices. forcing this certification gives the going to. Mr. President, since our time has brand name drug an automatic 21⁄2-year The PRESIDING OFFICER. The Sen- been used, I will yield the floor. extension, called a 30-month stay, on ator from Pennsylvania was accorded, I I suggest the absence of a quorum. their monopoly, regardless of the mer- believe, 15 minutes. The PRESIDING OFFICER (Mr. its of the patent. Mr. THOMAS. And we were accorded BINGAMAN). The clerk will call the roll. Let me give you a few quick exam- 30 minutes, and we didn’t get 30 min- The assistant legislative clerk pro- ples. utes. ceeded to call the roll. There is a medication called f Mr. MCCAIN. Mr. President, I ask Pulmicort, which is an asthma medica- unanimous consent that the order for tion. In addition to all the patents on PRESCRIPTION DRUGS the quorum call be rescinded. the compound—in other words, the ac- Mr. THOMAS. Madam President, I The PRESIDING OFFICER. Without tive ingredients that are in the drug will take just a short time to talk a lit- objection, it is so ordered.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6972 CONGRESSIONAL RECORD — SENATE July 18, 2002 Mr. MCCAIN. Mr. President, may I is pretty much the norm for Congress. mental Appropriations bill—which we ask what the parliamentary situation Common-sense reforms—closing mili- have not passed—and recently a formal is at this time? tary bases, consolidating and description of how the Defense Depart- f privatizing depot maintenance, ending ment will spend the $10 billion war re- ‘‘Buy American’’ restrictions, and end- serve fund set-aside in the Defense CONCLUSION OF MORNING ing pork-barrel spending—that I have Emergency Response Fund that the BUSINESS long supported would free up nearly $20 President requested for the war on ter- The PRESIDING OFFICER. Morning billion per year which could be used to rorism. Let me ask: did anyone on the business is closed. begin our long-needed military trans- Appropriations Committee inform the f formation. President that his budget proposal was But all too often Congress fights not ‘‘sufficient’’? I know the answer is MILITARY CONSTRUCTION these reforms because of home-State no. APPROPRIATIONS ACT, 2003 politics. As a result, the Defense De- Let me share some critical facts that The PRESIDING OFFICER. Under partment looks elsewhere to find the were left out of the committee report the previous order, the Senate will now resources. For example, according to a related to the $200 million in additional resume consideration of H.R. 5011, Baltimore Sun article, ‘‘Pentagon To funding added for these key programs. which the clerk will report. Consider Large-Scale Troop Cuts,’’ the It is common knowledge that nearly all The assistant legislative clerk read Department is considering cutting the IBCTs will initially be stationed in as follows: nearly 100,000 troops ‘‘to free up Alaska and Hawaii and will require a A bill (H.R. 5011) making appropriations money’’ for transformation. I would op- significant increase of infrastructure. for military construction, family housing, pose this and we will debate this an- General Shinseki has supported testing and base realignment and closure for the De- other day, but I certainly understand the IBCT concept in Alaska and Hawaii partment of Defense for the fiscal year end- the pressure that Secretary Rumsfeld and then expanding the concept else- ing September 30, 2002, and for other pur- and the Joint Chiefs are under because poses. where. However, in putting together of Congress’ continuing parochialism the Army budget, the Chief of Staff of The PRESIDING OFFICER. The Sen- as evidenced once again by the mili- the Army, the Secretary of the Army, ator from Arizona controls 5 minutes tary construction bill before us. and the Secretary of Defense weighed of debate on this pending measure. Included in the Senate Appropria- all the other Army priorities and de- Mr. MCCAIN. Mr. President, I ask to tions Committee’s report are the cided that their were more critical be recognized for my 5 minutes. words: ‘‘The Committee strongly sup- funding issues than to accelerate an al- The PRESIDING OFFICER. The Sen- ports the authorization-appropriation ready robust IBCT program and adding ator is recognized. process.’’ That is news to many of my $100 million more for facilities con- Mr. MCCAIN. Mr. President, I regret colleagues. If that statement is true struction. that the managers are not in the why would over $550 million in military Likewise, other facts left out of the Chamber, but I will proceed with my construction projects be added without Appropriations report related to the statement. prior Senate Armed Services Com- $100 million in accelerated funding for Regretfully, I rise yet again to ad- mittee authorization. It could be that the Air Force Air Mobility program dress the Senate on the subject of mili- many of these projects would be ac- should be known: tary construction projects added to an ceptable after going through the nor- The Air Force did not request this appropriations bill that were not re- mal, merit-based prioritization proc- funding; quested by the Department of Defense ess. But the Appropriations Committee The requirement for accelerating and are strongly opposed by the Office decided to do otherwise. funding is not on the Air Force Chief of of Management and Budget. Two rather large additions—totaling Staff’s ‘‘Unfunded Requirements List’’; This bill contains over $1 billion in $200 million—for large military con- Nor does it appear in the Secretary of unrequested military construction struction projects for Interim Brigade Defense’s Wartime Fiscal Year 2002 projects and includes hundreds of mil- Combat Teams, IBCTs, facilities and Emergency Supplemental Appropria- lions of dollars for Army and Air Force the C–17 Air Mobility Modernization tions request; infrastructure projects relating to In- Program are examples of the commit- Nor does the requirement to accel- terim Brigade Combat Teams, IBCTs, tee’s disregard for the authorization erate funding for C–17 hangars show up and C–17 Globemaster aircraft bed- process. The committee report justifies on the war reserve fund set-aside in the down military construction projects these add-ons on the grounds that ‘‘the Defense Emergency Response Fund that the Senate Armed Services Com- war on terror has placed new demands (DERF) that the President recently mittee has neither approved nor au- on all elements of the military’’ and submitted to Congress as an Fiscal thorized for this purpose. ‘‘military construction timetables de- Year 2003 budget amendment for the There are 29 members of the Appro- veloped prior to September 11 are no Department of Defense for expenses re- priations Committee. Only one com- longer sufficient.’’ War profiting is lating to the war against terrorism; mittee member has not added projects what it is all about. Because of this, and to this appropriations bill. Those num- the report continues, ‘‘the committee Moreover, over 80 percent of the total bers, needless to say, go well beyond believes that it is imperative to accel- $1.6 billion military construction the realm of mere coincidence. Of 116 erate the Army and Air Force trans- projects under the Air Force C–17 Air projects added to this bill, 91 projects, formation programs.’’ There is no men- Mobility Modernization program will representing 80 percent of all projects, tion of Navy and Marine Corps trans- be built in just 4 states: surprise, sur- are in the States represented by the formation programs. The committee prise California, West Virginia, Alaska, Senators on the Appropriation Com- report leads one to ask how the Navy and Hawaii—how surprising. mittees, totaling over $728.1 million. and Marine Corps got it right and the Funding $200 million for IBCTs and Every year, I come to the Senate Army and Air Force missed the boat. C–17, C–5 and C–130 hangars—as part of floor to highlight programs and The committee’s justification for a larger 4-5 billion dollar program—was projects added to spending bills for pri- adding $200 million for the IBCTs fa- simply not authorized by the Armed marily parochial reasons. While I rec- cilities and new hangars for C–17s, C–5s Services Committee in its recently ognize that many of the projects added and C–130s under the Air Force Air Mo- passed bill. I attended more than 10 to this bill may be worthwhile, the bility Modernization program is at hearings on Armed Services this year, process by which they were selected is odds with the facts. The President’s and I cannot remember a single in- not. budget was sent to the House and the stance in which an argument was made By adding over $1 billion above the Senate in February—a full 5 months in support of accelerating this funding. President’s request, the Appropriations after September 11. Since September Separately, I am at a loss as to the Committee is further draining away 11, the President and his Secretary of rationale for including in this bill cer- funds desperately needed for trans- Defense have officially forwarded to tain site-specific earmarks and direc- formation. But such short-sightedness Congress the Fiscal Year 2002 Supple- tive language. For example, in time-

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6973 honored fashion, the Appropriations ing $500,000. Similarly restrictive lan- Alaska: Committee continues to earmark guage bans the awarding of any con- Army: Fort Richardson: Commu- projects under the heading ‘‘Unspec- tract over $1 million to any foreign nity Center ...... 15.0 Air Force: Eielson AFB Blair Lakes ified Minor Construction.’’ According contractor in U.S. territories and pos- Range Maintenance Complex ...... 19.5 to Title 10, Section 2805 of the United sessions in the Pacific, on Kwajalein Arkansas: States Code, these ‘‘military construc- Atoll, and in countries bordering the Defense-Wide: Pine Bluff Arsenal tion projects are intended solely to cor- Arabian Sea. American firms are Non-Stockpile Ammunition Dem- rect a deficiency that is life-threat- among the best in the world; advo- olition Shop ...... 18.0 ening, health-threatening, or safety- cating a level playing field for them to Air National Guard, Little Rock AFB: Operations And Training threatening.’’ However, I believe that compete overseas is appropriate. How- Facility ...... 5.1 certain earmarks in this Appropria- ever, it is both inappropriate and California, Navy: tions bill are in violation of this stat- harmful to the best interests of our Camp Pendelton Marine Corps ute, including provisions that would Armed Forces to mandate that con- Base: Child Development Center 8.2 provide: struction projects overseas not be sub- Port Hueneme: Seabee Training Fa- Up to $1.5 million in funding for a ject to the kind of competitive process cility ...... 10.2 Colorado: storage facility for military police that best serves the taxpayer and the Defense-Wide, Pueblo Depot: Am- emergency vehicles in Fort Wain- service member by providing the best munition Demilitarization Facil- wright, AK; product at the lowest cost. ity (Phase IV) ...... 36.1 Up to $1.5 million in funding for a We are waging war against a new Air National Guard: Buckley AFB similar storage facility in Fort Rich- enemy and at the same time under- Control Tower ...... 5.9 ardson, AK; taking a long-term process to trans- Florida, Navy: Panama City Naval $1.5 million in funding for a Kinetic form our military from its Cold War Surface Warfare Center: Special Operations Facility ...... 10.7 Energy Missile Complex at the White structure to a force ready for the chal- Georgia, Air Force, Robins AFB: Cor- Sands Missile Range in New Mexico; lenges of tomorrow. A lack of political rosion Paint/De-paint Facility ...... 24.0 $1.5 million in funding for a force pro- will had previously hamstrung the Hawaii: tection facility at the Naval Air Sta- transformation process, but the Presi- Army: Pohakuloa Training Area tion in Corpus Christi, TX; dent and his team have pledged to Access Road (Saddle Road) Phase $1 million in funding for a training transform our military structure and I ...... 13.0 facility at the Corpus Christi Army De- Navy: operations to meet future threats. Ford Island Site Improvements port in Texas; The reorganization of our armed (Utility System) ...... 19.4 $1.5 million in funding for a UAV fa- services was, of course, an extremely Marine Corps Base/OAHU Reli- cility at the Fallon Naval Air Station important subject before September 11, gious Ministry Facility (Chap- in Nevada; and it is all the more so now. The el) ...... 9.5 $1 million in funding to replace and threats to the security of the United Idaho: bury electrical infrastructure at Army National Guard, Gowen States, to the very lives and property Field/Boise: Readiness Center ...... 1.5 Lackland Air Force Base in Texas; of Americans, have changed in the last Air National Guard: Gowen Field/ $1.5 million in funding for a barracks decade. Boise Air Support Squadron ...... 6.7 for the Army National Guard in Chil- In the months ahead, no task before Iowa, Air National Guard, Des licothe, OH; the administration and the Congress Moines: Airfield Facilities Upgrade 9.2 $1.5 million in funding for Federal will be more important to require Kansas, Army: Fort Riley Combined Arms Collective Training Facility, Scout Readiness Centers/Armories for greater care and deliberation than the Army National Guard in Alakanuk, PH 1 ...... 13.8 making the changes necessary to Kentucky: Quinhagak, and Kwigillingok, AK; strengthen our national defense in this Army, Fort Knox: Child Develop- $1.5 million in funding for a mainte- new, uncertain era. Needless to say, ment Center ...... 6.8 nance facility for the Army National this transformation process will re- Defense-Wide, Bluegrass Army Guard at Fort Harrison in Montana; quire enlightened, thoughtful leader- Depot: Up to $2.5 million in funding for var- Ammunition Demilitarization ship, and not the pork-barreling of Facility (Phase II) ...... 9.8 ious facilities for the Army National military funds if we are to best serve Guard Weapons of Mass Destruction/ Ammunition Demilitarization America in this time of rapid change in Support (Phase III) ...... 7.9 Civil Support Teams; the global security environment. Louisiana: Up to $1 million in funding for a I thank the President for this oppor- Air Force: Barksdale AFB Parking warehouse for the Air Force Reserve at tunity to address the Senate. I ask Apron ...... 12.0 the Lackland Air Force Base in Texas; Air National Guard: New Orleans unanimous consent that the list of Joint Reserve Base Belle Chasse $1 million in funding for a Multiple unrequested military construction Threat Emitter System, MUTES, Fa- Vehicle Maintenance Support projects that were added by the Appro- Equipment Shop ...... 5.5 cility for the Army National Guard at priations Committee be printed in the Maine, Navy: Brunswick Naval Air the Smoky Hill Range in Kansas; RECORD. Station Control Tower Upgrade ..... 9.8 $1.5 million in funding for a Bachelor There being no objection, the mate- Maryland: Officer/Enlisted Quarters for the Army rial was ordered to be printed in the Navy: Carderock (NSWC): National National Guard at Fort Meade in South Maritime Technical Information RECORD, as follows: Dakota; and Center ...... 12.9 In an effort to contain the wasteful spend- $1.5 million in funding for an ammu- Defense-Wide, Aberdeen Proving ing inherent in member requested construc- Ground: Ammunition Demili- nition supply plant for the Army Na- tion projects, I sponsored, and the Senate tarization Facility (Phase V) ...... 29.1 tional Guard at Camp Grafton in North adopted, merit based criteria for evaluating Massachusetts, Air Force: Fourth Dakota. member adds as a part of the fiscal year 1995 Cliff Recreation Area: Erosion Con- I could go on and on. Without a Defense Authorization Act. The criteria are: trol/Retaining Wall ...... 9.5 doubt, each of these provisions un- (1) The project is in the service’s future Michigan: abashedly expands the definition of un- years defense plan; (2) the project is mission Army National Guard: Joint/Multi- essential; (3) the project can be put under Unit Readiness Center, Phase 1 ... 17.0 specified minor construction. Sadly, Air National Guard, Selfridge yet significantly, the American tax- contract in the current fiscal year; (4) the project does not conflict with base re-align- ANGB: Joint Dining Facility ...... 8.5 payer is once again at the losing end of ment proposals; and (5) the service can offset Mississippi: such reckless congressional action. the proposed expenditure within that year’s Navy: I also find objectionable language in budget request. Meridian Naval Air Station: Con- this bill requiring that only American trol Tower and Beacon Tower ... 2.9 FY2003 MILITARY CONSTRUCTION ADD-ONS Pascagoula Naval Air Station firms, or American firms in joint ven- Alabama: Bachelor Enlisted Quarters ...... 10.5 ture with host nation firms, be eligible Army: Fort Rucker Physical Fit- Defense-Wide, Special Operations for architecture and engineering con- ness Center ...... $3.5 Command: Stennis Space Center, tracts for all overseas projects exceed- UH–60 Parking Apron ...... 3.1 Land/Water Ranges ...... 5.0

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00007 Fmt 4624 Sfmt 0655 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6974 CONGRESSIONAL RECORD — SENATE July 18, 2002 Missouri: Special Operations Command ... 0.1 Army National Guard: Army National Guard, Fort Leon- Undistributed ...... 8.6 St. Peters Readiness Center De- ard Wood: Aviation Support Fa- Base Realignment and Closure sign ...... 0.3 cility ...... 14.8 Account ...... 100.0 Springfield Aviation Classifica- Air National Guard, St. Louis/Lam- MINOR CONSTRUCTION tion Repair Depot Design ...... 1.2 bert Field: Base Relocation/Fa- Alaska: Nevada: cilities upgrade ...... 4.0 Army: Army National Guard: Henderson Montana, Air National Guard: Gore Fort Wainwright: Military Police Readiness Center Design ...... 0.9 Hill/Great Falls: Load Crew Train- Emergency Storage Facility .... 1.5 Air National Guard: Reno Security ing Facility ...... 3.5 Fort Richardson: Military Police Complex Design ...... 0.9 Nebraska, Air Force: Offutt AFB: Emergency Vehicle Storage Fa- New York, Army National Guard: Fire Crash/Rescue Station ...... 11.0 cility ...... 1.5 Fort Drum Equipment Mainte- Nevada, Air Force: Nellis AFB Land Army National Guard: Federal nance Site Design ...... 1.5 Acquisition ...... 19.5 Scout Readiness Centers ...... Pennsylvania, Army: Letterkenny New Hampshire, Air National Guard: Kansas, Air National Guard: Smoky Depot: Storage Igloo Upgrade ...... 0.4 Pease Air Base Fire Station ...... 4.5 Hill Range Threat Emitter System 1.0 South Dakota, Army National Guard: New Jersey, Navy: Lakehurst Naval Montana, Army National Guard: Fort Rapid City Readiness Center Air Warfare Center Structural and Harrison Engineer Maintenance Fa- STARC Design ...... 1.2 Aircraft Fire Rescue Station ...... 5.2 cility Construction ...... 1.5 Pierre Organizational Maintenance New Mexico, Air Force: Nevada, Navy: Fallon Naval Air Sta- Shop Consolidation Design ...... 0.3 Holloman AFB: Survival Equip- tion: UAV Facility ...... 1.5 Texas: ment Shop ...... 4.7 New Mexico, Army: White Sands Mis- Army, Camp Bullis: Vehicle Main- Kirtland AFB: Visiting Airmen sile Range: Kinetic Energy Missile tenance Facility ...... 0.9 Quarters ...... 8.4 Complex ...... 1.5 Navy, NAS Kingsville: Replace New York, Air Force Reserve: Niagra North Dakota, Army National Guard: Fuel Farm ...... 1.0 Falls Air Reserve Station Visiting Camp Grafton Ammunition Supply Air Force, Brooks AFB: Tri-Service Airmen Quarters, Phase I ...... 9.0 Point Construction ...... 1.5 Research Facility ...... 1.0 North Carolina, Air Force: Seymour Ohio, Army National Guard: Chil- West Virginia, Air National Guard: Johnson: Fire/Crash Rescue Station 10.6 licothe Barracks Construction ...... 1.5 Martinsburg Air National Guard North Dakota, Air Force: Minot AFB South Dakota, Army National Guard: Base, C–5 Support Facilities Design 3.0 Cruise Missile Storage Facility ...... 18.0 Fort Meade Bachelor Quarters ...... 1.5 Wisconsin, Army Reserve: Eau Claire Ohio, Air Force, Wright-Patterson Texas: Armed Forces Reserve Center De- AFB: Army: Corpus Christi Army Depot: sign ...... 0.9 After Graduate Education Facility 13.0 Training Facility ...... 0.9 Total MILCON Members Add-Ons= Consolidate Materials Computa- Navy: Corpus Christi: Force Protec- $1.1 Billion tional Research Facility ...... 15.2 tion Facility ...... 1.5 Oklahoma: Mr. MCCAIN. Mr. President, I regret Air Force: that at a time when our defense dollars Army: Fort Sill Logistics Mainte- Laughlin AFB: Railroad Crossing nance Facility, Phase I ...... 10.0 Gates ...... 0.2 need to be spent efficiently, we now Air Force: Lackland AFB: Replace and Bury continue the pork-barreling of the Altus AFB: Consolidate Base En- Electrical Infrastructure ...... 0.9 military construction appropriations gineer Complex, Phase I ...... 7.7 Air Force Reserve: Lackland AFB bill. Vance AFB: Road Repair (Elam Warehouse Renovations ...... 0.8 I yield the floor. Road) ...... 4.8 Army National Guard Wide: Weapons Pennsylvania, Air National Guard, Mr. WELLSTONE. Mr. President, the of Mass Destruction Civil Support 2003 Military Construction Appropria- Pittsburgh: Squadron Operations Teams Facilities ...... 2.5 and Support Facility ...... 7.7 tions bill provides over $10 billion in PLANNING AND DESIGN Rhode Island, Navy: Newport Naval funding for planning, design, construc- Station: Consolidated Police/Fire/ Alabama, Army National Guard: Haleyville Joint Readiness Center tion, and improvements for military Security Facility ...... 9.0 bases around the world. A long ne- South Carolina: Design ...... 1.1 Air Force, Shaw AFB: Fighter Alaska: glected priority, the bill would provide Squadron Maintenance Facilities 6.8 Army, Donnelly Training Area: $4.2 billion for family housing, much of Air National Guard, McEntire Air Training & UAV Maintenance which is substandard right now. Many National Guard Base: Replace Op- Support Facility ...... 1.5 armed forces personnel have suffered a erations and Training Facility .... 10.2 Air Force, Elmendorf AFB: Wide- Body Aircraft Hangar ...... 2.7 declining quality of life in recent years South Dakota: despite rising Pentagon budgets. The Air Force: Ellsworth AFB Oper- Army National Guard: Bethel ations Facility ...... 13.2 Readiness Center Design ...... 0.5 pressing needs of dedicated men and Army National Guard, Camp Rapid: Air National Guard: Kulis ANG women in uniform and their families Barracks/Dining/Administration Base Pararescue Training Com- must be addressed, especially as they and Parking, Phase I ...... 10.6 plex Design ...... 0.7 continue to be mobilized for duty in re- Texas: California: Navy: North Island Naval Air Sta- sponse to the attacks of September 11. Navy: Ingleside Mine Warfare I want to highlight two provisions in Training Center ...... 5.5 tion ...... 0.4 Air Force: Goodfellow AFB: Wing Air Force, Travis AFB: Replace C– this bill that are of particular impor- Support Complex ...... 10.6 5 Squadron Operations Facility/ tance to my home State of Minnesota. Utah, Air Force: Hill AFB: Consoli- Aircraft Maintenance Facility .... 0.9 For a very long time, I have said that dated Software Support Facility .... 16.5 Connecticut, Army National Guard: there would be an increased reliance by Vermont, Army National Guard: New Haven Readiness Center De- the Defense Department on the Na- South Burlington Readiness Cen- sign ...... 1.4 tional Guard as budget pressures and ter, Phase I ...... 11.2 Delaware, Air Force, Dover AFB: Virginia, Navy: Norfolk Naval Ship- Control Tower ...... 0.7 force structure realignments contin- yard: Ship Component Service Fa- Hawaii, Army National Guard: Bar- ued. Since the attacks on America on cility ...... 16.8 bers Point Naval Air Station Relo- September 11, the men and women of Washington, Army National Guard: cation Design ...... 2.0 the National Guard have flown air mis- Spokane Readiness Center (Phase I) 11.6 Massachusetts: sions to secure our skies, and they West Virginia, Air National Guard: Air Force, Otis ANG: Fire/Crash have protected airports and other vul- Rescue Station/Control Tower ..... 1.7 Martinsburg Airbase Site Improve- nerable public facilities. I am pleased ment and Utilities ...... 12.2 Army Reserve: Hanscom AFB Wyoming, Air Force: Warren AFB Armed Forces Reserve Center De- that we were able to include in this bill Stormwater Drainage System ...... 10.0 sign ...... 2.6 $15 million for the Duluth Air National Worldwide Unspecified: Mississippi, Army National Guard: Guard Base for an airport maintenance Army: IBCT Transformation, var- Clarksdale Readiness Center Design 0.3 facility at the 148th Fighter Wing, ious facilities ...... 100.0 Gulfport Munitions Complex De- which will provide maintenance and re- Air Force: C–17 Transformation, sign ...... 0.7 pair of 15 F–16 fighter aircraft. Further, various facilities ...... 100.0 Missouri: Defense-Wide: Army, Forest Leonard Wood: WMD the bill contains $1.45 million for the Planning and Design: First Responder Training Facil- Harden Naval Reserve Center in Du- Tricare Management Activity .. 3.0 ity ...... 0.5 luth. I am pleased that these projects

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6975 are receiving the funds they deserve, serve and will help them prepare for As Senator HUTCHISON mentioned, and I appreciate the opportunity to and execute their missions. every project is in the 5-year defense work in this area with my colleague The bill also provides funding for two plan. Every project has been author- from Minnesota, Senator DAYTON, who, key transformation initiatives in sup- ized. Every project is the base com- as a member of the Armed Services port of President Bush’s strategic vi- mander’s priority. With respect to the Committee, is especially attentive to sion for transforming the Department transformation initiative, we didn’t de- such needs. The bill goes far in address- of Defense: $100 million for Army trans- cide the locations, the services decided ing many vital national needs, and I formation, and $100 million for Air the locations. Both the Army and the am voting for it today. Force mobility transformation. Air Force have identified the locations The PRESIDING OFFICER. Who Earlier this year, both the Army and for their transformation initiatives. seeks time? the Air Force identified unfunded The Army involved 13 active and Guard The Senator from Texas. transformation military construction installations in six States, plus Ger- Mrs. HUTCHISON. Mr. President, I requirements to the Congress. Many of many. The Air Force’s transformation rise as the ranking Republican on the these requirements were refined after involves 53 active, Guard, and Reserve committee that has the bill before us development and presentation of the bases in 32 States, plus Germany, for military construction, and I am 2003 President’s budget, so we added Japan, and Puerto Rico. pleased to have worked with Senator them because they are critical to the The Appropriations Committee is FEINSTEIN, chairman of the sub- Army and the Air Force to make them not—and I stress that—attempting to committee, to bring out a bill that more mobile and capable to face the divert funding from any of these does address the priorities of the De- 21st century battle conditions. planned locations or to influence where fense Department. The committee funded another ini- the money will go. These decisions I noticed that the Senator from Ari- tiative, the BRAC environmental have been and will be made by the serv- zona targeted the Appropriations Com- cleanup initiative, which provides $100 ices. The purpose of the transformation mittee, saying that a large percentage million to accelerate the cleanup of initiative is to accelerate the process. of the Appropriations Committee were dangerous environmental contami- Infrastructure is a long lead time item, taken care of, as if this were some nants at closed and realigned bases and we need to start investing more in pork-barrel spending. throughout the Nation. Until the this transformation infrastructure now The fact is, the Senate Armed Serv- cleanup of these bases is completed, to meet the service requirements. ices Committee has authorized every the properties cannot be returned to Essentially, 53 percent of this bill is project in this bill. We don’t have productive use in these communities. for military construction for the active projects in the appropriations bill that In my own State of Texas, we have and Reserve components. It is $610 mil- have not been authorized by a com- terrible environmental bills, both at lion for the Guard and Reserve, $1.1 bil- pletely different committee that fo- the former Kelly Air Force Base in San lion for barracks, $26 million for child cuses totally on defense and has deter- Antonio and the former Navy Air Sta- development, $137 million for medical mined that these projects should be au- tion in Dallas. There are reports like facility, and $159 million for chemical thorized. this across the country, and we are try- demilitarization. The remaining 40 per- I am very pleased to support this bill. ing to address those concerns wherever cent—$4.23 billion—is for family hous- It provides new mission facilities for they may be, so that these closed bases ing, including new housing, housing the Department of Defense consistent can be returned to productive use, as improvements, and operation and with the Department’s request. The we have promised these communities maintenance of units. they would be. priorities are articulated by the mili- At the BRAC cleanup, as Senator Mr. President, this is a good bill. It is tary departments. It also enhances HUTCHISON stated, I can tell you that a bill that stresses the priorities of the we have one closing base—McClellan quality of life for servicemembers and Department of Defense and the Presi- their families—a commitment we made Air Force Base—in northern California, dent. It also has added areas that were where plutonium has badly contami- to these people who are representing not able to be added earlier because the our country and fighting for our free- nated the ground. Senator HUTCHISON, Department of Defense wasn’t ready, in her State, has toxic materials that dom on the plains of Afghanistan and and we certainly added more than the in Kuwait today, based there for us. We are seeping into residential areas from President’s budget allowed for Guard Kelly Air Force Base. There is no ques- are going to take care of them. Finally, and Reserve units. it makes a significant downpayment on tion in either of our minds that the I think the priorities are right, and I BRAC rounds we have completed were renewing the Department of Defense urge my colleagues to support this bill aging infrastructure. not sufficiently funded with environ- so we can get on with the business of mental remediation dollars. The proof Every project in the military con- revamping our aging military infra- struction appropriations bill is author- is in the pudding, and that pudding is structure and increasing the quality of that many bases still cannot be ized in the Defense authorization bill, a life for those who are fighting for us as completely separate bill. Two commit- transitioned into productive civilian we speak on this floor. use because of the absence of the abil- tees have looked at these priorities. I yield the floor. Every project in the bill is on the Pen- ity to clean them up. The PRESIDING OFFICER. The Sen- Mr. President, the MilCon bill is im- tagon’s future year defense plan, and ator from California is recognized. portant to the men and women in uni- every project the committee added was Mrs. FEINSTEIN. Mr. President, as form who serve our Nation at home and the base commander’s highest priority. chairman of the subcommittee, I thank overseas. We believe it is a good bill, it The committee added funds to the the ranking member, the distinguished is a bipartisan bill, and I strongly urge military construction bill because we Senator from Texas, for her help on were concerned with the sharp drop in my colleagues to approve it. this bill. She has been a wonderful col- How much time do I have left? funding, particularly for the Guard and league with whom to work, and I am The PRESIDING OFFICER. The Sen- Reserve forces. That is where much of very grateful for that. ator has 40 seconds. the funding we have added is focused. Mr. President, essentially, this bill, Mrs. FEINSTEIN. I yield back the re- Our Guard and Reserve forces are fight- as Senator HUTCHISON said, provides mainder of my time. ing side by side with our active-duty $10.6 billion in new budget authority. The PRESIDING OFFICER. The bill forces in Afghanistan and providing the That is a tenth of 1 percent over last having been read the third time, the bulk of our homeland security forces year’s appropriation. It is 10 percent question is, Shall the bill pass? here at home. over the President’s appropriation. The The yeas and nays have been ordered, Adequate training and readiness fa- reason for this is that the President and the clerk will call the roll. cilities are essential for the Guard and cut the Guard and the Reserve 52 per- The assistant legislative clerk called Reserve, particularly during this time cent from last year’s budget request. the roll. of increased demand on their skills and We do not believe they can sustain Mr. NICKLES. I announce that the services. The bill provides greatly their infrastructure requirements with Senator from North Carolina (Mr. needed facilities for the Guard and Re- that kind of a funding shortfall. HELMS) is necessarily absent.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6976 CONGRESSIONAL RECORD — SENATE July 18, 2002 I further announce that if present know that ultimately we are going to pertise of the Finance Committee? I and voting the Senator from North be talking about Medicare and pre- have heard the structure and process of Carolina (Mr. HELMS) would vote scription drug coverage. this debate described aptly as one of ‘‘yea.’’ We all recognize the lack of prescrip- mutually assured destruction, or The PRESIDING OFFICER. Are there tion drug coverage demonstrates clear- ‘‘mad.’’ This issue is too important to any other Senators in the Chamber de- ly Medicare has not kept up with the too many seniors for this debate to be siring to vote? rapid advances in medical care, placing treated in this manner. Because of the The result was announced—yeas, 96, ultimately the health care security of terms of this debate, any drug proposal nays 3, as follows: too many seniors at risk. that passes ultimately must have strong bipartisan support, because 60 [Rollcall Vote No. 181 Leg.] When Medicare was created in 1965 to provide health care for our Nation’s el- votes will be needed to pass it. Is that YEAS—96 derly and disabled, prescription drugs truly ‘‘mad’’? I hope not. But I sense Akaka Domenici Lugar that, without the benefit of the Fi- Allard Dorgan McConnell were not included as part of the pro- Allen Durbin Mikulski gram’s benefits. At that time, that nance Committee working on this, we Baucus Edwards Miller made sense because pharmaceuticals may be in a very difficult situation. Bayh Ensign Murkowski played an extremely minor role in the Some watching may ask how did we Bennett Enzi Murray get into the situation where a prescrip- Biden Feinstein Nelson (FL) world of medicine. In the last 35 years, Bingaman Fitzgerald Nelson (NE) medical practice has changed dramati- tion drug bill will require 60 votes to Bond Frist Nickles cally and prescription drugs have be- pass rather than a simple majority. Boxer Graham Reed come a vital part of health care. In the The answer is simple. The first reason Breaux Gramm Reid is because the majority leader has de- Brownback Grassley Roberts last decade or two, we have seen a Bunning Gregg Rockefeller pharmaceutical revolution. Hundreds cided to bring a bill straight to the Burns Hagel Santorum of amazing new drugs have been devel- floor and bypass the committee process Byrd Harkin Sarbanes entirely. This is a troubling pattern. Campbell Hatch Schumer oped to treat and manage all different The farm bill, the energy bill, the trade Cantwell Hollings Sessions kinds of diseases and medical condi- Carnahan Hutchinson Shelby bill all bypassed the committee struc- tions. Those of our population who suf- Carper Hutchison Smith (NH) ture—a mad process. Chafee Inhofe Smith (OR) fer from these diseases have benefited This action is troubling to me be- Cleland Inouye Snowe greatly. Clinton cause I understand there was one pro- Jeffords Specter More and more these days prescrip- Cochran Johnson Stabenow posal with the votes to pass in the Fi- tion drug are keeping Americans of all Collins Kennedy Stevens nance Committee, the so-called Conrad Kerry Thomas ages out of hospitals, enhancing the tripartisan bill. But the committee was Corzine Kohl Thompson overall quality of life and, yes, keeping Craig Landrieu Thurmond not allowed to act on this important people alive. Hundreds of drugs that Crapo Leahy Torricelli issue. That is a shame. Daschle Levin Voinovich were unknown decades ago play a crit- How in good conscience can we con- Dayton Lieberman Warner ical role keeping our seniors healthy, DeWine Lincoln Wellstone sider the largest addition to Medicare Dodd Lott Wyden active, and alive. Yet many of our most since its inception without the vulnerable citizens are seniors who thoughtful input of the committee NAYS—3 have trouble affording prescription Feingold Kyl McCain with jurisdiction over the Medicare drugs because their Government-pro- Program? That does not make any NOT VOTING—1 vided Medicare coverage has failed to sense. That is mad. Helms keep pace with medical progress. The second reason 60 votes are nec- In addition to being exposed finan- The bill (H.R. 5011) was passed, as fol- essary is because we have no budget. cially to the cost of needed drugs, sen- lows: For the first time since 1974 we have no iors without prescription drug insur- Mrs. FEINSTEIN. I move to recon- budget in the Senate. This is one of the ance do not benefit from the lower sider the vote, and I move to lay that consequences of not having passed, or prices that most third-party buyers— motion on the table. even, for that matter, considered a such as insurers, hospitals, and phar- The motion to lay on the table was budget on the floor. Because there is no macy benefit managers—are able to ne- budget, we are operating under the agreed to. gotiate with pharmaceutical manufac- The PRESIDING OFFICER. Under budget guidelines passed last year that turers. As a result, seniors without would spend about $300 billion over 10 the previous order, the Senate insists drug coverage must pay the highest re- on its amendment, requests a con- years to add a prescription drug benefit tail price for needed medication. to Medicare. Therefore, any prescrip- ference with the House on the dis- That is a situation we must change. agreeing votes of the two Houses, and tion drug plan brought to the floor It is time to modernize our Medicare must be within the $300 billion or it is that the Chair be authorized to appoint system and to add a prescription drug conferees on the part of the Senate. subject to a budget point of order. benefit to protect the health care secu- This is another problem with the The Presiding Officer (Mr. BINGAMAN) rity of our seniors. The Medicare Pro- scheme under which we are operating. appointed Mrs. FEINSTEIN, Mr. INOUYE, gram needs to be updated to reflect the We will be considering shortly the larg- Mr. JOHNSON, Ms. LANDRIEU, Mr. REID, past 35 years of medical progress. The est expansion of an entitlement pro- Mr. BYRD, Mrs. HUTCHISON, Mr. BURNS, millions of Americans who rely on gram in the history of our Nation. We Mr. CRAIG, Mr. DEWINE, and Mr. STE- Medicare for their health care deserve bypassed a committee, we have not had VENS conferees on the part of the Sen- no less. a hearing on it, we have not had a ate. Fortunately, over the past few years markup, the Congressional Budget Of- f the debate in Washington has shifted fice has not scored it, and we will be from whether or not to provide a pre- PRESCRIPTION DRUGS bringing the bill straight to the floor. scription drug benefit to how to best Mutually assured destruction. This is The PRESIDING OFFICER (Ms. LAN- craft a program to provide seniors with mad. It is a recipe for disaster and in- DRIEU). The Senator from Missouri is the best prescription drug coverage action. recognized. possible. Now is the time to act to in- What is most troubling to me is the Mr. BOND. Madam President, I rise clude prescription drugs as part of an real losers. If the Senate is unable to today to comment on the overall poli- overall health security package for our pass a prescription drug benefit, it will cies we are working on today. While seniors. be our seniors. The seniors are the ones this bill we are debating, the under- An issue this important deserves de- who will be forced to endure another lying bill, is a generic drug bill that bate and serious consideration. How year without the safety net that a came out of the Committee on Health, can we consider a serious import issue Medicare prescription drug benefit Education, Labor, and Pensions, we all such as this without the benefit and ex- could and should provide.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6977 Enough about my concerns about the flexibility in terms of plan design, no I yield the floor. process. As we look forward to this de- choice for seniors, and could limit ac- Mr. REID. Madam President, I sug- bate, there are a number of funda- cess to breakthrough drugs. A prescrip- gest the absence of a quorum. mental principles that need to be out- tion drug benefit must address the high The PRESIDING OFFICER. The lined as we consider various prescrip- cost of prescription drugs and attempt clerk will call the roll. tion drug options. These are funda- to restrain the skyrocketing cost of The legislative clerk proceeded to mental elements to any serious, re- prescription drugs which cannot be sus- call the roll. sponsible, bipartisan prescription drug tained long term. Mr. REID. Madam President, I ask benefit. All existing drug benefits make man- unanimous consent the order for the First and foremost, a prescription ufacturers compete to reduce prices quorum call be rescinded. drug benefit must be permanent, it and pass along the savings from price The PRESIDING OFFICER. Without must be affordable, and it must be im- competition as larger discounts and objection, it is so ordered. mediate. Seniors need help now. With lower premiums for beneficiaries. That f the high cost of prescription drugs, is the only proven way to keep a drug GREATER ACCESS TO AFFORD- they cannot continue without that as- benefit affordable. The majority lead- ABLE PHARMACEUTICALS ACT sistance. They are hurting today. Sen- er’s bill locks in copayments and pre- OF 2001—Resumed iors often make painful choices be- miums for beneficiaries and prevents tween buying food and buying prescrip- competition that could lower drug The PRESIDING OFFICER. The tion drugs. Seniors need action and re- prices. clerk will report the pending business. According to the Congressional Budg- sults on this issue—not an election The legislative clerk read as follows: et Office, bills that rely on public-pri- year issue in November. Seniors want, A bill (S. 812) to amend the Federal Food, vate-sector partnerships and an ele- need, and, quite frankly, deserve the Drug, and Cosmetic Act to provide greater ment of competition, such as the access to affordable pharmaceuticals. stability of a permanent drug benefit. tripartisan bill, will help manage the One of my most serious concerns Pending: cost of drugs. Sadly, the CBO found with the majority leader’s bill is the Reid (for Dorgan) amendment No. 4299, to that bills similar to the bill of the ma- fact it will sunset after only a few permit commercial importation of prescrip- jority leader, because of the lack of years. A prescription drug benefit that tion drugs from Canada. competition and inflexibility of the Reid (for Stabenow) amendment No. 4305 sunsets after 2010, just a few years after benefit, would in fact increase drug (to amendment No. 4299), to clarify that sec- it finally begins, is simply not good costs. Given the current climate, I sim- tion 1927 of the Social Security Act does not enough. Medicare is an entitlement ply cannot support a plan that in- prohibit a State from entering into drug re- program and seniors deserve perma- creases drug costs or one that sunsets bate agreements in order to make outpatient nent benefits they can count on today, at the end of 2010. prescription drugs accessible and affordable tomorrow, 10, 12, 15 years from now. A Finally, a prescription drug benefit for residents of the State who are not other- hollow benefit, with temporary relief wise eligible for medical assistance under should be fiscally responsible and sus- the Medicaid program. that sunsets after 5 or 6 years, does not tainable long term. The best guess we The PRESIDING OFFICER. The Sen- provide adequate health care security have, without the CBO’s scoring, is ator from Nevada. for seniors. that the proposal by the majority lead- Mr. REID. Madam President, I am Think about the lunacy of the situa- er and some of his colleagues would going to send a modification to the tion we are in. We seem to be uninten- cost at least $600 billion over the next tionally on a track of telling seniors 8 years. In a time of deficit spending desk very shortly, but I want to com- they had better die in 2010. We passed and a tight economy, such a benefit ment briefly on the statements of my elimination of the death tax, but we would ultimately require cuts in other friend from Missouri that were just did not make it permanent, so we tell fields, such as education, Social Secu- made. He talked about lunacy of what seniors, you had better die in 2010 or rity, or national defense, and place a is going on here. I will use his exact the tax rates are going to jump back up heavy burden on the current genera- term—lunacy. Talk about the death and the death tax is going to spring tion receiving benefits, the generation tax, that is, the estate tax, at the same from the grave. Now we are saying, you paying for those benefits, and the next time you are talking about Medicare can be protected on prescription drugs generation. prescription drugs, the vast majority of through 2010, but you had better move Seniors have a right to demand a people, the vast, vast majority—over 98 on because in 2011 this program sun- drug benefit now, but I believe most of percent—of the people on Medicare sets. them will tell you they do not want to have no relevance to the estate tax. Somebody is not thinking. Somebody mortgage their grandchildren’s future Why he would bring up the estate tax is not realizing what they are doing. in the process. Seniors must be pro- at the same time we are talking about Let’s get serious. We need to make the tected from catastrophic drug costs. No Medicare prescription drugs is beyond death tax repeal permanent, and we senior should face financial ruin be- my ability to comprehend. need to make prescription drug bene- cause of an illness that triggers cata- I would also say he talks about why fits for seniors permanent. strophic drug costs. Our Nation’s we bring up some of these bills without Seniors should have the right, also, health care system has changed signifi- going through the committee. We do to choose the prescription drug plan cantly since Medicare was first cre- not do that very often, but we have that best meets their needs. They ated. To make it effective, we must done it. When we were in the minority, should not be told what they need by a change Medicare as well. it was done all the time. We have seen politician or a Washington bureaucrat. We must work to bring affordable a number of these measures being I fear the majority leader’s bill dic- prescription drug coverage to every brought up because of what has gone on tates a one-size-fits-all, Government- Medicare recipient. The Senate has the after September 11. run benefit for all seniors and puts the opportunity to pass a bipartisan— Take terrorism insurance. We passed Government in the position of deter- tripartisan permanent Medicare pre- that. It was really good legislation. mining what drugs would be covered scription drug plan this year. The The President told us how much it was under the plan. We must protect our House has already passed a bill. The needed. It took us a long time to get seniors from a Government-run drug President has indicated repeatedly that the bill up because they objected to it. program that delays, restricts, or de- he wants a prescription drug benefit for Now they will not let us go to con- nies access to the newest and most ef- America’s seniors. With this kind of ference on this bill. It is interesting to fective drugs available on the market. momentum, the time should be now. I note, the majority leader said we Seniors should have the right to hope we will move forward with an should have a 3-to-2 ratio and we had a choose a benefit that best meets their honest and open debate that will 3-to-2 ratio. They said no, we want 4- needs and does not restrict access to produce a responsible, bipartisan bill to-3 or we will not go to conference. We the newest and most effective drugs. I consistent with the principles I have gave them 4-to-3, and they still won’t fear that the majority leader’s bill outlined that fulfill Medicare’s promise go to conference. This is terrorism in- leaves no room for innovation and of health care security for all seniors. surance. That is stopping construction

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6978 CONGRESSIONAL RECORD — SENATE July 18, 2002 projects in Nevada, in New York, I am The PRESIDING OFFICER. The Sen- citizens are paying retail, which, in sure in Louisiana, all over the country. ator from Michigan is recognized. fact, is the highest price in the world There are other examples, of course— Ms. STABENOW. Madam President, I right now. the trade bill. The trade bill is some- would like to speak to my amendment In an attempt to respond to the sky- thing the President said he wanted. He which is now before us. rocketing prices, 30 of our States have wanted us to get it to the floor as I ask unanimous consent that the fol- enacted laws with some type of pre- quickly as we could. We did, and it lowing Senators be added as cosponsors scription drug coverage for those with- passed. Only the last couple of days to the amendment: Senators DORGAN, out insurance. They are looking for were we able to get conferees ap- SCHUMER, FEINGOLD, TORRICELLI, ways to be innovative—to use what we pointed. CARNAHAN, LEVIN, JOHNSON, SNOWE, often have heard on the floor from our The farm bill, that is pretty impor- JEFFORDS and DURBIN. colleagues—the innovations of the tant legislation—the President signed The PRESIDING OFFICER. Without States, the laboratories of democracy, that into law. The energy bill, we fi- objection, it is so ordered. and the ideas that come from our nally got conferees there. The Presi- Ms. STABENOW. Thank you very States. About 30 of them are looking dent said that was an important bill. much, Madam President. for ways to enact something that re- I only mentioned a few of them—the Madam President, I am very pleased lates to prescription drug coverage— trade bill, the farm bill, the energy to offer this amendment which is a bi- looking for ways to lower prices and bill, the terrorism bill. They couldn’t partisan amendment, and hopefully one expand coverage. That is according to be too bad. They passed the Senate by that we will be able to pass, working the National Governors Association. large margins in every case. together and moving forward on the However, unfortunately, the drug I hope people will understand that we issue of lowering prices of prescription companies’ trade association— are doing the best we can to work our drugs and also providing Medicare cov- PhRMA—has mounted legal challenges way through a difficult situation in erage for our seniors and the disabled. against several of those States, includ- this country. We are making progress. This amendment addresses an issue ing my own State of Michigan. They We passed legislation in spite of the ob- that our States are facing, the question have been opposing State efforts to stinacy we have had—not the least of of allowing States to have the right to lower prescription drug prices and in- which is the legislation on which the have flexibility to lower prices. crease coverage for those without in- Senate is now working. We spent all This is a simple amendment. It would surance. Specifically, they filed lawsuits day yesterday on importation. I think give States the flexibility to set up against Maine and Vermont for their we should have been able to do more. I programs to pass along negotiated programs because the drug lobby does agree about the fact that we finally Medicaid rebates and discounts to their not want them to extend the Medicaid passed our first appropriations bill. citizens who do not have prescription discounts to those without insurance As I see down the hall, we are com- drug coverage and are not covered by who are hard-working citizens. In fact, pleting the very difficult conference on Medicaid. So the States will have the we know that a majority of the people the supplemental. I should be there. I ability to negotiate and pass on those without insurance in this country work am a member of that committee. I similar discounts to their citizens who in small businesses. They are working. hope to go there in a matter of a few are without coverage and who are not Their small business is trying to get minutes. Senators BYRD and STEVENS, on Medicaid. health care coverage for themselves chairman and ranking member of that This is critical. States should have and their workers. Those individuals committee, indicated to me that they the ability to provide similar discounts have no access now to any kind of expect to complete that conference in to all of their uninsured citizens. Since group purchasing power or to any kind the next hour and a half. That will be Medicaid only covers low-income peo- of discount. States are trying to use by 12:30. ple, and lower and middle-income citi- zens, they do not have the ability to their group purchasing power for Med- AMENDMENT NO. 4305, AS MODIFIED icaid and extend that same discount— Mr. REID. Madam President, I have a get the same negotiated discount. Some States are setting up programs usually 15 to 20 percent—to their em- modification at the desk. I call it up. ployees. Many work in small businesses The PRESIDING OFFICER. Without to do that. One of the biggest challenges, as you and don’t have any insurance. objection, the amendment is so modi- While Maine’s two programs have fied. know, and as we all know—we will be debating it this week and next—is the been upheld in court, Vermont’s pro- The amendment (No. 4305), as modi- gram has not. It was actually struck challenge facing not only our citizens, fied, is as follows: down by the courts. Both States are our families, and our seniors but also At the end, add the following: embroiled in a very lengthy appeals the business community, which I have SEC. ll. CLARIFICATION OF STATE AUTHORITY process. RELATING TO MEDICAID DRUG RE- talked about frequently. Also, State Specifically, the Maine Rx program BATE AGREEMENTS. governments are addressing this issue is now pending before the Supreme Section 1927 of the Social Security Act (42 of the rising cost of prescription drugs U.S.C. 1396r–8) is amended by adding at the Court. The current administration is and the implications to Medicaid. supporting Maine’s right to implement end the following: In fact, the National Governors Asso- ‘‘(1) RULE OF CONSTRUCTION.—Nothing in their program. this section shall be construed as prohibiting ciation is meeting right now. Earlier in I commend President Bush and the a State from— the week, I shared a newspaper article administration for siding with the ‘‘(1) directly entering into rebate agree- where all of the Governors of the State of Maine and their right to make ments (on the State’s own initiative or under United States were speaking about decisions about their citizens and how a section 1115 waiver approved by the Sec- their biggest challenge. Their biggest to operate their businesses for their retary before, on, or after the date of enact- challenge, according to the article, is ment of this subsection), that are similar to State. the rising price of prescription drugs In fact, the Solicitor General, Ted a rebate agreement described in subsection and the rising cost of Medicaid to the (b) with a manufacturer for purposes of en- Olsen, filed a brief on behalf of the Fed- suring the affordability of outpatient pre- State budgets. This is a critical issue eral Government urging the Supreme scription drugs in order to provide access to for them. Court to allow Maine’s Rx program to such drugs by residents of a State who are We know that from 2000 to 2001 pre- go forward without further delay. not otherwise eligible for medical assistance scription drug prices rose about 17 per- I argue that this amendment, in fact, under this title; or cent. This is not unusual. It has been is supported by both parties, people on ‘‘(2) making prior authorization: (that sat- that way every year. This is causing both sides, and that administration isfies the requirements of subsection (d) and health care expenditures and health in- certainly has indicated—I have not that does not violate any requirements of surance premiums to go up for busi- this title that are designed to ensure access heard directly regarding the amend- to medically necessary prescribed drugs for ness, for States, for individuals, and ment, but they certainly have indi- individuals enrolled in the State program most certainly for those who do not cated support for the program on which under this title) a condition of not partici- have any insurance and don’t have the this amendment is based. I appreciate pating in such a similar rebate agreement.’’. clout to negotiate a discount. Those their leadership on this issue.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6979 These legal challenges are very cost- challenges from PhRMA as they try to cratic Governors. The States them- ly to taxpayers. They just deter other come up with programs to lower pre- selves are trying to use the States’ States from establishing other similar scription drug prices. Right now, we power in order to get the best price for demonstration projects, such as the un- have the ability to stop the dollars the neediest citizens in their States: derlying generics bill. Unfortunately, going into the lawsuits and redirect the poorest individuals, the ones with- the drug companies are trying to stop those to lowering prices and making out insurance. And here comes PhRMA these kinds of innovations. prescription drugs available. with their legal actions to make sure This amendment would, in fact, try I invite and urge my colleagues to the States are not going to be able to to stop the drug companies from using join with us. This is an opportunity for do that. the legal system to keep their prices us to stand together in support of our When does that greed stop? When high. We all know that they will dis- State governments. Let the Governors does that greed stop? When do they patch their high-priced attorneys know, this week, as they are meeting, stop wringing the final few cents out of whenever they can to, unfortunately, that we understand what they are the poorest individuals in this country? keep their profits as high as possible. going through and we want to back That is what this is all about. Since the price of prescription drugs them in their efforts to make sure that The States are trying to negotiate is soaring, States have the unfettered lifesaving medicines are available to lower prices for the poorest individuals ability to pass on Medicaid rebates to their citizens. in these States, and PhRMA says no. their residents. They should have that Madam President, I yield the floor. They gimmick and circumvent the ability to pass those rebates on to their The PRESIDING OFFICER. The Sen- clear spirit and language of the Hatch- residents. ator from Massachusetts. Waxman law in order to perpetrate bil- I hope we will agree to this amend- Mr. KENNEDY. Madam President, I lions and billions of dollars of addi- ment because even if Congress passes a commend my friend and colleague from tional profits. Medicare prescription drug program Michigan for this absolutely excellent Then we hear a great deal of debate this year, it will be several years before amendment. I am hopeful we can get in this Chamber and much admonition it is fully phased in. strong support for this amendment be- from many of those who are opposed to I hope and pray that we will come to- cause it is so compelling in its logic the underlying legislation saying: Let’s gether and pass a Medicare prescrip- and reason, and the result will be so let the free market work. tion drug benefit. It is long overdue. important to our fellow citizens across We had hours and hours of discussion But we know it will take several years the country. about price controls in Canada. We are to phase it in. Just to catch up to where we are, not for price controls, as in Canada. We In the meantime, our States are Madam President, the underlying bill, want the free market to work. But struggling to help their citizens. I be- the Schumer-McCain legislation, tries what is happening when the free mar- lieve they need our support. to halt the gimmicking that the drug ket works in the State of Maine, the The Rx flexibility-for-States amend- companies use to get around the State of Florida, the State of Michi- ment would seek to remove the legal Hatch-Waxman bill that was passed a gan, and other States? In comes hurdles that are preventing States number of years ago. They have PhRMA, and they say: No, we are not from providing lower priced prescrip- gimmicked the rules, and they do it in going to let it work. We want to stop tion drugs to their citizens. ways that completely circumvent the them from doing it. Specifically, States would be able to spirit and the understanding of the This is the same kind of action that extend their Medicaid rebates and dis- law, in order to keep prices artificially is underlying the basic measure. counts for prescription drugs to non- high. And every family and every user So I want to review, very briefly, the Medicaid-eligible persons. of prescription drugs knows the chal- situation. I understand the problem we State governments are close to the lenges families are facing with high are looking at. people. I know our Presiding Officer drug prices. Under the terrible burden of sky- was in the State government, as was I. Under the McCain-Schumer legisla- rocketing drug prices, the State gov- We understand that States and local tion, we have tried to deal with that ernments are trying to use their au- governments are on the front line hear- issue. I think we have dealt with it ef- thority and bargaining power to help ing from people, and wanting to re- fectively. That is the matter that is be- residents—and our constituents—ob- spond. We have States that are re- fore the Senate. tain lower prices. sponding, and are being stopped We had a good debate yesterday on Already, 30 States have passed laws through the legal system right now by different measures that continue to put to extend drug coverage or lower the drug company lobby. The solution downward pressure on the escalation of prices. But PhRMA has done it again, to higher prices, higher prescription drug prices. I think we had a very good suing the States to stop our ‘‘labora- drug prices, is not just in Washington. debate on that, both in support of the tories of democracy’’ from fighting the It is not just in the Senate, or in the underlying legislation and in support drug industry on behalf of American House of Representatives. But it is in of the Dorgan amendment, yesterday. consumers. capitals all across the country where Now we have the Stabenow amendment The drug industry has sued the State our Governors and our State legisla- before us, which will, in a very impor- of Maine. They have sued Vermont, tors are working to respond to what is tant way, continue this effort to exert Michigan, Illinois, and Florida. The critically one of the most fundamental downward pressure on the prices of drug industry is waging war against issues that families and seniors and drugs in this country. our Governors and our State legisla- businesses face to today, which is the I am amazed at the opposition to this tures in the courts. explosion in health care costs, pre- amendment. For a good part of the The Stabenow amendment puts the dominantly coming from the rising afternoon yesterday, we listened to question to the Senate: Will you stand cost of prescription drugs. talk about the free market system that with the States or will you stand with Today we have a chance to send a urged us to get away from price con- the drug industry for higher drug very important message to our col- trols and use the free market system. prices? leagues and to States across the coun- But when the States use the free mar- Many of my colleagues are former try. ket system, in order to bargain for the Governors themselves. I hope they take I ask my colleagues to join with us, lowering of the prices, what happens? particular note that just yesterday the on a bipartisan basis, as we have in What is the reaction of the drug com- Nation’s Governors issued a statement this amendment, to adopt this amend- panies? The drug companies go ahead of solidarity with the administration ment and to tell the States that we are and sue the States to try to restrain in its legal fight with PhRMA over the standing with them as they fight to them from using the free market sys- Michigan Medicaid waiver that reduces lower prices for their citizens and tem. the State’s drug costs. make lifesaving medicines available. This isn’t Government intervention, Let me read from the NGA statement If we fail to pass this amendment, it is the States themselves, States that of July 15, which quotes Michigan Gov- many States could be faced with legal have Republican Governors and Demo- ernor Engler:

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6980 CONGRESSIONAL RECORD — SENATE July 18, 2002 The nation’s governors are extremely dis- is anything but a front group for the every day in America. That is what a appointed with the course of action chosen drug industry, let me quote the June 18 corporation is in certain ways. That is by PhRMA. It is unfortunate that their orga- Wall Street Journal— what a union is in certain ways. Here nization feels compelled to use the court sys- tem to manipulate public policy. [T]im Ryan, PhRMA’s past marketing di- we have the State doing the same rector, founded the grass-roots-sounding thing. That is a Republican Governor. ‘‘Citizens for Better Medicare’’ at the behest As the Senator from Massachusetts The Governors, the administration, and expense of major drug companies. said, there were some yesterday who and consumers all support State efforts There it is. Enough is enough. The talked about the Canadian bill and to reduce drug prices. Now, with the American public is sick and tired of the price controls. These are not price con- Stabenow amendment, it is the Sen- drug industry’s abuses. Let’s support trols, but we just saw yesterday or 2 ate’s turn. The amendment is based on a simple the Stabenow amendment, and help our days ago Pfizer and Pharmacia merge. but powerful idea: Extend the scope of States lower drug prices for all Ameri- What were they trying to do? Well, in an existing Federal law to help the cans. a free market way, they were trying to I see others who want to speak on States supplement the rebates we re- aggregate to increase their bargaining this issue. I want to mention to our quire under Medicaid. power. Doesn’t it make sense to say Medicaid already collects ‘‘best colleagues an excellent report being re- that the citizens of Maine or Vermont price’’ rebates from the drug industry, leased today. It is a review of the im- or Massachusetts or Utah or New York thanks to a 1990 law we passed under pact of the three principal proposals can aggregate to equal that—well, they the leadership of Senator David Pryor that have been advanced on coverage. will never equal it, but at least to gain from Arkansas, a champion of lower What this study does is take your a little leg up on that bargaining power drug prices. State, the key features of each of the and get some help? I was always impressed by the work programs that have been advanced, the Both of these proposals are free mar- and the commitment of Dave Pryor Republican House program, the Gra- ket. There are some people whose view and his strong desire for protecting the ham-Miller program, which I am proud of the free market is to let big compa- consumer. And this tradition follows to cosponsor, as well as the tripartite nies do whatever they want. I am a lit- with Mark Pryor in Arkansas today: program. Then it takes the numbers of tle worried that over at the FCC, the they are strong protectors of con- citizens who would be impacted, the whole idea is, let us have one big com- sumers and lower drug prices. number of elderly, senior citizens, and munications empire. Actually, the free The Stabenow amendment simply disabled on Medicare, and it runs market needs some competition. But permits States to negotiate similar through how each of these programs the free market has also said, as it has State rebates to help lower-income would impact the seniors in your evolved since the Adam Smith days, residents afford their drugs. All this State. that combinations to try and increase amendment does is let the States use It reviews for each of the programs our bargaining power are legitimate, the same negotiating tools used today who would be affected, what the impact recognized ways that the free market by the private sector to lower their would be on each of the seniors in the works. drug bills. I do not see why those who State, who would benefit the most, and I see that my colleague from Utah is otherwise support the free market who would benefit the least. in the Chamber. I first want to pay him would oppose this amendment. We will be releasing this report this some tribute. I said this in committee We find out that large companies use afternoon at 2 o’clock. We can say a year or 2 years ago. I think Hatch- their negotiating ability. HMOs use without question that in the review of Waxman has been one of the greatest their ability. Why not permit the all 50 States, their powerful, compel- consumer advances we have done in the States to use their ability? But ling, and overwhelming conclusion is last quarter of the last century. When PhRMA says: No, we are not going to that if you want to make drugs avail- I said it, it was still the previous cen- let them do that, particularly when able, accessible, affordable, and de- tury. But he has done a great job there. they are using it for the lowest income pendable, there is one plan that stands Our goal, in terms of the Schumer- citizens. out head and shoulders above all the McCain bill, is to restore the balance of The amendment empowers the States others, and that is the one introduced Hatch-Waxman. The bottom line is a to use the same tools and negotiations by our friend from Florida, Senator simple one: That in 1984, we had a very used by the private sector to lower its GRAHAM. simple template. We said: God bless drug costs. If a drug company refuses There are others who wish to speak companies that come up with innova- to negotiate with a State, its drugs on this. I will come back and address it tive drugs. They research them; they would still be available but would be later. make a lot of mistakes. For every drug subject to ‘‘prior authorization.’’ This The PRESIDING OFFICER. The Sen- they bring to market, there are a lot of is precisely what the State of Michigan ator from New York. drugs that don’t come to market. They is doing. This is precisely why PhRMA Mr. SCHUMER. Madam President, I need the help. They need a return. God is suing the administration. And this is ask unanimous consent that following bless them. Give them a return. They precisely why the Stabenow amend- my remarks, the following Members be are creating a product that makes us ment is needed. recognized to speak: Senator HATCH all live better and longer. Here is what the drug industry did and Senator FRIST, in that order. But we also said that rate of return, when the State of Maine and the State The PRESIDING OFFICER. Without that patent, which is what the patent of Vermont enacted State laws to objection, it is so ordered. really is, can’t be unlimited. And so we lower drug prices. Mr. SCHUMER. Madam President, I said, after a period of time, 20 years Naturally, the industry sued the rise in strong support and as a proud after the patent was filed, others could States. No surprise so far, given their cosponsor of the Stabenow bill. It is come and produce the drug. It worked. abuses of the Hatch-Waxman Act. But worthy legislation. What I will do for a Innovation, from the date Hatch-Wax- then the drug industry instructed its few minutes is talk about the under- man passed to the present, in the field front group, the so-called Citizens for lying bill and the Stabenow bill and of pharmaceuticals has been unparal- Better Medicare, to run TV, radio, and what they have in common. leled. Lives have been saved. The peo- print ads in Maine and Vermont at- The Senator from Massachusetts out- ple are living longer and better and tacking the laws. That is what the drug lined it. These are free market ap- healthier. We see that in our parents industry does to keep the prices sky proaches to lowering drug prices. The and our grandparents. It is amazing. high. one, the Schumer-McCain bill, allows In the last 5 years, I believe Hatch- They sue our State governments and more competition. What could be more Waxman has steered off course. In fact, waste taxpayer dollars defending all-American than more competition. the whole pharmaceutical industry has against their frivolous lawsuits. And The second, the Stabenow bill, allows steered off course. For people who they run attack ads. people within the market to gather to- make a wonderful product, they are Lest anyone question whether the so- gether in the form of their government evolving into an industry that is de- called ‘‘Citizens for Better Medicare’’ and negotiate a lower price. We do this spised and hated.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6981 They could say to themselves: It is Government does the same thing in Mr. KENNEDY. Well, the point is only because these drugs cost a lot, and Medicare. They bargain with the drug that the State is not even doing it for we can’t help it because it costs a lot companies for a lower cost for Medi- all the citizens; it is not even doing it to research them. care. Why can’t the States do it for for all of them. They are doing it for I would say it is not that simple. I their citizens who are not under Medi- the poorest of the poor. That is whom wish it were. They have evolved be- care and Medicaid? My colleague from they are trying to bargain for in these cause, in a headlong rush to keep their Massachusetts is right on the money. circumstances. The drug industry is profitability as high as it has been in Mr. KENNEDY. It seems we will hear contesting that. the past, they are desperately clinging that somehow the States can’t bargain Let me, finally, ask my friend, Sen- to extend patents longer than Hatch- because they are a governmental insti- ator STABENOW, if she has a viewpoint Waxman ever intended. They end up tution. But the concept is very much on this matter. As I understand, this is hiring not just the best researchers the same. For the insurance industry, not a partisan issue in any respect. I anymore but the best lawyers. it is fine—it is a free market system; read Governor Engler’s very strong A drug company should go to Har- and for an HMO, it is fine—it is the free comments about this where he was ac- vard Medical School, not Harvard Law market system. But somehow for the tually talking about manipulating pub- School, as it continues its work. But State, it is government. Even though lic policy. He was using the word ma- they have been spending much of their the pharmaceutical company is free to nipulate, suggesting that we have to time and effort in coming up with say: We don’t like these negotiations; manipulate public policy. The drug schemes—that is what they are—to ex- therefore, we won’t sell to you. If all companies are manipulating public pol- tend the patent beyond the time it the pharmaceutical companies did icy in their patent policy and in the should be extended. that, obviously, the State would have collusion with the generics, which is What does that mean to the average to bargain in good faith. There is no in- being addressed by the Schumer pro- citizen? It means a drug, instead of dication that they are not bargaining posal. costing $25 a month, is going to cost in good faith. So we have a Republican Governor $100 a month—vital drugs. If anything, As the Senator pointed out, there is talking about manipulating public pol- they have pushed it further and further no indication that these industries icy. I was interested in the fact that because so many of these blockbuster have been suffering adversely. They are this should not be a partisan issue. The drugs, these wonderful drugs, are com- one of the most profitable industries— silence in support from the other side ing off patent shortly. and Lord only knows they are paying of the aisle is deafening with regard to I know my colleague from Utah has a the highest salaries to their executives the Stabenow amendment. I am hope- lot invested in Hatch-Waxman. I very as well. But I am not as interested in ful there will be voices on the other much appreciate it. The little changes that as in the concept of what we are side that will rise in support of this. To that we make, Senator MCCAIN and I, talking about here. their credit, they supported the Schu- in our bill, just build on it and readjust Finally, if the Senator would agree, I mer proposal in the committee. Five it. But I think the view that Hatch- am perplexed: We are not talking about Republicans did. I hope we will hear Waxman is just fine as it was in 1984 is bargaining for high income people in those voices again. off base. The statistics will show it. the State; we are talking about bar- I just say to the Senator, this isn’t That is why this bill has such great gaining for the lowest income, the really a Democratic or Republican, or support. I am certainly open and will- poorest of the poor, many of whom liberal or conservative issue. I find ing and eager to hear whatever sugges- would not be able to have access to the there are liberals and conservatives, tions my colleagues from Utah and prescription drugs unless this were of- Republicans and Democrats, as well as Tennessee will make. But I will tell fered. Why is that PhRMA says: No no, Republican and Democratic Governors them this: The view that we should you can’t do it; we are going to squeeze who share the view of the Senator from just go back to the old way in 1984 the very last dollar out of them? Michigan and the Senator from New doesn’t work. Mr. SCHUMER. The Senator is lit- York. If the Senators would comment Mr. KENNEDY. Will the Senator erally on the money. The bottom line on that, I would appreciate it because yield? is that the Senator is exactly right. Mr. SCHUMER. I am happy to yield. it is an important issue. There is no difference, from an eco- Mr. KENNEDY. We have before us Mr. HATCH. Madam President, I nomic point of view, in a State getting the author of the amendment. Since have one simple question. together and bargaining for its people the Senator has the floor, I would like Mr. SCHUMER. I am happy to yield and an insurance company or HMO to ask him a question or two. to the gracious Senator from Utah for Isn’t it true that HMOs use their bar- doing it. In fact, you can argue that that. gaining power to lower costs of pre- the State has more legitimacy, being Mr. KENNEDY. If they can answer scription drugs today? HMOs all over an elected body and representing the my question, then I will be seated. the country have been doing that. will of the whole people of Michigan, Mr. HATCH. If I may ask, how much Mr. SCHUMER. Yes, all over. Maine, Massachusetts, or New York, longer does the Senator need? Mr. KENNEDY. Isn’t it true that in- No. 1. Mr. SCHUMER. No more than 5 min- surance companies use their leverage No. 2, what about over in Europe or utes longer. I thank the Senator. I will and powers to get the lowest cost pos- in Canada? They put on a price control. yield to the Senator from Michigan to sible? The pharmaceutical company still ends answer these very worthy questions. Mr. SCHUMER. Yes, and they are up selling the drug. Do you know what Ms. STABENOW. I thank both of my proud of it. They brag about it. ends up happening? It is the American friends and colleagues, who are such Mr. KENNEDY. What could be the citizen who ends up paying for all the champions on this underlying issue— possible logic in denying the people of research, which does good around the the entire issue of Medicare and pre- the States, particularly the smaller whole world, for, say, Celebrex or scription drug coverage and lowering States—or large States, for that mat- Vioxx. Who pays the whole thing? Us. prices. In fact, as our leader, the Sen- ter—what is the logic of denying them Why shouldn’t the American tax- ator from Massachusetts, indicated, their bargaining power? If we are going payer and citizen, through his and her this is a measure that is a bipartisan to let the HMOs and insurance compa- State government, be allowed to say amendment. We have Governors— nies do it, why not the States? we should not bear that whole cost our- frankly, the majority of Governors— I am sure we will hear that it is be- selves? Republicans and Democrats, who are cause the States are a governmental That is the thrust of the amendment struggling with this question of low- power and therefore this is price con- of the Senator from Michigan. It is free ering prices and making prescription trol. As I understand it, if the drug market. There is no lock-in. Just as drugs and lower prices available to company doesn’t want to sell to them, Germany said, you can sell Vioxx for 3 their citizens. So as the National Gov- they don’t have to, do they? pfennigs, and that is not worth it. The ernors Association is meeting right Mr. SCHUMER. My colleague is ex- company doesn’t have to sell it. It is now, they have said their biggest chal- actly right. By the way, our Federal the same exact thing here. lenge is the price of prescription drugs

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6982 CONGRESSIONAL RECORD — SENATE July 18, 2002 and the explosion, in their budget, of go the way of the cigarette companies by Haynes Johnson and David S. Medicaid. They need to address these and become the object of scorn and ha- Broder, hardly a conservative set of au- issues. tred. thors, but very intelligent, and highly This amendment will support the You make a wonderful product. You respected journalists and authors. The Governors across the country. It is a do something good. Support the bill of book is an excellent account of the in- bipartisan amendment. It is something the Senator from Michigan. Support famous and failed Clinton health care supported across the country on a bi- our bill or come up with some con- plan. History has a way of repeating partisan basis. I am very hopeful that structive proposals. itself. You can hear a theme on the we will have colleagues’ overwhelming I will make one other point, Madam floor over the last several days that vote on both sides of the aisle sup- President, and then yield the floor. I comes right out of the Clinton play porting the effort to say yes to this in- went to PhRMA a year and a half ago. book. novation of the States. This is not The Senator from Utah knows this be- On page 90 of that book, it says, in mandatory, it is purely based on States cause I informed him of the negotia- speaking about the political tactics to taking action on their own to decide if tions. I said: Let’s sit down and figure garner public support, a group of the they would like to do this. If they do out something. Let’s get the generic President’s political advisers have the that through their State legislatures industry and brand industry together following discussion, which sounds fa- and the Governors on behalf of their to come up with a compromise to deal miliar to the way the debate is going people, this simply says that this is with some of the problems. on the floor of the Senate and else- legal and that, hopefully, it will stop They listened politely, but, frankly, I where: the suits PhRMA has been bringing do not think they thought our legisla- tion had much of a chance for passage, In the campaign period, Fried recalled, against our State governments. Clinton’s political advisers focused mainly Mr. SCHUMER. I thank the Senator. and they said no. on the message that for ‘‘the plain folks, it’s She is on the money. It is voluntary. Now we are knocking at the door. We greed—greedy hospitals, greedy doctors, No State is forced to do this. But if the are almost there, and it is not too late. greedy insurance companies. It was an us- citizens of the States, through their It is not too late to come up with some versus-them issue, which Clinton was ex- elected representatives, both Repub- answers that will solve our problems— tremely good at exploiting. lican and Democratic Governors, want the problems that the Senator from That was Fried. Then they go on fur- to do this, they should be allowed. We Michigan deals with in her legislation, ther, and I quote from the Broder and and the problems that Senator MCCAIN should not be tied up in litigation for Johnson book: and I deal with in our legislation—and years while the prices go up and up and Clinton’s political consultants—Carville, get something done. I think I speak for up. Begala, Grunwald, Greenberg—all thought I am fully supportive, again. To un- all of us that much rather than make ‘‘there had to be villains.’’ Anne Wexler—— derline this, this is a free market pol- speeches, much rather than win polit- Who, of course, is not known for her icy. It is no different than what the in- ical victories, we want to get some- Republican politics—— surance companies do, the HMOs, and thing done, and that is what we are here to do today. remembered, It was a very alarming prospect God bless them. It is saying that people for those of us looking long term at how to In conclusion, I urge support for the may aggregate. Are we going to have deal with this issue. But at that point, the Stabenow amendment to restore some people opposing mergers of the big drug insurance companies and the pharmaceutical bargaining power which is voluntary. companies became the enemy. companies? No, we are not. They say Let a State’s Governor, if they want, they can do it better in a larger size. All this sounds familiar. do this. Do not wait 5, 10 years until That is what has been going on here Why can’t the average citizen do some- the litigation is finished—it will prob- thing in a larger size? That is what we on the floor. Frankly, I do not think it ably come out the same way—and give is right. My experience has been there are trying to do. people a break. Let them be able to af- I am going to conclude with one lit- is no one single group who should be ford these wonderful medicines that we tle pitch today. I know my colleague blamed for the high costs of pharma- have and at the same time allow the from Utah has been patient, and I very ceuticals. I do not want to blame the drug companies to continue on their FDA because it takes up to 15 years much appreciate that. Whether it be path of real innovation as opposed to and 5,000 different compound experi- the Schumer-McCain bill, generics, or false innovation of patents, pill sizes, mentations to get an approval of a this bill, these are reasonable and mod- colors of bottles, and different applica- drug and at a cost, according to some est proposals. I say to my friends in the tions. drug industry—again, I admire them; I Madam President, I yield the floor of the top authorities, of up to $800 mil- think they have done a good job— and once again thank my colleague lion. That is 15 years out of the patent please, you have become ‘‘Dr. No.’’ from Utah for his courtesy. life. Frankly, one wonders why, with Whenever that comes up, you say no. The PRESIDING OFFICER (Mrs. the few remaining years they have on No change. You are willing to change it CLINTON). The Senator from Utah. patent life, drugs cost so much. I am with your lawyers to extend the pat- Mr. HATCH. Madam President, I rise not going to blame the FDA because ents, with all these new ways you find to speak on the pending legislation, S. their job is to protect Americans, but around what we think the original in- 812, the Greater Access to Pharma- on the other hand, that is a long time, tent of the Hatch-Waxman law was. Do ceuticals Act. I did not realize the pio- and I may talk a little bit about that not be Dr. No. Get with it. Go back and neer companies that have been referred today. innovate. Go back and form new won- to as PhRMA are as satanic as they I am not going to blame the generic derful drugs and get your patent on have been represented to be on the companies. They provide a tremendous those, but when people want to get to- floor today. One would think they are amount of support for American people gether to lower those prices in a fair everything that is bad in this world who need help. I believe in the generic negotiation, when this Congress says and that they are the cause of all the industry. By and large, those compa- we ought to prevent the lawyers from high costs of drugs in our society; that nies are doing a great service, as we in- changing the original intent of Hatch- they are not being fair to the generic tended in the Hatch-Waxman bill. Waxman and drawing it off course, do companies that help bring drug prices By the way, without the pharma- not stand in the way. down; that HMOs are the reason drug ceutical companies, the pioneer compa- In fact, I challenge PhRMA to come prices come down and that the States nies, there would not be any drugs for up with one constructive proposal to do not have the same type of market the generic companies to copy and re- help people with the cost of drugs, not power. I heard all these things. I heard duce prices. So there has to be a deli- just to keep doing it the same way how terrible the research-based compa- cate balance between the two, and that when we know there is an outcry. They nies are. My goodness, I have never is what Hatch-Waxman is all about. know best what helps with innovation. known that before. I am so happy to This underlying bill, of course, which Come up with a proposal. Do not go the get this information. for some reason is being debated before way of the cigarette companies and I would like to cite a book called the Federal Trade Commission comes spend all your life being sued. Do not ‘‘The System.’’ This book was written out with its comprehensive study and

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6983 recommendations on the very issues servative like ORRIN HATCH got to- I had hoped the tripartisan bill could addressed in the pending bill, which gether to write this law is but one sign have been the subject of a Finance should occur before the end of next of the bipartisan consensus that devel- Committee markup, as it deserved. I month—will change one of the most oped with respect to the 1984 law and think it would be approved by the Fi- important consumer bills in history. I that should be developed today. nance Committee, which more than am not concerned just because it is my Incidentally, on the House side of the likely explains why we are on the floor bill and Congressman WAXMAN’s bill, Capitol, this law is often referred to as today with S. 812. So as we enter this but because without waiting for the Waxman-Hatch and in the Senate the debate, let us be clear that the way the FTC to give its recommendations, this names are often reversed. This short- Senate Democratic leadership has cho- underlying bill will change the Hatch- hand is only used because it is so time sen to structure the floor vehicle, it is Waxman law before we have had a consuming to keep repeating the Drug very possible the partisan fervor that chance to hear from the FTC, FDA, Price Competition and Patent Term often accompanies Medicare legislation other experts and interested parties. I Restoration Act of 1984. will spill over into the heretofore bi- do not think it is right to change the I have a lot of complaints about the partisan consensus surrounding the law until we have all the facts and un- process we followed to bring S. 812 to 1984 Waxman-Hatch law. I hope not. derstand better what this bill will do. the floor, and despite my grave dis- One of the things we did back in the Hatch-Waxman, according to almost satisfaction over the process, I do want 98th Congress in 1983 and 1984 was to all authorities, has saved consumers $8 to recognize the efforts of Senators take the time and effort to build a billion to $10 billion every year since EDWARDS, COLLINS, KENNEDY, GREGG, broad, bipartisan coalition for the 1984. It created the modern generic and FRIST to make improvements to Hatch-Waxman law. I hate to see us drug industry, but it also strengthened the substance of the bill. To be fair, lose support as this body becomes the PhRMA companies, the pioneer there have been improvements in some caught up in the unavoidable election companies. Back then, they were critical areas of the legislation. As a year politics of Medicare. Frankly, it is spending about $3 billion a year on re- general matter, in moving away from almost amusing how the Democratic search and development. Today, it is some key provisions of McCain-Schu- leadership has structured the debate on over $30 billion a year. I think almost mer, the HELP Committee substitute the Medicare drug benefit. A bill that as satanic as they are portrayed on the is headed in the right direction. involves hundreds of billions of dollars Now, I hasten to add, though, that floor by our friends on the other side, and over a trillion dollars in some of some new provisions were added to the it seems to me they ought to be given the proposals will be debated as an bill during the markup process to make a little bit of credit for some of the amendment to the more modestly sized it impossible for me to support a bill major therapeutical pharmaceuticals S. 812. Talk about the tail wagging the that is so important to me—a bill that we have today. dog. amends the law carrying my name, a Without them, we would not be I hope if, as is well possible, we can- law that has been shown to benefit mil- not achieve consensus on the Medicare where we are. We would not be the lions of Americans every day. drug debate, the inevitable ill feelings leaders in the world with pharma- Let me talk about the politics and and political posturing do not create a ceuticals, nor would we have the bal- process. Before I discuss the merits of poisonous atmosphere in which the ance of trade surplus we get from the the committee substitute for S. 812, I broken tail of Medicare crushes the dog sale of American pharmaceuticals. want to make a few comments con- of Hatch-Waxman. Conventional wis- Let me comment on three aspects of cerning the politics and process where- dom has it that a large part of what is the underlying legislation: Politics sur- by we find ourselves discussing these at stake in the legislation we will de- rounding floor consideration; the proc- issues at this time. bate over the next number of days has ess by which the bill moved to the One of the things about which I am to do with jockeying for political posi- floor; and finally, the substance of this most apprehensive in the current de- tioning over who is left holding the bag bill. bate is the way the Drug Price Com- with the voters in the fall if we fail to At the outset of this debate, I con- petition and Patent Term Restoration enact a Medicare drug benefit before gratulate and commend the original Act of 1984, a painstakingly crafted bill the November elections. That is why I cosponsors of this legislation, our col- that passed with overwhelming bipar- hasten to add that I hope my col- league from New York, my friend, Sen- tisan support in both the Senate and leagues will look at the tripartisan ator SCHUMER, and my colleague from the House, now finds itself at ground bill, which is nonpartisan, which basi- Arizona, my friend, Senator MCCAIN. zero in one of the most controversial cally can solve these problems for espe- Even though I disagree with them on and potentially divisive issues of this cially the poor in our society with re- the way they resolved the key issues year, that is the debate over the Medi- gard to drug benefits and the cost of addressed in S. 812, and although the care drug benefit. drugs. bill that emerged from the HELP Com- The Medicare drug benefit is cer- I firmly believe the best thing the mittee does not adhere to the original tainly an issue that deserves the Sen- Senate can do for the American public Schumer-McCain language in virtually ate’s attention, and I am in one of the is to lay aside, as best we can, the po- every key policy area, they deserve original tripartisan groups that I be- litical infighting and genuinely try to recognition for their effort in high- lieve has come up with a nonpartisan strike an acceptable compromise on lighting issues, issues that are of con- bill that would solve the drug benefit the Medicare drug bill. cern to each of us to in this body: Ac- problems for the American people, es- Make no mistake about the fact that cess to prescription drug coverage and pecially the poor. although S. 812 may be nominally the affordable prescription drug coverage. I commend our colleagues in the pending business before the Senate, the As most of my colleagues know, I House for successfully passing a pre- real matter we will be debating is the have a special interest in today’s pend- scription drug bill that promises to Medicare drug benefit. I would have ing legislation. Throughout my career make a major expansion of Medicare greatly preferred to debate Hatch-Wax- in the Senate, I have helped fashion a benefits by providing an outpatient man amendments as a stand-alone bill portfolio of legislation that facilitates drug benefit. I think it is now time for in a less charged atmosphere. If we had our Nation’s pharmaceutical research the Senate to debate this issue, pass a to debate amending Hatch-Waxman and development capacity. I am proud bill, conference with the House, and with other legislation, probably my to have played a leadership role in present a bill for the President to sign last choice would have been to lump it crafting the law that the bill we are into law. I am also, like I say, proud to together with the politically volatile considering seeks to amend, the Drug be the cosponsor of the so-called Medicare drug bill. Price Competition and Patent Term tripartisan Medicare prescription drug Then we have the ill-advised drug re- Restoration Act of 1984, known as the benefit bill. I think Senators BREAUX, importation bill, which has been added Hatch-Waxman bill. A key partner in JEFFORDS, GRASSLEY, SNOWE, and I as an amendment to S. 812. This would this effort was my good friend from the have put together a strong bill that our have been my second to last choice to House, HENRY WAXMAN. That a liberal colleagues should, and I think will in add to Hatch-Waxman. I laid out yes- member like Mr. WAXMAN and a con- the end, support. terday my concerns with that proposal.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6984 CONGRESSIONAL RECORD — SENATE July 18, 2002 Suffice it to say, the reimportation and I want to take a few moments to is about to be presented by the FTC to language was a bad idea in the year comment that the way the Judiciary Congress and the public. We should ask 2000, and it is an even worse idea today, Committee was effectively cut out of the experts at FTC, DOJ, the Patent given the threats of our post-Sep- the process is a matter of great con- and Trademark Office, and Health and tember 11 world. cern to me. Human Services if their perspectives While the regrettable encore appear- Even if three members of the Judici- on the changes in the law are advis- ance of this feel-good but ultimately ary Committee serve on the HELP able. It would have been preferable to downright dangerous drug reimporta- Committee and are highly involved in hear what the experts think of the tion legislation is deeply troubling to this effort, I am concerned that the re- HELP Committee language before it me, it is doubly troubling to me that it cent actions of the HELP Committee was brought to the floor. Whatever will now be linked to the 1984 Hatch- with respect to this bill will come at happened to holding a hearing on the Waxman law because of the way the the expense of the jurisdiction of the actual language of an important bill? majority has chosen to proceed. Judiciary Committee both today and The reality is, in the course of the I recognize part of the reality of into the future. This is wrong. The Ju- markup, the HELP Committee vir- being on the minority side of the aisle diciary Committee has a role to play in tually rewrote the major components is that we have to go with the flow as overseeing and legislating with respect of S. 812. Unfortunately, this sprint to the majority leader calls up legislation to pharmaceutical patents and com- the floor cannot foster the careful type that he desires or his side desires, and petition in the pharmaceutical market- of review and analysis that the Senate I understand that. As a coauthor of the place. The process and timing that are conducted in 1983 and 1984 when we legislation that S. 812 seeks to amend, being pursued can only undermine the passed the Drug Price Competition and I take exception to calling up a bill appropriate role of the Judiciary Com- Patent Term Restoration Act. that opens up Hatch-Waxman in order mittee, a balanced committee. Despite my disappointment about the to create a legislative vehicle that The fact is, last year we held a hear- committee process on consideration of promises to throw into play every con- ing on competition in the pharma- the Medicare drug benefit in the Fi- ceivable way to punish one of the great ceutical marketplace and reported nance Committee and the way the Ju- American success stories in innovation Chairman LEAHY’s bill, S. 754, the Drug diciary Committee was bypassed from and in the pharmaceutical industry. Competition Act, which I support. I co- playing a role in shaping S. 812 before This, ‘‘everything but the kitchen operated with Senator LEAHY in the de- it reached the floor, I want to take sink,’’ mentality, may be satisfying to velopment and refinement of his bill, some time to make a few remarks some politically. But mark my words, S. 754, the Drug Competition Act. I about the spending bill, the underlying it starts this body down a path that ul- voted to report the bill out of com- bill, and how it might affect the law it timately can only punish the American mittee even though I had some reserva- would amend; that is, the Drug Price health care system. In my experience, tions about some of the language, and Competition and Patent Term Restora- delicate provisions and nuances of pat- I remain prepared to work on those tion Act of 1984. ent law, antitrust law, and FDA regu- concerns. It is useful to think about the words latory law are generally not best craft- The fact is, the HELP Committee bill in the title of the law because they re- ed in the elbows-flying, raw meat at- contains patent forfeiture provisions, mind us that we had two distinct goals mosphere of high-stakes election year similar in many respects to the con- in writing the law—goals, by the way, politics such as we will have during the cept once under discussion as Chair- which have been met. Attempts to course of this debate, in addition to man LEAHY and I worked to refine S. change the law must also reach the what I consider to be an unfavorable 754. I ask why the HELP Committee critical test of these two goals: First, environment that will be created by adopts a policy of patent forfeiture not to provide incentives for the develop- the likely flood of major amendments on the outside of its jurisdiction but al- ment of innovative pharmaceuticals—if not relevant to S. 812 or the underlying ready rejected by members of the Judi- we don’t have that, we don’t have any- Waxman-Hatch law. ciary Committee. I emphasize that this thing; second, to promote widespread I must also raise objection to the is not a matter of public health policy distribution of generic drugs by per- manner in which the bill so hastily was but a patent law and civil justice re- mitting a shortcut to regulatory ap- reported from the HELP Committee. form, and so is within the province of proval, which Hatch-Waxman did. Frankly, I am deeply disappointed in the Judiciary Committee, not the There is evidence to conclude that the way the HELP Committee has HELP Committee. the 1984 law has met with success in ac- acted, although I guess we should not I am mindful of the fact it was re- complishing both of these ends, much be altogether surprised given the per- ferred to the HELP Committee, but to the benefit of the American public. ceived political advantages my friends this body has a history of committees The 1984 law contains the incentives across the aisle believe they have and working in tandem on issues of mutual with respect to the intellectual market that they have gained by calling up S. interest. In 1998, although the tobacco that have brought hundreds of thera- 812 as the backdrop—or should I say bill was referred to the Commerce peutic new drugs to the American pub- backstop—to debate pharmaceutical Committee, the Judiciary Committee lic. issues. held 10 hearings on aspects of the legis- To mention a few of the drugs, these It is true that S. 812 was referred to lation that touched upon our jurisdic- include products such as Vioxx to treat the HELP Committee. It is true that tion. We all know the long-awaited arthritis; the cholesterol drug, Lipitor; the committee held a hearing on this FTC study of the pharmaceutical in- new medications that help millions of bill on May 8. I testified at that hear- dustry that focuses precisely on the diabetics; and as recorded from Bar- ing. I stated my reservations about the provisions of the law that the HELP celona last week, a family of drugs to way the McCain-Schumer legislation Committee seeks to change today will treat HIV infection and the complica- acts to distort the original premise of be completed in a few short weeks. tions of AIDS, two areas in which both the Drug Price Competition and Patent Why not wait for that? Why not get the the distinguished Senator from Massa- Term Restoration Act of 1984. best advice of the Federal Trade Com- chusetts and I have spent a lot of time While I am heartened by the fact mission? They have done an extensive working together. that the HELP Committee version of S. review. Private sector investment by re- 812 that is pending before the Senate Whether we agree or disagree with search-based pharmaceutical firms in- today resembles more closely the per- the final outcome of that, we at least creased from $3.6 billion in 1984 to over spective of my testimony than the ought to get it before we try to whole- $30 billion this year. This substantial original Schumer-McCain language, I sale change the law that has been level of private sector applied research am troubled by the fact that we basi- called the best consumer piece of legis- funding, coupled with the $27 billion in- cally have a bill emanating from the lation in the last 50 years. vested by the taxpayers in the National HELP Committee that centers on pat- It is clear, to me, that consideration Institutes of Health budget next year, ent law, civil justice reform, and anti- of this legislation would be more in- helps explain why the unique public- trust policy. I object to this outcome, formed if we had the information that private partnership that forms the U.S.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6985 Biomedical Research Enterprise has ican public receive both the latest in teaches us that most of these costly American scientists positioned to medical breakthroughs, and the more trials will result in failure—an investi- usher in a revolutionary new age of dis- affordable generic drugs. gator may proceed to the third and covery in the biological sciences. We As we consider changes to Hatch- final phase of human clinical testing in all should take pride in the fact that Waxman, we must be careful not to which the drug is administered to sev- the United States leads the world in upset the balance because if we do, it is eral hundred and sometimes several developing innovative medicines. Part the American people who will suffer. thousands of patients. of the reason for this leadership is the Here is how the law works. In order for Phase III trials attempt to further intellectual property protections con- a drug to be marketed in the United evaluate safety and efficacy, fine tune tained in the 1984 statute. States, a manufacturer must prove to dosing regimens, and uncover any pro- The debate on the pending legislation the Food and Drug Administration pensity for adverse reactions among centers on the price competition that that the drug is both safe and effica- subgroups of the broad patient popu- occurs between generic and name brand cious, effective. Drug discovery and de- lation taking the medicine. drugs. But as we consider legislation velopment is an extremely time-con- Because they involve more patients that alters protection of the innovator suming, expensive, and risky process. and seek more precise information, firms’ intellectual property, it is im- As I have mentioned before, experts Phase III trials are generally even portant not to lose sight of the impor- at the Tufts University Center for the more expensive and time consuming tance of the fierce competition be- Study of Drug Development have than the earlier phases of drug develop- tween the generic companies and the placed the costs of developing a major ment. In order to gain FDA approval, brand name companies. It is the com- new drug at $800 million, when the op- the agency prefers to see two success- petition for new drugs that creates ad- portunity costs of capital and the cost ful Phase III studies. vances in medicine and improves public of failed drugs are factored into the In addition to costing hundreds of health and ultimately provides block- rare, successful product. millions of dollars to screen and test buster drugs for generics to copy and During this debate, some will no drug candidates, it also takes a great to put out at, hopefully, less cost. doubt be tempted to characterize the deal of time. It has been estimated by As we debate how to see that the drug industry as nothing more than a experts that it takes, on average, about American public, particularly senior bunch of greedy, money-grubbing com- 14 years to bring a drug from the lab citizens, gains access to today’s phar- panies. In fact, for much of the last through clinical testing and FDA re- maceutical products, during the golden decade, it has been the most profitable view. eggs of our biomedical research estab- sector of the U.S. Economy. And all during this time the clock is lishment we must be mindful of the Nevertheless, as many analysts have ticking on the patents held on these long-term health of the goose that pro- noted, and was discussed by Senator drug candidates. For example, in the duces these innovative drug products. WYDEN at the Commerce Committee case of the anti-inflammatory drug, Not only does the American public hearing this past March, drug dis- Daypro, the patent lapsed during the enjoy the benefits of the latest break- covery is a highly speculative venture 21-year FDA review of the product. through medicines, but consumers also and there is currently an industry-wide While this case was clearly an outlier reap the savings associated with the slow down in the pipeline of products and FDA review time has improved use of generic drugs. close to final FDA approval. somewhat over the last decade due to Since the 1984 Drug Price Competi- For every drug that succeeds in gain- the user fee legislation, it remains true tion and Patent Restoration Act, the ing FDA approval, more than 5000 com- that the U.S. pharmaceutical industry share of the prescriptions written for pounds are screened and fall by the is one of the most highly regulated sec- generic drugs has more than doubled wayside during testing. Some of these tors of the economy. and has increased from somewhere less compounds fall out in the lab; only It is an expensive process, mainly an than 20 percent to almost 50 percent of about 250 of the original 5000 com- expensive regulatory process. If we all prescriptions written. And as we pounds will proceed to full-scale ani- could somehow find a way of cutting will hear in the debate that will take mal testing; and, of those 250 that that down, then the cost of drugs would place over the next several days, every- enter animal testing, only 5 will make come down, too. one in Congress knows that senior citi- it to human clinical trials; and, finally, We passed a bill—it was another zens, particularly senior citizens, have the great majority—4 out of the re- Hatch bill—called the FDA Revitaliza- a great interest in programs, such as maining 5 of drug product candidates— tion Savings Act, in the early 1990s, the 1984 law that resulted in cutting will fall out during the required 3 that said we should create a central the costs of drugs. phases of human clinical testing. campus with state-of-the-art buildings One undeniable bottom line measure The first phase of clinical testing and equipment and scientific facilities of success of the Drug Price Competi- usually entails about 30 patients. The instead of the almost 40 different loca- tion and Patent Restoration Act of 1984 goal of this phase is to assure that the tions, some of them converted chicken is the fact that according to the Con- compound under study is safe for coops, where they are conducting re- gressional Budget Office, this law has human use. This is a very difficult hur- search today. The FDA has hardly contributed to annual consumer sav- dle as, for example, it can be expected hired a research scientist in the last 30 ings of $8 billion to $10 billion every that a compound that can eradicate years. The reason is there is not the year since 1984. I wish all our legisla- cancerous cells will also likely be toxic prestige in their eyes to work for the tion would be as effective and as suc- to the surrounding healthy cells. It is FDA for less money than they would cessful as this one. no wonder that the pharmaceutical in- get in the private sector. It might prove useful to summarize dustry invests a higher percentage of NIH doesn’t seem to have that prob- briefly how the Drug Price Competi- its revenues into research than other lem because it is so prestigious to work tion and Patent Term Restoration Act industrial sectors. Are they given any there, even at the lesser salaries, that works. When you hear how the statute credit for that on the floor over the scientists flock to NIH. It is exciting, operates, you will understand that a last number of days? Give me a break. plus they have state-of-the-art build- central principle of this legislation is They certainly have not. In fact, they ings and equipment with which to balance among the incentives of both have been condemned in talk after talk work. the research-based firms, the pioneer as though they are the sole cause of We need to do that. We need to stop firms, and the generic firms. the high cost of drugs. blaming the pharmaceutical compa- This balance is not on only a simple In the second phase of clinical trials, nies, the pioneer companies for all the matter of fairness to both of these sec- efficacy is examined. This may involve problems here. tors of the pharmaceutical industry. several hundred patients and it may In recognition of the exacting and Achieving a balance was critical to take several years to design, conduct, time-consuming nature of FDA review help ensure that both of these sectors and analyze the trial. of safety and efficacy testing, the Drug would succeed because the bottom line If success is sustained through Phase Price Competition and Patent Term of Hatch-Waxman is to help the Amer- II—and remember that experience Restoration Act provided a number of

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6986 CONGRESSIONAL RECORD — SENATE July 18, 2002 incentives designed to help research mandated the United States to change society up until now, and they are based pharmaceutical companies. its patent system from 17-years, meas- about to be stratified where they won’t The statute provides for partial res- ured from the date of approval to a new have the money to go through this $800 toration of pharmaceutical patents, system of 20-years, measured from the million and 5,000 misses to get one sin- but only under limited rules: of date of application with the Patent gle drug, if they are lucky and then First, the law allows one day of pat- and Trademark Office. have just a few years of patent life. ent term restoration for each two days There was concern by many intellec- You wonder why drugs cost so much spent in the human clinical trial phase. tual property owners that this change through that market exclusivity. This is known as the IND Phase. IND in the law could actually decrease ef- In parallel with the incentives I have stands for the investigational new drug fective patent life due to administra- just described for innovator firms, the and refers to the exemption that FDA tive delays at PTO. As a result, a pro- Drug Price Competition and Patent grants to allow the human clinical vision was included in the 1999 Amer- Term Restoration Act provided the trials to proceed. ican Inventors Protection Act—a bill necessary regulatory regime that cre- The law also allows day-for-day pat- that passed with broad bipartisan sup- ated the modern generic drug industry. ent term restoration when the drug is port—that allowed patent term to be Rather than unnecessarily squander so- in the final stage of FDA review. This restored up to 17 years in cases where cietal resources by requiring the dupli- is called the NDA phase. The NDA, or there was undue delay at the PTO. cation of the expensive and time con- new drug application, is the formal ap- The 17-year patent term floor in the suming process by which safety and ef- plication that contains the data dem- American Inventors Protection Act ex- ficacy is established for pioneer prod- onstrating safety and efficacy. I should tends to all types of patents and should ucts, the law provided a shortcut point out that given that each NDA be contrasted with the 14-year patent through the FDA regulatory process. contains data and records on thousands term ceiling contained in the Waxman- That was one of the generic aspects of patients, the NDA literally contains Hatch for pharmaceutical patents. of the law. The 1984 law, in essence, al- hundreds of thousands of pages of in- Moreover, most patent applications are lows generic competitors to rely upon formation. In some cases those mil- reviewed by PTO in one and one-half to the proprietary safety and efficacy lions of pages of information would fill two years, so that the effective patent data generated by the pioneer firm and this whole Chamber—that’s how com- life for most products is actually 18 to requires that the generic drug merely plicated it is. Yet, we hear bad- 18.5 years. When all is said and done, be shown to contain the same active mouthing of the pioneer companies most patents run appreciably longer ingredient and be absorbed by the every day here on the floor. There are than patents related to drugs due to human body in a bioequivalent fashion. fair criticisms, but I don’t think all the the 14-year Waxman-Hatch cap. This simple provision of law allowed criticism has been fair. There are two further limitations on In addition to the partial patent generic firm to bring on high quality the partial patent term restoration. term restoration provisions of the 1984 copies of the pioneer drugs for a frac- First, when the one-for-two rule in the law, the statute provides that each tion of the cost and, most importantly, IND Phase is applied with the day-for- FDA-approved new drug that consists to pass these savings onto consumers. day rule during the final review of the of a new chemical entity receives 5 Their cost is less than 1 percent to new drug application, no patent may be years of marketing exclusivity—not 18 put the drugs in the marketplace. I restored more than 5 years. You should years, which other manufacturers get, want it that way. We wanted it that keep in mind that, as I said earlier, it but 5 years of marketing exclusivity. way when we did the Hatch-Waxman takes about 14-years to bring a drug In other words, we want to treat them bill. through pre-clinical studies through at least somewhat fairly. Another key feature of the law is a FDA approval. This 5-year marketing exclusivity unique change in the patent code de- Finally, even after this 5-year limita- provision means that FDA may not ap- signed to allow generic product to tion kicks in there is another rule that prove any generic drug for that time 5- enter the market literally the day prevents any patent from being re- year period regardless of whether the after the patents on a pioneer drug ex- stored such that it will have an effec- drug is protected by any patent. pire. tive patent life beyond 14 years. The last major incentive on the R&D Upon first consideration this may The 5-year and 14-year limitation side of the ledger that I will discuss is not sound like a dramatic development rules are sometimes referred to as the the provision that entitles a pioneer in the law but it is. Here’s why. Hatch-Waxman caps. drug firm that successfully undertakes Let us start with the Constitutional So I just want to point out that you a clinical trial yielding data that sig- basis for patent protection. Article I, will hear a lot of talk during this de- nificantly improves, or modifies the Section 8 of the United States Con- bate about patent extensions, but what use of an existing drug compound, to 3 stitution provides: ‘‘Congress shall we are talking about is partial patent years of marketing exclusivity. have the power . . . to promote the term restoration to offset part, and a As you can see, this is complex. But progress of science and useful arts, by relatively small part at that, of the it works, and it has worked amazingly securing for limited times to authors time lost during the rigorous FDA re- well. Our country has benefited from and inventors the exclusive right to view of safety and efficacy. You don’t it. And it was bipartisan. Actually, you their respective writings and discov- hear many comments about that from would have to say it was nonpartisan. eries.’’ the critics the fact of the matter is, That is what I would like to see in a It is said that Thomas Jefferson had this is a long, arduous expensive time full Medicare prescription drug bill. his hand in the drafting of the first consuming, costly process. To blame This 3-year incentive helps encourage patent statute enacted by Congress the pharmaceutical companies for ev- incremental, but often vitally impor- back in 1790 and that in his capacity of erything that is wrong is just not fair. tant improvements, to existing drugs Secretary of State actually issued and It is worth noting that the 14-year and does not bar generic competition signed some of the first patents issued cap on effective patent life contained from the original approved uses of the by the United States federal govern- in the Waxman-Hatch Act stands in drug once any patent or marketing ex- ment. contrast to how other types of patents clusivity has expired. In areas such as pharmaceuticals, are treated with respect to administra- I hope my colleagues can see that the where it is relatively easy to copy pio- tive delays at the Patent and Trade- 1984 law contains a powerful set of in- neer products that require enormous mark Office. tellectual property incentives that R&D expenditures—I mentioned $800 This is a somewhat complicated help foster the necessary private sector million to find one drug—it is critical story but I think it bears discussion in investment in pharmaceutical R&D. to have strong laws prohibiting the in- order to place the Hatch-Waxman poli- That is one reason our pharma- fringement of patents. cies into context with subsequently en- ceutical companies have done so well. I should also like to add that a pat- acted changes to the patent code. That is why we have such a good bal- ent right is a negative right and does Basically the GATT trade treaty re- ance of trade. They have been among not automatically confer monopoly quired implementing legislation that the most successful companies in our power; a patent only allows the patent

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6987 owner the right to exclude others from it helped to create the modern generic has generated as much controversy as utilizing the patented invention or drug industry. the provisions relating to patent chal- process. (Mr. EDWARDS assumed the Chair.) lenges. These are the least understood Section 271(a) of title 35 of the United Mr. HATCH. In the interest of accu- and, indeed, least appreciated provi- States code contains the general rule racy, I must add a footnote. In the 1990 sions of the law. The guts of the HELP against patent infringement. It says: ‘‘ Supreme Court decision of Lilly v. Committee substitute focus on these . . . whoever without authority makes, Medtronic, the Court held in an opin- provisions. uses, offers to sell, or sells any pat- ion written by Justice Scalia that the I hope that everyone agrees that pat- ented invention . . . during the term of Bolar amendment also applies to some ents are critical to the drug develop- the patent . . . infringes the patent.’’ other FDA-regulated industries such as ment process because absent patent This is a tough provision and a good medical devices. While you need to protection it would be relatively easy provision because it protects the rights read the opinion for yourself to see how to copy virtually any drug. The chal- of inventors, inventors of all products this not-so-obvious result was accom- lenge of drug development is not in the used, manufactured or sold in each of plished, as coauthor of the bill, I did chemistry of manufacturing, but in our states, who have made substantial take note of Justice Scalia’s observa- conducting the extensive and expensive investment in research and develop- tion that: preclinical and clinical research that ment. No interpretation we have been able to demonstrates safety and efficacy. In order to allow generic drug firms imagine can transform section 271(e)(1) into While patents are integral to drug de- to enter the market the day the patent an elegant piece of statutory craftsmanship. velopment, consumers can benefit expired, the general rule of section Mr. President, ouch! greatly from earlier price competition 271(a) had to be modified. This is so be- But the Medtronic decision has only if it were determined that, for what- cause in order to get the drug through limited significance and it is still fair ever reason, the underlying patents on the truncated FDA review process and to say that the generic drug industry a drug were invalid or not infringed. gear up production the generic firm has enjoys a head start that virtually no At any rate, during the negotiations to make and use the patented drug, and other type of generic manufacturers over the bill in 1984, a policy question this is important, while the pioneer could even imagine—the ability to arose regarding how best to guarantee drug is under patent protection. make and use on-patent products for that drug patents would be challenged I should also add that under the com- commercial purposes. The head start and what to do in cases in which a mon law there is a research exception granted to generic drug firms by the challenge was successful. to the general rule against patent in- Bolar amendment was an integral part We ultimately decided that a generic fringement so that academic research- of the balance of the 1984 law and must firm which successfully attacked the ers could be free to explore new areas be kept in mind when I next discuss the patents on a new drug would receive a of scientific inquiry. closely related patent challenge provi- period of 180-days of marketing exclu- During the course of the negotiations sions of the bill. sivity during which no other generic over the Waxman-Hatch law, a ques- But before I discuss these provisions, competitor could be approved by FDA. tion arose in the courts with respect to I want to first emphasize that the cen- The 1984 law contains an elaborate whether this research exemption might tral feature of the Hatch-Waxman law set of rules surrounding patent chal- carry over to the type of research ac- thankfully remains unscathed by the lenges. Here is how the system works. tivities necessary to develop a generic pending legislation. From my earlier discussion, you will drug. This is the policy tradeoff whereby recall that all new chemical entities— And right in the middle of these ne- part of the patent term lost by inno- even and especially drugs without any gotiations we got the answer when the vator drug firms during the extensive patent protection—receive a 5-year pe- precursor court to the Federal Circuit FDA review is restored while, at the riod of marketing exclusivity during Court of Appeals issued its opinion in same time, generic drug firms were which the generic drug firm may not the case of Roche v. Bolar. The court permitted to rely upon the proprietary rely upon the safety and efficacy data held that the research exception did safety and efficacy data of innovator generated by pioneer drug firms. not extend to commercialization ac- drug firms and enter the marketplace And keep in mind that there may be tivities such as those necessary to upon a showing that the generic copy no other industry in which generic prove bioequivalence. of the drug is delivered to the patient competitors can rely upon pioneer The result was that the Drug Price in a bioequivalent manner. manufacturers’ proprietary informa- Competition and Patent Term Restora- And from the summary I have just tion submitted for Federal approval tion Act contains a legislative override provided, I think you get the idea that purposes. of the court case. This provision, the the Drug Price Competition and Patent In any event, the law allows the ge- so-called Bolar Amendment, creates a Term Restoration Act of 1984 law is a neric drug firm to submit an abbre- unique provision in patent law. Section complex piece of legislation. It took us viated new drug application after 4 of 271(e) of title 35 contains the Bolar 2 solid weeks, 18 hours a day, in my of- the 5 year marketing exclusivity period Amendment. Section 271(e)(1) says: ‘‘It fice. I was there every minute of those has lapsed. When the generic drug ap- shall not be an act of infringement to negotiations to get this negotiated be- plication is submitted, the generic firm make [or] use . . . a patented invention tween the PhRMA companies and the has to make one of four certifications . . . solely for uses reasonably related generic companies. I will also concede, with respect to each patent related to to the development and submission of as Justice Scalia has noted, that the the drug listed in the official FDA information under a federal law which statute does not read like a novel. records called the Orange Book. regulates the manufacture, use, or sale The 1984 law has been instrumental This chart sets out these choices. of drugs or veterinary biological prod- in delivering both new drugs and more First, that such patent information ucts.’’ affordable drugs, but this is not to say has not been filed. When considering the pending legis- that such a complex piece of legisla- Second, that such patent has expired. lation, it is important to understand tion cannot be improved to address un- Third, the date on which such patent that in preparing an abbreviated new anticipated or unintended con- will expire. drug application, or an ANDA as they sequences as well as changes in the And fourth, and finally, that such are called, the generic firm gets a head marketplace and science. patent is invalid or will not be in- start over virtually all other types of Before I discuss my views on the fringed by the manufacturer’s use or generic manufacturers in that they are pending legislation, the HELP Com- sale of the new drug for which the ap- permitted to make and use—and thus mittee substitute to S. 812, I would like plication is submitted. violate—pioneer firms drug patents to complete my summary of the Drug It is the last certification, the so- while these patents are still in effect. Price Competition and Patent Term called paragraph IV certification, that That is a major change in patent law Restoration Act by describing the pat- is the chief cause of the major prob- that we put into Hatch-Waxman to get ent challenge features of the statute. lems the bill pending on the floor seeks the generic industry really going. And Perhaps no feature of Waxman-Hatch to address.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6988 CONGRESSIONAL RECORD — SENATE July 18, 2002 As I have said many times over a amendment—places pharmaceutical keting exclusivity clock so that no ge- number of years, by the way, and will patent holders in a disadvantageous po- neric can reach the market in a timely say again here today, I acknowledge sition from which to defend themselves fashion. there are some problems with para- against challenges to its patents by ge- I am frustrated by the fact that the graph IV patent challenges. neric drug challengers. tactical choices of my colleagues These need to be corrected. I would This is so because a second prong of across the aisle preclude us from debat- like to shape legislation to correct the Bolar amendment, codified at sec- ing this important legislation without them. tion 271(e)(2) of the patent code, treats the benefit of the FTC report. But it is also no secret that my pref- the somewhat artificial act of filing a I await with great interest the final erence was to address these problems generic drug application as an act of version of the forthcoming comprehen- in the course of a comprehensive re- patent infringement, and it is at that sive FTC report on the drug industry so view of the Drug Price Competition point, and not before that point, that we may get a more accurate picture of and Patent Term Restoration Act. the patent holders can assert their nor- the number of instances in which drug In fact, in the good old days when I mal patent rights through the courts. firms have tried to game the system by was still chairman of the Senate Judi- It seems only fair to recognize the listing a late-issued patents into the ciary Committee and my friend from unique head start that the Bolar FDA Orange Book. While my staff and the staffs of a few Vermont, Senator JEFFORDS, was the amendment allows to generic firms on chairman of the HELP Committee, we the front end of the generic drug devel- other Members have been briefed on the general findings of the FTC study, were working together to conduct such opment by making available to pioneer it was under the condition of confiden- a review. firm patent holders the 30-month stay tiality and with the understanding But times have changed. What should that allows the courts adequate time that the commissioners had not evalu- not change is that this body should re- to delve into the merits of the chal- ated the data and given us their inter- sist the pile-on mentality which lenged patents. Absent the Bolar pretations, conclusions, and rec- villianizes an industry which is doing amendment—and don’t forget that this ommendations. more to help millions and millions of provision reversed the Federal Circuit Along the same lines, I would like to Americans daily than any other indus- Court of Appeals decision that decided add that the FDA Chief Counsel, Dan try we could imagine. against generic drug firms on the mat- Troy, convened a meeting in February Before I close my remarks today, I ter of patent infringement—the case of representatives of both the generic will outline the types of issues that for the 30-month stay would not be as and pioneer drug firms. ought to be considered a more thor- strong. Mr. Troy elicited information and de- ough review of the 1984 law than the In any event, during the course of the bate on several maters, including a full pending bill contemplates. 30-month stay, it is hoped that an adju- and frank discussion of both the 30- In any event, to return to the para- dication on the merits of the patent month stay and the 180-day marketing graph IV litigation procedures, the fil- challenge will be completed. If at the exclusivity provisions of the 1984 law. ing of a generic drug application trig- end of the litigation the pioneer firm One of the many down sides of rush- gers a 45-day period during which the prevails, the generic drug applicant ing this bill to the floor in this fashion pioneer drug company or firm could must wait until the patents expire be- was that it precluded members of sev- initiate a lawsuit to determine whether fore the FDA can approve its applica- eral committees, including the Judici- its patents were valid or infringed. In tion and the generic product can be ary Committee, Commerce Committee, order to give a court adequate time to marketed. On the other hand, if the as well as HELP Committee, from first familiarize itself with, and hopefully courts determine that the patents are reviewing the comprehensive FTC dispose of on the merits, the almost al- invalid or the generic drug firm has study on the very issues that the pend- ways complex issues attendant to pat- successfully invented a way around the ing legislation seeks to address. ent litigation, the Waxman-Hatch law patents, the 1984 law grants an award We may have also missed out on a provides a statutory 30-month stay. of 180-days of marketing exclusivity. meaningful opportunity to have the During this 30-month period FDA As I said earlier, this is to encourage usual give and take of a public hearing may not approve the generic drug ap- vigorous patent challenges so that con- with the FTC and the FDA on these plication in dispute unless a court re- sumers can benefit from earlier access issues. We could have—and should solves the matter. to cost-saving generic drugs. have—taken the more routine and or- It is also true that this is a unique I thought then, and think now, that derly path to legislation by holding a provision not available to other types it is sound public policy to contain an hearing to solicit the administration’s of patent holders. However, this unique incentive to assure legal attacks on detailed advice in crafting language, 30-month stay provision that benefits pioneer drug patents, and we all must including soliciting their views on the patent holders must be understood in recognize that such litigation is risky, language that arose just last Tuesday context of the overall system of bal- complex, time-consuming, and costly. in the HELP Committee. ances contained in the 1984 law, and, in Now that I have laid a foundation by Yesterday, Senator GREGG read from the first, but no doubt not the last, particular, in connection with the op- discussing the basic provisions and missive from the administration com- eration of the Bolar amendment. policies of the Drug Price Competition menting on this new language. The Bolar provision, you will recall, and Patent Term Restoration Act, I In any event, let me turn to the 30- has the laudable public purpose of try- want to add to the debate that was ini- month stay provision. It is my under- ing to get the generic drug product tiated yesterday by briefly describing standing that the FTC report will re- onto the market the very day the pat- the key problems that have been ob- veal that there have been several—per- ent expires. served in recent years with respect to haps about 10—cases of either multiple, As I explained earlier, in order to the 1984 law. consecutive 30-month stays or later- achieve this pro-consumer end, the pat- I first remind the Senate that in the issued patents that resulted in surprise ent code was amended to allow the ge- next few weeks the Federal Trade Com- 30-month stays. neric firms to infringe patents. mission is expected to issue a com- The facts matter. But we must recognize that the re- prehensive report that centers on what We need to learn about these cases. ality of the Bolar amendment is that it many believe are the two most impor- We also have to keep matters in per- takes away the customary rights of a tant abuses of the current system: spective. Although some in this debate patent holder to bring a patent in- First, the manipulation of the patent suggest that there has been, and will fringement action the moment a ge- system for the purpose of triggering continue to be, an epidemic of unjusti- neric drug manufacturer makes or uses multiple overlapping or late-in-the- fied triggering of the 30-month stay, I a patented product. In this case, the process 30-month stays; and, second, am not sure that the evidence will sup- commercial purpose consists of seeking collusive arrangements between pio- port this charge. FDA approval and gearing up produc- neer and generic firms to game the We must take care not to overcorrect tion. It cannot be disputed that section Paragraph IV litigation in order to pre- any problems based on anecdotal infor- 271(e) of the patent code—the Bolar clude the triggering of the 180-day mar- mation.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6989 But I will say this: the now famous It seems reasonable to conclude that, matter that I will discuss latter in my case of the drug Buspar convinces me at a minimum, all patents filed before remarks—until a final decision has and many others that Congress should a generic can first challenge a pioneer been reached by an appellate court. take action to address the problems as- drug, that is, after four years have This appellate review takes about an- sociated with late-issued patents trig- elapsed, should be accorded the protec- other year, so the total litigation pe- gering new 30-month stays. tion of the 30-month rule. riod of Paragraph IV cases is about 36 This was the case in which a patent For example, consider the hypo- months. on the metabolite of a drug was listed thetical but not unrealistic case of an I can understand why generic Para- in the Orange Book just as the original approved intravenous drug covered by graph IV challengers want to wait—the patents on the drug were set to expire pre-NDA issued patents on the com- prospects of treble damages seems to and generic were literally on the load- pound and the method of use. In addi- me like a good reason for them to exer- ing dock ready to be shipped. tion, assume the drug sponsor has ap- cise caution—until an appellate court I do, however, want to note for the plied for, but does not receive, a patent decides the merits of the patent chal- record that in the case of Buspar the on the intravenous formulation until lenge. Given the risk adverse behavior courts stepped in and the stay lasted two years after the NDA is approved. engendered by the threat of treble only 4 months, not 30-months. While the Edwards-Collins language is damages, I don’t see why it is so abso- The HELP Committee bill would barely one week old and I am still lutely critical in the first place to bi- freeze those patents eligible for the 30- studying its implications, upon first furcate the application of the 30-month month stay to those patents filed with consideration, I find it difficult to jus- rule at the time a new drug application FDA within 30-days of approval of the tify treating the post-NDA-issued for- is approved. New Drug Application. All other subse- mulation patent differently than the Perhaps the FTC study will unveil a quently issued patents would be eligi- earlier two patents. After all, a generic pattern of cases in which courts have ble for injunctive relief but would not challenger—although free to infringe ultimately determined that frivolous, be entitled to the longstanding protec- the patent under the Bolar amendment or at least invalid, patents were filed tion afforded by the 30-month stay. for the purpose of providing bioequiva- between the approval of the NDA and First, I commend Senators EDWARDS lence data and to prepare for full-scale the first ANDA submissions. Perhaps and COLLINS for overturning the production—cannot even contest any of not, only time will tell. McCain-Schumer language that com- the three patents for 2 years after the But frankly, this is an area where the pletely—and unjustifiably—eliminated third patent issues. actual data that presumably will be the 30-month stay. The Edwards-Col- That is because the filing of the ge- forthcoming in the FTC study will be lins amendment also is a great im- neric drug application creates the arti- extremely helpful. I will be greatly in- provement over the language that ficial act of patent infringement re- terested to know how the patent chal- Chairman KENNEDY circulated in the quired by the Bolar amendment that lenge cases would have broken down if days before the markup. allows the Paragraph IV litigation to the Edwards-Collins NDA-plus 30 day The Kennedy language would have commence. rule were applied retroactively. Stated arbitrarily limited the types of patents I emphasize the fact that the lawsuit another way, are there any significant eligible for the 30-month stay to drug may not begin at least until the four differences in the outcome Paragraph substance patents and method of use year statutory bar on submitting a ge- IV challenge litigation between Orange patents. neric drug application expires. Book patents listed before, and those By treating some patents as inferior And if it makes sense to include all patents listed after, 30-days after the to others, the Kennedy draft would patents issued within the first four NDA has been issued? It will be bene- have reversed a longstanding principle years during which no ANDA applica- ficial to get a sense on whether there is of Hatch-Waxman not to discriminate tion and Paragraph IV challenge can be a pattern with respect to when invalid among types of patents. made, one can argue, as Senator GREGG patents and patents that have been The very purpose of the 30-month has, and I suggested in my testimony circumnavigated tend to be listed. stay is to give the courts an adequate before the HELP Committee in May, period of time to make an informed that it makes sense to freeze the pat- And as I said earlier, I think we analysis of the complete patent port- ents listed in the Orange Book for the would have all been better served if the folio surrounding a drug product. purpose of the 30-month stay on the Committees of jurisdiction had been af- The 30-month stay allows the time day that any particular ANDA is sub- forded the opportunity to conduct necessary to make fact-based deter- mitted, whether or not it is filed on the hearings with the purpose of analyzing minations of the validity of the chal- first day of ANDA filing eligibility, or the actual language of the Edwards- lenged patents as well as to determine years later. Collins Substitute and with the hind- if the generic challenger has success- The McCain-Schumer proposal to do sight provided by the FTC report, to- fully navigated the field of valid pat- away with the 30-month stay alto- gether with the expert advice and anal- ents and produced a non-infringing gether is dead. ysis of the FTC, other federal agencies, version of the drug. The Kennedy proposal to allow only and other experts and interested par- I know that Senator GREGG was some types of patents to qualify for the ties. working on a language that would have 30-month stay is dead. Perhaps the gov- We should all recognize that patent retained the 30-month stay for each erning principle should be one bite, and litigation is often, as in the case of patent recorded in the Orange Book one bite only, of the 30-month apple pharmaceutical patents, inherently prior to a generic drug challenger filed and all we are debating is when, not technical and complex. a marketing application with the FDA. whether, to cut off the availability of For example, The Legal Times re- I think that there is great merit in this the stay. As I said last night, in some cently reported that the Federal Cir- approach. respects the Edwards-Collins language cuit has a reversal rate of 40 percent in The Hatch-Waxman law does not is a step in the right direction and this certain patent cases. I am concerned even allow generic drug applicants to is one of those improvements. that to the extent we adopt a policy file a generic drug application until We know that it currently takes, on that relies too heavily on simply four full years have elapsed after the average, about 18 months for FDA to throwing the matter of injunctive re- NDA has been approved for a new complete its review of generic drug ap- lief to federal district courts absent a chemical entity. plications. I understand that it takes, period to allow the court to suffi- That is because, as I stated earlier, on average, about two years to reach a ciently familiarize itself with the under the 1984 law, drugs consisting of district court decision in Paragraph IV issues at hand not only disrupts a justi- new chemical entities—and these are patent challenge case. We also know fied internal check and balance of Wax- likely to be the breakthrough prod- that the generic have argued—and the man-Hatch, but also may have the ef- ucts—automatically receive five years Edwards-Collins amendment em- fect of creating uncertainty as the dis- of marketing exclusivity before FDA braces—that it would be unfair to start trict courts wrestle with arcane mat- can approve a generic copy of the drug. the 180-marketing exclusivity clock—a ters of patent law.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6990 CONGRESSIONAL RECORD — SENATE July 18, 2002 While I can see how some enter- patent-related information in the FDA is not complete. I must question em- prising generic firms and their attor- Orange Book upon penalty of—and bracing the principle that if a patent neys might be able to turn this new here’s the rub—forfeiture of their pat- holder, for whatever reason, fails to file and potentially unpredictable environ- ent enforcement rights. information with the FDA that those ment into leverage for settling patent A second provision of the bill, con- rights should be automatically surren- challenges, I am not sure that this in- tained in Section 3(a)(2)(B) of the bill dered against any would-be patent in- stability is either fair to pioneer drug makes this filing requirement applica- fringers. firms or in the long run interests of the ble to drugs approved prior to enact- It seems to me that these provisions American public. ment of S. 812. should be subjected to careful scrutiny For now, I will listen carefully to the This provision says, in effect, that under the takings clause before they debate on this matter but, from what I upon enactment of S. 812, every holder are adopted. As well, the disadvanta- now know, I am inclined to conclude of a pre-enactment approved new drug geous treatment accorded pharma- that the Gregg proposal is preferable to application has 30 days to file all speci- ceutical patents under these three posi- the NDA-plus 30-day standard con- fied patent-related information in the tions should be examined from the per- tained in the HELP-reported version of FDA Orange Book or lose forever their spective of the TRIPS provisions of the S. 812. rights to sue for patent infringement. GATT Treaty. That involves the Fi- Moreover, as I stated earlier, I think Talk about Draconian remedies for nance Committee as well. a case can be made for making the 30- failing to file information with the We must not lose sight of the fact month stay available to all patents government. This takes the cake! I that patents are presumptively valid. listed within four years after the NDA should also point out that section (a)(1) We must not lose sight of the fact that has been approved since no patent liti- ‘‘(2)(C)’’ of the bill significantly ex- the reason we have laws to protect in- gation can commence under the 1984 pands the type of patent information tellectual property is because society law until that time. that must be filed, including requiring benefits from advances in the arts and In short, while I am open to further very precise claim by claim certifi- sciences, as the Constitution asserts. debate and discussion on the matter, at cations of what each particular patent If we expect to have breakthrough this point I question whether the covers. I am concerned about the pol- medicines, we better protect patents. Edwards-Collins language unneces- icy and potential effects of this lan- Why would we ever support a system sarily cuts off the 30-month stay too guage. in which the failure of a mail room Given that forfeiture of patent rights early in the process? clerk, even if underpaid and over- is the penalty for the two file-it-or- I welcome the understandable and worked, or the U.S. Postal Service lose-it provisions I just described, you justified attempt to address the prob- could result in the forfeiture of rights should not be surprised to learn that lem of late or even multiple 30-month stemming from literally hundreds of the patent right forfeiture trifecta is stays that can occur when later-issued millions of dollars and precious human completed in section 4(a)(2)(C) which patents are entered into the Orange capital invested in cutting edge bio- contains a sue-on-it-or lose-it provision Book. As I said in my testimony in medical research? May, if there is a compelling case to that appears to say that failure to de- Just this week, because of the an- keep the current policy of universal fend against any Paragraph IV chal- thrax problem, I received some Christ- availability of the 30-month stay for all lenge waives your patent rights against mas presents. One can imagine what patent whenever listed, let’s hear the all challengers for all time. can happen on some of these patent arguments. I was relieved to hear Senator KEN- cases. Once again, let me commend Sen- NEDY state on the floor yesterday that Why shouldn’t pharmaceutical prod- ators EDWARDS and COLLINS for moving this last provision was not intended to the Committee away from the these require forfeiture of patent rights as uct patent owners retain the same negative aspects of the McCain-Schu- against all potential infringers. I take time-honored rights exercised by all mer and Kennedy proposals. him at his word that this language will other patent owners to decide how and I am pleased that there appears to be be clarified. But, once again, I must when to respond to patent challenge something of a consensus on the impor- ask why we find ourselves on the floor litigation? tance of retaining the 30-month stay with a poorly drafted patent provision Mr. President, I must tell my friends even though, for the reasons I have just that has not been vetted by the Judici- on the HELP Committee that this described, I think we need further dis- ary Committee, the PTO, the White member of the Judiciary Committee— cussion of when the stay should be House or the patent bar or any number the committee charged with overseeing available and when it should not be op- of other experts? the patent law, antitrust law, and the erative. Nevertheless, I find these three provi- administration of civil justice—that I Having addressed the general issue of sions so troubling I hardly know where do not support the manner in which the wisdom of retaining the 30-month to start my criticism. Under the cur- they have resolved significant matters stay, I would be remiss if I did not rent law, failure to defend against a of patent law, civil justice and anti- comment upon some aspects of the Paragraph IV challenge does not result trust policy. Edwards-Collins substitute that would in automatic forfeiture of patent In fact, when Judiciary Committee also drastically affect patent litigation rights. Chairman LEAHY and I were negoti- under the 1984 Waxman-Hatch law. Mr. President, my colleagues should ating over the provisions of his bill, S. Mr. President, I speak now of the know that under current law the pen- 754, the Drug Competition Act, at one what I will call the file-it-or-lose-it and alty for not promptly defending point a Leahy staff draft contained a sue-on-it-or-lose-it provisions of the against a Paragraph IV litigation chal- provision in some ways similar to the HELP Committee Substitute. lenge is waiver of the 30-month stay, pending bill’s file-it-or-lose-it and sue- Mr. President this is a case of the not forfeiture of any patent rights. on-it-or-lose-it provisions. Ultimately, HELP Committee trying to rewrite It seems to me that the current law that approach was rejected. And for patent law and doing an absolutely waiver of the 30-month stay against good reason. horrible job at it to boot. the particular litigant bringing a par- As many of my colleagues know, S. There are three very similar and very ticular paragraph IV challenge is a pro- 754 requires the prompt reporting of disturbing provisions that essentially portionate response to the failure to any potentially anticompetitive agree- say a pharmaceutical patent holder can defend against a particular lawsuit. ments between brand name and generic effectively forfeit their rights by not I think that both of the two file-it- drug firms to DOJ and FTC. filing patent information or a patent or-lose-it provisions and the sue-on-it- Basically, the Leahy staff proposal— infringement action at a certain time. or-lose provision simply go too far. I I cannot say whether Chairman LEAHY The first of these provisions is found am not aware of any analogous provi- was aware of all of the details of this in Section 3 (a)(1) ‘‘(2)(F)’’ of the bill. sion in title 35, or in case law, but I am particular provision—was that a drug This provision requires manufacturers the first to admit that because this company would surrender its patent of innovative new drugs to file certain language is only a week old my study rights if it did not promptly report to

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6991 FTC and DOJ any potentially anti- If the press of election year politics worked with him. I know sometimes he competitive agreement with a generic precludes the Senate Judiciary Com- adopts the no amendment strategy. drug firm. mittee from holding such a hearing, I The minute we yield the floor, I am Let me read the Leahy staff draft would hope that the House Judiciary raising the question of whether the that was circulated to my staff last Committee will step up to the plate sponsors are totally locked in on the July. and fully vet this issue. language, and then I would like to hear It was contained in the enforcement We need to hear from PTO and the what they have to say about the argu- section of the bill, and it said: patent bar on this issue. ments I have made. This is too impor- Contract and Patent Enforceability—if any We need to hear from the American tant an issue to play politics. We are person, or any officer, director, partner, Intellectual Property Law Association talking about the health of the Amer- agent, or employee thereof, fails to comply and the intellectual property groups on with the notification requirement under sec- ican public. I am willing to work to im- tion 5 of this Act, such failure shall render this issue. prove the bill. The language has im- permanently unenforceable any agree which This matter is far too important to proved as it has moved further away was not filed with the Commission—[refer- be brushed aside in the rush of the from the original Schumer-McCain lan- ring to the FTC] and the Attorney General, HELP Committee to report a virtually guage, but for the reasons I have de- and [here comes the relevant language] shall complete substitute to S. 812—a sub- scribed I think the language still needs also render permanently unenforceable any stitute that suddenly springs forward patent of the generic drug manufacturer or some work. the brand name drug manufacturer that is last Tuesday, a day before the mark- I have a lot more to say, but I will the subject of the agreement. up—a substitute that is then hastily end by rereading first an administra- plucked off the Senate calendar before, I must give Senator LEAHY’s staff a tion policy from the Executive Office great deal of credit. One of them is Ed I believe, a committee report is even of the President and then rereading a Barron, the deputy chief counsel of the filed, and then rockets its way onto the paragraph from this book. Judiciary Committee Democratic staff. floor as a straw man for the Medicare In the Statement of Administration Ed is a level-headed, gifted lawyer and prescription drug debate. Policy, it says: has been an asset to the Senate and the I am dubious of the language in the However, the administration opposes S. 812 Judiciary Committee for many years. bill that creates, I am told, perhaps for in its current form because it will not pro- As well, Susan Davies, a former Su- the first time in the Federal Food, vide lower drug prices. S. 812 would unneces- preme Court clerk, is an extremely tal- Drug, and Cosmetic Act, a private sarily encourage litigation around the initial ented lawyer. right of action. approval of new drugs and would complicate When they consulted with experts in I am speaking of the provision in the the process of filing and protecting patents Section 3(a) ‘‘(2)(E)’’ of the bill that on new drugs. The resulting higher costs and the field and further studied the mat- delays in making new drugs available will ter, they properly concluded that pat- creates what appears to be a new cause reduce access to new breakthrough drugs. ent forfeiture was an improper re- of action to attack patent listings. Moreover, this new cause of action is not sponse for a mere reporting failure— Aside from setting an unwelcome necessary to address patent process abuses. even if that unreported agreement was foothold for trial lawyers to reach into Clearly, the bill would benefit from consider- ultimately found to be violative of the the FDC Act, one must wonder how a ation by the Senate’s experts on Hatch-Wax- Federal antitrust laws. provision that seems to create a par- man law on the Judiciary Committee, the How does a patent law provision with allel course of litigation to the well-es- proper committee of jurisdiction for this civil justice reform implications aimed tablished Paragraph IV patent contests bill. at an antitrust problem find its way in simplifies or adds any measure of cer- Let me finally conclude where I three places in a HELP Committee-re- tainty to the patent challenge system? began, and that was the book written ported bill, one year after the chair- As the debate unfolds, I may have more by Haynes Johnson and David Broder, man and ranking Republican member to say on this matter and urge my col- highly respected journalists, certainly of the Judiciary Committee considered leagues to act to strike this language. not conservative journalists but jour- and rejected the same basic policy in a The last major area on which I wish nalists I respect, and they said this on bill that covers the same concerns as to comment with respect to the pend- page 90: the pending legislation? ing legislation relates to the collusive In the campaign period, Fried recalled, Mr. President, I am afraid that yet agreements that have occurred in con- Clinton’s political advisers focused mainly another casualty of the truncated proc- nection with the 180-day marketing ex- on the message that for ‘‘the plain folks, it’s ess observed by the HELP Committee clusivity incentive of the 1984 law. greed—greedy hospitals, greedy doctors, in its consideration of S. 812 can be Mr. President, in closing, I have just greedy insurance companies. It was an us- seen in the last minute inclusion of the versus-them issue, which Clinton was ex- discussed why I believe the pending tremely good at exploiting.’’ Clinton’s polit- ‘‘file-it-or-lose-it’’ and ‘‘sue-on-it-or- bill’s treatment of the 30-month stay is lose-it’’ provisions of the pending bill. ical consultants—Carville, Begala, an improvement over the McCain- Grunwald, Greenberg—all thought ‘‘there But this is exactly the kind of negative Schumer bill. For the reasons I have had to be villains.’’ Anne Wexler remem- outcome that can occur when there is a just discussed, I think the NDA plus 30- bered— markup on a Wednesday and untested day rule goes too far. I come here Who is one of the leading Democrats language appears the day before. today to give you my views on the 30- The truth of the matter is that is ex- in this town, one of the leading lobby- month stay issue and to see how the actly what took place last week in the ists in this town. I respect her greatly. HELP Committee. sponsors of the pending legislation re- She said— While I have commended Senators spond to my arguments. If they say It was a very alarming prospect for those EDWARDS and COLLINS for rejecting the this is a nonnegotiable matter, that is of us looking long term at how to deal with key provisions of the McCain-Schumer one thing. If they are willing to modify this issue. But at that point, the insurance bill, in the case of the ‘‘file-it-or-lose- the language, I will be willing to work companies and the pharmaceutical compa- nies became the enemy. it’’ and the ‘‘sue-on-it-or lose-it’’ provi- with them on this. I would like to hear sions, I must commend Senator from them on this issue. All I ask in this debate is that we get MCCAIN and Senator SCHUMER for not I have a number of other issues I will rid of some of this rhetoric that the including such troublesome language raise, but I want first to see whether large pharmaceutical companies are a in the first place. there is a willingness to work with me bunch of criminals and bad people who I urge all of my colleagues to think in correcting what I consider to be in- have run up the costs of drugs and who carefully about the precedent this body flexible language and to work with me really do not play much of an impor- would be setting for patent and copy- in providing the flexibility to work on tant role in our society, and who lit- right owners if we follow the lead of the 30-month stay, the file-it-or-lose-it erally are the reason we cannot get the HELP Committee and retain this or the sue-on-it-or-lose-it provisions, low-cost, affordable drugs to the Amer- language. and the private right of action. ican people. At a minimum, I hope the Judiciary I have worked on many occasions During those 18 days or so, whatever Committee will have a chance to hold a with the Senator from Massachusetts. I it was, that we debated in my office hearing on this novel language. have worked against him. I have and came up with the Hatch-Waxman

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6992 CONGRESSIONAL RECORD — SENATE July 18, 2002 Act, we had almost fist fights between has shown a commitment and has of prescription drugs is increasing in a the PhRMA companies, the pioneering shown real foresight, in sponsoring and way that cannot be sustained over companies, and the generic companies, authoring—along with other colleagues time. In the name of cost savings and but in the end we were able to bring in this body—the original Hatch-Wax- in the name of reaching out and ral- them together. Neither side was totally man bill in his eloquent analysis of the lying support for particular pieces of happy, but I believe both sides have legislation before us, as has been modi- legislation or amendments focusing on been totally happy with the Hatch- fied and improved markedly in the cost savings, never should we threaten Waxman results over the last 18 years. Health, Education, Labor, and Pen- public health, which we talked about To be honest, before we change some- sions Committee. He has also provided yesterday. Furthermore, never should thing that has been so doggone effec- an excellent analysis of the underlying we threaten the research and innova- tive and efficacious, I might add, to use McCain-Schumer bill and some of the tion that has made us the envy of the an FDA term, it seems to me we ought deficiencies he sees within this legisla- world in terms of health care—the to at least make sure we are doing it tion. great breakthrough drugs, the invest- the right way. After listening to his remarks, I ment in research and delivery, which I have a lot more to say, but I have think the underlying message was the eventually will deliver a cure for spoken for a long time. I understand real beauty in this legislation and in things which are not curable today, that. I apologize to my colleagues, but the original Hatch-Waxman legislation such as HIV/AIDS. That virus will kill I will be back to discuss other issues in achieving a sense of balance between somewhere around 60 million people such as the 180-day rule which is at the the brand pharmaceutical companies over the next 20 years. We do not cur- center of what are considered to be col- and what they achieve through re- rently have a cure, however, I am con- lusive deals between the generics and search and development, creativity and fident a cure will be found by research the pharmaceutical firms. innovation, that balance with the and development from our pharma- To me, these issues are important. I growth and the appropriate incentives ceutical companies. want to apologize to my colleagues for given to the generic community, where The Hatch-Waxman Act has served us going on so long, but this is a very we know that cost-effectiveness has very well. As the distinguished Senator complex bill. There is no way it can be been demonstrated and needs to con- from Utah said, generic drugs rep- explained in a matter of a few minutes. tinue to be demonstrated as we move resented only about 20 percent of the I have only covered a small part of it, forward. We need to keep this in mind market in 1984. Yet today, half of all but I have covered some very impor- especially in this world with sky- drugs in this country are generic tant parts, and I think, and I hope, my rocketing drug costs, which are putting which, again, is a huge advance. At the colleagues will realize I have made a the cost of pharmaceuticals out of the same time, we have been able to see case that they really ought to give con- reach of seniors, of everyday Ameri- this rise in the generic industry, which sideration to. cans, and of individuals with disabil- I advocate because of the cost-effec- I do not have any political axes to ities. tiveness that is demonstrated there be- grind. I like both sides of this business. Much of the discussion over the last cause of the balance we have. The I like the pharmaceutical companies 3 days has been on how best to provide brand name pharmaceutical companies that have done so much to come up seniors and individuals with disabil- have continued to invest in research with lifesaving drugs, and I love the ge- ities in Medicare access to prescription and development. Over that same pe- neric firms that have done so much to drugs, and that debate will continue riod of time since 1984, that research duplicate those drugs at an almost into next week. and development by the brand name nonexistent cost, compared to the $800 Throughout this entire discussion is pharmaceutical companies have in- million to create those products, but the whole issue of cost—what we need creased not twofold, threefold or five- that have gotten them out there in bio- to do responsibly that can be sustained fold but have increased ninefold since equivalent ways for the benefit of the long term in terms of cost to make 1984. American people. sure the cost of drugs are appropriate, We have seen dramatic break- They both deserve a great deal of reasonable, and not beyond the reach throughs in pharmaceutical treatments credit. Neither one of them deserves to of Americans. The Hatch-Waxman law for such areas as mental health, can- be torn down in the Senate. I think we has had 18 years of balance, and now is cer, and heart disease. Costs have put can fix Hatch-Waxman in ways that the time to go back and readjust and drugs out of reach for too many Ameri- will continue to give both of them the make sure that balance is well situated cans today, and we must address that. incentives to continue to provide a for the next 5, 10, 15, or 20 years. Over time, both the generic industry pipeline of very wonderful drugs, life- I heard the distinguished Senator and the brand name pharmaceutical saving drugs, for us, and at affordable from Utah say the legislation, as cur- companies have, unfortunately, cir- prices ultimately. I hope my colleagues rently written—and recall he com- cumvented the intentions of Hatch- will listen to what I have to say. I do mended the various amendment proc- Waxman. That circumvention is clear- not have any desire to malign anybody, esses in the HELP Committee to im- ly an abuse because it ultimately but I really believe what I have had to prove the bill—goes too far in cor- drives up the cost of health care, and it say today is important and that Hatch- recting what is out of kilter today. must be addressed. Adjustments are in Waxman is an important bill. I do not That balance needs to be readjusted. order. What concerns me and what want to see it fouled up because we are The underlying legislation has many clearly concerns the original author of unwilling to pay the price to do it deficiencies that he believes, and I the Hatch-Waxman legislation, the right. agree, should be addressed. I will walk Senator from Utah, is that this under- I yield the floor. through several of those from the per- lying legislation goes too far. The PRESIDING OFFICER. Under spective of having served on the I will comment on several of the the previous order, the Senator from Health, Education, Labor, and Pen- areas. First, I restate the legislation in Tennessee is recognized. sions Committee. the Senate today is currently much im- Mr. FRIST. Mr. President, I rise to The issue of cost is one that disturbs proved over the original Schumer- extend in many ways the comments everyone. It is at the heart of the dis- McCain legislation introduced last made by the Senator from Utah. At the cussion on health care and on extend- May. The original version of S. 812 outset, I not only express my respect ing prescription drugs in an affordable took a heavy-handed approach to this and admiration for his eloquent re- way, in a bipartisan way, to seniors very real problem. It would have dealt marks, but also for the tremendous and individuals with disabilities. The a serious blow to pharmaceutical re- commitment he has shown on this par- cost is not just in the public sector but search and innovation, which we all de- ticular issue over the last 20 years, es- the private sector as well. The sky- pend on as we look for potential cures pecially with the Hatch-Waxman law rocketing cost is driving people to the and potential therapies in the future. which for the last 18 years has achieved ranks of the uninsured. My colleagues, Senators EDWARDS, so much for the benefit of the Amer- As we look at the overall sky- COLLINS, GREGG, HUTCHINSON and oth- ican people. The Senator from Utah rocketing cost of health care, the cost ers should be commended for working

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6993 with the chairman of the Health, Edu- Current law, as we look at the 180- which examines this very issue and cation, Labor, and Pensions Com- day exclusivity provision, provides an their findings, we clearly should not mittee. Senators MCCAIN and SCHUMER incentive for the first generic that add confusion to this area. We should also worked to approve the legislation. challenges an innovator’s original pat- not add provisions which would in- Nevertheless, the bill before us has sig- ent. It awards that generic company crease litigation or increase costs, and nificant flaws. Let me briefly outline 180 days, or about 6 months, during we should not add provisions that several of my concerns. which other generics may not be ap- could exacerbate incentives for anti- First, we are focused most impor- proved. The bill before the Senate, competitive behavior by both generic tantly on cost savings, the driving which is quite different than the origi- and brand name drug companies. This force. Everyone knows the costs are nal legislation, provides that if one ge- is the area we need to fix. too high. It is important for our col- neric loses that 180 days of exclusive If we are not ready to eliminate this leagues to understand there has been rights, it can pass on to the next ge- 180-day rule or wait for the FTC report no demonstration that the underlying neric. to help guide us on how we can make legislation will actually save money, I am told the 180-day exclusivity rule that ultimate decision and act respon- lower the overall burden of prescrip- has been the most frequently litigated sibly, I believe what is called a ‘‘use it tion drugs and generic drugs in the ag- area of the Hatch-Waxman legislation or lose it’’ policy would better discour- gregate to either consumers or in the over the last several years. age anti-competitive behavior. This so- aggregate in terms of the overall I am concerned and again this under- called ‘‘use it or lose it’’ policy would health care dollar. states the concern of Senator HATCH. take away incentives for generic com- The intent of the authors has been The provisions in the proposed bill are panies to make their own potentially clear—the goal of the legislation is to overly complex and they might actu- anti-competitive arrangements. improve competition. If improving ally encourage even more litigation Senator GREGG initially proposed competition is achieved, and I have and promote even greater confusion in this ‘‘use it or lose it’’ policy during real questions about whether competi- this area. the Health, Education, Labor, and Pen- tion will be improved as written, I be- As Senator HATCH mentioned, during sions Committee consideration of this lieve costs will decrease. It will speed the Health, Education, Labor, and Pen- legislation. I believe this policy would cheaper generic drugs to the market, sions Committee’s evaluation, we clearly benefit consumers more than which is the intent of the authors of reached out to understand the lan- any form of ‘‘rolling’’ exclusivity. If we this legislation. guage in this particular bill. I have to are going to act in the absence of the Part of the legislation discussed admit that the new bill’s language was full report of the FTC, we ought to at today is clearly being promoted be- confusing to me, but at the end of our least to do so in a straightforward way cause of the intent, or what the pro- discussion, my interpretation as we lis- that promotes competition and that ponents say it would do, and that is to tened to the proponents of the bill is clearly helps consumers. lower costs. The real question is, Does that the 180-day exclusivity period The third issue I would like to raise it? Is there any evidence that it will do would allow, theoretically, a rollover is the issue of bioequivalence. This is a so? indefinitely. particular issue that I introduced in The Congressional Budget Office, to If that is a correct interpretation, it the Health, Education, Labor, and Pen- the best of my knowledge, has not could actually take longer for cheaper sions Committee and spoke a little scored this piece of legislation. By generic drugs to get to the market. about on the floor two days ago. Again, score, I mean it has not estimated the While a generic drug would be cheaper cost of this legislation. Neither this it is an issue I want to put out to my during this 180-day period than a brand legislation nor the original bill intro- colleagues for their consideration. The name drug, it certainly would be more unintended consequence, in the way duced by Senators SCHUMER and inexpensive during the 60-day or 180- this legislation is written, is poten- MCCAIN has been analyzed by the CBO. day exclusivity period, where it had ab- As you listened to Senator HATCH’s tially harmful in a way that I will de- eloquent comments earlier and you lis- solutely no generic competition. lineate. tened to the complexities of this bill, I Last May, Senator HATCH and others The Hatch-Waxman law allows ge- ask, Does this increased complexity were highly critical of a concept of neric companies to market off-patent and new cause of action actually con- rolling exclusivity when they testified drugs if they are able to demonstrate tribute to increasing costs? before the Health, Education, Labor, this so-called bioequivalence. Bio- Lastly, I am not aware of any other and Pensions Committee. In fact, Sen- equivalence simply means the active estimates of potential savings by inde- ator HATCH testified and quoted former ingredient in a generic pharmaceutical pendent, nonpartisan experts that Acting Director of FDA’s Office of Ge- or a generic drug is absorbed at the members of the Senate will have a neric Drugs, Gary Buehler, as follows: same rate and to the same extent as chance to review before we go forward. We believe that rolling exclusivity would the brand drug. My second point refers to how best to actually be an impediment to generic com- The bill before us—and this is the curb abuses. The whole idea of curbing petition. key point—could significantly weaken abuses is a common goal that we share Senator HATCH further stated: this important patient protection by in the underlying legislation, in the If our goal is to maximize consumer sav- giving the Food and Drug Administra- amendment process, and in the ings . . . it is difficult to see how rolling ex- tion broad authority to significantly H.E.L.P. Committee. As Senator HATCH clusivity achieves this goal. relax, to loosen, the statutory Hatch- again spelled out in his comments, the In fact, many experts believe and Waxman bioequivalency standard. My Federal Trade Commission is currently have expressed that the 180-day exclu- concern is this potential loosening of conducting an extensive study of po- sivity period is no longer necessary the standards. tential abuses in this area. As we dis- today, and that if it were abolished, We all have agreed—at least in the cussed in the hearing several days ago even more significant cost-savings Health, Education, Labor and Pension and as Senator HATCH requested, the could be achieved. Moreover, elimi- Committee discussions, including the FTC is preparing a report regarding nating the 180-day provision alto- proponents of the legislation—that the this area. It would be nice to have an gether, in my opinion, could be the FDA has broad authority with regard objective body like the Federal Trade best way to curb abuses currently to bioequivalence and that there has Commission present its data before we being investigated by the FTC—where not been a successful challenge to the potentially complicate legislation over brand companies and generic compa- FDA bioequivalence standards as they the next several days and weeks. nies have allegedly entered into collu- exist today. Unfortunately, we are not going to sive and potentially anti-competitive Based on existing statutory language have that opportunity. It is too bad be- agreements to prevent cheaper generic the FDA has developed through the cause as I understand it, the real prob- drugs from coming to market and bene- process of notice and comment—rule- lem is being made in terms of the Fed- fitting consumers. making specific bioequivalence test eral Trade Commission’s ongoing My main point is if we are going to methods to address a range of products study. act in the absence of the FTC report, have been established over time. They

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6994 CONGRESSIONAL RECORD — SENATE July 18, 2002 have not been successfully challenged. Senator had a commitment from a pri- in populations—whether it varies by As we discussed this in committee, the mary Democratic sponsor of the bill, race, age, or gender—we need to do a FDA has been uniformly successful in Senator EDWARDS, that this would be lot more. We need to keep pushing defending its bioequivalence method- worked out or straightened out before there. ology and its findings. In fact, we the bill came to the floor. Am I cor- My concern with bioequivalence—we agreed in committee that the FDA’s rect? will agree, whichever population it is authority in this area has been repeat- Mr. FRIST. Mr. President, in re- or whether clinical trials are being edly upheld. There has not been a re- sponse to my distinguished colleague, conducted—the way this language is ported case challenging the FDA’s bio- this issue of having a general agree- written today allows a significant loop- equivalence standards since the case ment that we would work out technical hole for a lessening of the bioequiva- was decided in FDA’s favor back in language, and then after 48 hours or 72 lent standards that we as the American 1997, five years ago. hours have the bill come to the floor people deserve. That is my concern. Therefore, as we look at bioequiva- without the opportunity, in a bipar- As the Senator from New Hampshire lence, I think it is unnecessary, impru- tisan way, to be able to access experts addressed in his question to me, we are dent, and unwise to include any bio- in the field, is what concerns me most. reaching out. Clearly, we are in the mi- equivalence language in this legisla- You can take an initial bill and im- nority. We are not going to have the tion. Nonetheless, the bill before us prove it a little bit, and then you can votes. But I am going to continue to would deem FDA’s regulations to be leave something out and not reach bio- reach out. And I think you will see authorized under relevant provisions of equivalency. In response to the ques- that our side will continue to reach out the Food, Drug, and Cosmetic Act. tion is a particular instance where dur- in the interest of cost savings. We do Again, my concern is that it could in- ing the discussion, the mark-up, we not want to push so hard that we lower sulate the FDA from any potential said let’s get together and make abso- the standards for the safety of the challenge in this area. lutely sure that we address it in a way American people who take these drugs. The reason I keep bringing it to the so that standards are not being loos- I do not care if the cost savings is $100, floor and talking to my colleagues ened; yet, the bill that comes to the $50, or $5. If that drug is not bioequiva- about this issue is because I hear a lot floor does not have that guarantee in lent—if the dose is too strong, then about it from the medical community, it. your blood will not clot properly and the scientific community, and the bio- Mr. DURBIN. Will the Senator yield you can get a stroke from bleeding in logical research and development com- for a question? the brain, or, if the dose is too weak, munity. Given the importance of the Mr. FRIST. Mr. President, let me then your blood clots too easily and bioequivalence requirement in assuring continue. Let me answer one question, you can get a stroke from having a the safety of generic drugs, I believe and then return to my comments. I blood clot go to your brain—you have any loosening of standards is in the would be happy to yield for a question. done a disservice to the American peo- disinterest of the American people. Mr. DURBIN. The Senator from Ten- ple. Why? Because, once again, it goes back nessee is the expert. He is a cardiac As the Senator from New Hampshire to safety and public health. Instead of heart surgeon who is recognized for just mentioned, I will continue to moving forward, it is moving back- what he has done before he came to the reach out on this particular issue of wards. Senate. I will certainly bow to his edu- bioequivalence. There are many examples, but a typ- cational and professional experience. You heard Senator HATCH from Utah ical example would be taking a blood Talking about bioequivalency, is it stress that we need to slow down a bit thinner such as Coumadin. Coumadin is not true that when it comes to the effi- to make sure that your intent in hav- used all over the country. It is a tre- cacy of a drug that we should also take ing cost savings does not hurt the mendous drug and a very powerful that into consideration when we are American people. That is really the drug. It is well known that one generic dealing with women, children, or preg- issue. of Coumadin versus another versus yet nant women? It is my understanding I am not the expert. Of course, I have another behaves in a different way, that all of these are relevant to the ef- dealt with a lot of these drugs, and I even if you prescribe the same dose in ficacy of drugs—bioequivalency. know what it is like being told by a milligrams. The bioequivalence can be Is it not correct that were it not for managed-care organization that you variable and might be tiny, 3 percent, 5 the congressional pressure and man- have to switch drugs. The fear I have is percent, 8 percent. But when the goal is dating the same pharmaceutical com- that the drug has not been tested in a thinning of the blood so you do not panies the Senator is speaking of they certain population effectively. Again, have another stroke or heart attack, would not be engaged in clinical trials it could be by race or gender or age. when you go from one drug to another sufficient to make certain that the ef- That concerns me. Therefore, I do not drug for whatever reason—it might be ficacy of drugs would be the same for want any lowering of those standards the pharmacy telling you to do it, it women and men, and dosages for chil- by our Government. might be your health plan, it might be dren? The Biotechnology Industry Organi- you who has chosen to do it—your The point I am making is the indus- zation sent a letter to Senator KEN- blood might be thin one day and not try, itself, had to be pushed into a posi- NEDY dated July 15. thin the other, and you think you are tion to find exactly what was better for I ask unanimous consent that it be taking the same drug. people in usual circumstances of life. Is printed in the RECORD. That is what bioequivalency is— that not a fact? There being no objection, the letter where there might be loosening of the Mr. FRIST. Mr. President, I agree was ordered to be printed in the current standard. The reason I say with my distinguished colleague that RECORD, as follows: there might be loosening is because we need to do a much better job in BIOTECHNOLOGY INDUSTRY people who are a lot smarter than I pushing the pharmaceutical industry ORGANIZATION, to make sure that when it comes to July 15, 2002. who study the language tell me the Hon. EDWARD KENNEDY, language as written looks to be loos- testing of drugs or investigating drugs U.S. Senate, Russell Senate Office Building, ening. that they are adequate, especially as Washington, DC. Mr. GREGG. Mr. President, will the you look at bioequivalency in a varied DEAR SENATOR KENNEDY: This letter pro- Senator yield for a question? population. tests proposed legislation (the Edwards-Col- Mr. FRIST. I am happy to yield for In fact, in the HELP Committee, as lins substitute) to alter the Hatch-Waxman the question. my colleague knows, we have passed Act of facilitate generic drug approvals. The Mr. GREGG. The Senator from Ten- legislation and we will continue to substitute’s proposed changes raise serious work on legislation that says we need concerns for members of the Biotechnology nessee understands the issue better Industry Organization (BIO). We urge you to than anybody else, and certainly the to do more in terms of testing to see reconsider these amendments and to work on points he makes are excellently made. what the bioequivalent standard is. a more considered basis on any effort to re- It was my understanding on this spe- What is called in my profession of med- vise the carefully-balanced Hatch-Waxman cific point of bioequivalency that the icine a ‘‘dose response’’ relationship is system.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6995 As you know, the Drug Price Competition The legislation also creates new opportuni- possible to sustain. Shielding the agency and Patent Term Restoration Act of 1984 ties for generic drug makers to harass our from actions to challenge its proper author- (the ‘‘Hatch-Waxman’’ Act) strikes a balance companies through unnecessary and point- ity simply makes no sense, particularly between promoting access to generic drugs less litigation. As proposed, our companies when the consequences involve potential and fairly protecting the legitimate rights of and their drug marketing partners would be risks to patients and to public health. the patent holder. It proves an expedited required to list patents that pertain to an We were assured by your staff that this path to market for generic drugs, while en- approved new drug. Failure to list patents provision would be narrowed to its intended suring that innovators receive an adequate would render our patent rights void. Not- scope, in consultation with BIO, prior to term of patent life to stimulate new drug de- withstanding this mandatory listing process, floor consideration, and we provided alter- velopment. the legislation would create a private right nate language to your staff that would ac- The initial purposes of proposed amend- of action to permit a generic manufacturer complish the intended purpose of section 8. ments to Hatch-Waxman were to prevent to challenge these mandatory patent list- We have been presented with another draft abuses and facilitate efficient market entry ings. The legislation also would allow ge- that would continue to codify all of FDA’s of generic products. The reported bill goes neric drug applicants to initiate this litiga- bioequivalence regulations (including the far beyond these purposes. Among other tion regardless of whether our companies or ability to define at will any standard it things, the reported bill would completely their partners intend to assert their patent deems adequate) but only preserves ‘‘exist- abolish patent rights if litigation is not ini- rights in the ANDA process. Plainly, the mo- ing’’ legislative authority to regulate bio- tiated within 45 days of notice by a generic tivation to prevent improper listings of pat- logics under the Federal Food, Drug and Cos- that it intends to challenge a patent, or if a ents has been turned onto its head by these metic Act. This is simply unacceptable to new drug applicant failed to list its patent procedures. BIO. At this stage we can only ask that the with the FDA within 30 days. It creates a pri- Members of BIO thus unquestionably will entire section 8 be deleted. We point out that vate right or action for generic manufactur- be harmed by the Edward-Collins substitute. FDA’s authority to establish different stand- ers to attempt to ‘‘correct’’ patent informa- Many of our companies focus on improving ards for non-systemic drugs has been con- tion filed on a listed drug. At least prior to currently marketed drugs regulated under firmed by the courts. See Schering Corp. v. committee consideration, the bill provided the new drug and abbreviated new drug ap- Food and Drug Administration, 51 F. 3d 390 (3rd the FDA with broad authority to define and proval system. These innovations of our Cir., 1995). apply standards governing bioequivalence— companies create new and better medicines Provisions in the draft that served as the the critical determination of safety and effi- for patients that are more effective, easier to basis for committee discussion were made cacy of a generic drug—without challenge (or administer and open up new opportunities available to the biotechnology industry less even comment) from affected members of the for treating unmet medical needs. These than two days prior to markup. These provi- public. If enacted, these proposals would sig- technologies frequently—often by commer- sions would have an enormously negative nificantly erode the measures included in cial necessity—are licensed to multiple drug impact on the property rights of the emerg- Hatch-Waxman to ensure an effective patent manufacturers who have the resources to ing biotechnology industry and completely incentive for new drug development, and bring new drug products that use these tech- upset the delicate balance between the inter- would create undesirable precedents for nologies to market. Perversely, under the ests of pioneer and generic companies craft- sound science-based regulations of drug prod- legislation approved by the HELP com- ed by the Hatch-Waxman law. They go far ucts in the United States. mittee, if our companies elect to not aggres- beyond the provisions of McCain-Schumer, Our specific concerns follow: sively enforce their patent rights by imme- which served as the basis for the Edwards- When it enacted the Hatch-Waxman Act, diately suing every generic drug applicant, Kennedy redraft; the late release of the re- Congress recognized that patent disputes or if one of the marketing partners makes draft made meaningful legal review and com- over drugs regulated by the abbreviated new administrative errors in listing patents with ment impossible. drug procedure were inevitable. The abbre- the FDA, the patent rights of our companies We urge you not to rush this bill to the viated new drug system thus provides proce- will be forfeited. This forfeiture will occur Senate floor. The implications of the dures to permit generic and pioneer manu- without compensation, without a right of ap- changes being proposed by the Edwards-Col- facturers to resolve these disputes before the peal and without any recourse. This provi- lins substitute are far reaching and will sig- FDA grants marketing approval to a generic sion is probably unconstitutional, and in any nificantly and adversely impact bio- producer. Under its procedures, the FDA will event is totally unconscionable. not immediately approve an abbreviated new Finally, as you know, as originally drafted, technology companies. They would severely drug application if the ANDA applicant chal- Section 8 of the bill would selectively codify diminish the incentives of the patent system lenges a patent that has been identified as certain regulations governing ‘‘bioequiva- for our industry to develop newer, safer, covering the drug (a so-called paragraph IV lence’’ requirements and would legislatively easier to administer and more effective patent certification). Instead, the patent shield the FDA from challenges to its ac- drugs that could help patients lead better challenge triggers, by statute, an oppor- tions in setting approval standards. We un- lives. The changes being proposed, simply tunity for the patent owner to initiate a derstand the purposes of Section 8 to be lim- stated, will not yield better results for pa- legal proceeding to resolve the patent dis- ited: to confirm the authority of the Food tients or the biotechnology industry. pute. The initiation of a patent suit in re- and Drug Administration to use testing Sincerely, sponse to the paragraph IV certification will methods other than those specifically set CARL B. FELDBAUM, trigger a 30-month stay of action by the FDA forth in current law to establish the bio- President. on the abbreviated new drug application. The availability and bioequivalence of a generic Mr. FRIST. Mr. President, I also ask patent challenge procedures and the stay of drug, when the methods specified cannot be unanimous consent to have a similar approval ensures that products that would applied. Types of generic drugs to which al- letter from the Massachusetts Bio- clearly infringe the patent rights of the in- ternative testing methods would be applied technology Council be printed in the novator will not enter the market. would include drugs intended to deliver the RECORD. The amendments approved by the HELP active moiety locally, such as topical prep- Committee convert these procedures—which arations for the skin or oral dosage forms There being no objection, the mate- were designed to enhance the ability of a not intended to be absorbed. rial was ordered to be printed in the patent owner to enforce its rights—into an As pointed out by Senator Frist during RECORD, as follows: all or nothing system that can eliminate the markup, section 8 as currently drafted goes MASSACHUSETTS BIOTECHNOLOGY patent rights of our companies. Under the far beyond the intended purposes of the pro- COUNCIL, legislation, a patent owner who for any rea- vision. The draft proposal presented during Cambridge, MA, July 16, 2002. son fails to initiate litigation against a ge- markup would codify fifteen pages of FDA Hon. EDWARD M. KENNEDY, neric drug applicant within 45 days of receiv- regulations governing ‘‘bioequivalence’’ re- Russell Senate Building, ing notice under the ANDA procedure will be quirements on both new drugs and generics Washington, DC. barred from enforcing patent rights in any and would legislatively shield the FDA from DEAR SENATOR KENNEDY, I request that forum against either the ANDA applicant or challenges to its actions in setting approval you oppose S. 812, legislation to alter the any party that manufactures, uses, sells or standards. In essence, the proposed changes Hatch-Waxman Act. The bill raises serious offers for sale the approved drug product. In would make it impossible for drug manufac- concerns for our Massachusetts Bio- addition, a new drug applicant—who may not turers, whether pioneer or generic, or mem- technology Council membership. I urge you even be the patent owner—who fails to list a bers of the public, to challenge improper to work on a more considered basis on any patent with the FDA within 30 days of ap- standards enacted by the agency on key ap- effort to revise the carefully-balanced Hatch- proval of a new drug application, or within 30 proval criteria, or to challenge improper de- Waxman system. days of the grant of a patent if that occurs cisions made under valid authority. More- I understand that under the reported bill, a after the NDA is approved, is similarly over, the current regulations include several patent owner who for any reason fails to ini- barred from enforcement of patent rights on provisions in which FDA provides to itself tiate litigation against a generic drug appli- the drug against a generic manufacturer. Ei- unfettered discretion to create or define at cant within 45 days of receiving notice under ther of these events will completely abolish will any standard ‘‘deemed adequate by the ANDA procedure will be barred from en- patent rights in new drugs or related tech- FDA.’’ This makes an otherwise legitimate forcing patent rights in any forum against nology. challenge to an agency decision virtually im- either the ANDA applicant or any party that

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6996 CONGRESSIONAL RECORD — SENATE July 18, 2002 manufactures, uses, sells or offers for sale than 100 companies. As I just said, brand name companies versus the ge- the approved drug product. In addition, a there are over 1,000 biotechnology com- neric companies in our discussions. new drug applicant—who may not even be panies that exist today. What that They have filed what are late patents. the patent owner—who fails to list a patent means is, if you have ten companies They file late patents that may not with the FDA within 30 days of approval of a new drug application, or within 30 days of working at the early research stage to represent significant medical advances. the grant of a patent if that occurs after the figure out what drug is going to cure Their purpose is because they saw the NDA is approved, is similarly barred from HIV/AIDS, or reverse a certain case of law written this way as simply to ex- enforcement of patent rights on the drug emphysema or reverse that blood clot tend that 30-month stay protection pe- against a generic manufacturer. Either of just about ready to cause a stroke in riod. And they are protected. When you these events will completely abolish patent your brain, one company will ulti- have that sort of protection, obviously, rights in new drugs or related technology. mately produce an effective product. it affects prices throughout. The legislation also creates new opportuni- The legislation before us would treat ties for generic drug makers to harass Many of these companies are small, biotech companies through unnecessary and emerging companies. patents, listed after a new drug appli- pointless litigation. The reported bill would Look at Senator KENNEDY’s language cation is approved, differently than create a private right of action to permit a on bioequivalence. That is the lan- patents listed when a new drug applica- generic manufacturer to challenge these guage that will ultimately go into the tion is approved. Providing lower pro- mandatory patent listings. The legislation bill. tections to patents at any point in also would allow generic drug applicants to These letters make clear the con- time will have real implications in initiate this litigation regardless of whether cerns raised by myself in committee terms of innovation, in terms of incen- our companies or their partners intend to as- and others during the Health, Edu- tives to innovate as you develop new sert their patent rights in the ANDA process. The proposal would codify fifteen pages of cation and Labor Committee markup. formulations and new aspects of drugs. FDA regulations governing ‘‘bioequivalence’’ The bioequivalent language in the un- There are a whole slew of examples requirements on both new drugs and generics derlying bill has not been addressed. where these patents that are issued, and would legislatively shield the FDA from You heard Senator HATCH’s plea. not early on but later, could involve an challenges to its actions in setting approval Even if this bill sails through, please important innovation. I will not go standards. In essence, the proposed changes listen to us and allow us to participate through the examples here today, but would make it impossible for drug manufac- in changing that language. we have talked about them in our turers, whether pioneer or generic, or mem- Let me just say that I also share the Health, Education, Labor, Pension bers of the public to challenge improper concerns of others about the codifica- standards enacted by the agency on key ap- Committee. proval criteria, or to challenge improper de- tion in this bill. So if you have a new drug here, a pat- cisions made under valid authority. More- Let me quote from their letter only ent here, and you can improve on that over, the current regulations include several three sentences. This is from the bio- drug later in the life cycle, that im- provisions in which FDA provides to itself community. provement needs to be protected in unfettered discretion to create or define at . . . section 8 as currently drafted goes some way. Furthermore, you need to will any standard ‘‘deemed adequate by well beyond the intended purpose of the pro- give a pharmaceutical company an in- FDA.’’ This makes an otherwise legitimate vision. In essence, the proposed changes centive, which is what this patent pro- challenge to an agency decision virtually im- would make it impossible for drug manufac- tection is. That is what patents are all possible to sustain. Shielding the agency turers, whether pioneer or generic, or mem- from actions to challenge its proper author- bers of the public, to challenge improper about: an incentive to look at a new ity simply makes no sense, particularly standards enacted by the agency on key ap- formulation of that drug that could be when the consequences involve potential proval criteria, or to challenge improper de- important. risks to patients and to public health. cisions made under valid authority. More- There was a question, a few minutes I urge you to oppose S. 812. The implica- over, the current regulations include several ago, about certain populations. For ex- tions of the changes being proposed are far provisions in which FDA provides to itself ample, this applies very specifically to reaching and will significantly and adversely unfettered discretion to create or define at the pediatric population. If you have a impact biotechnology companies. They will any standard ‘‘deemed adequate by drug that can either be injected or be would severely diminish the incentives of FDA.’’ This makes an otherwise legitimate applied intravenously inside a vein, the patent system for our industry to de- challenge to an agency decision virtually im- velop newer, safer, easier to administer and possible to sustain. Shielding the agency and you have a patent on that drug, it more effective drugs that could help patients from actions to challenge its proper author- would be nice to give somebody an in- lead better lives. The changes, simply stated, ity simply makes no sense, particularly centive to make sure you can use that will not yield better results for patients or when the consequences involve potential same drug in a liquid formulation, to the biotechnology industry. risks to patients and to public health. give them some incentive to develop Sincerely, Bioequivalence—again, that is prob- that liquid formulation. And it may STEPHEN MULLONEY, ably the last time I will be able to ad- come later in the cycle of that drug. Director of Govern- In fact, two weeks ago Dr. Tony ment Relations and dress this issue on the floor. It is a plea Communications, that we work together and come to an Fauci of NIH was quoted in the New Massachusetts Bio- agreement so we do not accomplish a York Times about the importance of technology Council. loosening of these standards. developing an oral formulation of a Mr. FRIST. Mr. President, the Bio- The Senator from Utah also men- drug that was discovered as an technology Organization represents tioned the 30-month stay provisions. injectable drug to treat HIV/AIDS. over 1,000 biotechnology companies and Let me just say that this 30-month Forty million people in the world their members all over the country and stay provision has served a very impor- today with HIV/AIDS are struggling in in every State. California, Massachu- tant purpose. If you look back at the countries, such as in Africa, where two setts, and Maryland have the highest legislation, which is consistent with re- out of three of these cases are today. concentration of biocompanies in the marks from the Senator from Utah, Many of my colleagues, on both sides United States. you will see that the 30-month stay is of aisle, are trying to figure out how I think what people understand and part of the balancing act between the we can link prevention, care, and treat- what my colleagues understand is that brand name pharmaceutical compa- ment. The problem is, treatment today the biofield is a fairly new field. When nies, which are heavily invested in is just so expensive. So we want to I was in medical school, these biotech R&D, and the cost-effective generic incentivize people to take an injectable companies were not out there. The companies to achieve that balance, drug, which is very difficult to admin- drugs they are looking at today were which we have seen is so important. ister throughout Africa, and develop an nonexistent. For the most part, they As I have said, it has been the magic oral formulation of that particular are in their infancy today. Fifty years over the last 16 to 18 years. We need to drug. from now and looking back, we will see be very careful when we start tinkering Dr. Tony Fauci talked about the im- on the curve an increase that right now with that and whether or not that goes portance of developing and patenting we are at the beginning of. too far in upsetting that balance. an oral formulation of this drug. Unfor- Of the 130 biotech drugs approved by I know and my colleagues know that tunately, that is the kind of new pat- the FDA, all were produced by fewer there have been huge abuses by some ent, on a previously discovered drug,

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6997 that would be afforded less protection the Hatch-Waxman law will force com- will ultimately bring costs down. But under this bill. When you afford some- panies to bring more litigation, not we do not have any outside inde- thing with less protection, it is true less litigation. In our hearing, we kept pendent evaluation of that. that fewer companies, fewer people, are saying that we want to see less litiga- While we are acting aggressively to going to be interested in investing and tion. It will force more companies to curb past abuses, we do not have the figuring out that new formulation. bring more litigation to avoid the risk benefit, as you have heard from Sen- Again, because the distinguished that otherwise they will waive their ator HATCH and myself today, of the Senator from Illinois mentioned the rights for all time. ongoing information that is being com- pediatric population, it brings to mind If they do not sue, they are going to piled by the Federal Trade Commis- the fact that we worked very hard on waive those rights for the future. That sion. The FTC has been specifically what is called a pediatric exclusivity is a concern to me, especially as we are charged with the investigation of po- bill. We unanimously passed it in the looking to decrease the number of law- tential abuses by brands and generics. I Senate. It provides a market incentive suits and decrease overall cost. believe and I am confident this report for brand-name drug companies to test In fact, as I understand it, this provi- will provide crucial additional informa- certain drugs in the pediatric popu- sion alters basic rights that go with a tion. As Senator HATCH has said: We lation. Many of us were cosponsors of patent, rights that give brand-name just simply don’t have the facts. that bill, and it unanimously passed in drug companies the incentives, as I I look forward to working with my this body. It provides a market incen- mentioned earlier, to improve upon ex- colleagues on these issues. Again, Sen- tive for brand-name drug companies to isting products. ator HATCH and I have spent a long test certain drugs for pediatric use for I have to ask: What happens if a pat- time outlining our concerns, in large which the FDA issues a written re- ent owner does not have a good-faith part, because I do not think we are quest. basis to sue at some point in time, but going to be in the climate—I know we We gave certain protections. Now, all later learns something that would give are going to other very important of a sudden, we are saying: Well, maybe him reason to sue for infringement? amendments about extending prescrip- or maybe not in the pediatric popu- The answer is that that patent holder tion drug coverage to seniors—that lation. Let’s lower the protections that is simply out of luck. each of these very technical issues are we are giving instead of increasing the America’s research institutions and going to be able to be adequately de- protections—which was the intent of academic medical centers would clear- bated, but also to write in language this body—and give less legal protec- ly suffer under the ‘‘list-it-or-lose it’’ that would fulfill the intentions on the tion just because of the timing in or ‘‘sue-or-suffer’’ provisions of this floor, and that we are going to reach which a patent was filed. bill. Under these provisions, NDA hold- out and hopefully have that oppor- The issue is complex, as Senator ers are required to file patents that tunity to work together on these. HATCH has said. People say, you are meet listing criteria whether or not I will likely end up, for the reasons I being critical of it. You illustrate the they own or have a license under those have outlined, voting against this un- problems. Are there better approaches? patents. Under the bill, patent owners derlying base legislation, despite the The answer is, yes, there are better ap- will be lose their rights to enforce their good work and the incremental advan- proaches, to my mind, that I hope we patents if the NDA holder fails to list, tages that have been added to this bill will have the opportunity to debate. and the patent owners can do nothing One approach would be to not allow by Senators COLLINS—and I mentioned about that (only NDA holders, not pat- brand companies to automatically ex- most of them—EDWARDS, GREGG, ent owners, have the ability to list pat- tend the 30-month stay for patents HUTCHINSON, and many of my col- ents). issued after the filing of what is called leagues. For example, suppose Harvard Uni- an abbreviated new drug application— The bottom line is, the balance is versity owns a patent on a drug sub- what is called an ANDA—by a generic critical. Balance has been achieved to a stance discovered by one of its aca- company. very successful degree, much better Another alternative would be to demic researchers. Normally Harvard than I would think anybody would allow an additional 30-month stay only would license that patent to a brand have anticipated in 1984 from the for patents that were filed but not ap- name pharmaceutical company that Hatch-Waxman legislation. It is the proved by the Patent and Trademark would develop the drug and submit an magic as to why it has worked. It is Office at the time of the NDA. application for approval to the FDA. why we have seen this proliferation of The impact of this would be to reduce Under the bill before us, if that brand generic drugs and, at the same time, incentives for brand companies to name company failed to list the patent preserving the innovation and re- ‘‘game’’ the system, something that all within the arbitrary 30 day period, Har- search. of us want to avoid—companies coming vard, the patent owner, would irrep- What I am afraid is that in the legis- in and trying to take advantage of arably forfeit its ability to enforce its lation as written, we have gone too far. whatever structure we set up. valuable patent rights against any ge- Going too far could indeed have a detri- The fifth point that I want to bring neric drug applicant forever. mental impact on research and innova- up, in the hopes that we will be able to This is true even if a company com- tion and the public good, without pro- come back in some form to be able to pletely unrelated to Harvard develops a viding the cost savings promised by its address these issues, is the broad bar drug that might potentially be claimed supporters. on patent lawsuits. Senator HATCH also in a Harvard patent. Under this ap- Mr. President, I yield the floor. raised this point, for the record. proach, Harvard, which has not control The PRESIDING OFFICER. The Sen- I am troubled by provisions in the over the timing of the listing, would ator from Illinois. bill that cause patent holders to lose suffer a complete loss of its patents Mr. DURBIN. Mr. President, I ask their rights to sue for infringement of rights against generics without any re- unanimous consent that before I am a patent if the patent holder does not course or ability to remedy the situa- recognized to speak, the Senator from meet certain requirements, including tion. That is both arbitrary and puni- Missouri be recognized for 5 minutes. these timing requirements. tive. The PRESIDING OFFICER. Without For example, a patent holder would While we are acting, in large part, objection, it is so ordered. lose its right to sue for infringement if over these next several days out of con- The Senator from Missouri. it does not submit appropriate patent cerns over health care costs, as I men- Mrs. CARNAHAN. I thank the Sen- information to FDA within the speci- tioned before, the Senate has no formal ator from Illinois. fied deadline, or if it does not bring an cost estimate from the Congressional Mr. President, over the next 2 weeks, infringement lawsuit within 45 days of Budget Office, the Office of Manage- the Senate will address an issue that receiving notice from the generic appli- ment and Budget, or really any other Americans have come to understand cant that its patents are being chal- credible source. far too well—the high price of prescrip- lenged. I mention that only because the over- tion drugs. We need to do all we can to I believe this fundamental change, of all assumption—and what we would all lower the price of prescription drugs which the Senator from Utah spoke, to like—is that whatever we pass here for consumers.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6998 CONGRESSIONAL RECORD — SENATE July 18, 2002 Senator STABENOW’s amendment is is a budget buster. Working families The PRESIDING OFFICER. Without one example of a concrete action the without health insurance are paying objection, it is so ordered. Senate can take. Her amendment the highest price of all because they do Mrs. CARNAHAN. Generics can save would give the State the flexibility to not get the benefits of the negotiated consumers over 60 percent per prescrip- negotiate Medicaid drug discounts for discounts. This issue also hits employ- tion. Here are some examples of brand non-Medicaid-eligible individuals. This ers. They absorb the cost of high pre- name drugs whose patents are supposed amendment would help lower prices for scription drug prices in the health ben- to expire in the next few years. Listen all consumers. I am a cosponsor of the efit packages they provide to their em- to the numbers on what consumers amendment and encourage my col- ployees. should be expected to save. leagues to support it. For example, last year General Mo- The patent on Claritin, an allergy We need to do much more. We need to tors spent $1.3 billion for prescription medication, is scheduled to expire in pass the underlying Schumer-McCain drugs for its employees and retirees. December. Annual savings after the ge- legislation. Today, pharmaceutical This problem has reached such a crisis neric becomes available are expected to companies are making historic profits that companies, including General Mo- be over $500 million. The patent on while average Americans are paying tors, have joined the Governors to form Zocor, a cholesterol-lowering drug, is historic prices. Let’s look at those the Business for Affordable Medicine scheduled to expire in December 2005. profits. Coalition. Their key issue is the one we The annual savings after the generic Earlier this year, Fortune magazine are debating today—closing the loop- becomes available is expected to be did a comparison of U.S. industries to holes in the current law so that generic about $735 million. The patent on see how profitable they were in the drugs can compete fairly with brand Zoloft, a drug for depression, is sched- past year. The pharmaceutical indus- name drugs. uled to expire in December 2005. The try ranked No. 1 in all three of For- I am pleased that the Senate is con- annual savings after the generic be- tune’s profitability measures. Almost sidering ways to close these loopholes comes available is expected to be $577 20 percent of its revenues were profits. with the Greater Access to Affordable million. But now let’s look at the prices. In Pharmaceuticals Act. I applaud Sen- However, given the amount of money 2001, the prices of the 50 prescription ators SCHUMER and MCCAIN for author- that is at stake, pharmaceutical com- drugs used most often by seniors in- izing this legislation. I, too, am proud panies have a lot of incentive to delay creased on the average by nearly three to be a cosponsor of that bill. generics from coming on the market. times the rate of inflation. For exam- It is imperative that we close these Unfortunately, current law allows ple, Lipitor, which is used to treat high loopholes in current law that prevents them to do this. cholesterol, rose 13.5 percent, more generics from coming on the market. If we in this Congress have the cour- than five times the rate of inflation. Generics cost on the average one-third age to act, American consumers will Paxil, which is used to treat depres- the price of brand name drugs. save billions of dollars. If we don’t, the sion, rose 11.6 percent. And Celebrex, Generics bring competition into the money will go directly from the pock- used to treat arthritis, rose 10.4 per- market and lowers the price for drugs etbooks of American families and on to cent. For seniors who are living on a for all Americans. the profit statements of the drug com- When a brand name drug is under fixed income, the high price of pre- panies. patent, its manufacturer enjoys a mo- scription drugs means making tough Congress must move on yet another nopoly. One company sells the drug; front. We will soon be considering a choices every day between lifesaving one company sets the prices. Now I historic addition to the Medicare Pro- medication and food and rent and heat. support patents for drugs. Patents are The No. 1 issue which I hear about in gram, a prescription drug benefit. The there for a legitimate reason—to allow Missouri from our seniors is prescrip- legislation I am supporting would cre- companies to recoup the cost of re- tion drugs. Whether people live in ate an affordable and accessible benefit search and development that they in- administered through the Medicare urban or rural or suburban areas, they vest in creating the drugs. But drug Program. are all feeling the pain of high prices. companies are abusing loopholes under Recently, I visited the Terrace Re- This Senate plan is simple. Assist- the current law and extending their tirement Community in Columbia, MO. ance begins with the first prescrip- monopoly on prices sometimes for While I was there, I led a roundtable on tions. There are no gaps or limits on years at a time. the topic of prescription drugs. If you A 1-year delay in a generic coming to coverage, and seniors will pay $10 for could have heard some of those stories. market can translate into hundreds of generic drugs and $40 for brand name They were definitely heart wrenching. millions of dollars in profit for the drugs. There is certainty and there is One of the women I met that day in brand name company. In 1984, Congress stability. Columbia was Annie Gardner. She is an passed the Hatch-Waxman act. This act The House bill is the complete oppo- impressive 63-year-old mother of five was intended to strike a balance, a bal- site. It is complicated. There is a $250 children, but she suffers from diabetes ance between brand name drug compa- deductible before seniors get relief. and high blood pressure. Her hardship nies being compensated for their in- There are months where seniors have began after taking a buyout from her vestments and generic companies even- to pay a premium, but they would not employer. In this transaction she lost tually having access to the market. get assistance with their drug costs. her health insurance and was not able But the original purpose of the law has Under the House plan, seniors will pay to afford insurance on the private mar- been distorted. approximately a $35-a-month premium ket. This left her unable to afford her The law is now being used to extend but still pay the full price at the drug- prescriptions. Often she had to ration patent protections far beyond what store. them by taking half the prescribed Congress intended. Balance needs to be The House Republican plan would re- amount so it would last longer. restored. American taxpayers deserve quire seniors to use drug HMOs to get Ms. Gardner knows how dangerous better than what they are getting. their benefit. However, there are no this can be because she is a licensed Over the next 5 years, a remarkable guarantees that private plans would practical nurse and has been for 40 26.7 percent of the entire 2001 pharma- provide a benefit in all geographic years. Later, she had to quit pur- ceutical market is scheduled to face areas, or that a plan would even stay in chasing the drugs entirely because of exposure to generic competition. If business. other expenses, such as fixing her car generics are allowed to come on the Look at what has happened with and paying increased taxes on her market, it would mean more choices Medicare+Choice, Medicare’s HMO. home. Ms. Gardner and thousands like and lower prices. Since 1998, nationwide, 2.2 million her make these tough life-threatening The PRESIDING OFFICER. The Sen- Medicare enrollees have lost decisions every day. But no one should ator’s time has expired. Medicare+Choice as an option because have to make those kinds of decisions. Mr. DURBIN. Mr. President, I yield 5 of plans withdrawn from the market. Seniors are not the only ones who additional minutes to the Senator from In Missouri, from 1998 to 2001, eight have been hit hard. For far too many Missouri with the consent of the Sen- health plans stopped providing families, the cost of prescription drugs ate. Medicare+Choice options in the State.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S6999 Furthermore, some options are avail- went up some 18 percent. You cannot to come into our health system and able in only urban centers and not in create a Government program and fund sell your drug in our country, we are rural areas. it properly that will keep up with that going to reach an agreement as to what Why would we rely on this same type kind of geometric growth in price. you can charge; otherwise, you are not of system to give prescription drug So there are various ways we can ad- welcome. Well, the companies, by and coverage to rural areas? dress it. To the north of us, Canada has large, have all agreed to do exactly To me, what the House passed is un- addressed it with a national health sys- that—enter into this agreement and re- acceptable. It is an incomplete benefit tem. We can argue back and forth duce drug costs in every country but with absolutely no effort to lower drug about whether doctors or hospitals the United States. prices. It is unacceptable for Missouri’s should be Government employees, but In the United States, there are cer- seniors and unacceptable for American when it comes to prescription drugs, tain elements within our society that seniors. We must do better in the Sen- what Canada said to the drug compa- have bargaining power with the drug ate. nies in America is: If you want to sell companies. A couple of examples come I yield the floor. your product in Canada, we will bar- to mind immediately. The Veterans The PRESIDING OFFICER. The Sen- gain with you as to how much you will Administration, on behalf of America’s ator from Illinois is recognized. be paid. The American drug companies veterans and hospitals, bargain with Mr. DURBIN. Madam President, I said: Fine, let’s start the bargaining drug companies to bring down the cost thank my colleague from Missouri. The process. As a result of that bargaining of drugs. I am glad. The veterans ben- Senator spelled out in amazing detail process, there are dramatic differences efit from it. Indian Health Service, the what this debate is about. We come to in the price of drugs between the same story; Public Health Service, the this floor understanding that a miracle United States and Canada. same story. Many States, through Med- has taken place in terms of health care If you look at this chart and go icaid, bargain in terms of bringing in America within the lifetime of most through the drug names, you will rec- down the cost of drugs. When you look of us. When this Senate considered the ognize some of them. These are the at it, private insurance companies Medicare bill back in the 1960s, there drugs that you find advertised on tele- reach these same bargains. They say to was a very limited formula, a limited vision, on radio, in newspapers, and in a drug company: If you want to have an number of prescription drugs that were magazines almost on a daily basis. eligible drug for the people we insure, available, and they did not include in Celebrex, for arthritis, goes for $135 for we are going to bargain on a price that Medicare the coverage of prescription 90 doses in the United States. In Can- we think is acceptable. That bar- drugs. ada, the same drug, same dosage, and gaining takes place to the benefit of Look at what has happened since the same company, it is $83. Lipitor, another group of Americans. then. There has been a massive invest- for cholesterol, is $266 in the United If you look at the population of this ment by the Government, the tax- States and $179 in Canada. Nexium, for country, who is being left out in the payers, and by private industry, and we ulcers—the little purple pill, I think it cold? I will tell you. The first group have seen emerging from that is—is $344 in the United States and $219 you will notice is Medicare recipients, brandnew pharmaceuticals that give us in Canada. Paxil, which we have seen people over the age of 65. No one is bar- the hope of conquering diseases that ads for, is for depression and anxiety; it gaining for them. These people, retired have plagued mankind forever. This is $236 in the United States and $152 in and on fixed incomes, are paying the new formulary, ever-expanding, has Canada. The list goes on. There is highest prices, not only in America but created a new demand. Of course, it is Premarin, Prevacid, Vioxx, Zocor, in the world, for drugs that are being a demand brought on by people who Zoloft—all the names we are familiar made in the United States. High prices, want to save their own lives as well as with because of advertising. of course, apply to many other families those of their family members. It is a The lesson to be learned is that when as well. demand that is monitored by doctors; a the Canadian Government said they There are several ways we can ap- doctor will decide whether this par- were going to bargain for the good of proach this. We can decide that, as a ticular drug is right for this patient at people living in Canada, they started society and as a government, we are this moment. saving money for their people and their going to negotiate on behalf of Amer- But at the same time that this mi- health system. What is missing in this ican consumers, the same way it is raculous evolution was taking place, picture? There is nobody in the U.S. done in other countries around the the cost of these pharmaceuticals was who is bargaining for the American world. Well, we have not quite reached also rising geometrically, to the point consumer. that decision. Instead, we are trying to that today many average Americans Yesterday, on the floor of the Senate, inch toward more competition and cannot afford the very prescription my colleague from Pennsylvania, Sen- price justice. I salute the Schumer- that their doctor believes will keep ator SANTORUM, argued that is just a McCain bill—the underlying bill—be- them healthy and out of the hospital. price Americans have to pay. It is our cause this bill says we are going to try So many of them put off filling a pre- responsibility, as he argues, to sub- to make certain that generic drugs scription and maybe take half of what sidize the profitability and growth of continue to play a major role in terms they are supposed to take or they have American drug companies. The fact of providing the kinds of protections to make a sacrifice—whether it is food, that these same drugs are costing a that Americans need. shelter, or paying a utility bill—in fraction—the exact same drugs—in Generic drugs have come a long way order to pay for their drugs. countries around Europe, Canada, and in America. We have seen, in a very There has been a demand growing in Mexico, he believes is just part of their short period of time, that they have be- America for the Congress to respond socialized Government-controlled sys- come a substantial part of serving and to expand the Medicare Program tem. America’s health needs. Almost 40 per- again so we would include prescription I can tell you from the U.S. con- cent of the drugs today are generic drugs. That is something that is wor- sumer’s point of view, it is cold com- drugs. thy and is supported by Democrats and fort to be told that for a drug you have What is the difference between a Republicans and Independents. to pay 40, 50 percent more than some- brand named drug and a generic drug? When you come down to the specific one living a few miles over the border Well, by classic definition, a brand challenge of making it work, one of the in Canada because it is your burden to name drug is under patent protection biggest problems you face is price. If subsidize American pharmaceutical exclusivity. Only one company can the cost of prescription drugs con- companies. But that is the argument make that drug. But when the patent tinues to grow, as it has in the past, being made by those who are opposing runs out, expires, other companies can there is no way any of us in the Senate many of the issues before us today. move in and use the exact same for- or in the House can devise a Govern- Now, Canada isn’t the only entity mula, make the same drug, and the ment program to pay for it and to keep bargaining with American drug coun- price drops dramatically. up with that cost. Last year, the cost tries. Mexico and a lot of European I will give you an illustration of how of prescription drugs across America countries bargain and say: If you want it works. I doubt there is a person in

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7000 CONGRESSIONAL RECORD — SENATE July 18, 2002 America who hasn’t heard of Claritin, I wanted to ask the critics of the It is obvious. It is not only a question made by the Scherling-Plough drug Dorgan amendment why, if we have of making a profit, it is a question of company. The ad shows people skipping busload after busload of Americans finding that next generation of drugs through a field of wildflowers saying, I going into Canada buying these drugs, to improve the lives of Americans. I am not sneezing, so go to the doctor if there is such a danger, why have we think that is a very valid thing to do. and tell him you need Claritin. not heard some scandalous report Senator STABENOW will not be offer- Scherling-Plough spent more money about people dropping dead on the ing the amendment I cosponsored with advertising that drug than Pepsi-Cola buses or as soon as they got home? It her that said those companies that are spent advertising Pepsi in a given year has not happened. It will not happen. spending more money on advertising or Anheuser-Busch spent advertising In the Senate, by a vote of 69 to 30, than they are on research ought to be Budweiser. They wanted the Americans we decided to create another oppor- held to only deducting the amount of to develop an appetite for this drug tunity, beyond generic drugs, for re- money equivalent to what they spent Claritin. Then they got panicky be- importation of drugs from Canada, on research for their advertising. I cause the patent was running out be- with the approval of the Secretary of think that is reasonable, too. It calls cause then someone else could make a Health and Human Services in terms of the bluff of a lot of companies that say: Claritin generic drug at a fraction of their safety and the fact they save us We need to be more profitable for re- the cost. So they would come to Con- money. That was a step forward. search. They need to be more profitable gress and try to find, at the midnight Today, I am happy to be a cosponsor for more advertising, advertising cre- hour, a way to slip in an amendment to of an amendment presently before the ating many times a false appetite. extend their patent another few Senate which, frankly, has not been I stand today in support of this legis- months or years. We fought them back discussed for about 3 hours. I have lis- lation on generic drugs. I believe it is a time and again. tened to the debate on the floor, and no step in the right direction. The average And Scherling-Plough wasn’t the one has discussed this amendment by price paid for a prescription for a brand only group trying to do that. What we Senator STABENOW. name drug is about three times the have seen happen now is Claritin is The last two speakers on the Repub- amount of that paid for generics. The coming off patent and the generic lican side, Senator HATCH and Senator average consumer pays 238 percent drugs are going to compete. Scherling- FRIST, spoke to the generic drug part more for brand name drugs, an average Plough is thinking: What are we going of the bill, but they are not addressing of $45.96. to do? this bill which I think is a good one by Last year, 47 percent of all prescrip- What did they do? They tweaked a Senator STABENOW. tions were filled with generic drugs. molecule in Claritin and created a new What this bill says is that States Remember, the doctor makes the ulti- allergy drug called Clarinex. Have you across the Nation, such as Maine, mate decision. If the doctor happens to seen it on TV? It will soon be coming Vermont, even the State of Illinois, believe a brand name drug is better for to a television near and dear to you. can decide they want to try to bargain you or your family because of some sit- Now they want to create this appetite with the drug companies to bring down uation, some peculiarity, that is the for Clarinex because it is back at the prices for everyone living in the State. doctor’s call, but having generic drugs price they used to charge for Claritin. What is wrong with that? If we are let- available gives that doctor a choice The odd thing is, if you had asked, ting it be done in Canada and Mexico, and gives you a chance to find an af- many doctors from the start would the Veterans’ Administration, private fordable alternative for safe and effica- have told you that over-the-counter insurance companies, the Indian cious treatment. drugs are as effective as Claritin or Health Service, why shouldn’t a State The underlying bill on generics is Clarinex will be ever be for most Amer- try to find drug prices more affordable sound. I supported the reimportation icans. for the people living there? That is amendment and stand in strong sup- The point I am making is, when you what the amendment says. It is as sim- port of flexibility for States to act, are talking about generic drugs, you ple and straightforward as that. It is which Senator STABENOW has sub- are talking about affordable drugs for another opportunity for us to put some mitted and which I am happy to co- Americans. You are talking about giv- competition in drug pricing and to give sponsor. Let us give to the States the ing them the same type of drugs, bio- consumers a break when it comes to opportunity to reduce prices so people equivalent, as those under brand name paying for the pharmaceuticals they can benefit from this competition and and patents, and making certain they need to survive. bargaining and still remain healthy. save money in the process. Senator I think this amendment moves us in Mr. SCHUMER. Will the Senator SCHUMER and Senator MCCAIN are try- the right direction. It is sad that, once yield? ing to eliminate some of the abuses as again, we are looking for another alter- Mr. GRASSLEY addressed the Chair. drugs come off patent and move toward native to national action. That is what The PRESIDING OFFICER. The Sen- generic so consumers can enjoy that we need in this situation. We can think ator from Illinois may yield for a ques- benefit. of a dozen different ways to reduce tion. Yesterday, on the floor of the Senate, prices—by where you live, what State, Mr. DURBIN. I believe I have the by a vote of 69 to 30, we adopted an whether you happen to be a veteran, floor, and I have agreed to yield to the amendment by Senator DORGAN. Sen- whether you happen to have access to Senator from New York. ator DORGAN of North Dakota said he Canada. But shouldn’t we as a nation The PRESIDING OFFICER. The Sen- finds it strange that in Canada, the address this in a straightforward fash- ator may yield for a question. exact same drug made by the same ion, understanding that the drug com- Mr. SCHUMER. Mr. President, I American company subject to the same panies are in business to make a profit? know the Senator from Iowa is in a inspection sells for a fraction of the I will concede that point, but for the hurry. Maybe I can ask unanimous con- cost, and why shouldn’t we be allowed last 10 years, when one takes a look at sent I be recognized immediately after to reimport these drugs from Canada the profitability of drug companies, he finishes instead of yielding. for the benefit of American consumers? one finds that it is about 19 percent a Mr. DURBIN. If the Senator from They came here on behalf of the year on average. The median income New York does not have a question, I pharmaceutical industry and said it is and profitability of Fortune 500 compa- will be happy to yield the floor. an invitation to terrorism; you are nies during the same period of time is The PRESIDING OFFICER (Mr. MIL- going to bring in counterfeit drugs. 3.3 percent. Drug companies are ex- LER). Is there objection to the unani- One of my colleagues said he had a for- tremely profitable, and they are selling mous consent request? mula he was holding up that was made more and more drugs at higher prices Mr. REID. Mr. President, what was out of highway paint. I could not fol- and driving up that profitability. the unanimous consent request? low the debate very closely, but the We also believe that you should have The PRESIDING OFFICER. The Sen- suggestion is that drug that moved enough money at a drug company to ator from New York wishes to speak across the border is, all of a sudden, put money back into research—capital for 5 minutes immediately following suspect when it comes back. investment in research for new drugs. the remarks of the Senator from Iowa.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7001 Is there objection? Without objection, gram changes, including prescription spending. They will pay only $1 to $2 it is so ordered. The Senator from drugs, improve it vastly. for their prescriptions. On average, this Iowa. Unfortunately, we have a situation group of low-income, older people will Mr. GRASSLEY. Mr. President, I am that this is necessary because Medicare see a 98 percent reduction in their total so glad we are in a position where we has not kept up with the advances in drug costs, another example of one not are able to discuss these very impor- medical treatment. Medical advances having to choose between food or medi- tant prescription drug issues, including in delivering health care have moved cine because they are low-income. a prescription drug program for senior us light-years beyond 1965, but the Next we would look at seniors with citizens as part of Medicare. Medicare Program has not changed to incomes above 135 percent of poverty I am also glad that we are in a posi- reflect those health care advances. So but below 150 percent of poverty. This tion on the floor of the Senate where in order to ensure that Medicare is includes individuals with income a lit- we are divided in a traditional way, meeting the needs of today’s and to- tle bit over $13,000 and couples with in- and in that traditional way, I do not morrow’s seniors, the program needs to come of almost $18,000. These enrollees mean just Republican and Democrat be brought into the 21st century. will receive Medicare assistance on a because too often that is overplayed. Very few people drive 1965 auto- sliding scale based upon their income We are divided between a group of mobiles today, but every senior citizen to help pay their monthly premium to Senators. First of all, I think we may is using a 1965 model of Medicare. So get into the program, and also Medi- not have 100 Senators who favor a pre- that is why, after a year of work, I in- care will assist them in paying for scription drug program for senior citi- troduced, with Senators SNOWE, drugs at every level of expenditure. zens, but I surely believe that we have BREAUX, JEFFORDS, and HATCH, a bipar- There is no gap for these beneficiaries 85 Senators who believe that we should tisan bill—or if you look at the polit- below 150 percent poverty. have a prescription drug program for ical backgrounds of all five, a Let us look at those with incomes senior citizens as part of the mod- tripartisan bill. Our 21st Century Medi- above 150 percent of poverty, which is ernization of Medicare. care Act, as we have named it, is de- above $18,000 for a couple. They will Within that 85, I suggest we have signed to bring Medicare up to date by pay an average monthly premium of some traditional division—division be- adding a comprehensive prescription $24 for their immediate care drug ben- tween those who have only confidence drug program and by making other im- efit—again, the lowest of any pre- in the Government running the pro- provements in the program as well. miums that have been announced by gram and those, including myself, who The Congressional Budget Office has other authors that we know about. have some confidence in the Govern- estimated our bill will cost $370 billion They will pay a $250 deductible, and ment but not enough to believe that over 10 years. after they have reached the deductible, drug prices are going to be kept mini- Now there are other proposals. Sen- Medicare will cover 50 percent of their mal through Government control so ator DASCHLE, from the other side of drug costs up to the benefit level of that we have confidence in the com- the aisle, has a bill. As I understand it, $3,450 in total drug spending. Further- petition of the marketplace to reduce it has not yet been scored by the Con- more, Medicare will cover 90 percent of the price of drugs. gressional Budget Office. How much all drug costs after beneficiaries have We are going to find over the next does it cost? I have heard figures from paid $3,700 out of their pocket for several days, as we continue to debate introducers of that legislation, maybe drugs. this legislation and hopefully bring it $450 billion, maybe $600 billion. We Let me say a bit more about our drug to culmination and pass a bill so we an- need to know what these programs are benefit for Medicare beneficiaries swer the concerns of our senior citizens going to cost before we vote for them. above 150 percent of poverty. That is who sometimes have to choose between I want to take a moment and walk the group I just described. First, I wish food or medicine—and they should not my colleagues through the elements of we did not have a gap in coverage be- have to make that choice—that we will the 21st Century Medicare Act. First, tween $3,450 and $3,700, but the problem have a prescription drug program as the prescription drug benefit adds a is that we are working within a limited part of Medicare. comprehensive, voluntary, and perma- amount of money—$370 billion—which During that debate, I hope the Amer- nent drug benefit to Medicare. Our is about halfway between the Presi- ican public listening will consider, do monthly premium is $24. It is the low- dent’s program for seniors and, let us they have confidence in the Govern- est premium of any comprehensive pro- say, the other prominent plan before ment running a program or in the pri- posal before the Congress, as the au- the Senate, the Democrat plan. We are vate sector and the competition of the thors of those proposals have expressed about in the middle. We have adopted a private sector keeping down prices? what their premium is. Our drug ben- policy of using funds to benefit the Quite frankly, I believe when the efit is focused on providing money largest possible number of Medicare Government is involved, we are going where it is needed most—to the low-in- beneficiaries, particularly those with to run up the price of drugs. I think I come senior citizen who has to choose low incomes, as I have demonstrated. can give evidence from the Congres- in some instances between food and So helping low-income people as op- sional Budget Office, the nonpartisan medicine. They will no longer have to posed to doing more with incomes a lit- scoring arm of the Congress, to that ef- make that choice. tle bit higher, it requires some sort of fect. I can also give evidence that if we It also targets those who have very a trade-off, and we have opted to help have a program for senior citizens that high out-of-pocket expenses. Some peo- lower income and to help less the fur- has competition in it—in other words ple might refer to that as catastrophic ther up the line one goes. It is impor- different organizations competing for coverage. We have other names for it, tant to point out and to stress that membership of seniors and, in turn, but I think we know that we are trying even with these trade-offs, fully 80 per- competing for the lowest possible price to protect people where the sky is fall- cent of all Medicare beneficiaries will with the pharmaceuticals—we are ing in on them because of the need for spend less than the initial benefit limit going to bring down the price of phar- prescription drugs. or will have access to low-income pro- maceutical medicines. I will describe for seniors with low tections and therefore will have no gap Since 1965, the Medicare Program has incomes what this would do, starting in the coverage. The percentage, again, provided lifesaving health care services with those below 135 percent of pov- is 80 percent. to our Nation’s seniors and disabled erty. That would be about a $12,000 In the jargon of Washington, DC—and populations. Hundreds of millions of yearly income individually, about I know our constituents get tired of Americans have had their quality of $16,000 a year income for a couple. hearing Washington talk; we need to life improved and their health pro- Medicare will first pay the entire talk Iowa talk, but for my colleagues, tected because of this Medicare Pro- amount of their monthly drug pre- that means 80 percent of the seniors in gram. So we must ensure that Medi- miums, no out-of-pocket expenses for America under our plan will not be care continues the exemplary service it them buying into the program. touched by what we call the doughnut has provided beneficiaries since its in- Secondly, Medicare will assist them hole. For the 20 percent of enrollees ex- ception in 1965, and through these pro- in paying for drugs at every level of posed to this gap in coverage, our bill

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7002 CONGRESSIONAL RECORD — SENATE July 18, 2002 requires that Medicare drug plans pass drugs are delivered efficiently. In turn, State—maybe not the most rural negotiated drug discounts along to the CBO says the only way to have State—and I would not support a Medi- Medicare enrollees all the time. All of drugs delivered efficiently is to have care drug bill that would put the rural those enrollees will be able to purchase true competition, two or more organi- parts of our Nation in jeopardy of not drugs at a reduced price. zations competing with the drug prices receiving equal access to prescription Everyone is going to benefit from to get the prices down, as opposed to drugs under the same conditions as this legislation. Our bill may include the other program I am talking about people in New York City. this small doughnut hole, but proposals that relies on a government-run pro- Our bill guarantees that every Medi- from the other side of the aisle seem to gram. I quote the CBO that a govern- care enrollee will have a choice of at me to include a black hole since this ment-run program will not bring down least two Medicare drug plans, a min- drug benefit ends in 2010, leaving Medi- the price of drugs but one where there imum of two. The Government will es- care enrollees without any drug benefit is true competition. We have a delivery tablish service areas for plans to offer whatever. system based on true competition. Medicare drug benefits. These service Again, when we talk about legisla- According to CBO, this requires that areas must be the size of a State at a tion, if it comes to an end, we say that we must use private plans that assume minimum. They can be multistate but is a sunset. It is my understanding that a reasonable degree of risk; in other at least the size of a State. the proposal from the other side has a words, some risk on the organization I stress that because you hear from sunset; in other words, a time when the to make sure it is efficiently run, to the other side that plans will cherry- benefit will end unless Congress re- see there is competition, as opposed to pick. You are not going to cherry-pick enacts it. Seniors are not going to sun- a government-run program where risk in the State of Iowa. You have to serve set. Seniors are going to continue to in pricing of drugs is assumed by the Des Moines just as you have to serve need prescription drugs after this other government. What I mean by risk is, if Armstrong, IA. proposal sunsets. they are efficient, they will make Another point I want to make con- One of the disputes is lack of under- money and, if not, they will lose cerns pharmacists. Pharmacists play a standing of our benefit delivery sys- money. If they drive hard bargains very important role in prescription tem. I heard my colleagues describe with drug manufacturers, they will drug programs for seniors. Not only how we arrived at the approach to de- make money. If not, they will lose that, but as we have increasing use of livering drugs, as the tripartisan bill money. drugs, and seniors taking multiple pre- does. That reminds me, I want to say A limited degree of risk is all the scriptions, and the interaction of another thing because I think we for- tripartisan bill requires. People will those, pharmacists are going to play an get how things get done. No Republican ask, What sort of risk do you have if even more important role. They are plan can get through the Senate. No there is going to be a 75-percent sub- going to be needed to protect—I don’t Democratic plan can get through the sidy for the Medicare prescription drug know whether the word ‘‘protect’’ is Senate. A Republican plan can get plans in our program? Because the Fed- right—but oversee, to some extent, through the House of Representatives eral Government is protecting that 75 when prescription drugs are given, how because that is the way that system percent. We are told by CBO that at 25- they interact. Maybe a doctor won’t be runs and the majority party rules with percent risk we will be assured this on top of that. You might have a per- an iron hand. There is a Republican level of risk is high enough to promote son who gets a prescription from two plan that got through the House. There sufficient drug coverage and low different doctors. Are they going to is a Democrat plan in the House that enough to assure that plans participate interact? The focal point for that de- obviously did not pass the House. We in a stable, reliable drug system. It is termination might be the pharmacist— got the President’s program that is ob- the optimal level of risk. ought to be the pharmacist, and will viously a Republican program because Insurers who are so unhappy with the be. So there is going to be an increas- we have a Republican President. We House bill in 2000 have indicated they ing need for pharmacists. have a Senate Democrat plan. We do can live with the level of risk in our Another thing I want to point out not have a Senate Republican plan, but bill. They would be crazy not to par- about the legislation is our assurance we have a Senate bipartisan plan. That ticipate. that Medicare beneficiaries will have is the only way we will get anything Our opponents are saying if the Fed- convenient access to a brick-and-mor- through the Senate, and that is a bi- eral Government lays $340 billion on tar pharmacy. The standards outlining partisan approach. the table, by far the largest entitle- what is convenient will be determined Getting back to how did we settle ment expansion ever, plans will not by our Department of HHS. Further- upon our delivery system for the pre- participate. Where do our opponents more, in developing convenient access scription drug program for Medicare, get that? Flatout, according to the standards, our Department is explicitly we have been working for several CBO, they are wrong. CBO says the in- required to take into account Medicare months, to my chagrin, too many surers themselves say they are wrong. beneficiaries in rural areas. months, with the CBO to work through Most importantly, common sense says We ought to consider consumer pro- policy and what a certain policy would they are wrong. Unfortunately for our tection, so I will address that as our cost and changing policy—not basic opponents, no one has invented a pre- bill does. Our drug benefit proposal policy but fine-tuning our policy from scription drug that gives you common puts into place important consumer time to time to fit the realities of what sense. protections for our Medicare enrollees. CBO says. We need to make the dollars we have By the way, one of the things I didn’t The CBO is important in this process. go as far as we can. Whatever our indi- say that the CBO said about ours, we It is an independent, nonpartisan con- vidual thoughts, the CBO in this case is will have 99 percent of the seniors tak- gressional staff office that analyzes an arbiter, and they tell us our bill, the ing advantage of this program. That is legislative proposals for costs on the 21st Century Act, does that; in other how high the enrollment is going to be. one hand and workability on the other words, it keeps the cost of medicine First, in regard to consumer protec- hand. The CBO does not have any ax to down, guarantees the participation of tions, all Medicare drug plans will be grind. And they had better not. And we those agencies to deliver the drugs. put through a comprehensive approval in Congress rely on that. They are the Now, I know the Presiding Officer is process to ensure they will deliver bible for a lot of decisions made, par- from a rural State. I will address the quality drug benefits to seniors. The ticularly budget decisions. question of whether the system the bill new Medicare competitive agency in According to CBO, spending on drugs will establish will work in rural areas. the Federal Department of Health and for seniors over the next decade will Even if you are from Atlanta, there are Human Services will have to review grow at an astronomical rate. Over the a lot of rural areas in Georgia, so you and approve the application of the plan next 10 years, there will be a steep rise ought to be asking, will we take care of before that plan can participate in the in the price of pharmaceuticals. The rural areas? If you are in Montana or program. CBO said the only way to contain the North Dakota, it is probably even more Standardized information on each cost of a drug benefit is to ensure that of a concern. I represent a rural drug plan will be sent by Health and

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7003 Human Services to all Medicare enroll- problems we have with Medicare devel- care benefit package in our bill—like ees. If a Medicare drug plan wants to oping over the last 35 years, probably Senator DASCHLE’s sunset in his drug advertise for enrollees, all marketing those coming directly from reimburse- benefit. We know on our side that sen- material will have to be approved by ment of various health care providers, ior citizens aren’t going to sunset. HHS. All seniors will have access to you will find that micromanagement of They are going to be around forever. necessary prescription drugs. Health the Medicare Program by the Congress In addition, Medicare enrollees can and Human Services will determine has led to most of the problems we enroll in the Medicare drug benefit, therapeutic classes of drugs. Medicare have. So to the extent that we can whether they are in traditional Medi- drug plans will be required to offer have the marketplace be the discipli- care fee-for-service, enhanced Medicare drugs in all therapeutic classes. narian in premium prices, copayments, fee-for-service, or the If Medicare drug plans use in deductibles where catastrophic Medicare+Choice. formularies, they must establish a kicks in, et cetera, et cetera, we ought Here is the choice that our bill offers pharmacy and therapeutic committee to allow that to happen. seniors, if they want to take it. to develop and review the formulary. We ought to look at what has bene- Existing Medicare Part A and Part B Physicians and pharmacists must be fited us as Senators and 10 million Fed- focus on the coverage of routine, pre- represented on that committee. The P eral employees or retirees or their fam- dictable medical expenses. But the en- and T Committee shall base formulary ilies. You will see that competition hanced option, which we are going to decisions on scientific evidence and on among several of the Federal employee call Part E, focuses on preventive care standards of practice. health benefits plans—they have, I and protection against devastating What I have outlined is a few ways in don’t know how many dozens of plans, costs of serious illness. If beneficiaries which our bill differs from Senator but at least a couple of dozen plans, prefer what they have now, for the DASCHLE’s bill. I would like to add a with competition among those plans, third time, I say they can keep it. But few more ways in which our bill differs flexibility in those plans, the tailoring if they like the idea of a better preven- as well. in those plans for particular interest tion and better insurance when they First, Senator DASCHLE’s plan is groups of people in Federal employ- need it, then, for the third time, I say overly bureaucratic and I think ex- ment, including Senators, they have they can have the new, enhanced travagant, therefore it does nothing to been able to keep down the price of our version. curtail or even slow skyrocketing pre- Federal programs. That is directly re- On the subject of prevention, I would scription drug costs. Why pass a bill if lated to the flexibility in the plans and like to explain that we put a lot of em- we are not going to do something to the competition. phasis on prevention. Medicare’s cur- put the damper on the rapidly rising Why would you want to write into rent policy makes beneficiaries reluc- increases in the cost of drugs? your plan a certain monthly premium? tant to seek out preventive services That is why it is essential that any Our plan then gives the freedom to that may identify health problems and new prescription drug benefit contain offer premiums, copayments, and prevent more expensive care later. Part proper cost management controls that deductibles that are flexible, saving of that is because they have to pay a seniors money, or gives them more moderate growth in price while ensur- deductible. ing Medicare enrollees’ access to pre- money. Unlike many private health plans, We also have an enhanced Medicare scription drugs. Medicare today subjects people in this fee-for-service option that is an im- While guaranteeing prescription drug Part B to usually a 20-percent deduct- proved and strengthened Medicare op- coverage for all seniors, our proposal ible. tion—not one that seniors would have imposes reasonable cost-sharing obli- For those who would elect the new, to take. If they are satisfied with the gations on beneficiaries and does pro- enhanced option, preventive benefits 1965 model, they can keep it with or mote competition among prescription would not be subject to any deductible, without prescription drugs. If they drug plans which, as I have said so or to any coinsurance. would like to have a new and improved many times, will lead to a better over- That is an example of moving Medi- 21st century Medicare Program with or all effect on drug prices. That is a ben- care from 1965 to the 21st century. without prescription drugs—because I would like to highlight another im- efit to Medicare beneficiaries and to all prescription drugs are optional on all provement of enhanced option. Americans who are not even yet eligi- of these plans—we would give them the Medicare today has no limit on a ble for the Medicare Program because opportunity to do that. I will explain beneficiary’s expenses in a year, cre- of age. that. We have flexibility in Medicare drug None of the other proposals on the ating the potential for crippling costs benefits that we do not want to over- table do any of this. It creates the en- in the event of a serious illness and look because under Senator DASCHLE’s hanced option. It is within the Medi- maybe impoverishing some families. plan, seniors face fixed copayments care Program. It is a fee-for-service The bill would limit beneficiaries’ ex- that, in many instances, mean they program. Let me be clear about the posure then to out-of-pocket costs for will actually pay more for drugs than fact that it is delivered by the Federal Medicare coverage services other than they would under a system such as the Government just like Medicare. There drugs to $6,000 per year. Beyond that one we propose, that gives prescription has been some confusion on that point. amount, Medicare would pay 100 per- drug plans more flexibility to offer It ought to be easily understood. cent of any costs incurred by the bene- lower cost copayments. We think it is an option that many ficiaries. I suggest that before the plan is fi- beneficiaries might find attractive. But In a given year, it is estimated that nally put before the Senate by the the beauty of it is that we are not 2 to 3 percent of beneficiaries may have other side—I will bet they will have going to make that choice for them. It costs that reach above that level. Of that fixed because they have looked at is voluntary. It is their choice. course, if one looks at beneficiaries our plan and they know we are more Here is the bottom line. Bene- over multiple years, the likelihood of fair, particularly to low-income sen- ficiaries, such as Medicare, have a such expenses increases accordingly. If iors, with our flexible drug benefit than right to keep it—keep it until you die. beneficiaries want the peace of mind what their fixed costs are. It is their choice. In fact, even future that comes from such protection Senator DASCHLE also writes into law beneficiaries will always have this against serious illnesses, then for a the monthly premium seniors will pay same choice under our plan—20–50. If fourth time, I say they have that for a drug benefit. But what happens if you are 65 years old and you want the choice. a plan has been efficient and wants to 1965 model of Medicare, choose it. But Another issue our enhanced option attract more Medicare enrollees by if it is 20–50, you are 65 years old and addresses is the Medicare deductible lowering their premium below that of you want a 21st century model of Medi- structure. Under current law, the Part other plans? Under Senator DASCHLE’s care, then you can choose the enhanced A deductible will be extremely high in approach, Congress would have to pass option. the year 2005—$920 every time you go legislation for the plan to lower the I want to make it very clear that to the hospital—while the Part B de- premium. If you look at most of the there is no sunset of the existing Medi- ductible is going to stay at $100 per

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7004 CONGRESSIONAL RECORD — SENATE July 18, 2002 year. The enhanced option includes a I think in some ways the facts were not mining what is the equivalent standard unified deductible of $300 per year for given straight. I would like to correct benefit. The U.S. Government is going all services. the RECORD for the benefit of my col- to make that determination. If a plan Medicare’s irrational two-deductible leagues. is not equivalent to the standard ben- system is unheard of in the private in- Yesterday, there was reference made efit, it is obvious the bid will be re- surance industry today. Beneficiaries to an assets test as if there is some- jected, and should be. are used to single deductibles from thing wrong with it. There is nothing In fact, the Congressional Budget Of- their prior employer-based plan. If they wrong with it. Public policy for low-in- fice has told us our standards of like what they had while they were come Medicare populations has in- equivalence are strict enough that working, then they have the option, as cluded assets tests since 1987. Our pol- Medicare drug plans will have little I say for the fifth time, of taking the icy here in the Congress for low-income room varying in premiums or cost enhanced option within Medicare. Medicare populations has included an sharing. In their words, that little Here is another benefit from the en- assets test since 1987. room to vary is critical to the success hanced option. Because Medicare bene- I said it twice so people know that it of a Medicare prescription drug benefit fits have so many holes in contrast to is not something new being thrown out and indicates how the tripartisan bill private insurance, most beneficiaries there. has found the right policy in Govern- are forced to carry supplemental cov- Specifically, assets test policies were ment assumption of risk—just erage to fill in the gap. We call that first included in Federal policy in the enough—to make sure there is com- Medigap. Reducing those gaps will Omnibus Budget Reconciliation Act of petition out there, to make sure plans make such supplemental coverage less 1986, which passed the Senate by a vote are run efficiently, to make sure there necessary, but, more importantly, if of 88 to 7 with help from people who, is competition to drive down drug they want to have it more affordable yesterday, were denigrating our plan, prices. for the beneficiaries, our bill estab- and voted for the 1986 plan. While the Democrat plan claims to lishes such new more affordable Our bill includes an assets test simi- include competition, I do not under- Medigap plans. lar to the 1999 President Clinton—re- stand how Medicare plans will compete By the way, those employers who member he was a Democrat—Medicare if they are required to offer identical offer supplemental coverage will also bill. premiums and identical cost sharing. If find it less costly to do so under the en- Under current law, States have the drug plans wanted to lower their cost hanced option since it will have fewer flexibility to waive this assets test. sharing or lower their premiums in holes to fill. Nine States and the District of Colum- order to attract Medicare enrollees, the Is the enhanced option a better deal? bia have chosen to waive the test. only way it could be done is for Con- From an actuarial standpoint, the an- Our proposal allows assets test flexi- gress to pass more legislation. swer is definitely yes. bility, found in current law, to be re- The tripartisan bill ensures the inno- The Congressional Budget Office tells tained in the Medicare drug benefit vations of the private sector are not us it is a more valuable benefit, largely program. The assets test ensures that stifled by micromanagement, one-size- because of the serious illness protec- seniors who need assistance the most fits-all, Government-run drug benefits. tions that it offers our seniors. But not are provided the most protection. There is guaranteed access to the all seniors are actuaries. So we are Also, let me clarify that current law plan. We have had Members of the leaving it up to the seniors to decide specifically excludes from the assets other side apparently unaware that the which of the two plans is a better deal. test a person’s home and the land the tripartisan bill guarantees access pro- We make a few changes also in home is on, household goods, personal visions. The tripartisan bill guarantees Medicare+Choice improvement. Start- effects, including automobiles, the two Medicare prescription drug plans ing in 2005, our bill takes modest steps value of any burial space, and other es- to every Medicare enrollee. to improve the Medicare+Choice Pro- sential property. If the enrollee lives in an area where gram. Medicare+Choice has been a big The people attacking our plan also there is Medicare+Choice, the disappointment in my home State of attacked our plan yesterday because of Medicare+Choice plans will not count Iowa. Only 1 county out of 99 has it. the flexibility we have in it. So I want towards the two-plan minimum. But seniors elsewhere—particularly in to respond to that. The Medicare plans are not deter- the larger cities and in the Sun Belt— Medicare enrollees deserve a quality mining their own service areas. The rely on it. drug benefit that meets their indi- Government will determine service Our proposal keeps that option alive vidual needs. The Daschle-Graham pro- areas, and the service areas must be at without throwing money at the pro- posal does not allow any variation in a minimum the size of a State. gram as we have so much in the past. cost sharing or premiums and is a one- The Government will be covering 75 Instead, we create a competitive bid- size-fits-all plan which will fail to percent of the value of the Medicare ding system under which adapt to the needs of seniors, as we are drug benefits, equalling $340 billion Medicare+Choice plans will compete now so far behind with the 1965 plan over the next 10 years. So anyone who with each other but not with the Medi- that was adopted in 1965. says the plans will not participate is care fee-for-service programs for bene- It is also important that Medicare simply not operating with any common ficiaries. enrollees get quality drug benefits at sense—$340 billion of encouragement to I want to emphasize that no one in the lowest possible price. The participate. This is a clear attempt, the fee-for-service Medicare will be af- tripartisan plan strikes the right bal- and a failing attempt, I believe, to fected by this change. We have made ance to ensure Medicare enrollees have paint the tripartisan bill not as what it this change because today’s bureau- access to prescription drugs they need is—something that five Senators have cratic pricing system sets arbitrary at the best possible price. worked on for a year—but to paint it, and inaccurate rates, and that discour- Anyone wanting to offer a Medicare instead, as the House Republican bill, ages Medicare+Choice plans from par- drug benefit will be required to receive which it is not. ticipating. Our approach to the approval of Health and Human Lastly, we have been attacked from Medicare+Choice is based on a bipar- Services. This is not a checkoff ap- the other side about the tripartisan’s tisan model embraced by the Clinton proval process. There will be intensive policy toward employers. The administration, and will result in fair- interaction between any plan and the tripartisan bill gives employers a 100- er and more accurate payments to Government to ensure that Medicare percent subsidy to offer drug benefits Medicare+Choice. enrollees are getting what they are to their retirees, as long as the retiree Before I give up the floor, I would paying for. plan is, at a minimum, as generous as like to comment for a short period of There are five separate places in our the standard Medicare benefit. time on some statements that were bill where the administrator is re- In contrast to the tripartisan plan, made yesterday regarding our quired to certify that a plan meets the Democrat plan only gives employ- tripartisan 21st Century Medicare Act strict standards of actuarial equiva- ers a two-thirds subsidy to retain their by people on the other side of the aisle. lence. The plans will not be deter- retiree prescription drug plan.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7005 Listen, from the other side you heard willing to agree to this proposal: The is not about a new drug. In fact, when that our plan does not take into con- Senator from New York would go for 10 it comes to a new drug, that is one of sideration protecting retirees who al- minutes, the Senator from Georgia 10 the few places where, of course, the ready have a corporate retirement plan minutes, the Senator from New Jersey patent can be contested by our legisla- with health benefits in it, when we pay 10 minutes, and I need 20 minutes. tion. What our bill does is simply force 100 percent of that. And what does the The PRESIDING OFFICER. Without them to play by the rules. other side pay? Sixty-seven percent. objection, it is so ordered. The administration says the bill The other side’s plan forces a standard The Senator from New York. would complicate the process of filing benefit on all Medicare beneficiaries. Mr. SCHUMER. Mr. President, I have patents. Of course, our initial legisla- Will employers be forced to change been waiting here patiently to speak tion was clean. There was an amend- their entire drug benefit structure in for a particular reason. Earlier this ment to change it, mainly to get sup- order to obtain the two-thirds subsidy? afternoon, the administration came port from members of their party. But This could result in employers being out with its Statement of Administra- if what the administration means is forced to charge higher drug expenses tion Policy on S. 812, the Greater Ac- that it will complicate the process, if for their retirees in order to receive the cess to Affordable Pharmaceuticals Act that means it makes brand companies subsidy. sponsored by myself, Senator MCCAIN, comply with the FDA’s current rules, Mr. KENNEDY. Is the Senator will- and 10 others. you bet it will complicate the process. ing to yield for a question? I have rarely seen a piece of paper so The FDA requires that brand compa- Mr. GRASSLEY. I will try to answer far from reality and so far from the nies only list patents in the Orange your question. truth. Let me quote from it: Book that cover the drug or cover that Mr. KENNEDY. I was just wondering . . . the Administration opposes S. 812 in its approved use of the drug. Now the FDA about the time that the Senator will current form because it will not provide does not enforce this, so the brand lower drug prices. use. We have several Senators indi- companies don’t play by the rules. Our cating—— What planet are they on? What are bill requires them to do it. Mr. GRASSLEY. I will be done in 2 they smoking? Generic drugs will not I had hoped that when Senator lower the cost of drugs? If you want to minutes. MCCAIN and I introduced this legisla- Mr. KENNEDY. I thank the Senator. oppose the bill for one reason or an- tion—and my hopes were heightened Mr. GRASSLEY. Currently, employ- other, fine. Here are some costs: when the legislation passed 16 to 5 and ers receive no assistance whatsoever in Claritin, brand name $86; generic $33; got half the members of the HELP paying the drug costs for their retirees. Cipro, brand name $89; generic, $35; committee from the Republican side— Our 100-percent subsidy plan will allow Zocor, high cholesterol, $116; generic, that we could have a debate and come employers who are offering a drug ben- $45; Zoloft, $69; generic, $27; brand of to an agreement. The Senator from efit at least as generous as the stand- Singulair, $84; generic, $32. Utah, understandably, has pride of au- That doesn’t lower costs? It has been ard benefit to receive the full value of thorship. He may want to make some estimated it will save the American the standard benefit. changes. But to just so baldly oppose a Again, our policy targets dollars people $70 billion. It has been esti- bill on specious grounds makes one where they might do the most good. mated it will save our State govern- wonder where the administration is And an employer subsidy recognizes ments hundreds of millions of dollars. coming from. Are they so afraid to of- the value of employer-sponsored re- And they say it doesn’t lower cost. fend PhRMA that they have to put out tiree drug benefits. What kind of argument is that? We all a statement that is just patently In closing, I will simply say some- know it will lower cost. If they want to wrong? thing I said when I started. In the next come clean and say they don’t want to 3 or 4 days, there will be a lot of debate alienate the pharmaceutical industry, We saw in the area of corporate liti- on this subject. It is very important to fine. If they want to say there is a bet- gation that the administration, which have a lot of debate on this subject. ter plan and better scheme, fine. If likes the American people to think it is You are going to find strong advo- they want to say, keep things status moderate, is to the right of the Busi- cates for plans where the advocates quo, fine. But it won’t lower costs? ness Roundtable. We are finding the have great faith in Government-run I think they have a lot of disagree- same thing here. We are finding that price programs versus whether or not ment even from people normally on the administration, on the issue of you ought to have competition from their side. Here are some of the groups drugs and the high price of prescription the private sector. Remember, CBO that think it will lower costs: General drugs, is to the right of much of cor- says that a Government-run program is Motors, Ford, Chrysler, UAW, AFL– porate America. going to raise the price of prescription CIO, Verizon, Wal-Mart, Kodak, Motor- Please, Mr. OMB Chairman, Mr. Vice drugs. The alternative is to have com- ola, Caterpillar, Kmart, Georgia Pa- President, work with us. We are not petition. The Congressional Budget Of- cific, Albertson’s, UPS, Kellogg, Sysco. going to agree on everything, but work fice says that is going to reduce the The list goes on and on. These compa- with us. This is a serious problem. If price of prescription drugs. nies are not usually supporters of the this memo is an indication that all we We should be in the business of hav- kind of legislation we are talking are going to get on the issue of reduc- ing public policy that is going to give about. They are all for this. They are ing the cost of drugs and increasing the seniors the best medical care, includ- for it for one reason: lower cost. Their access of drugs is stonewalling, then it ing prescription drugs, based on the own health care plan costs are going is a sad day for the American people. least cost to the Government, as well through the roof. I am utterly amazed. We are going to fight hard for this as the least cost to the senior citizen. I ask the administration to retract this legislation. The American people need I yield the floor and I thank my col- statement or prove why they believe this legislation. It needs to go beyond leagues. that moving to generic drugs is not the original bill. That is why I have The PRESIDING OFFICER. The Sen- going to lower cost. supported other amendments, and I ator from Massachusetts is recognized They say a few other things, too, hope the prescription drug plan offered Mr. KENNEDY. Mr. President, I which shows you that they really don’t by the Senators from Florida, Georgia, know we have not had an agreement know what the bill is. They say in and Massachusetts prevails. But if even with regard to time, but we have had their statement that this bill would en- in this modest bipartisan step we get the opportunity to hear from that side courage litigation around the initial such stonewalling and such failure to of the aisle for about 2 hours 40 min- approval of new drugs. The legislation grapple with the truth, then all those utes of the last 3 hours. So I was going does not allow litigation for the ap- Americans who are paying such high to see if we could recognize the Senator proval of new drugs. They don’t know prices for drugs are in trouble. from New York. And although our lead- what the bill does. Mr. GREGG. Will the Senator yield ers here don’t frown on allocating the Will it prevent unnecessary litigation for a question? time and indicating individuals, the when someone files a patent in the Or- Mr. SCHUMER. I am happy to yield Senator from New Hampshire has been ange Book that is frivolous? Yes. That for a question.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7006 CONGRESSIONAL RECORD — SENATE July 18, 2002 Mr. GREGG. The Senator is probably Our seniors cannot fight this battle There are two gaps in the competing not aware of this because this informa- alone. Goliath is too big. Congress bills. First, under the House Repub- tion has just been forwarded to me. I must step in immediately and help lican plan, all seniors would have to will actually have a paper on it. But America’s elderly in their day-to-day pay a $250 deductible. That means they there have been a lot of different rep- life and death struggle with prescrip- would pay premiums but would get no resentations as to how much the under- tion drugs. coverage for the first $250 of their drug lying bill would save. I have seen num- This Senate has already taken a very bills. Then, once drug costs reached bers that ran from $20 billion to $60 bil- big step toward helping seniors get $2,000, coverage would be cut off alto- lion, and I believe the Senator men- their medicine at lower prices by pass- gether. Seniors would get no help from tioned it is actually a higher number. ing the reimportation amendment. the program until their out-of-pocket We have just been advised by CBO Now it is time to give some more help. spending hit the $4,800 mark. that the underlying bill, the Edwards- It is time to add a prescription drug During this huge gap in coverage, Collins bill, will have $8 billion savings benefit to Medicare. seniors would still be required to pay assigned to it by CBO. So as we debate I was very glad to hear this week their monthly premium even though this issue—I know some people are that the Nation’s largest advocacy they were not receiving a single penny planning to use that savings to assist group for seniors, AARP, has declared of benefits from the program. And the major movement on the overall the Graham-Miller-Kennedy bill as the every beneficiary would experience drug benefit—this is going to change one that, in their opinion, offers the that first gap in coverage because the dynamics around here a little bit. very best value for seniors. every senior would have to spend $250 But just so we are all playing off the Let me take just a few minutes to before they saw the first dollar of ben- same song sheet on savings, this bill is tell you why they think and why I efit. now scored by CBO as an $8 billion sav- think this bill is better than the rest. Then, almost half of all the bene- ings. First, we use a system that is now in ficiaries would fall into the second cov- Mr. SCHUMER. If I could answer the place—a system that is now in place erage gap. Sixty percent of them would question, which I know was meant to for most working Americans, a system never climb back out of that gap to re- be a question, of the Senator from New that the Federal Government and most ceive coverage again. Let me say that Hampshire—the junior Senator from employers use right now for their own again. Nearly two-thirds of seniors who New Hampshire to correct the error of workers. This new benefit is too impor- ran up drug bills of $2,000 would never my ways—first, the $8 billion is the tant to risk using an untried, experi- see another penny in benefits for the CBO estimate—I guess; I haven’t heard mental delivery system; but the com- rest of the year. it yet—but that is just for Medicare. peting bills do just that. Because of these gaps, the typical The administration is saying it will Under our bill, every beneficiary will beneficiary—let’s say an elderly not provide lower drug prices. The esti- know how much their premium will woman whose prescriptions run $2,400 mates are pretty widespread and pretty cost each month and how much they each year—would still have to cover 71 accepted that when you take not just will have to pay for each drug they percent of her drug bill each year. the Medicare savings but the savings to buy. We guarantee seniors an afford- Beneficiaries with higher drug bills are even worse off. Take an elderly every consumer who goes and buys the able premium, while the Republican man whose drug expenses run $400 a drug, the savings to all these compa- bill allows private insurers to set the month, or $4,800 each year. He would nies that have their own health care premium cost. That means insurers have to pay 85 percent of his drug costs plans, the savings to the States, it is would be free to charge seniors what- each year under the Republican bill. going to be much more than that. ever premium they want, whenever That is not much of a lifesaver to be I am not debating how much right they want. throwing a drowning man. now. I don’t know if that estimate is It is simply a fact that seniors who correct. It seems low to me. But let’s Once again, there are no gaps of any live in rural America are often older, kind in the Graham-Miller-Kennedy assume it is. It is in direct contradic- often sicker. Under the Republican bill, tion to the Statement of Administra- bill. Coverage continues every day, insurers would be able to charge them every week, every month, all year long, tion Policy that came out this morning even higher premiums than those who which says: ‘‘will not provide lower regardless of how high a senior’s drug live in urban areas. That would hurt drug prices,’’ period—not ‘‘will not bill is. the very people I call my friends and lower them enough,’’ not ‘‘will not Once drug costs have reached $4,000, neighbors back home, and that is unac- lower them for everybody.’’ It says, un- the Graham-Miller-Kennedy bill says ceptable. equivocally, no lower drug prices. that we will pick up the entire bill for The private insurers that are the cen- So I would like to thank my col- the rest of the year. It is what our sen- terpiece of the Republican bill will league from New Hampshire because iors need. It is the least they deserve. even though he is making a different make profits based on managing drug Mr. President, the time has come. It point, he makes mine. The administra- care for beneficiaries, just as HMOs is just like back in 49 B.C. when Caesar tion seems so hardheaded against any- make their profits on managing care. had to ask himself a question: ‘‘Do we thing to change the status quo, even That would result—it could not help cross this Rubicon?’’ Do we make the though the vast majority of Americans but result—in fewer drugs being avail- commitment? Do we take this risk? are unhappy with the status quo, that able to our seniors. That is not the You know, we throw around the term it leads them to make statements that kind of benefit our seniors need. That ‘‘It’s a matter of life or death’’ pretty are patently absurd on their face. is not the kind of benefit they deserve. lightly. Seldom is that really the case. The PRESIDING OFFICER (Mr. Our bill uses a system that is already But this time it really is. KENNEDY). The Senator’s time has ex- up and running in every ZIP Code in Many seniors—our mothers, fathers, pired. the United States. We guarantee that grandparents, and other loved ones— The Chair recognizes the Senator services will be available to seniors 24 will live or they will die because of this from Georgia. hours a day, 7 days a week, for any vote. Are we going to pass a meaning- Mr. MILLER. Mr. President, I rise to emergency that arises. The competing ful prescription drug benefit as we have urge the Senate to let us try to come bills offer no such protection. been promising and talking about for together on a prescription drug bill in The Graham-Miller-Kennedy bill is years? Are we going to go home and these next 2 weeks for the sake of also the best plan out there because it face the seniors of this Nation without America’s seniors. has no gaps in coverage. That is very doing diddly squat? Our seniors are up against a rich and important to me, and to AARP, and to We have had a lot of sound and fury powerful drug industry—an industry every senior in this country. We help in this Chamber. Will it signify noth- that, obviously, will fight tooth and seniors pay for the very first drug they ing, just a big fat zero? It isn’t enough nail against anyone who seeks to med- buy each year. That coverage con- to have just good intentions, Mr. Presi- dle with its obscene profit margin or tinues with no interruption through dent. The road to hell is paved with its astonishing salaries for its CEOs or the last day of each year. No other bill good intentions. It isn’t enough to its TV media blitz. makes the same guarantee. promise good deeds. We must do them.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7007 Thank you, Mr. President. I yield the centive can be provided, the gift can be at a local pharmacy. So people who be- floor. provided, you can offer the vacation, lieve they are in a benefit plan to nego- The PRESIDING OFFICER. The Sen- but at least people have a right to tiate a better price are paying more, ator from New Jersey is recognized. know whether the sales of products are and they are not only paying more, Mr. TORRICELLI. Mr. President, the related to price, science, the merits, or they may be directed to products that Senate is engaged in probably the most the financial incentive to consume are offered not based on a medical important health care debate in a gen- them. judgment or on a cost basis but be- eration. If we succeed in establishing a Some will argue that such techniques cause of a secret rebate. pharmaceutical benefit for the Amer- are common in industry. It may be The chart on my left illustrates ex- ican people, it will be the greatest con- true, but it is one thing if a retailer is actly the problem, in what is now a tribution to health care since Medi- getting an incentive to sell you a shirt four-tiered system from manufacturer care. or an automobile manufacturer is get- to senior citizen. The manufacturer We are engaged in this debate in the ting a secret or private incentive to an may offer a rebate with the belief that middle of an economic and corporate automobile dealer. That might be busi- it could lower price and make their crisis. It would not be honest or even ness. It may or may not interfere with product more available through phar- productive to pretend that one event is the right judgment of the proper pric- macies to senior citizens, and many of taking place without the backdrop of ing, but that is marketing. these rebates may be offered by phar- the other. It is something else when it inter- maceutical manufacturers with the be- It is an extraordinary time to be re- feres with the judgment of a doctor and lief that like the rebate from an auto- designing the delivery system of an in- the confidence in health care delivery mobile manufacturer to an auto dealer, dustry while corporate America is upon which people have come to rely, a it is making the product more avail- going through a series of tumultuous judgment that involves not simply able, but here is the problem. The law events. price but the intangible of trust in a allows the pharmaceutical benefit I have an amendment prepared that I health care provider. manager to keep the money. It does will offer to this legislation that is the Second, the amendment expands to not go to the pharmacy. It never nexus between the two problems be- deal with pharmaceutical benefit man- reaches the senior citizen. It stays cause the pharmaceutical industry re- agers, otherwise known as PBMs. here. The pharmaceutical benefit man- quires a transparency and a proper ac- PBMs are essentially health mainte- agers are in a contractual relationship counting of itself in the delivery and nance organizations designed to deal supposedly representing the senior cit- pricing of its products, just as cer- with the delivery of pharmaceutical izen. They are supposed to be their ad- tainly a variety of other American in- products. They are the middlemen who vocate, getting their price. Instead, dustries have suffered from their fail- have placed themselves between drug they are keeping the money. ure to do the same. manufacturers, health plans, and phar- The PRESIDING OFFICER (Mr. I address specifically two persistent macies. If they operate properly, they CORZINE). The Senator’s time has ex- problems. First, when an American negotiate better prices, provide service pired. family goes to a pharmacy to buy a and delivery at a superior cost to a Mr. TORRICELLI. Mr. President, I prescription product, they operate beneficiary. For most of the last 25 ask unanimous consent for 1 additional under the assumption that they are years, that is exactly how they have minute to conclude. getting sound medical advice, that the operated. The PRESIDING OFFICER. Without prescription that is being offered to A problem has developed, much like objection, it is so ordered. them is suited for their problem, their the gift, the vacation offered for selling Mr. TORRICELLI. Under the amend- malady, it is priced properly, and a a pharmaceutical product, except it ment I am going to offer to this legisla- medical judgment is being made on the happens on a much larger scale. tion in the coming days, as certainly as merits. That is the assumption of every Pharmaceutical benefit managers pharmaceutical companies will have to American family. It may not always be have an obligation to their clients, the disclose any gifts they are giving, any sound. people who have contracted with them incentives they are giving to doctors to Through the years, marketing tech- to buy the best product at the best influence their medical judgments, so, niques from sporting events and the- price. The best product is to be based too, pharmaceutical manufacturers ater productions to expensive vaca- on a medical judgment. The best price will have to disclose any rebates given tions and gifts have become part of the is what can be negotiated. But the law to PBMs so the clients of the PBMs routine of marketing pharmaceutical has allowed a practice that is as mor- know what they are getting and can products. American families and senior ally wrong as it is reprehensible. demand that those rebates be handed citizens are left not knowing whether a Pharmaceutical benefit managers down to senior citizens at a lower product is being prescribed because it who allegedly represent their clients go price. is the best for their health or because to pharmaceutical companies and ask It is simply transparency. It is what the doctor is indebted to a marketer or for rebates. That is a polite word for a every American is asking of every a corporation. kickback. The client, the senior cit- American corporation. We have a free The same could be true of a phar- izen, the working person is left believ- enterprise system for people to price macy. Of all the corporate governance ing they are buying a pharmaceutical their products, but we do demand truth issues in America that deserve trans- product represented to them because it and honesty. This is a minimum of parency, nothing could be more funda- will deal with their illness and has the transparency that we can bring to the mental than the relationship between best science and is at the best price. pharmaceutical industry in America. an individual American family and the What they do not know is the phar- I yield the floor. delivery of their health care. People maceutical benefit manager may be of- The PRESIDING OFFICER. The Sen- want to know, people have a right to fering that product because they are ator from Nevada. know, is a gift an incentive, part of the getting hundreds of thousands of dol- Mr. REID. Mr. President, I appreciate prescribing of a prescription drug, or is lars or millions of dollars in a rebate. very much the Senator from Massachu- it the quality of the product? Has a Indeed, nothing else would explain setts withholding. The Republican doctor been convinced this is the right what has emerged. leader is present, and I have a unani- drug for your child, for your family, for Pharmaceutical benefit managers are mous consent request that I would like your health, or is this simply part of a far less inclined to ever recommend ge- to propound. relationship with an undisclosed incen- neric drugs. Indeed, at the moment, I ask unanimous consent that fol- tive? brand name drugs are offered only 46 lowing the statement of the Senator Under the amendment that I will percent of the time compared with 54 from Massachusetts—he has 20 min- offer, any corporation providing a gift percent of the time by a local phar- utes. The Senator from Oklahoma, Mr. to a doctor or health care provider as macist. The cost of a brand name drug NICKLES, will speak for probably 20 part of marketing a pharmaceutical offered by a pharmaceutical benefit minutes. Following that, Senator product will need to disclose it. The in- manager can be $47 compared with $37 GREGG will speak for probably 5 or 10

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7008 CONGRESSIONAL RECORD — SENATE July 18, 2002 minutes. Following those statements, NEDY, Senator GREGG, even though the There will be some who do not want we would vote on—— amendments are those of other Sen- either one of these; they want some- Mr. GREGG. Senator STABENOW ators. They are the managers of the thing else. But they have a right to would then have the right to close. bill and that is the way it should be. vote accordingly. Mr. REID. I am going to do that be- The PRESIDING OFFICER. Is there I think we have made great progress. fore the vote. Following that, we would objection? Without objection, it is so If I can get Senator GREGG’s attention, have a vote on or in relation to Sen- ordered. Senator STABENOW asked if there would ator STABENOW’s amendment; that The Senator from Mississippi. be a problem with her having 5 min- prior to the vote on Senator STABE- Mr. LOTT. Mr. President, while I ob- utes, and the Senator from New Hamp- NOW’s amendment, we would have 2 ject to the process under which this is shire having 5 minutes immediately minutes for her to speak on behalf of being considered—I think we should prior to the vote. her amendment, and Senator GREGG or have had this prescription drug issue Mr. GREGG. That is no problem at his designee would speak 2 minutes in go through the Finance Committee. We all. opposition to that amendment. should have a normal debate, markup, Mr. REID. I say to the Senators who Mr. GREGG. Senator STABENOW and report out what would normally are watching, this vote will probably would close? have been a bipartisan bill and prob- occur around 5:30, give or take a few Mr. REID. Yes. That upon disposition ably a tripartisan bill. That is the way minutes. of Senator STABENOW’s amendment No. we should do business, and I predict The PRESIDING OFFICER. Under 4305, Senator DORGAN’s amendment No. right now that eventually the only way the previous order, the Senator from 4299 be temporarily laid aside, and Sen- we are ever really going to get a real Massachusetts is recognized for 20 min- ator GRAHAM be recognized to offer his prescription drug result is we are going utes. prescription drug amendment; that im- to have to go back and do that. Mr. KENNEDY. Mr. President, I yield mediately upon the reporting of his Having said that, the bill before us myself 15 minutes. amendment, it be laid aside and Sen- everybody understood was going to be I thank our leaders, Senator REID, a vehicle to which Senator DASCHLE ator GRASSLEY, or his designee, be rec- Senator DASCHLE, and our Republican and others would be able to add pre- ognized to offer his prescription drug leaders, for this agreement we have en- scription drug amendments or bills. amendment; that the two amendments tered into. This is a historic time. It That is what has happened. be debated concurrently; that no other will be the first time in over 5 years I think we will have sufficient time since there have been prescription drug amendments or motions be in order for debate later on tonight, on Friday, during the pendency of these amend- amendments before the Senate. on Monday, on Tuesday morning, I pre- I am a cosponsor of the Graham-Mil- ments, except motions to waive as list- sume, with the votes to occur one after ed below; that on Tuesday, July 23, at ler bill and later in this debate, either the other on Tuesday afternoon. I tomorrow, Monday or Tuesday, I will 2:15 there be 30 minutes equally divided think that is a fair way to proceed. have an opportunity to go over why I between Senators GRAHAM and GRASS- Right up until the last few moments, think that measure is so compelling LEY; that at 2:45 on that Tuesday, July we are getting people inquiring about 23, the Senate vote on waiving the what happens then. Well, of course, if and deserves strong support. We were reminded, once again, ear- Budget Act with respect to Senator one of them does get 60 votes, as is in lier in the afternoon, of the publication GRAHAM’s amendment; that imme- the agreement, we could go back and diately following that vote, the Senate have additional debate and amend- of a study that reviewed the different vote on waiving the Budget Act for ments, or if they do not, then other op- options that are before the Congress Senator GRASSLEY’s amendment; that tions are available, other amendments most actively; that is, the Republican if either amendment successfully to the pending issue that is being set proposal that passed the House of Rep- waives the Budget Act, it be further de- aside or other proposals with regard to resentatives, the tripartite, and the batable and amendable; that if either a different approach to the prescription Graham-Miller proposal. The study ex- fails to waive the Budget Act, it then drug issue. amined the impact of each of these pro- be withdrawn; and that the preceding I know Senators HAGEL, ENSIGN, posals on individual States and what all occur without any intervening ac- SMITH, ALLARD and GRAHAM are inter- impact each would have on seniors and tion or debate. ested in the Hagel amendment, and others that would benefit from the pro- I further ask unanimous consent that perhaps other amendments on this gram. In every single instance, every when the Senate resumes consideration side. single State, without a single excep- of Senator DORGAN’s amendment that We also retain the right to move to tion, the one that was embraced by the Senator GREGG or his designee be au- commit this whole issue to the Finance seniors, the one that provided the thorized to offer a second-degree Committee with instructions, and at greatest coverage for the seniors, was amendment thereto and that upon dis- some point it might wind up being the the Graham-Miller proposal. position of Senator GREGG’s amend- most reasonable and popular thing to We will have more of a chance to de- ment, Senator ROCKEFELLER be recog- do. But this is not cutting off other bate that over the next couple of days. nized to offer a second-degree amend- amendments, not cutting off this issue, It is very important as we come to ment to Senator DORGAN’s amendment. just setting it aside. It is not blocking vote on the amendment of Senator The PRESIDING OFFICER. Is there other options from being considered. STABENOW to realize what has happened objection? The truth is, both sides have been in the last couple of days. The Senator from Massachusetts. working for the last couple of days to The focus of the underlying legisla- Mr. KENNEDY. Reserving the right try to get to this point. So I think it is tion—which was originally introduced to object, and I will not, will the Sen- the fair way to proceed. Everybody will by Senator SCHUMER, Senator MCCAIN, ator include that the allocation of time be heard. We will have a vote and then and then altered or adjusted by Sen- be equally divided on Monday and then see where we are. ator EDWARDS and Senator COLLINS— Tuesday morning? Mr. REID. I want to express the ap- basically addresses the egregious situa- Mr. REID. That certainly is fair. We preciation of the Democratic Senators tion taking place today all over our will equally divide the time. to the two leaders. It was not easy to country by unscrupulous brand name Mr. NICKLES. Will the Senator get where we are right now, and the drug companies gimmicking the patent yield? reason I appreciate that—I think ev- laws in order to take unfair advantage Mr. REID. I would be happy to yield. eryone does on this side; I am sure on of consumers in this country and main- Mr. NICKLES. Is it correct there their side—we have two big issues that taining higher costs. They are doing it would be a budget point of order that will be debated for several days. This by extending the patent process with a would lie against both the Graham and issue, prescription drugs, is why we are phony regime called ‘‘evergreening’’ Grassley amendments? here—one of the main reasons we are and also through collusion with certain Mr. REID. The Senator is correct. here, I should say. This will give every- generic drug companies. This practice I ask that the request be amended so one a chance to listen to what others is resulting in costs of billions of dol- the time be designated, Senator KEN- have to say. lars to our seniors.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7009 If there are people who are watching about the free enterprise system. That So it is a phony organization, but this Senate proceeding, if there are is what the Stabenow amendment is all they use the phony organization to at- cancer patients and they have been about. tack the public officials in those States paying higher prices for various pre- It is the ability of the States to use for resisting their action. scription drugs dealing with breast their economic power in order to nego- Enough is enough. The American cancer, the fact is the pharmaceutical tiate with the various drug companies people are sick and tired of the drug in- companies delayed Taxol, the generic to try to get the lowest possible price dustry’s abuses. drug, for 19 months. That means con- for the neediest individuals, the poor- I have an IG report from the HHS in- sumers paid $1.2 billion more because est people in the United States. And spector general, who issued a report in of the delay of competition. If patients the drug companies say no. Yesterday August of last year which documents suffer from epilepsy, as a result of this they said: We want to play by the free the fiscal crisis of sky-high drug prices. system, those patients have paid $1.4 market system; and now we have a free Here is the inspector general’s conclu- billion more than they otherwise would market system being utilized and they sion about the current Medicaid dis- have paid. That has been true with var- say: No, no, we want to play by our counts shared by the States and the ious brand name drugs for depression, own rules. What does that mean? They Federal Government: and it also includes blood pressure as have now taken the various States to We believe it is not a sufficient discount to well. task and said: We will not permit that ensure that a reasonable price is paid for In all those areas, there has been a because that is government inter- drugs. gimmicking of the system, which per- ference in the free market system. This is done under a Republican ad- mitted those companies that had the The fact is, what is being tried in the ministration, a Republican IG, August patents for a period of time, and under State of Maine and the other States is of last year. the old Hatch-Waxman legislation were the same kind of market experience we The Department of Health and going to have their time expired and have seen with an HMO when they ne- Human Services, Office of IG, Medicaid the generics would be on the market, gotiate with various brand name com- pharmacy. This is what he says in to be able to compete, and would have panies. It is the same kind of negotia- paragraph 2: saved the consumers billions of dollars. tions insurance companies have. It is Although this discount averaged 10.31 per- The actions of those brand name com- routine, the same as major companies. cent nationally, we believe that it is not a panies have been such as to result in General Motors does this when they sufficient discount to ensure that a reason- higher prices. buy prescription drugs. It is the same able price is paid for drugs. element, to use market forces to try to We believe that there is a critical need for That is the basic issue we have before States to better control the costs of their the Senate, whether we will pass that get the lowest possible prices. When they do not want to do that, and com- Medicaid drug program because expenditures legislation. are rising at a dramatic rate. Medicaid drug The Dorgan amendment was favor- panies do want them to do it, there is expenditures increased by slightly over 90 ably considered in a vote yesterday. It no reason they have to sell. It is a free percent since our previous review in 1994. and open exchange. will also have a dampening down in the I repeat, 90 percent. So says the IG That is not good enough. We have increase of prices of prescription drugs. report, a Republican HHS discussing And American taxpayers are paying seen where the drug industry has sued the State of Maine, they have sued the what is happening in the States. taxes, and those resources go to fund Then we have the Governors try to do State of Vermont, they have sued expanded NIH research, which I strong- something about it and PhRMA comes Michigan, they have sued Illinois, they ly support. right in and says no. have sued Florida. The drug industry is This is the time of the life sciences, Senator STABENOW’s amendment will waging war against our Governors and and we will see unbelievable opportuni- clarify that. It will support the Gov- our State legislatures to bring them ties in the future in breakthroughs ernors—support Republican Governors, with prescriptions. It is an enormously into court. From the NGA statement of July 15, support Democratic Governors—sup- important time. I believe we will see I quote Michigan Republican Governor port the findings of a Republican IG to these breakthroughs in the life Engler: help deal with this issue. sciences, as in the physical sciences Just in the last day we had a meeting The nation’s governors are extremely dis- last century. We have seen what is hap- appointed with the course of action chosen of the Governors, actually, out in the pening with the analysis of DNA, and by PhRMA. It is unfortunate that their orga- State of Idaho. The Nation’s Governors the sequencing of the human genome, nization feels compelled to use the court sys- met out in Idaho and the Governors and all the breakthroughs with unlim- tem to manipulate public policy. voiced their concern over the lawsuit ited possibilities, using the high tech- I will mention another feature of the that seeks to bar the States from deal- nology available and the advancements attack by the industries on the States. ing with the Medicaid cost-controlling in biology. The opportunities are vir- This is what they are about. First of measures. tually unlimited. It is an enormously all, the industry sued the State. That This is the Governors saying just exciting time. probably is not any surprise, given what Senator STABENOW has been say- That is why it is important to have a their abuse of the Hatch-Waxman. The ing, Republican and Democrat alike. policy that will make available to all drug industry instructed its front This is a serious amendment. There- Americans these lifesaving prescrip- group, the so-called Citizens for Better fore, I am very hopeful it will be ac- tion drugs reasonably. Medicare, to run television, radio, and cepted. We had the excellent presentation prints ads in Maine and Vermont at- Let me bring to the attention of the made by our friend and fellow col- tacking the laws. That is what the drug membership, something that has devel- league, Senator DORGAN. The vote was industry does to keep the prices sky oped in my own State of Massachu- a clear indication that the Members of high. They sue our State governments, setts, in the U.S. attorney’s office. One this body are prepared to see that pre- and waste taxpayers’ dollars defending of the developments in recent times is scription drugs that are FDA approved, against frivolous suits, because the the development of a health fraud unit, produced in an FDA-approved labora- States have to defend themselves; they which has been extremely active. I was tory, imported here with the safety have to use tax dollars. And then they talking to our U.S. attorney recently provisions included in the Dorgan run attack ads. up there. We were discussing the situa- amendment, would be available to Lest anyone question whether the so- tion about health care fraud. He men- American citizens. called Citizens for Better Medicare is tioned to me this particular case. Today we have the Stabenow amend- anything but a front group for the drug Just last October, the Federal au- ment. We have had limited debate on industry, let me quote the June 18 Wall thorities secured the largest health the merits of the amendment. I hoped Street Journal, Tim Ryan: PhRMA’s care fraud settlement in history. Not we would have seen an acceptance of past marketing director founded the surprisingly, it was against a drug the Stabenow amendment. It makes grassroots sounding Systems for better company for overcharging taxpayers eminently good sense. We have heard a Medicare at the expense of the major through Medicaid—just what we are great deal of debate and discussion drug companies. trying to deal with here in the U.S.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7010 CONGRESSIONAL RECORD — SENATE July 18, 2002 Senate. The Top Pharmaceuticals paid ings test for individuals attaining re- you only have two and you do not have $875 million in criminal and civil fines tirement age, without committee ap- the third, you do not have health secu- for overcharging the States and the proval. The list goes on. In June 1999, rity. Every family understands that, Federal Government for the cancer the Republicans brought up Social Se- everyone except the Senate. drug, Lupron. It is a life-or-death can- curity lockbox without committee ap- We are prepared to do something cer drug, and here you have Top Phar- proval. It didn’t bother them at that about it. Can you imagine if we had not maceuticals found guilty of over- time. provided hospitalization or physician charging consumers and now having to But what you did not hear about is a services? We would certainly under- pay the criminal fines and civil fines of prescription drug program for the stand it. Would we not be debating that $875 million. There are now class action needy in this country. They were never today? Does anybody believe it to be litigations brought by consumer advo- willing to circumvent the rules to try so? Does anybody believe this is not cates in Boston to further recover the to protect the seniors or try to get important? overpayments to this drug company. lower prices. No, there is no example Finally, I remind everyone in this We need to close ranks with our for that. We have had legislation in the body as we are coming in, and as I in- States, Republican and Democratic committees for over 5 years. This is the tend to remind them next week, every Governors alike—consumers against first time—the first time—the only Member of this body has a prescription high drug prices. The Stabenow amend- time that we have had the opportunity drug program. ment is the right tool in the hands of to debate. Every Member of this body has a pre- the States to lower drug prices for low- Next Tuesday will be the first time scription drug program that is paid for income people and the uninsured. we have had the opportunity to vote. by taxpayers by 80 percent. We under- I want to reiterate two facts. Who And people are complaining about stand that. Any Member of this body are the States looking out for? Are process and procedure. who wanted to go down to the clerk’s they trying to use their bargaining We know what happens. Every Mem- office could go in there and say: Take power in terms of a massive purchase ber in this body knows what happens my name off that. I don’t want it. I of drugs for all the people in their when you get back in those committee don’t believe as a matter of principle States? No. They are trying to use it rooms, you get out in the corridors—we that we ought to have the Federal Gov- for the most needy people in their know what happens. That is the end of ernment dealing with this policy. States in most instances—and I think the legislation. That is the end of it. Anyone could do that. I have checked in the State of Maine, in every in- We all know it. But we know next on it. There isn’t a single Member in stance—those who are uninsured, the Tuesday we are going to have a chance here who has done that. poorest of the poor who cannot get in- to vote on this. It will be the first All we are trying to do with this par- surance for one reason or another, or time, and we would not have that op- ticular proposal is to treat the Amer- are not eligible for Medicaid, in order portunity unless Senator DASCHLE said: ican people the same way Republicans to get them lower costs. It is the poor- This is a matter of national priority. and Democrats and this President are est of the poor trying to get life-sus- This is a matter of central concern. being treated. Is that asking too much taining drugs, and PhRMA, the indus- This is an issue that ought to be de- for this body to do? I don’t believe so. try, is going after that and saying they bated and discussed on the floor of the I withhold the remainder of my time. do not want that to take place. They Senate. This is a moral issue of central The PRESIDING OFFICER (Mrs. think that is un-American. They think concern to every family, young and CARNAHAN). The Senator from Okla- it is price fixing and so forth. old—not only those who take the drugs homa is recognized. We have seen, and I have certainly but the families who look at their par- Mr. NICKLES. Madam President, I seen it in our committee because it was ents and are concerned about whether rise in opposition to the Stabenow not believed we would get this legisla- they have the resources to purchase amendment. I will mention several rea- tion out of the committee because we those drugs. sons. heard the drug industry is strongly op- The parents themselves do not want First and foremost, it is going to in- posed to it—and we have certainly to burden their children about their crease in the price of Medicaid. I want heard that from our friends on this side own kinds of conditions. They are to make sure our colleagues know that. of the aisle—we understand that—they proud men and women who want to live I am going to say it about 10 times in are opposed to it. They are opposed to in dignity and who have paid a price the course of this debate. If we pass the the Schumer proposal. We understand for this Nation—fought in the wars, Stabenow amendment, the price of that. They are opposed to the Dorgan lifted the country out of the Depres- Medicaid is going up. The price of proposal. We heard that yesterday. And sion. drugs going into the Medicaid system they are opposed to the Stabenow pro- The PRESIDING OFFICER. The time is going up. That is just a fact that ev- posal. allocated to the Senator has expired. erybody should know. What we have not heard is what they Mr. KENNEDY. The last 5 minutes If we think that we are going to pass are for. What we have not heard is has expired? I asked to be reminded this amendment and that this is a what they would do. What we have not when I used 15 minutes. great deal for the State—I disagree. heard is their sense of outrage about The PRESIDING OFFICER. The Sen- The States have to share in the cost of these abuses. We have not heard that. ator can use that time now—5 minutes. Medicaid, and the cost of Medicaid is We have been here the better part of Mr. KENNEDY. The remaining time. going up. the day today, yesterday, the day be- Mr. President, these are people who I heard my good friend—he is my fore, and we have not heard that. That have built the country. Now we are good friend—the Senator from Massa- is a matter of deep concern to everyone asking whether they have paid into the chusetts say the Governors have on this side of the aisle. It is the reason system. I was here in 1965 when that united; we need to get cost controls on the majority leader has brought this up commitment was made here on the Medicaid. to the Senate, on the floor of the Sen- floor of the Senate, Republicans and This will mean a monumental in- ate. Democrats alike. The President who crease in the cost of Medicaid. I think I heard my good friend—and he is my signed it—President Johnson as well— I can say that very plainly and very friend—the Senator from Tennessee, said: easily. I want to make sure everybody talk about the process and procedure, Look, play by the rules, pay under is aware of that. about whether we are circumventing the system, and when you turn 65 you Let me mention a couple of other the procedure in order to consider the will have health security. reasons we should be opposed to this legislation. Of course it did not bother Everyone in this room understands amendment. him very much in May of 2000 when it. This Chamber understands that we Some people say ‘‘process.’’ Did we they brought up the energy bill, spon- failed the elderly people on that prom- have a hearing on this bill? No. Did we sored by Senator LOTT, without com- ise. We provided physician services and have a markup on this bill? No. Was mittee approval; or brought up, on hospitalization but not prescription one even requested? I don’t think so. March 20, a bill to eliminate the earn- drugs. That is a three-legged stool. If The Democrats are in control of the

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7011 Senate. Senator BAUCUS is chairman of I am ashamed of the way the Senate In the State of New York, it is 419 the Finance Committee. If he wanted is operating today in this fashion. We percent of the poverty level. That is to have a markup on this bill, he could are taking probably the most impor- about $50,000 for a couple. have done that. tant and most expensive piece of legis- So this idea of saying this just ap- I see the sponsor of the legislation. I lation considered in decades and it plies to the neediest—no, this is hijack- will ask her. Have we had a hearing on hasn’t had a hearing, it hasn’t had a ing. That happens to be the word used this bill, and have we had a markup on markup, and it hasn’t had a scoring by at the district court level—a program this bill in the Finance Committee? the Congressional Budget Office—none that was targeted to benefit the low-in- Ms. STABENOW. Madam President, I of the above—and yet we are in the come people and say, wait a minute, we think my friend from Oklahoma knows process of marking it up. We are going want it to apply to a lot of other people that in fact that did not have a hear- to have votes on Tuesday on a proposal who do not need the income eligibility ing. That is not unusual. That happens that nobody has a clue about how much of Medicaid. sometimes in the process. I have only it costs. We are going to take a discount pro- been here 11⁄2 years. But there are On one of these proposals, some say gram that was designed and targeted to many times when that has occurred. it will cost $500 billion. Others say it is help low-income people and say it ap- The Senator is correct. That has not closer to $800 billion. Although, they plies to a lot of people, let’s make it occurred on this bill. forgot to tell that it only lasts a few apply to everybody. Mr. NICKLES. Let me ask another years, and it is sunset. Then we will Really, what you are talking about question. Is it not correct that your stop paying for prescription drugs. No are price controls. But what you are bill will increase the cost of drugs entitlement sunsets after a few years. talking about is saying, we are going going into the Medicaid system? If somebody thinks we are going to to take a discount right now that is Ms. STABENOW. I would argue that start paying for prescription drugs and targeted towards low-income people, that is not the case, absolutely not. then we are going to stop, that is more and we are going to spread it around to Under the program right now, States than hypothetical. That is misleading. a lot of other people who aren’t low-in- operate with companies, and I don’t If we are talking about trying to put come, and who in some cases have un- have any indication whatsoever that it corporate officers in jail for misleading limited income. Does that really make is going to increase the cost of Med- financial statements, we ought it be sense? icaid. I certainly would have to object ashamed of what we are doing in the Let me give you an analogy. Maybe to that. Senate. We are taking up the biggest sometimes economics arguments are Mr. NICKLES. I will make the case expansion of an entitlement program, hard to follow, and maybe with pre- that it does. I believe I will show that and no one has a clue about how much scription drugs it is harder than others. GAO happens to agree with me. GAO it costs. And we are going to say we are Let us take an example. has studied this issue. They basically fiscally responsible? Shame on us. We I see my good friend and colleague said it boils down to the fact that if ev- do it without a hearing, without a from New Hampshire. He is the former erybody gets a discount, nobody gets a markup, and without scoring from the Governor of New Hampshire. As Gov- discount. That is the economics of it. Congressional Budget Office. That is a ernor, he purchased automobiles for Right now, you have a system where really poor way to legislate. That is the highway patrol and for the State Medicaid gets the best price. Medicaid the way you get things started, and police. My guess is that, as Governors, gets the best price—lowest price—in you later say: Wow, I had no idea it they get a good deal for the auto- the country. But if everybody gets it, would cost this much. mobiles that are sold to the highway nobody gets it. If everybody gets a 15- Let me be a little more specific about patrol and to the State police. He prob- percent discount, that is the price. the amendment of my colleague and ably buys hundreds of them. Certainly, This is not a discount. That is exactly friends from Michigan. in a large State such as New York, or what we are doing here. You are going Very seldom do we legislate by inter- Michigan, they buy hundreds, and to increase the cost of Medicaid by not vening ourselves before a case goes be- maybe thousands. So they get a good giving a discount. Does that mean fore the Supreme Court and say this is discounts. They get a better deal than everybody’s drug costs are going down? the way we mean for it to be. We usu- the average consumer. Actually, no. It means the discount or ally let the Supreme Court make the the best price is going up. decision. This issue is before the Su- But if you are going to say, wait a Ms. STABENOW. Will the Senator preme Court. The position of the Sen- minute, let us not just give this to the yield? ator from Michigan lost at the district police, and a volume discount to the Mr. NICKLES. I will not yield. I want court level. Then she won at the circuit State, let us just give this to basically to make a lot of comments, and I will court level, which has now brought the anybody in the State. That sounds be happy to discuss it. But I only have case before the Supreme Court. But we pretty good, doesn’t it? We are all limited time. I want to make sure I are going to intervene before the Court going to get a good deal. make all of these points. and say: Oh, here is what we mean. Re- Guess what happens now. The price No. 1, this is an important issue. It write the law. at which they were selling to the State hasn’t had a hearing. Basically, we are going to say: All before has just gone up. This committee is now controlled by right, under the Medicaid system, In other words, if everybody gets the the Democrats. It has been for a year which gives a discount—the best price discount, nobody gets a discount. You and we haven’t had a hearing. I don’t for Medicaid beneficiaries, low-income are going to find out that the savings know that one has been requested. I am beneficiaries—we are going to say that that the highway patrol had by buying on the committee, and I am on the sub- is applicable to anybody the State several hundred vehicles just dis- committee. deems eligible. appeared because they are not going to Some people say that is not insignifi- Guess what. A lot of States have pro- get any better deal than anybody else cant, that we do a lot of things. grams for drugs that have no limita- on the street. When you are talking about major tion on income. That, in effect, is what is going to issues—and we are talking about pre- Senator KENNEDY mentioned three happen if we adopt the Stabenow scription drugs for all of our seniors— times that we need this program. He amendment. This is a costly amend- we should have a hearing on this. We said the Senator from Michigan is try- ment if we are going apply this dis- should have a markup. ing to help the neediest and the poorest count that Medicaid now gives on best There happens to be, collectively, on of the poor. price for Medicaid to every State pro- the Finance Committee hundreds of I looked up in the State of Massachu- gram—and some State programs are years of experience dealing with Medi- setts. This drug program has no income quite generous. I mentioned for the care, Medicaid, and prescription drugs. limitation. You could be a billionaire State of New York it applies to individ- A lot of us are willing to put some in Massachusetts and you would be uals up to 419 percent of poverty; for a input into it. That is the reason we benefitting from this program. This couple, incomes up to $50,000. In Massa- have the committee process. has is no direct relationship to income. chusetts, there is no income limit.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7012 CONGRESSIONAL RECORD — SENATE July 18, 2002 So if you make it apply—inciden- The larger the group that would be newly negative impact on one small group if tally, under this amendment, a Gov- entitled to receive a federal price, the great- you say it applies to everybody? I ernor could say: For any drug sold in er the incentive for drug manufacturers to think it is very shortsighted. my State, I am going to have it come raise that price. The Medicaid rebate experi- So I urge my colleagues to vote no on ence suggests how federal and nonfederal this amendment. And if, for whatever under this agreement because I want to drug price discounts could change if Medi- offer low-priced drugs to anybody who care beneficiaries had access to the same reason, this amendment is adopted, I comes in the State of Oklahoma. So if price discounts available to federal pur- will tell my friend and colleague from that is the State program, then every chasers. Following the enactment of the re- Michigan, I am going to offer an drug would fall under this program. So bate program, discounts for outpatient drugs amendment, and the amendment is the net result is, everybody gets a dis- decreased significantly because manufactur- going to have the effect to guarantee count. Let’s break out the champagne. ers raised the prices they charge large pri- that the amendment would not have an This is a great deal. vate purchasers. adverse impact on Medicaid. What you have done is, you have That is from the General Accounting My colleague stated, with assur- taken away—if that is the case—the Office. That is looking at the facts ances: Oh, I am sure it will not in- discount for the low-income people on after we enacted the discount program crease Medicaid costs. The administra- Medicaid and just taken it and spread some time ago. They are saying, if you tion says it would. GAO says it would. it out to everybody else. Is that really expand that base of people eligible for I think anybody who looks at it says it what we want to do? a discount, costs are going to go up. It would. But if she is that confident, If we adopt the Stabenow amend- is just a fact. then I hope she will accept my amend- ment, I am just telling you right now, The other thing is, the Stabenow ment that says the proposal will not be you are eliminating the discount, you amendment harms Medicaid bene- effective if it is proven to have an ad- are eliminating the low-targeted sub- ficiaries. It will raise drug prices in verse or increased cost in Medicaid sidy that we are now giving low-income Medicaid and raise Medicaid Program drug prices. people. So if everybody gets the dis- costs at a time when States can least I will have that amendment later count, nobody gets the discount. You afford it. should her amendment prevail. I hope have just targeted and, quite frankly, I will mention something from the it does not prevail. I think it is a mis- greatly increased the cost of the Med- administration. I have a note from take. icaid Program. You have increased the them: There is a reason we have a com- cost of what is targeted towards low- The administration opposes any change in mittee process. The reason we have a income people, the people who really the Medicaid law that would increase Med- committee process is we have two dif- need the help. icaid drug prices and reduce Medicaid cov- ferent ideas on this and two different Keep in mind, this is not targeted to erage. This is what the Stabenow amend- opinions. We could have experts come seniors. I have read the Stabenow ment would do. Medicaid law has always fo- in and testify, and they could say ex- amendment very closely, and it does cused on what is best for Medicaid bene- actly what they think the results not say anything about income limits. ficiaries. The administration opposes would be of the Stabenow amendment. As a matter of fact, it says: Hey, you changes in the Medicaid law that would We have not had that opportunity. I harm Medicaid beneficiaries. The adminis- would love to have that. I will be happy don’t have to meet income limits in tration said this is what the Stabenow Medicaid. You don’t have to meet eligi- amendment would do. That is exactly what to participate in a hearing on it next bility. You don’t have to be unem- this amendment would do—exactly. week, next month, 2 months from now, and find out what the experts think, ployed. You don’t have to be uninsured I do not find this to be rocket the people who are in charge of CMS, to benefit under this amendment. It ap- science. You just tell everybody they the old HCFA. Let’s see what they have plies to almost everybody. are going to be able to get a discount, If the Governor and the legislature to say. Let’s see what other experts then nobody gets a discount. Medicaid? write a program broad enough, any- say. Sorry, you are going to have to pay body can apply. Anybody would. So ev- Let’s hear from Governors who not more. They do get a discount now. erybody gets a discount. How great is only have Medicaid that they are wres- They do get the best price. They do get that? It means that nobody gets a dis- tling with, but other programs. Hey, the lowest price of anybody in the count. This is the impact of this there are some pluses and minuses in it amendment. country. But if you make that applica- for them. After all, they have to pay It is going to increase costs, as well ble to everybody in the country, then part of it. as costs to the Federal Government. nobody gets it. That is what is going to Ms. STABENOW. Will my friend from Maybe this thing will become law. happen. Oklahoma yield for a question? Mark my words, we will just write it I am just kind of against that people Mr. NICKLES. I will be happy to down. Today is July 18. DON NICKLES think: Oh, yeah, we will just do this, yield. says if this amendment passes, you are and this will save money. It is going to Ms. STABENOW. I am wondering if going to see Medicaid costs go up. We cost money. It is going to cost money you are saying for the future, then, any will find out. Some of us will be here from people who can least afford it. amendment that comes to the floor for a while. Sometimes we do things And it is going to greatly exacerbate that has not gone through a committee that have results. This will result in the problems that many of our States or subcommittee, you intend to oppose Medicaid costs going up. right now are struggling with, and from here on out? Is that correct, for as So the very people we think we are struggling with greatly. So I just want- long as you and I are here in the Sen- trying to help—whoa, wait a minute, ed to mention that. I think it is impor- ate, you would, in fact, oppose any we are not helping Medicaid people; we tant. amendment that comes before us that are hurting Medicaid people because I will mention two or three things. way? they will have to pay more for their Let’s not increase the cost of Medicaid. Mr. NICKLES. I tell my friend and drugs. They will lose their discount. That is what this amendment would colleague, I think the committee proc- This discount will be spread out do. ess is being totally ignored by the amongst a lot of other people. No. 2, let’s not intervene in a case be- present leadership in the Senate. Let me make a couple other com- fore the Supreme Court. That is pretty Ms. STABENOW. But does that mean ments. foolish. you will, in the future—as opposed to It not just me saying it. This is not How many of us really studied this what has happened in the past—object my hypothetical situation: Well, DON case? How many of us have studied the to anything that comes to the floor, NICKLES says: Wait a minute, this may Maine law? How many of us have stud- any amendment that comes to the backfire. ied the idea that: Oh, yes, we are going floor that has not gone through the The General Accounting Office did a to say that this program, that was de- committee process? I would be inter- report. I will read part of this and then signed for Medicaid, should really be ested in knowing if, in fact, that is include it in the RECORD: applicable to all programs? your position. In an August 2000 report, the GAO de- Is that really a smart thing to do? Mr. NICKLES. I would not go that termined: Does it have some delusion or some far. But I tell my colleague, I will be

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7013 happy to join her in requesting Senator section 1927 of the Social Security Act. those discounts under the proposal of BAUCUS to have a hearing on her pro- As my colleague Senator NICKLES the Senator from Michigan, those dis- posal as soon as possible. Let’s bring in pointed out during debate, this amend- counts will now be transferable to a the experts. Let’s see what they have ment raises important policy and budg- whole new population of people, a very to say. etary questions that have not yet been large, potentially very large popu- I am a little bit chapped at the fact considered by the Senate during a lation of people. that I had been in the Senate for about hearing or a committee mark-up. The As the Senator from Oklahoma 16-some years before I even got on the far-reaching nature of this amendment pointed out rather correctly, that pop- Finance Committee, and now it is not deserves serious consideration by Con- ulation is not necessarily going to be working. It has the reputation of being gress prior to a vote. Additionally, at means tested, not necessarily going to one of the most powerful, great com- present there are pending legal deci- be of need. It could simply be a popu- mittees, and it does not meet. sions related to matters addressed in lation which qualifies for this new dis- The chairman of the committee does this amendment, and I believe it is count under a State plan. not call meetings on this. We have not worthwhile to await the decision of the As a result, what you are going to do had a markup on the prescription drug courts prior to enactment of this is end up for those drugs significantly bill. I would liked to have input. I amendment. For these reasons, I do not reducing the revenues which flow to would like to be able to offer an support this amendment, but I reserve whoever produced that drug. What is amendment. And I would like to have the right to re-evaluate the matter at the impact of that? Assuming that this testimony so we can find out what the a later date. is not a situation where the people who substance of the proposal is, what the Mr. KENNEDY. Madam President, produced the drug are charitable orga- impact will be. How much will it cost what is the order now? We were allo- nizations but are, rather, organizations States? How much will it increase Med- cated time to different individuals, and which, in order to be able to produce icaid costs? then at the conclusion of that we were that drug, had to go out and borrow I heard somebody say: Well, we think going to recognize the Senator from money from somebody through the it would increase Medicaid costs by $1 Michigan to make final comments. I capital markets or through actual bor- billion or a couple of billion dollars. I think Senator GREGG is here. rowing in order to be able to raise think it may be a lot more than that. The PRESIDING OFFICER. The Sen- enough money to be able to bring that But I would like to know. Well, we ator from New Hampshire has 5 min- drug to market, remembering that the don’t know. We have not had esti- utes and the Senator from Michigan average cost to bring a drug to market mates. It would be nice to have CMS has 5 minutes. in America today is somewhere be- give us an estimate. The Senator from New Hampshire. tween $500 million and $800 million and Have we had the chance to do that? Mr. GREGG. Madam President, it it takes somewhere between 10 and 12 No. Because we have not had a hearing. was my understanding that I had 5 years, assuming that this is not a char- I don’t believe a hearing was requested, minutes plus 7 minutes which would itable organization, then that com- but it should have been. And the chair- have been 12 minutes. pany, in order to be successful, those man of the committee should have Mr. KENNEDY. That was my under- people who invented that drug, who agreed. standing as well. I think the Senator created that drug, who put their life I will just tell my colleague, I am was recognized for 5 minutes and then into that drug for 12 years, managed to happy to participate in a hearing so we when they extended the time of the manufacture it after going through all can get the facts out. But to change a Senator from Michigan, I think they the hurdles—and believe me, there are program totally, and say, OK, we are extended the time of the Senator from an unlimited number of hurdles, an in- going to have price controls and dis- New Hampshire as well. I would ask credible number of hurdles, at incred- counts for one group, and now we are that he be accorded the 12 minutes. ible expense, had to go out and line up going to expand it for everybody, with The PRESIDING OFFICER. The Sen- their financing to do this—those people these great savings, assuming that ev- ator is recognized for 12 minutes. are going to have to raise the cost to erybody is going to get the savings— Mr. GREGG. I understand there is a somebody else. Because they still have the net result is, nobody is going to get desire not to have us go to a vote until to pay off the people who financed the the savings. Instead of everybody get- 5:40 or so. So there is extra time here. drug. They have to give a reasonable ting a discount, nobody is going to get I would suggest that I take 12 minutes return to the people who invested in a discount. And that is the unfortunate and the Senator from Michigan take 12 that company or they are not going to result. minutes, that we equally divide the be able to produce another drug. The Ms. STABENOW. Will the Senator time between now and 5:40, and then, at drug that they produce may put them yield? 5:40, proceed to a vote. into bankruptcy for all intents and Mr. NICKLES. No, I will not yield. Mr. KENNEDY. That is satisfactory purposes, if they can’t get a fair recov- That is the unfortunate result of her to me. I generally try to check with ery on it. amendment. It is just too bad that we our leadership. What is the practical implication? bypassed the committee. I don’t know The PRESIDING OFFICER. Without Essentially what we are doing here is why the chairman of the Finance Com- objection, it is so ordered. another example of saying: The big, mittee and the ranking member are Mr. KENNEDY. I think, for the ben- bad, greedy drug companies, they can not saying: Wait a minute, this might efit of the Members, the time for the take the hit no matter what. They can be a good proposal. Let’s have a hear- vote will be at 5:40. take the hit. We have seen it happen ing on it. We will mark it up. We will Mr. GREGG. Let me first associate out here on the floor. We have heard consider it. myself with the excellent comments the argument from the other side. We We haven’t done that; again, for made by the Senator from Oklahoma can just do this because the big, bad something that involves State after who has made most of the points I drug companies are going to take the State, a Supreme Court decision that would have made but made them with hit. will be made in probably a few months. more energy and eloquence. Let’s remember what we are talking We are going to interject ourselves If you look at this proposal which about. We are talking about one of the with a trivial amount of debate on the has come forward, offered by the Sen- most important elements of our soci- floor, and we will have Senators vote ator from Michigan, essentially its out- ety, organizations which are producing on it and probably not half a dozen come will be that the discounts allowed products which are making American Senators have looked at the amend- under Medicaid, which States get for lives better, longer, and more healthy. ment in any detail. That is not a good their Medicaid recipients, which are Is it our goal to fundamentally under- way to legislate. significant discounts—nobody should mine the capacity to do that? If we I reserve the remainder of my time. underestimate, these are big discounts continue on this course—and this is ob- Mr. GRASSLEY. Mr. President, I do which drug companies that make your viously not the most extreme example not support Senator STABENOW’s product are required to give to the of it, but this is a clear example of amendment No. 4305 to S. 812 to amend States through the Medicaid process— price controls and an attempt to drive

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7014 CONGRESSIONAL RECORD — SENATE July 18, 2002 down the return on the ability of some- cause they are not going to have the fi- have to pay more for the ones that body to produce a product, which saves nancial strength to survive the 9, 10, 11, come to market and are put under that lives—if we continue on this process, 12 years it takes to get to market with system. It is like a balloon, when you we are essentially going to be plucking their product. It takes money, cash, squeeze it in one place, it pops out in the feathers, rather aggressively, of the capital flowing into those companies— another place. Other people—probably guys who are laying the lifesaving and paying the employees, by the way. those on an insurance program—will drug. It doesn’t happen to go to somebody pay more. So their insurance will go up In the end we are not going to have a making a gazillion dollars; it goes to and maybe they will become uninsured. whole lot of gooses or they are going to the employee. It takes money, cash, We can also talk about that. More im- be geese that don’t have enough ability and capital to fund that period from portantly, fewer people are going to be to produce those lifesaving drugs any- the time you think of the product, willing to pursue the path of producing more because they don’t have any from the time you invent that concept, quality drugs because you are not feathers left on their bodies. This is from the time it germinates as an idea going to be able to go into the market- really pretty obvious, if you think in some wonderful scientist’s mind, to place and get the capital to do it. That about it logically. get it to the market, and $500 million is what this debate comes down to— Capital in a marketplace system—I to $800 million. So those 900 companies whether this feel good, ‘‘I care about understand this is an elementary con- that are out there that don’t have a everybody’’ concept that says that the cept which has escaped some people in product on the market, but if those way you feel good and you care is you the Government—flows where it gets a products come to the market—this was basically say the drug companies are return. That is just simple fundamen- their point—those products will save greedy, the production is greedy, the tals. By capital I mean money which hundreds of thousands of lives. biotechs are greedy, and you drive allows people to invest in products, Those products are not going to be their price down so they can no longer which creates jobs, and create items there if we continue on this path of, compete, but for a while at least people that give us as a nation a better chance every time we turn around, taking an- get a lower cost drug. to compete internationally but, more other nick—a fairly significant nick— I will admit there will be a window importantly, gives our American peo- out of the ability of those companies to where you will be successful. But 4 or 5 ple a better standard of life. be viable. years from now, or 8 years or 10 years Capital flows where it gets the best Are those companies evil and greedy from now when that drug that might return. If you reduce radically or even because they want to bring to the mar- have addressed the issue of Alz- if you reduce incrementally but in a ketplace something that is going to heimer’s, or of arthritis or addressed way that is basically pyramiding on improve the lives, or extend the lives, the issue of arteriosclerosis, multiple top of itself like straw on a camel’s and improve the quality of life of sclerosis, or any number of diseases, back, if you continue to reduce the Americans—and, well, yes, be sold in that drug didn’t come to the market ability of the people who are creating Canada for less because they take ad- because the person who had the idea the new drugs which are saving lives to vantage of all our research, in a very could not get the money in the capital have a viable market to go into and get mercenary way, as does the rest of the market to finance the 8 to 12 years and capital; in other words, to be able to go world? No. They want to produce a the $500 million to $800 million to bring to somebody who is willing to lend product that is going to improve the it to market because there was not a them money or willing to invest in quality of life of Americans; and they market that generated that kind of re- their business and expects a reasonable are willing to do it, willing to put at turn. Have we done a lot of good for the return, if you reduce their ability to risk their time, effort, brain power, and American people then? I don’t think so. get a reasonable return or to pay that their resources, including cash and cap- So as we move down this road, we debt, you inevitably reduce the amount ital. have to be balanced. Good ideas may of drugs coming to the marketplace But the argument on this floor is flow, things that seem appropriate to that will benefit citizens. they are greedy, so let’s just shut down the moment. We can throw them out, In the process, you cut our produc- their capacity to do that. And then, at but let’s evaluate them in the context tivity, cut our national competitive- the same time, we are out here claim- of what their ultimate outcome will be. ness, and take what is a very vibrant ing: But we are going to have a wonder- How much time do I have remaining? part of our economy and undermine it. ful, viable drug industry in this coun- The PRESIDING OFFICER. The Sen- I realize it is great politics to come try, and we are going to continue to be ator has 10 seconds. to the floor of the Senate and claim on the cutting edge. Mr. GREGG. Well, I may use all my that if we do this we will be helping the Well, we are not. We cannot continue 10 seconds. I will reserve that time. poor. We will be helping the indigent, to say to people who are producing The PRESIDING OFFICER. The Sen- helping people who need help. That is products you can’t get a fair return on ator from Michigan is recognized. great politics. But if you are not pro- your product and expect that they are Ms. STABENOW. It is difficult for me ducing the drugs, you are not helping going to continue to produce their to know where to begin with all of this anybody. If that lifesaving drug, that products. what I view as misinformation. I will drug that is going to give people a bet- This amendment is not overwhelm- at least clarify what I believe to be the ter way of life, isn’t going to come to ingly egregious, but it is one more facts regarding the situation in the bill market because the people who produce straw on the back of the ability of the and, beyond the bill, the general issue it can’t get the money to make it be- marketplace to move their capital into regarding the pharmaceutical industry. cause they can’t go in the capital mar- the production of quality health care I ask unanimous consent that Sen- kets and get a decent return, then you products versus moving it into who ators CLINTON and LEAHY be added as are not helping anybody. It is a fraud knows what—software for video games cosponsors of the amendment. to come to the floor and claim you are or movies that are violent or whatever The PRESIDING OFFICER. Without helping all these people. There was a else for which the capital gets a better objection, it is so ordered. statistic, which I found most inter- return. Ms. STABENOW. I find it interesting, esting, cited today by a colleague on The basic element of this amendment there is great concern about expanding the other side of the aisle. They said is that we are going to take a very lim- discounts to people who are not on that in the biotech industry today ited program, which demands that peo- Medicaid. Do you know what is unfair there are a thousand firms, but only a ple sell a product at significantly less in this country right now? The only hundred of them have products on the than what the market will bear, and people who pay retail, the only people market, and we are really excited to should bear, in order to give a reason- who pay the highest prices in the world think the next 900 are going to come to able return and demand that it be are people who are uninsured. No insur- market with their products. spread across a whole new population. ance company pays retail. Every insur- Well, if we continue to pluck this And as a result, that population will ance company, including Blue Cross goose, those 900 firms are not going to get a lower cost drug, no question Blue Shield, or any company, gets a come to market with their products be- about it. But somebody else is going to discount. The States as well—when we

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7015 buy for the VA hospital, the Federal Medicaid to expand a discount to peo- When we look at the individuals, it is Government—we negotiate a discount. ple who do not get a discount, who are difficult for me, representing the great Under Medicaid, we have given the the only people who do not get a dis- State of Michigan where people work States the ability to get what is, frank- count, who are the uninsured, mostly hard every day for a living, most peo- ly, a modest discount—15 percent on seniors, that you can do that. ple working hard for that paycheck, brand name drugs, 11 percent on I commend the administration be- concerned about their kids, whether generics. So they don’t pay retail. No- cause under this administration, the they are going to be able to send them body pays retail. Everybody gets a dis- Bush administration, the Solicitor to college, whether they can afford count, except for one group—the unin- General, Theodore Olson, went to court their health care, working hard every sured in this country. in support of the Maine plan. He said in day, and then we hear we cannot pos- The majority of those using prescrip- his brief: sibly lower prescription drug prices, we tions who are uninsured are our senior The initiative should be allowed to go for- cannot possibly even get them down to citizens—the seniors and the disabled ward without further intervention. the rate of inflation—they are going up of this country. How unfair that we Olson argued: an average of three times the rate of would think they, too, should get a dis- States enjoy a broad measure of flexibility inflation—we could not possibly give a count. This amendment only affects in tailoring the scope and coverage of their 15-percent discount to uninsured sen- those who are uninsured. Why? Because Medicaid plans and that court review of iors. everybody else already gets a discount. Maine Rx was not warranted. Then we look at the numbers, and we So if you vote no on this, you are say- I commend him and the administra- see astounding salaries in the drug ing this system right now that allows tion for stepping in on the side of companies. I mentioned this morning— States to get discounts under Medicaid, States rights, which is what this is all not to be personal but this is public in- the Federal Government for the VA, about. This is about States rights. It is formation—the comparisons are as- Blue Cross Blue Shield, and every other not about concerns about the pharma- tounding. The former chairman and system—our own insurance system as ceutical industry. CEO of Bristol-Myers, $74.9 million last I understand they will fight every- Federal employees, we don’t pay re- year in earnings and, in addition, $76.1 thing, they have been fighting every- tail—if you vote no, you are saying the million in unexercised stock options. only people who don’t deserve a dis- thing, they will continue to fight ev- We have been talking in this Cham- count from retail are uninsured seniors erything. There is no question about ber about corporate responsibility and that. We fully expect their arguments and families. The folks who are not integrity and, I would argue, morality. to be put forward on this floor. seniors—most of those who are unin- What is the morality of huge, tens of I wish to make two other points; that millions of dollars in salaries and huge sured work and they work for small is, when we talk about the industry as amounts of profits, and when we say businesses. Those small businesses are a whole and the concern that maybe struggling every day to provide health the uninsured would get the same dis- just get the prices in line so people can care and they are seeing premiums go counts as people with insurance, and afford these new lifesaving drugs so up 30 to 40 percent a year, and most of what that would do to the poor phar- they are not cutting the pills in half, that is because of prescription drugs. maceutical companies, we need to look taking them every other day—worst This is a modest amendment. This is at what the real picture is today eco- yet, not affording them at all—and we an amendment that simply says our nomically with this industry as we are are told, no, nothing can be done, noth- States that are struggling right now, concerned about making sure our sen- ing can be done. They fight every sin- both to pay for Medicaid and also to iors pay, when they walk into a local gle attempt to rein in prices or expand provide some kind of lower cost pre- pharmacy, the highest prices in the coverage. scriptions for their citizens, mostly world. This is a fundamental battle, I be- seniors who don’t have insurance, A study that was put out yesterday lieve. I think we are needing to help an ought to be able to use the creativity by Families USA shows some startling industry save itself and get back to its of a State, the great ‘‘laboratories of comparisons. We all want research. We soul, which is research and develop- democracy’’ that I hear about all the want those new lifesaving drugs. Unfor- ment in new drugs, and to get back in time from my colleagues on the other tunately, 80 percent of the new patents touch with the American people. side of the aisle—let them continue to being approved by the FDA are ‘‘me I commend the States that are in- do what they are doing, be creative to too’’ drugs, not new lifesaving drugs, volved right now. They are close to the lower prices. but we want those. people. They are close to the people in I might just quote something that I am deeply concerned about the di- their States and they know, they hear was quoted earlier today by my col- rection of the companies. The pharma- the stories every day, and they are try- league from Massachusetts, and that is ceutical company is more about being ing to do something. They want us to my own Governor of the State of a sales machine, sales and marketing, act. I do not know if we are going to be Michigan, who is leading the National quarterly reports and profits than able to get this all the way through. I Governors Association. We have meet- about creating new lifesaving drugs, certainly hope so, and I will do every- ing now Governors who are concerned and that is of deep concern to me as to thing I can humanly do to work with about prescription drug costs and the future for all of us in health care. my colleagues to make it happen. wanting to provide programs for their A number of companies were outlined In the meantime, the States are try- citizens, being sued, many of them, be- yesterday. As an example, Merck ing to help. We have 30 States that are cause they want to expand the discount spends 5 percent on research and devel- doing something in the area of pre- for lower prices, to be creative like opment; 15 percent profits last year, scription drugs trying to help, and we Maine and Vermont. there were three times more profits have States being sued by the drug We had from Governor Engler: than what was spent on R&D; and 13 lobby because they are trying to help. The Nation’s Governors are extremely dis- percent was spent on advertising, mar- I will simply say, as we bring this de- appointed with the course of action chosen keting, and administration. It is al- bate to a close, that this is an amend- by PhRMA, said NGA chairman Michigan most three times as much on adver- ment that does not force a State to do Governor John Engler. It is unfortunate that tising and marketing and three times anything. It only affects the States their organization feels compelled to use the more in profits than they are spending that want to expand their drug dis- court system to manipulate public policy. With pharmacy costs alone rising 15 to 20 on R&D. counts to those without coverage. It is 1 percent each year, all purchasers, including Pfizer received 1 ⁄2 times more in an issue of flexibility. the manufacturers themselves, are using profits than they spent on research and The administration has gone on tools that manage costs while maintaining development, more than two times record in support of the Maine project quality and access to affordable pharma- more on advertising, marketing, and which we use as an example of what ceuticals. administration than on research and can be done, and we appreciate that. It That is about an optional program to development. It is a pattern that con- will stop unnecessary litigation. I say to the States: If you choose to be tinues. R&D is not the top expenditure know there is a great deal of concern creative and use your leverage under of the companies today. by my colleagues about unnecessary

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7016 CONGRESSIONAL RECORD — SENATE July 18, 2002 litigation. It will allow States to stop The PRESIDING OFFICER (Ms. Standing Rules of the Senate, do hereby spending money on litigation and put CANTWELL). Are there any other Sen- move to bring to a close debate on Executive money in essential services, such as ators in the chamber desiring to vote? Calendar No. 825, the nomination of Richard The result was announced—yeas 56, R. Clifton, to be United States Circuit Judge being able to make available prescrip- for the Ninth Circuit. tion drugs to their citizens. nays 43, as follows: Jeff Bingaman, Patrick Leahy, Daniel I hope my colleagues will join in sup- [Rollcall Vote No. 182 Leg.] Inouye, Harry Reid, Tom Daschle, port of this bipartisan—tripartisan— YEAS—56 Dianne Feinstein, Orrin Hatch, Chuck amendment this evening and send a Akaka Dorgan Lincoln Grassley, Michael B. Enzi, Craig Thom- message that we support our States Baucus Durbin Mikulski as, Christopher Bond, Jeff Sessions, and we support their right to be in- Bayh Edwards Miller Jon Kyl, Rick Santorum, Pat Roberts, Biden Feingold Murray Trent Lott. volved in putting together efforts to Bingaman Feinstein Nelson (FL) The PRESIDING OFFICER. Under lower prices and make lifesaving medi- Boxer Graham Reed cine available to their citizens. Byrd Harkin Reid the previous order, the quorum call is I ask for the yeas and nays on my Cantwell Hollings Rockefeller waived. Carnahan Hutchinson Sarbanes The question is, Is it the sense of the amendment. Carper Inouye Schumer The PRESIDING OFFICER. Is there a Chafee Jeffords Senate that debate on Executive Cal- Smith (OR) sufficient second? Cleland Johnson endar No. 825, the nomination of Rich- Clinton Kennedy Snowe ard R. Clifton of Hawaii, to be United There appears to be a sufficient sec- Specter Collins Kerry States Circuit Judge for the Ninth Cir- ond. Conrad Kohl Stabenow The yeas and nays were ordered. Corzine Landrieu Torricelli cuit, shall be brought to a close? Ms. STABENOW. I suggest the ab- Daschle Leahy Voinovich The yeas and nays are required under sence of a quorum. Dayton Levin Wellstone the rule. The PRESIDING OFFICER. The Dodd Lieberman Wyden The clerk will call the roll. clerk will call the roll. NAYS—43 The assistant legislative clerk called The bill clerk proceeded to call the Allard Enzi Murkowski the roll. roll. Allen Fitzgerald Nelson (NE) Mr. REID. I announce that the Sen- Mr. REID. Madam President, I ask Bennett Frist Nickles ator from Iowa (Mr. HARKIN) is nec- Bond Gramm unanimous consent that the order for Roberts essarily absent. Breaux Grassley Santorum the quorum call be rescinded. Brownback Gregg Mr. NICKLES. I announce that the Sessions Senator from North Carolina (Mr. The PRESIDING OFFICER. Without Bunning Hagel Shelby objection, it is so ordered. Burns Hatch Smith (NH) HELMS) is necessarily absent. Campbell Hutchison Stevens The PRESIDING OFFICER. Are there f Cochran Inhofe Thomas Craig Kyl any other Senators in the Chamber de- Thompson UNANIMOUS-CONSENT AGREE- Crapo Lott siring to vote? MENT—EXECUTIVE CALENDAR DeWine Lugar Thurmond The yeas and nays resulted—yeas 97, Domenici McCain Warner nays 1, as follows: Mr. REID. Madam President, I ask Ensign McConnell unanimous consent that the cloture [Rollcall Vote No. 183 Ex.] NOT VOTING—1 vote on Executive Calendar No. 825, YEAS—97 Richard Clifton to be United States Helms Akaka Dorgan McConnell Circuit Court Judge, occur imme- The amendment (No. 4305), as modi- Allard Durbin Mikulski Allen Edwards Miller diately following the disposition of fied, was agreed to. Baucus Ensign Mr. DASCHLE. Madam President, I Murkowski Senator STABENOW’s amendment. I fur- Bayh Enzi Murray ther ask unanimous consent that fol- move to reconsider the vote. Bennett Feingold Nelson (FL) lowing the confirmation of Judge Clif- Mr. NICKLES. I move to lay that mo- Biden Feinstein Nelson (NE) tion on the table. Bingaman Fitzgerald Nickles ton, the Senate move to proceed to the Bond Frist The motion to lay on the table was Reed (RI) nomination of Richard Carmona to be Boxer Graham agreed to. Reid (NV) United States Surgeon General; that Breaux Gramm Mr. DASCHLE. Madam President, Brownback Grassley Roberts following the filing of cloture on the Bunning Gregg Rockefeller there are two additional votes. I ask Santorum nomination, the Senate resume legisla- unanimous consent that they be 10 Burns Hagel tive session; that the live quorum for Byrd Hatch Sarbanes minutes each. Campbell Hollings Schumer that cloture vote be waived, and that The PRESIDING OFFICER. Without Cantwell Hutchinson (AR) Sessions the cloture vote on the Carmona nomi- objection, it is so ordered. Carnahan Hutchison (TX) Shelby nation occur on Tuesday, July 23, at Mr. DASCHLE. Madam President, I Carper Inhofe Smith (NH) 10:30 a.m.; and that the preceding all Chafee Inouye Smith (OR) would like everybody to stay right Cleland Jeffords Snowe occur without any intervening action here. At the end of 10 minutes, we will Clinton Johnson Specter or debate. go to a third vote. That will be the last Cochran Kennedy Stabenow The PRESIDING OFFICER. Is there Collins Kerry Stevens vote for the week. I appreciate Conrad Kohl objection? Without objection, it is so everybody’s cooperation in staying Thomas Corzine Kyl Thompson ordered. Craig here and voting, and staying here for Landrieu Thurmond Mr. REID. Madam President, there is Crapo Leahy the second of the two votes. Then we Torricelli Daschle Levin also the possibility of a third vote this Voinovich will be finished for the evening. Dayton Lieberman evening on confirmation following the Warner f DeWine Lincoln two votes previously announced in this Dodd Lott Wellstone unanimous consent agreement. EXECUTIVE SESSION Domenici Lugar Wyden VOTE ON AMENDMENT NO. 4305, AS MODIFIED NAYS—1 Mr. REID. We are now ready to pro- NOMINATION OF RICHARD R. CLIF- McCain ceed to the Stabenow amendment. TON, OF HAWAII, TO BE UNITED NOT VOTING—2 Have the yeas and nays been ordered STATES CIRCUIT JUDGE FOR on Stabenow? Harkin Helms Mr. GREGG. Yes. THE NINTH CIRCUIT The PRESIDING OFFICER. On this The PRESIDING OFFICER. The yeas CLOTURE MOTION vote, the yeas are 97, the nays are 1. and nays have been ordered. The PRESIDING OFFICER. Under Three-fifths of the Senators duly cho- The question is on agreeing to the previous order, the Chair lays be- sen and sworn having voted in the af- amendment No. 4305, as modified. The fore the Senate the pending cloture firmative, the motion is agreed to. clerk will call the roll. motion, which the clerk will report. Mr. LEAHY. With today’s vote, the The legislative clerk called the roll. The legislative clerk read as follows: Senate will confirm its 11th judge to Mr. NICKLES. I announce that the CLOTURE MOTION our Federal Courts of Appeals and our Senator from North Carolina (Mr. We, the undersigned Senators, in accord- 59th judicial nominee since the change HELMS) is necessarily absent. ance with the provisions of rule XXII of the in Senate majority little more than

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7017 one year ago. The Senate confirmed until it was withdrawn by President hearing on a Ninth Circuit nominee in the first Court of Appeals judge nomi- Bush in March 2001 without any Senate two years, earlier this year we had the nated by President Bush on July 20 last action of any kind. first hearing for a Sixth Circuit nomi- year and now, less than one year later Despite that recent history, the Ha- nee, Judge Gibbons, in almost five we are confirming the 11th. That is al- waii Senators support Mr. Clifton for years. Similarly, the hearing we held most one per month. that same vacancy. In contrast to the on the nomination of Judge Edith By contrast, the Republican majority treatment that Mr. Duffy received, Mr. Clement to the Fifth Circuit last year that preceded us averaged seven Court Clifton’s nomination was scheduled for was the first on a Fifth Circuit nomi- of Appeals confirmations every 12 a hearing less than 60 days after his file nee in seven years and she was the first months. During an entire session of and paperwork were completed. Mr. new appellate judge confirmed to that Congress, 1996, the Republican major- Duffy waited 791 days and never got a Court in six years. When we held a ity allowed no circuit court nominees hearing. When partisan critics charge hearing on the nomination of Judge to be confirmed, not one. The Repub- Democrats with tit-for-tat and seeking Harris Hartz to the Tenth Circuit last lican majority confirmed 46 Court of revenge, they ignore the facts. The year, it was the first hearing on a Appeals judges in 78 months. While confirmation of Richard Clifton is an- Tenth Circuit nominee in six years and they were in the majority vacancies on other example of Democrats treating he was the first new appellate judge the Courts of Appeals more than dou- President Bush’s judicial nominees far confirmed to that Court in six years. bled, going from 16 to 33. Since the better than Republicans treated Presi- When we held the hearing on the nomi- change in majority the numbers are dent Clinton’s. nation of Judge Roger Gregory to the Today’s vote on Mr. Clifton’s nomi- going in the right direction—vacancies Fourth Circuit last year, it was the nation should provide some relief to are going down and confirmations have first hearing on a Fourth Circuit nomi- the Ninth Circuit, which has four va- significantly increased. We would be nee in three years and he was the first cancies that have been classified as doing even better with a little coopera- appellate judge confirmed to that court ‘‘judicial emergency’’ vacancies by the tion from the Administration and the in three years. U.S. Courts. Two of those vacancies are Republican leadership, which created Large numbers of vacancies continue more than five years old. They date roadblocks to the consideration of all to exist on many Courts of Appeals, in back to 1996 and 1997, and there were judicial nominations by the full Senate large measure because the recent Re- two outstanding nominees to those since May. publican majority was not willing to seats. I have mentioned the nomina- The nominee voted on today, Richard hold hearings or vote on more than tion of James Duffy. The other nomi- Clifton, was one of the 78 nominees to half—56 percent—of President Clinton’s nee was Barry Goode of California, receive a hearing in the first year since Courts of Appeals nominees in 1999 and whose nomination also languished for the reorganization of the Judiciary 2000 and was not willing to confirm a years without ever getting a hearing or Committee on July 10, 2001. In that pe- single judge to the Courts of Appeals riod, we held more hearings for more a vote. When Barry Goode was first nomi- during the entire 1996 session. Demo- circuit court nominees than in any of nated to a Ninth Circuit vacancy in crats have broken with that recent his- the prior six years of Republican con- 1998 it was already a judicial emer- tory of inaction. trol. In fact, we have had hearings for gency. Both of his home-state Senators I would like to commend in par- more judicial nominees in the past supported the nomination but the Re- ticular the Senators from Hawaii and year than in 20 of the last 22 years publican leadership refused to act. Mr. also the members of the Judiciary under Republican or Democratic presi- Goode was nominated not once, not Committee for their efforts to consider dents. Those who wish to paint the twice, but three times to the Ninth Cir- scores of judicial nominees for whom Senate as obstructionist ignore the cuit and he never was given the cour- we have held hearings and on whom we facts and the fair treatment by the tesy of a hearing or a vote during al- have had votes during the last several Senate of President Bush’s judicial most 1,000 days (998 days). In March of months. nominees. They focus instead on the 2001, President Bush withdrew Mr. Mr. HATCH. Madam President, I rise most controversial nominees who do Goode’s nomination but he has not to support the nomination of Richard take more time, rather than the vast nominated anyone to this judicial R. Clifton to be U.S. Circuit Court majority who have received hearings emergency vacancy. It remains one of a Judge for the Court of Appeals for the and been confirmed in bipartisan votes number of judicial emergency vacan- Ninth Circuit. Before I speak directly of the Senate. They would rather use cies for which there is no nominee and about him and his nomination, how- misleading percentage calculations one of the 43 judicial vacancies for ever, I would like to take just a mo- that obscure the fact that the Demo- which there is no nominee. ment to make a few comments about cratic-led Senate is considering Presi- The Ninth Circuit vacancies are a the Ninth Circuit. dent George Bush’s nominees at one of prime and unfortunate legacy of the I think it’s safe to say that everyone the fastest paces in recent history. partisan obstructionist practices dur- in the Senate agrees that the Ninth I commend Senators Inouye and ing the Republican control of the Sen- Circuit decision in Newdow v. U.S. Con- Akaka for the statesmanship they have ate. Some are now complaining that a gress, striking down the Pledge of Alle- shown in connection with this nomina- few nominees are waiting a year for giance as unconstitutional because it tion. I remember very well their impor- hearing. Even though the anniversary contains the phrase under God, was out tant efforts to establish the Hawaii of the reorganized Judiciary Com- of the mainstream of American juris- seat on the Ninth Circuit and to try to mittee with a Democratic majority was prudence. After all, the Senate voted 99 fill it with a qualified nominee. I voted July 10, and we have already held hear- to 0 to reaffirm the reference to One with them and supported their effort to ings for 16 Court of Appeals nominees Nation Under God in the pledge of alle- ensure that every State, even States as among the 78 total judicial nominees giance—right after the decision was an- small as Hawaii and Vermont, are rep- who had hearings in our first year. nounced. resented on our Courts of Appeals. I also recall how all confirmations to But to me, the decision was more I recall the saga of the nomination of the Ninth Circuit from California were than wrong. It was an outrageous ex- James Duffy to fill the Hawaii seat on stalled by the demands of a Republican ample of judicial activism and over- the Ninth Circuit, how hard they Senator not from that State to be reaching—of inappropriate, results-ori- worked to find a consensus nominee given the ability to name a Court of ented policymaking from the bench. and how that nomination was stalled Appeals judge from his State. With the And it is a clear example of how the for years. Despite the ‘‘Well Qualified’’ support of the Republican leadership in Ninth Circuit is failing to serve the rating he received from the ABA and the Senate, that Republican Senator best interests of the western states of the strong support of both his home- succeeded in getting President Clinton California, Arizona, Nevada, Idaho, state Senators, Mr. Duffy never re- to accord him that prerogative in order Montana, Washington, Oregon, Alaska, ceived a hearing or a vote. He was nom- to break that logjam. and Hawaii. inated at the beginning of 1999 and re- Just as the May 9th hearing on Mr. The Ninth Circuit has 28 authorized mained pending for over two full years Clifton’s nomination was the first judgeships. There are 23 active judges,

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7018 CONGRESSIONAL RECORD — SENATE July 18, 2002 and thus 5 vacancies. Seventeen of curities transactions, class actions, gencies despite President Clinton’s those 23 were appointed by Democrat debtor/creditor law, and trademarks. nominations of several well-qualified Presidents—14 by President Clinton Mr. Clifton is the sold male director individuals supported by their home- alone—and only 6 were appointed by with the Hawaii Women’s Legal Foun- state Senators and local legal commu- Republicans. dation, a member of the Hawaii Women nities. The Administrative Office of United Lawyers, a member of the Hawaii I congratulate and commend Chair- States Courts has labeled all five va- Chapter of the American Judicature man LEAHY for his leadership in work- cancies on the Ninth Circuit as ‘‘judi- Society, and director of the Ninth Ju- ing to confirm qualified nominees to cial emergencies’’ given the enormous dicial Circuit Historical Society. the Federal bench and rectify the dou- per-judge caseload on the Ninth Cir- For approximately ten years, Mr. bling in circuit court vacancies that cuit. Clifton was an adjunct professor at the occurred between 1995 and 2001. In this The Ninth Circuit takes several University of Hawaii William S. Rich- instance, the Judiciary Committee months longer than other circuits to ardson School of Law, where he taught scheduled a hearing on Mr. Clifton’s dispose of cases. The average time from appellate advocacy. He served as Chair- nomination less than 60 days after his filing to disposition is approximately man of Hawaii Public Radio for five file and paperwork were completed. As 14 months. years and remains a director and mem- both Chairman and Ranking Member, In addition, as is well known and has ber of its executive committee. He has Senator LEAHY has worked with Sen- been widely observed, including by sev- served as pro bono general counsel to ator INOUYE and me to fill the Hawaii eral Supreme Court Justices, the Ninth the Hawaii Republican Party since seat on the Ninth Circuit. I appreciate Circuit has often decided cases in a 1991. his commitment to ensure that every manner that is well outside the main- Mr. Clifton has a reputation for ex- State is represented on our Courts of stream of American law and entirely cellence. Among other honors, Mr. Clif- Appeals. inconsistent with binding Supreme ton was named as one of the 18 finest As the Chairman recently noted, Mr. Court precedent. In 1999–2000, the Su- lawyers in Hawaii for business litiga- Clifton’s confirmation concludes a long preme Court considered 10 Ninth Cir- tion in 2001. He is widely respected by and regrettable saga in confirming a cuit cases and reversed 9 of them. In the legal community in Hawaii. qualified nominee from Hawaii. In 1999, 1998–99, the Supreme Court considered I proudly join my distinguished col- the President nominated James Duffy 18 Ninth Circuit cases and reversed 14 leagues from Hawaii, Senators INOUYE of Hawaii to the Ninth Circuit. He was of them. In 1997–98, the Supreme Court and AKAKA, in supporting Mr. Clifton’s selected after an exhaustive screening considered 17 Ninth Circuit cases and nomination to the Ninth Circuit Court process, following an admirable effort reversed 13 of them. And in 1996–97, in of Appeals, and I urge my colleagues to by the White House to consult widely an extraordinary Term, the Supreme do the same. Richard Clifton will serve with political, legal, and community Court considered 28 cases from the well on the federal bench in Hawaii. leaders in Hawaii. Mr. Duffy was en- Ninth Circuit and reversed 27 of them. Mr. AKAKA. Mr. President, I rise dorsed as ‘‘the best of the best’’ by the All of this makes clear why it is so today in support of the nomination of Hawaii State Bar Association. Despite important for the Senate to consider— Mr. Rick Clifton to the United States his sterling reputation, the nomination and confirm—President Bush’s nomi- Court of Appeals for the Ninth Circuit. languished for 791 days in the Judiciary nees to the Ninth Circuit. We have two I commend our Majority Leader, the Committee without ever receiving a excellent candidates pending in the Ju- Deputy Majority Leader, and the hearing. Mr. Duffy is one of the well- diciary Committee right now. Chairman of the Judiciary Committee qualified and talented men and women Judge Carolyn Kuhl has extensive ex- for the progress made on judicial nomi- nominated by the President to the perience in federal and state govern- nations during the 107th Congress. Ha- Ninth Circuit and other Courts of Ap- ment, in the Executive and Judicial waii has waited a number of years for peals, individuals with bipartisan and Branches, in public service and private Senate confirmation of a Hawaii resi- home-state support whose nominations legal practice. She has a superb legal dent for a position on the U.S. Court of were never acted on by the Senate. background and broad experience that Appeals for the Ninth Circuit. I mention this unfortunate chapter makes her ideally suited to be an ex- In 1995, I introduced legislation to re- not to air past grievances, but to un- cellent circuit judge. And the same quire representation on the court from derscore the challenges facing the goes for Jay Bybee, who currently each State within the jurisdiction of Chairman of the Judiciary Committee serves as Assistant Attorney General the court. We have waited many years and the Majority Leader in bringing for the Office of Legal Counsel at the for this opportunity. I am pleased that nominations before the Senate for ac- U.S. Department of Justice. I urge the Hawaii will finally have a Justice on tion. In an exceptionally evenhanded Judiciary Committee to hold hearings the Ninth Circuit. manner, they have worked to overcome on these nominees without further Rick Clifton has had a distinguished the partisanship and stalling practices delay. legal career. The Hawaii State Bar As- that precipitated many of the judicial Now, I would like to turn to the mat- sociation found him to be highly quali- emergencies and vacancies some of our ter directly at hand, the confirmation fied for this position. A graduate of colleagues on the other side of the aisle of Richard R. Clifton to the Ninth Cir- Princeton University, he received his have recently come to this floor to cuit Court of Appeals. Shortly fol- juris doctorate from Yale Law School decry. lowing graduation from Yale Law in 1975. Mr. Clifton has practiced law in Today’s confirmation vote for Mr. School, Mr. Clifton moved to Hawaii to Hawaii since 1975 and has been a part- Clifton’s nomination attests to the clerk for the Honorable Herbert Y.C. ner with the law firm of Cades Schutte fairness that the Majority Leader and Choy of the U.S. Circuit of Appeals for Fleming & Wright in Honolulu, HI, Senator from Vermont have restored to the Ninth Circuit, the first and only since 1982. He has extensive legal expe- the judicial confirmation process in Hawaiian to serve on that court. Nota- rience in civil litigation, primarily the past year. I thank them for their bly, Mr. Clifton will be the second. business and commercial litigation. I support. After his clerkship, Mr. Clifton believe he will be an asset to the Court Mr. LEAHY. Madam President, have joined the Honolulu law firm of Cades of Appeals for the Ninth Circuit and the yeas and nays been ordered on the Schuttle Fleming & Wright, one of the urge my colleagues to support his nom- nomination? oldest and largest firms in Hawaii. He ination. The PRESIDING OFFICER. They has remained with that firm since The confirmation of Mr. Clifton will have not. then, becoming a partner in 1982. His help to alleviate hardships confronting Mr. LEAHY. I ask for the yeas and practice has focused on business and the Ninth Circuit brought about by nays. commercial litigation, with an empha- four long-term vacancies on the Court. The PRESIDING OFFICER. Is there a sis on complex litigation and appellate A number of these vacancies date back sufficient second? practice. over five years, spanning a period There is a sufficient second. Mr. Clifton has ably handled cases in where the previous Senate majority re- The question is, Will the Senate ad- the areas of condemnation, tax law, se- fused to act on these judicial emer- vise and consent to the nomination of

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7019 Richard R. Clifton, of Hawaii, to be H. Carmona, of Arizona, to be the Surgeon comprehensive, and reliable universal United States Circuit Judge for the General of the Public Health Service. prescription drug coverage. This cov- Ninth Circuit? The clerk will call the Edward M. Kennedy, Debbie Stabenow, erage will be available to 39 million roll. Tom Daschle, Harry Reid, Jack Reed, older Americans and disabled citizens Richard J. Durbin, Barbara Mikulski, The legislative clerk called the roll. Patrick Leahy, Jean Carnahan, Tom who are covered by Medicare—citizens Mr. NICKLES. I announce that the Carper, Byron L. Dorgan, Paul who voluntarily elect to participate in Senator from North Carolina (Mr. Wellstone, Jon Corzine, Jeff Bingaman, this new Medicare benefit. More than HELMS) and the Senator from Ohio (Mr. Daniel Inouye, Kent Conrad. 2,750,000 of those 39 million live in my State of Florida and, as have citizens VOINOVICH) are necessarily absent. f The PRESIDING OFFICER. Are there across America, been waiting year any other Senators in the Chamber de- LEGISLATIVE SESSION after year after year for Congress to fi- siring to vote? The PRESIDING OFFICER. The Sen- nally deliver on the commitment that The result was announced—yeas 98, ate will now return to legislative ses- we have made to modernize Medicare nays 0, as follows: sion. through the provision of a prescription [Rollcall Vote No. 184 Ex.] drug benefit. f YEAS—98 When I made remarks on this issue on Tuesday of this week, I based those Akaka Dorgan Lugar GREATER ACCESS TO AFFORD- Allard Durbin McCain ABLE PHARMACEUTICALS ACT remarks on six principles that I believe Allen Edwards McConnell OF 2001—Continued should be the touchstone for an afford- Baucus Ensign Mikulski able, comprehensive universal prescrip- Bayh Enzi Miller AMENDMENT NO. 4309 tion drug benefit for senior Americans. Bennett Feingold Murkowski Biden Feinstein (Purpose: To amend title XXIII of the Social Let me briefly reiterate those six prin- Murray Security Act to provide coverage of out- Bingaman Fitzgerald Nelson (FL) ciples. patient prescription drugs under the medi- Bond Frist Nelson (NE) First, we must modernize the Medi- Boxer Graham Nickles care program) care Program. We must bring Medicare Breaux Gramm Reed Mr. GRAHAM. Madam President, I Brownback Grassley into the 21st century. In my judgment, Reid Bunning Gregg send to the desk an amendment, which Roberts the provision of a prescription drug Burns Hagel Rockefeller reflects the contents of S. 2625, the benefit is the single most important re- Byrd Harkin Santorum Medicare Outpatient Prescription Drug Campbell Hatch form of the Medicare Program that we Sarbanes Cantwell Hollings Act of 2002. can make. Why is this benefit so cen- Carnahan Hutchinson Schumer The PRESIDING OFFICER. The tral? Because in the 37 years since the Carper Hutchison Sessions Shelby clerk will report the amendment. Medicare Program was created, the Chafee Inhofe The legislative clerk read as follows: Cleland Inouye Smith (NH) practice of medicine has been fun- Clinton Jeffords Smith (OR) The Senator from Florida [Mr. GRAHAM], damentally altered by the use of pre- Cochran Johnson Snowe for himself, Mr. MILLER, Mr. KENNEDY, and scription drugs. Specter Collins Kennedy Mr. CORZINE, proposes an amendment num- Prescription drugs have improved the Conrad Kerry Stabenow bered 4309. Corzine Kohl Stevens quality of people’s lives. They have re- Craig Kyl Thomas Mr. GRAHAM. Madam President, I duced long recovery periods, and they Crapo Landrieu Thompson ask unanimous consent that further sometimes can even avoid surgeries Daschle Leahy Thurmond reading of the amendment be dispensed and disabling illnesses, such as strokes Dayton Levin Torricelli DeWine Lieberman Warner with. and heart attacks. Dodd Lincoln Wellstone The PRESIDING OFFICER. Without We must convert Medicare from a Domenici Lott Wyden objection, it is so ordered. program which, since its inception in NOT VOTING—2 (The amendment is printed in today’s 1965, has focused on sickness. If you are Helms Voinovich RECORD under ‘‘Text of Amendments.’’) sick enough to go to the doctor or to the hospital, Medicare will pay 77 per- The nomination was confirmed. AMENDMENT NO. 4310 (Purpose: To amend title XVIII of the Social cent, on average, of your costs. But if f Security Act to provide for a medicare vol- you want to maintain the highest level NOMINATION OF RICHARD R. untary prescription drug delivery program of health, which generally involves CARMONA, OF ARIZONA, TO BE under the medicare program, to modernize screening, early intervention, and pre- MEDICAL DIRECTOR IN THE REG- the medicare program, and for other pur- scription drugs to monitor the condi- ULAR CORPS OF THE PUBLIC poses) tion, Medicare will pay nothing. HEALTH SERVICE Mr. HATCH. Madam President, I send Medicare must be converted from a an amendment to the desk. sickness program to a wellness pro- The PRESIDING OFFICER. Under The PRESIDING OFFICER. The gram if it is to serve the needs of sen- the previous order, the clerk will re- clerk will report. ior Americans in the 21st century. That port Executive Calendar No. 921. The legislative clerk read as follows: is the first principle. The assistant legislative clerk read The Senator from Utah [Mr. HATCH], The second principle is that bene- the nomination of Richard H. Carmona, ficiaries must be provided with a real for Mr. GRASSLEY, for himself, Ms. of Arizona, to be Medical Director in benefit. To be successful, this program SNOWE, Mr. JEFFORDS, Mr. BREAUX, Mr. the Regular Corps of the Public Health must attract a wide variety of bene- HATCH, Ms. COLLINS, Ms. LANDRIEU, Mr. Service. ficiaries. The PRESIDING OFFICER. The ma- HUTCHINSON, and Mr. DOMENICI, pro- The program will be voluntary, so it jority leader is recognized. poses an amendment numbered 4310. must attract enrollment with reason- CLOTURE MOTION Mr. HATCH. I ask unanimous consent able and reliable prices and a benefit Mr. DASCHLE. Madam President, I that further reading of the amendment that pays off from day one. In this send a cloture motion to the desk. be dispensed with. manner, we will be able to attract all The PRESIDING OFFICER. The clo- The PRESIDING OFFICER. Without seniors, from those who today have ture motion having been presented objection, it is so ordered. high drug needs to those who are under rule XXII, the Chair directs the (The amendment is printed in today’s healthy but might be concerned that clerk to read the motion. RECORD under ‘‘Text of Amendments.’’) they, too, could be struck down with a The assistant legislative clerk read Mr. GRAHAM. Madam President, heart attack or other disabling condi- as follows: this amendment represents the essence tion. CLOTURE MOTION of S. 2625, which currently, in addition If we are able to have a program that to those who cosponsored this amend- will attract that broad range of elderly We, the undersigned Senators, in accord- ance with the provisions of rule XXII of the ment, has 29 other colleagues’ sponsor- in terms of their current state of Standing Rules of the Senate, hereby move ship. health, then we will have a program to bring to a close the debate on Executive This legislation is designed to pro- that will be actuarially solid for years Calendar No. 921, the nomination of Richard vide to American seniors affordable, to come.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7020 CONGRESSIONAL RECORD — SENATE July 18, 2002 Seniors must be able to understand scription drug proposal. Action on a bipar- making choices about pharmaceutical thera- the benefit they receive. The coverage tisan prescription drug benefit is a top pri- pies. We believe an explicit dollar co-pay will should be consistent, and seniors ority for AARP, our members and the na- also provide seniors with the comfort of should receive that coverage without tion. knowing they will pay a fixed cost to have Medicare beneficiaries have waited long their prescriptions filled. any unexpected gaps or omissions. In enough for access to meaningful, affordable With your leadership, the Graham/Miller/ other words, it should operate as much prescription drug coverage. We know from Kennedy bill employs a number of private as possible as the employer-provided our membership that in order for a Medicare sector best practices that are now widely coverage which they had during their prescription drug benefit comprehensive cov- used to assure access to cost-effective, qual- working years. erage it must include: ity affordable medications. These provisions The third principle is that bene- An affordable premium and coinsurance; not only encourage the appropriate and ben- ficiaries must have choice. All Ameri- Meaningful catastrophic stop-loss that eficial use of these products, but provide un- limits out-of-pocket costs; cans deserve choice in how they receive biased and greatly needed educational infor- A benefit that does not expose bene- mation to the public about the benefits of their health care. We must offer choice ficiaries to a gap in insurance coverage; these medicines. in who delivers their prescription Additional assistance for low-income bene- The Graham/Miller/Kennedy bill adheres to drugs, which is why we must assure ficiaries; and GPhA’s principles for creating a Medicare that each region of the country has an Quality and safety features to curb unnec- prescription drug benefit and steers the adequate number of providers of the essary costs and prevent dangerous drug Medicare reform debate down a prudent pub- interactions. lic policy path. We look forward to working prescription drug benefit. This will en- AARP supports your initiative to incor- courage competition, helping to keep with you, your cosponsors and with other porate these goals. We commend you for in- Members of the House and Senate of both costs down for seniors, as well as the cluding key elements in your proposal that parties to further our common objective of taxpayers of the Medicare Program, Medicare beneficiaries and our members providing our nation’s nearly 40 million and assure a sustainable prescription have indicated they find valuable. For in- Medicare beneficiaries and the taxpayers drug benefit for this and future genera- stance, your proposal includes a premium who help support them with the most afford- tions of America’s seniors. that many Medicare beneficiaries view as af- able and highest quality prescription drug Principle No. 4 is we must use a de- fordable and a benefit design that does not benefit possible. If the rest of the Congress livery system upon which seniors can include a gap in insurance coverage. Your and the Administration follow your lead in proposal also now includes co-payments recognizing the role generics must play in rely. It must be a tried-and-true sys- specified as dollar amounts, an approach tem, not an untested scheme that will reaching this objective, we are confident we that our research shows our members prefer will achieve this goal. turn older Americans into laboratory to coinsurance. In our view, this plan could Thank you again for your efforts. If we can animals upon which to be experi- provide real value to beneficiaries in pro- be of any assistance to you, please do not mented. We want to model our delivery tecting them against the high costs of pre- hesitate to call. system on what private sector plans scription drugs. Sincerely, have used and with what seniors are fa- It is important that any prescription drug KATHLEEN JAEGER, benefit be made a permanent and stable part President and CEO. miliar. of Medicare, and we want to work with you Principle No. 5 is the program must to achieve this before enactment. THE NATIONAL COUNCIL ON THE be affordable. The reality is the major- Thank you for your leadership on this AGING, ity of seniors live on fixed incomes. In issue. We look forward to working with you Washington, DC. June 11, 2002. my State of Florida, where many peo- and your colleagues as the legislation moves Hon. BOB GRAHAM, ple have the idea that all or most of forward. AARP will continue to urge Con- 524 Hart Senate Office Building, Washington, the seniors live at a level of luxury, the gress to work in a bipartisan manner to DC. median income of our 2,750,000 seniors enact affordable, meaningful Medicare pre- DEAR SENATOR GRAHAM: On behalf of the scription drug coverage. National Council on the Aging (NCOA)—the is $13,982 a year, and 770,000 seniors in Sincerely, our State live on incomes below 150 nation’s first organization formed to rep- WILLIAM D. NOVELLI, resent America’s seniors and those who serve percent of poverty. Executive Director and CEO. them—I write to commend and thank you for These fixed-income seniors need a your proposal to provide meaningful Medi- prescription drug benefit that has a GENERIC PHARMACEUTICAL care prescription drug coverage to America’s low premium, that does not require a ASSOCIATION, seniors. The Medicare Outpatient Prescrip- deductible, has reasonable copayments Washington, DC, June 12, 2002. tion Drug Act of 2002 is consistent with the that are easy to calculate, and will Hon. BOB GRAHAM, principles supported by the vast majority of avoid wide variations from month to 524 Hart Senate Office Building, organizations representing Medicare bene- Washington, DC. ficiaries. It provides the foundation for a ve- month in their coverage. DEAR SENATOR GRAHAM: On behalf of the Finally, principle No. 6 is we must hicle that we hope can achieve bipartisan Generic Pharmaceutical Association (GPhA), consensus on this issue this year. have a fiscally prudent program. We we would like to commend you and Senators NCOA is particularly pleased that your must find that balance between giving Miller and Kennedy for your leadership in in- legislation would provide prescription drug seniors what they need, that balance troducing legislation to create a Medicare coverage that is universal, voluntary, reli- between a realistic assessment of what prescription drug benefit for our nation’s able, and continuous. Other proposals being prescription drug costs are likely to be seniors. We agree with you that the passage offered include significant coverage gaps and over the next 10 years for our seniors, and enactment of a voluntary Medicare pre- would fail to solve the problem. Under such scription drug benefit is long overdue. We and, finally, the balance of what our bills, a significant number of beneficiaries are strongly supportive of your innovative would not want to participate in the pro- overall Federal budget will allow. tiered co-pay structure, as well as the other gram, and many of those who do participate The Graham-Miller-Kennedy-Corzine provisions advocated by you and your col- would continue to be forced to choose be- amendment meets these six criteria. As leagues, that are designed to increase the tween buying food and essential medicines. a result, it has the support of the utilization of high-quality, affordable ge- We commend many of the modifications major organizations that represent neric medicines. you have made to your Medicare bill from America’s seniors, including AARP. Generic pharmaceuticals have a proven last year. These improvements include a sig- I ask unanimous consent to print in track record of substantially lowering drug nificantly lower premium, the option to pro- costs. Studies have shown that for every 1 the RECORD eight letters of support of vide a flat copayment, an earlier effective percent increase in generic drug utilization, date, and assistance with the very first pre- this legislation. consumer, business, and health plan pur- There being no objection, the mate- scription. We believe these changes will chasers save over $1 billion. The increased make the coverage affordable and attractive rial was ordered to be printed in the use of generics can play an invaluable role in to the vast majority of beneficiaries, which RECORD, as follows: helping Medicare, Medicaid, the Federal Em- is so critical to making a voluntary prescrip- AARP, ployees Health Benefit Plan (FEHBP) and tion drug program work. While we have con- NATIONAL HEADQUARTERS, other Federal and private plans assure that cerns about the need to reauthorize the pro- Washington, DC, June 12, 2002. beneficiaries have access to quality, afford- gram after 2010, we understand the budget Hon. BOB GRAHAM, able medications. A tiered co-pay system trade-offs needed to provide meaningful and Hon. ZILL MILLER, with a significant differential between brand attractive coverage, and fully expect that U.S. Senate, Washington, DC. and generic pharmaceuticals will ensure an the Congress would reauthorize the program. DEAR SENATORS: We are pleased to restate appropriate incentive is in place for seniors NCOA is also pleased that your proposal our position on your revised Medicare pre- to consider more cost-effective options when does not include price controls and that the

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program would promote stability and effi- NATIONAL COMMITTEE TO PRESERVE LEGISLATIVE ALERT ciency through administration by multiple, SOCIAL SECURITY AND MEDICARE, AMERICAN FEDERATION OF LABOR competing Pharmacy Benefit Managers Washington, DC. June 12, 2002. AND,CONGRESS OF INDUSTRIAL OR- (PBMs), using management tools available Senator BOB GRAHAM, GANIZATIONS, in the private sector in which PBMs would Senate Hart Office Building 524, Washington, Washington, DC, June 12, 2002. be at risk for their performance, including DC. Hon. BOB GRAHAM, effective cost containment. DEAR SENATOR GRAHAM: On behalf of the U.S. Senate, 524 Hart Senate Office Building, millions of members and supporters of the NCOA deeply appreciates your efforts to Washington, DC. National Committee to Preserve Social Se- DEAR SENATOR GRAHAM. On behalf of the 13 move this critical debate in a direction that curity and Medicare, I write in support of million members of the AFL–CIO, I am writ- guarantees access to meaningful coverage— your Medicare prescription drug legislation ing to commend you for your efforts to pro- even in rural and frontier areas of the coun- that will provide much needed relief to sen- vide much-needed relief to Medicare bene- try—and responds in a constructive manner iors. Your bill contains all of the elements ficiaries. Your proposal to create a voluntary to many of the specific concerns that have that seniors need in a comprehensive drug drug benefit within the Medicare program been raised regarding other Medicare pre- benefit under Medicare, such as universal, represents an encouraging and solid step to- scription drug proposals. voluntary, affordable, not means tested and ward enacting the one reform most urgently most importantly, with a defined benefit, so It is impossible to have real health secu- needed for Medicare. that seniors can plan accordingly. Prescrip- Seniors need a real benefit that provides rity without coverage for prescription drugs. tion drugs prices are increasing over 17% per Prescription drug coverage is the number comprehensive, continuous and certain cov- year (faster than inflation) and seniors are erage. The Graham-Miller-Kennedy bill pro- one legislative priority for America’s sen- spending more on out-of-pocket drug expend- vides that benefit, giving seniors coverage iors. Virtually every member of Congress has itures than ever. The time is now to enact a they can count on. A Medicare drug benefit made campaign promises to try to pass a drug benefit that will provide the Medicare must also be affordable for beneficiaries. The good prescription drug bill. The time has beneficiary with some assistance. $25 monthly premium and zero deductible in We are pleased that your plan would be come to get serious and to work together to your proposal means seniors need only pay available for seniors, no matter where they achieve consensus on the issues in con- an affordable premium to begin getting cov- live. Our members have expressed to us that troversy. Your proposal provides us with an erage immediately. And no senior will have a prescription drug benefit must be afford- excellent starting point. to pay more than $40 for the drugs they need able. We believe that a plan such as yours, and often will pay less. NCOA looks forward to working on a bipar- with no annual deductible and a $4,000 cap on In addition, your proposal would not put at tisan basis with you and other members of out of pocket expenditures, is reasonable and risk those retires who currently have some Congress to pass legislation this year that one that most seniors would be able to af- prescription drug coverage through an em- provides meaningful, continuous, affordable ford. prescription drug coverage to all Medicare We applaud you for your leadership in this ployer. Retiree heath care is the primary source of prescription drug coverage for sen- beneficiaries. area. Please let me know how we can further iors, and your proposal rightly provides from Sincerely, support your efforts. relief for employers that choose to continue JAMES FIRMAN, Sincerely, that coverage. President and CEO. BARBARA KENNELLY, A proposal widely reported under consider- President. ation by House Republican leaders offers FAMILIES USA, only unreliable, expensive and unworkable AFSCME®, Washington, DC. June 13, 2002. coverage through private plans, with an AMERICAN FEDERATION OF STATE, Senator BOB GRAHAM, enormous gap in coverage that leaves seniors COUNTY AND MUNICIPAL EMPLOYEES, 524 Hart Senate Office Building, Washington without any coverage at all for drug costs AFL–CIO, DC. between $2000 and $4500. And the only relief Washington, DC, June 12, 2002. for employers is if they drop the coverage DEAR SENATOR GRAHAM: We congratulate Senator EDWARD KENNEDY, they now offer. Such a proposal will not you and Senators Miller, Kennedy and Senator BOB GRAHAM, move us any closer to a real benefit. Senator ZELL MILLER, Rockefeller on the introduction of your bill, As this debate moves forward, we want to U.S. Senate, Washington, DC. ‘‘The Medicare Outpatient Prescription Drug work with you and your co-sponsors to enact DEAR SENATORS: On behalf of the 1.3 mil- Act,’’ which provides prescription drug ben- the best possible Medicare drug benefit. We efit for Medicare beneficiaries. lion members of the American Federation of State, County and Municipal Employees appreciate your role in advancing that proc- This is an issue of utmost important to all (AFSCME), I am writing to express our sup- ess. Americans who need prescription drugs, es- port for the Medicare prescription drug ben- Sincerely, pecially to seniors and people with disabil- efit proposal you unveiled today. WILLIAM SAMUEL, Director, ities. As you well know senors’ ability to af- AFSCME has long supported the creation Department of Legislation. ford prescription drugs is a particularly dif- of a Medicare prescription drug benefit that ficult problem today. In our 2001 report enti- is comprehensive in coverage, affordable and ALLIANCE FOR RETIRED AMERICANS, tled, ‘‘Enough to Make You Sick: Prescrip- voluntary for all Medicare beneficiaries. We Washington, DC, June 12, 2002. tion Drug Prices for the Elderly, ‘‘we con- believe that your proposal is a solid step for- Senator EDWARD M. KENNEDY, cluded that the 50 top drugs used by seniors ward in meeting these standards. U.S. Senate, Washington, DC. DEAR SENATOR KENNEDY: On behalf of the rose 2.3 times the rate of inflation between In particular, we applaud your proposal’s over 2.7 million members of the Alliance for 2000 and 2001. We are in the process of updat- provisions for continuous coverage. We be- Retired Americans, I want to thank you for ing this report for last year, and our prelimi- lieve that it is one of the most critical com- your tireless work on behalf of older and dis- nary data shows that this devastating rate of ponents of a meaningful prescription drug benefit. Beneficiaries must have coverage abled Americans to create a Medicare pre- price increases continues. Millions of seniors scription drug benefit program. I also want have limited income and no, or limited, drug they can count on, with no gaps in coverage. Doing anything less would force our seniors to express our views on the Medicare pre- coverage and will find themselves deciding to pay all prescription costs out of their own scription drug legislation proposed by you whether to buy drugs or pay for other essen- pocket when they will need the coverage the and Senators Graham and Miller. The Alli- tials. most. ance supports this proposal as a positive step Your bill addressees many important de- Since Medicare was started over 35 years forward in the effort to create a Medicare sign issue that we care about in a Medicare ago, many illnesses that were once only prescription drug benefit program. prescription drug benefit. The benefit is uni- treatable in a hospital can now be effectively The Alliance for Retired Americans be- versal, comprehensive, and is delivered treated with prescription drugs. Adding a lieves that all older and disabled Americans through the Medicare program, ensuring drug benefit to the program is the most ur- need an affordable, comprehensive, and vol- that seniors know it will be available to gently needed Medicare reform. We applaud untary Medicare prescription drug benefit them when it is needed. Low-income people you for not holding the prescription drug now. Such a benefit program should have low get extra assistance. Also, there are provi- benefit hostage to force radical privatization monthly premiums, annual deductibles, and sions to assure that costs will be contained proposals that would cut benefits and in- be administered as part of the Medicare pro- and quality maintained. crease costs for retirees. gram. Your proposed legislation meets these We look forward to working with you and Alliance principles. Unlike other proposals Please let us know how we can assist you the other sponsors of this important legisla- that would begin in 2005, your plan would to move this bill toward enactment so that tion. A Medicare prescription drug benefit is start in 2004, which gives beneficiaries the all Medicare beneficiaries can have access to long overdue, and our nation’s seniors de- coverage they need a full year earlier. the prescription drugs they need. serve no less. The Alliance will work to enact your legis- Sincerely, Sincerely, lation. During legislative deliberations, the RONALD F. POLLACK, CHARLES M. LOVELESS, Alliance will seek to improve benefits be- Executive Director. Director of Legislation. cause we believe that an 80/20 co-insurance

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7022 CONGRESSIONAL RECORD — SENATE July 18, 2002 payment system, like the rest of Medicare, business so that they, the senior, can you participating in a sickness pro- will provide the best benefits for older and decide which PBM best meets their gram, but you are now participating in disabled Americans. The Alliance also sup- particular needs, including factors such a program which has as its primary ports a $2,000 annual catastrophic cap. We as the availability of mail order deliv- commitment assuring that all senior will continue to work to improve any legisla- tion that moves through Congress in order to ery and access to local pharmacies. Americans can live in the highest state reach these goals. PBMs would be accountable to the of good health. Older Americans will spend $1.8 trillion on Medicare Program and to all tax- Our Nation’s seniors have waited too prescription drugs during the next decade. payers. They would be required to dem- long for the help they need to purchase The inflation rate for prescription drugs will onstrate their ability to keep costs their prescription drugs. An uncon- continue at an annual double digit pace as down through effective purchasing scionable number of these people are well. Our members and indeed all Americans practices and provide quality service in forced every day to choose between fill- simply cannot afford these costs. We look order to win and keep a Government ing a doctor’s prescription for a needed forward to working with you and Senators Graham and Miller to enact a comprehensive contract. medication and paying for other basic Medicare prescription drug benefit as soon as CBO has given us an estimate of our needs. These people are not numbers in possible. plan today. CBO estimates that our a statistical database. They are not Sincerely yours, plan through the year 2010 would cost strangers. These people who have been EDWARD F. COYLE $421 billion. Taking into account, in ad- waiting and waiting are our parents Executive Director. dition to the base cost, the benefits and our grandparents. They are our that would flow by the adoption of the neighbors. They are the people we used Mr. GRAHAM. Madam President, underlying generic bill, that figure is to work with. They are our friends. what does our plan provide? Our plan reduced to $407 billion through the year They are the Americans of the great will require of seniors who voluntarily 2010. generation. elect to participate a $25 monthly pre- That date is important because part We now have a challenge, an oppor- mium to do so. There will be no deduct- of our legislation is a required reau- tunity, a responsibility to respond to ible. There is an easy-to-understand co- thorization by the Congress in 2010. In this great need that they have of some payment system, which is $10 per pre- much the same way as we are now re- assistance in paying for what has be- scription for generic medication and authorizing Welfare to Work after it come the fastest growing segment of $40 per brand name, medically nec- has been in place for 6 years, we would our health care costs—prescription essary drug. require the reauthorization of this pre- drugs. If we do not act on the prescrip- I will pause at this point and point scription drug benefit so we can take tion drug benefit this year, I fear the out the connectedness of this plan and into account the experience we will American people will lose confidence in this structure of benefits to the under- have gained and make an assessment the Congress and our ability to make lying legislation we have been dis- as to what kind of prescription drug the tough choices necessary to address cussing throughout the week to make benefit we want to carry into the fu- our country’s priority domestic issues. it easier for all Americans to gain ac- ture. Certainly, I do not claim that our bill cess to generic drugs. If the program is extended, then the is perfect, but I do suggest that it is as Our legislation has a strong incentive 10-year cost of the plan through the good as our collective efforts have been for the use of generic drugs by having year 2012 would be an additional $173 able to make it at this point. I believe the $10 copayment for generics, $40 for billion. this amendment justifies the support of brand names. To the extent that more Because this prescription drug ben- our colleagues, as it has already re- generics are available, which, of efit would represent the largest expan- ceived the support of virtually every course, is the purpose of the underlying sion of the Medicare Program in its 37- major organization which represents bill, we will reduce the cost of this pro- year history, we believe it is important the interests of America’s seniors. gram and make it even more affordable for Congress to review the program to So I look forward to a full discussion to senior Americans. see how well it is working and whether and debate in the best tradition of this We set a maximum out-of-pocket ex- it has given seniors the coverage they great deliberative body. I hope at the pense of $4,000 per year. Above that, all need. end of that debate we not only will of the senior’s drug cost, including co- Madam President, our good friend have a better understanding of the op- payments, will be covered. This is the and colleague from Utah has intro- tions before us, but we will have so-called catastrophic coverage. duced legislation which has a similar reached a conclusion that will com- Seniors with incomes below 135 per- objective to the one we are proposing; mand the votes of a sufficient number cent of the poverty level will pay no that is, to assure that seniors would of Members of this Senate that we can premiums, and beneficiaries with in- have access to a comprehensive, uni- tell our senior constituents we have comes between 135 and 150 percent of versal, affordable prescription drug heard their long call for assistance in poverty will pay reduced premiums. We benefit. paying the costs of increasingly expen- want all senior Americans to be able to I have comments to make about the sive prescription drugs; that we under- participate in this program. plan which has been introduced. I will stand the importance of that call, and Our plan uses the same delivery defer those comments, however, until that we are now responding to that model that America’s private insur- Monday. call. That is the challenge and that is ance companies utilize. It happens to To conclude tonight, I want to say we my hope of what will be the conclusion also be the same model used by the are still hearing the background noise of this debate. Federal Employees Health Benefits that all of this is theater, that there is The PRESIDING OFFICER (Mr. DAY- Plan, a plan that covers virtually ev- no real commitment to passing a pre- TON). The Senator from Utah. erybody in this Chamber. scription drug benefit in the year 2002, Mr. HATCH. I want to express my ap- We use pharmacy benefit managers, as there was not in 2001, 2000, and on preciation to my colleague from Flor- or PBMs, to deliver and manage pre- for the many years which seniors have ida. He is an eminent member of the scription drug benefits, just as they do been promised by different people seek- Senate Finance Committee. He is a in virtually every major private and ing office that if elected they would de- very serious, reflective Member. He has public sector employee health insur- liver on a prescription drug benefit. worked hard to come up with his bill. I ance plan. PBMs are companies that What we are committed to today— respect him for it, and I wish him well negotiate with pharmaceutical compa- and I believe this feeling also carries to with it. However, I will say a few nies to get discounted prices based on my good friend from Utah and those things about Senator GRAHAM’s bill be- their volume purchase. who have joined him in his legisla- fore I finish. We would allow all seniors a choice of tion—is we are not interested in elec- Tonight, I introduced an amendment which PBM to join. This would give tion year posturing. We want to actu- that is called the tripartisan bill. I in- choice to seniors, and it would give ally accomplish a result. We want to be troduced it on behalf of Senator GRASS- them the opportunity to shop among able to say to our senior Americans, we LEY for himself, Senators SNOWE, JEF- the PBMs that are competing for their have turned the corner. No longer are FORDS, BREAUX, COLLINS, LANDRIEU,

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7023 HUTCHINSON, DOMENICI, and myself. We tripartisan group’s goal is to put an sunsets after 2010, which makes it a believe this tripartisan bill is the only end to that. Through our bill, we will less than 10 year benefit for approxi- nonpartisan bill being considered by provide additional assistance to those mately $600 billion. That is if I am the Senate at this time. It is a very im- seniors who need it. For example, the right on the scoring. I believe having portant effort by people of goodwill on 10 million beneficiaries with incomes the sunset on such an important bill both sides and, of course, the only below 135 percent of poverty will have just to get a decent score from CBO is Independent in the Senate. 95 percent of their prescription drug not being as fiscally responsible as I I want to take this opportunity to costs covered by this plan with no would like to be. I understand there is talk a little bit about the tripartisan monthly premium. They will not have some window-dressing language that bill. Many of these points were raised to pay a monthly premium. In addi- attempts to address the sunset, but to two nights ago, when I spoke on the tion, these seniors are exempt from the me that is all it is—window dressing. Senate floor about our tripartisan pro- deductible and will pay well under $5 Having said that, I am absolutely as- posal. Tonight, I will raise them again for their brand name and generic pre- tounded that the AARP has come out because I believe that all of them are scriptions. Finally, these beneficiaries and ask its members to support a bill extremely important and worth listen- who reach the catastrophic coverage that does not have a permanent ben- ing to again. limit will have full protection against efit. That is just irresponsible on the While drafting this legislation, we all drug costs, with no coinsurance. part of the AARP. They are, in my tried to reach out to everyone who has The 11.7 million lower income bene- opinion, not looking out for the best an interest in this issue. We have taken ficiaries with incomes below 150 per- interests of seniors by asking their this very seriously, and we have cent of the poverty level are also ex- members to support this type of a bill. worked on it for well over a year. This empt from the $3,450 benefit limit. En- I am very disappointed in the AARP has required many hours of meetings, rollees between 135 percent and the 150 for making what I believe is a poor among all of the sponsors of the bill percent of the Federal poverty level judgment call. and our staffs along with other inter- will also receive a generous Federal Again, one of my top concerns with ested parties. Let me assure everyone subsidy that on average lowers their the both versions of the Graham bill is that this has been a unified effort, one monthly premium to anywhere be- the cost. It is not going to get better as which has required some give and take tween 0 and $24 a month. The bene- drugs become more expensive and more from all of us. ficiary’s monthly premium will be and more baby boomers retire. I re- We have worked with CBO to come based on a sliding scale, according to mind my colleagues, our Government up with a cost-efficient solution. The his or her level of income. is in a Federal deficit. Figures from Congressional Budget Office has told us It also cuts in half their annual drug last week reveal that the Federal def- that our bill will cost $370 billion over bills. All other enrollees will have ac- icit could be as high as $150 billion for cess to discounted prescriptions after 10 years. As far as I know, the Daschle- fiscal year 2002. Passing a bill that I be- reaching the $3,450 benefit limit and a Graham-Miller bill, S. 2625, does not lieve could cost well over $600 billion critically important $3,700 catastrophic have a CBO score, but I suspect that it over 10 years is going to increase our limit which protects seniors from high is extremely expensive. The distin- deficit. That is, in my opinion, a step out-of-pocket costs. It is also impor- guished Senator may have some idea of in the wrong direction. tant to note that 80 percent of Medi- what that score is because he has indi- The new Graham bill is still a one- care beneficiaries will never experience cated that the amendment that he just size-fits-all bill that very well could a gap in coverage. lead to having the Federal Government introduced will cost around $600 bil- Let me take a few minutes before we set drug prices, although I know that is lion, if I understand it, over 10 years. finish this evening to talk about my not the intention of my dear friend and The prescription drug program in the views on S. 2625, the Daschle-Graham- Graham legislation would include a Miller Medicare Outpatient Prescrip- colleague from Florida. That is, in my sunset at the end of 2010, which is one tion Drug Act of 2002. I understand that opinion, the wrong direction, as well. of the problems with this legislation. a new Graham bill has been filed and And why on earth should the Federal On the other hand, there are no sun- we are currently reviewing the details. Government be making coverage deci- sets within our bill. Our tripartisan bill We have not been able to review it very sions for seniors? I trust senior citizens is a permanent solution, not a tem- thoroughly, but we have a quick pre- to make their own decisions about porary solution. CBO informs us that view of it, and perhaps I can express their health coverage. Apparently, the once our bill is implemented, 99 per- my thoughts this evening just so peo- authors of the Daschle-Graham-Miller cent of all seniors will have drug cov- ple will have something to consider bill do not agree and that is why they erage. That would be truly remarkable. over the weekend. continue to put the Government in And that is CBO, not us. Again, I commend my good friend, a charge. Again, this is a nonpartisan approach person I admire greatly, Senator BOB I look forward to the debate on Mon- to providing prescription drugs to GRAHAM, for his bill. I know he has day where we can discuss these issues Medicare beneficiaries. On the other worked hard. I know he has tried his more fully. If I am wrong on some of hand, the Daschle-Graham-Miller bill best. I know he is representing his peo- these suggested interpretations of my sunsets after 2010. So in my opinion, ple in Florida very well and he has friend’s bill, I would like him to set me that bill is only a temporary solution. worked long and hard on this issue. I straight on Monday when we debate Does a temporary solution truly help respect him for that. I respect him per- this bill even further. I would like to seniors in the long run? I do not think sonally. He knows that. He, like those know why anybody believes a sunset is it does. Our tripartisan bill provides all in the Senate in the tripartisan group, necessary. That means the drug benefit Medicare beneficiaries with affordable has the same goal: To provide Medicare ends. I hope we will have a CBO cost es- prescription drug coverage because we beneficiaries with prescription drug timate we may review regarding the let competition determine the prices, benefits. But that is where the similar- Graham legislation. not Government bureaucrats. That is ities end. Again, I wish to point out that I con- how we keep prices of drugs down. It is My biggest concern with the new tinue to be concerned that under both not a good idea to let the Government version of the Daschle-Graham bill is versions of the Daschle-Graham legis- set the price, which is what I predict still the cost. My understanding is that lation, the drug benefit is run by the will happen if the Daschle-Graham bill this bill costs close to $600 billion, over Federal Government. I don’t think that becomes law. a 10-year period. We all agree a Medi- is a good idea, to let the Government We also provide additional subsidies care drug proposal will cost a lot of run a drug benefit because the Govern- to low-income seniors so they, too, can money, but the Daschle-Graham-Miller ment will end up setting prices for afford to pay for their drugs. I find it bill is, in my opinion, too expensive to drugs. Keep in mind, Canada sets prices absolutely appalling that there are both current and future generations be- for drugs, and where is their pharma- people in our country who have to cause of the magnitude of its costs. ceutical industry today? They have to choose between buying food and eating, And bear in mind, this bill is still not look to us because we do not set prices and having prescription drugs. The a permanent program. It sunsets. It for drugs and we have a competitive

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7024 CONGRESSIONAL RECORD — SENATE July 18, 2002 system. Yes, some say it has flaws, but enhanced fee for service program, once just work it out—I have no doubt about it is the best in the world, bar none. that beneficiary reaches a catastrophic that. Unfortunately, it has gotten em- Frankly, with whatever flaws there limit of $6000, the Medicare program broiled in some political aspects. are, we should be very proud of the sys- pays 100 percent of any costs incurred Again, I call attention to the tem we have in our country. by the Medicare beneficiary. I feel that tripartisan bill which has Democrats, In the tripartisan Medicare drug bill, is only fair. Those Medicare bene- Republicans, and the sole Independent. we allow Medicare beneficiaries to ficiaries with serious health conditions I believe that bill literally could pro- make choices for themselves. They de- should be offered a choice in benefit vide an affordable drug benefit for cide whether or not they want drug coverage so if they want serious, ill- Medicare beneficiaries, although it is coverage. As I mentioned earlier, we ness protection, they may have it. The still expensive. It could do what we allow Medicare beneficiaries to choose Graham-Daschle-Miller bill does noth- really need to have done—not only on from at least two drug plans, and it ing to assist Medicare beneficiaries in the prescription drug benefit aspect of maybe more, but at least two, com- these types of situations. The Daschle- this matter but also on the Medicare peting plans, allowing them to select a Graham-Miller bill’s answer is to pro- reform as well—and Medicare+Choice plan that best suits their own personal vide seniors with a government-run as well. To me, that is very important. needs. prescription drug benefit that is ex- I look forward to working with my Another difference between the tremely expensive, and, isn’t even per- colleague from Florida and others on Daschle-Graham bill and our manent. That just is not enough. the floor and hope we can come to a Tripartisan bill is that we include re- These issues that I have raised about resolution this year, so the millions of forms to the Medicare program and the Daschle-Graham-Miller should American citizens will have the bene- they do not. The current Medicare ben- have been debated by the Finance Com- fits that we really should be delivering efit package was established in 1965. mittee. I admit the issues we have to them and which they need and While the benefits package has been raised by the Tripartisan bill should which are right and just. modified occasionally, it now differs have been debated by the Finance Com- Mr. President, I yield the floor. The PRESIDING OFFICER. The Sen- significantly from the benefits offered mittee. Who knows, maybe we could to those in private health plans. Our ator from Florida. have come to some resolution. Maybe Mr. GRAHAM. Mr. President, as I in- plan gives seniors a choice in their the authors of the Tripartisan bill and dicated, I restricted myself this Medicare coverage seniors may remain the Daschle-Graham-Miller bill could evening to discussing the essence of in traditional Medicare or they may have come to some agreement through our proposal and what I think are the opt for the enhanced Medicare fee for the Committee mark-up process. six principles against which every pro- service option which is similar to pri- Maybe not. Sadly, we will never know posal should be evaluated. I defer until vate health insurance. We do not force because the majority leader wouldn’t Monday a close evaluation of the legis- seniors to enter into the new enhanced even give us an opportunity to mark- lation that has been introduced by our fee for service plan. It is just an option. up a prescription drug bill in the Fi- good friend from Utah and others. One If beneficiaries want to stay in tradi- nance Committee. of the things I do not want to do is to tional Medicare that is fine. I have been here for 26 years and, create a poisoned environment which We need to give seniors choices con- trust me, it is rare for the full Senate will make it difficult, if not impossible, cerning their health care coverage. to be considering such an important to do what I think seniors want, which Seniors must be given improved health bill before it is even considered by the is to arrive at a reasonable compromise care choices through the Medicare pro- Committee of jurisdiction. I am bit- that will provide them with a prescrip- gram. It is extremely unfortunate that terly disappointed at how much the tion drug benefit. the Daschle-Graham-Miller bill does Senate has changed. They have heard us too many times, not recognize that the Medicare pro- At the beginning of the 107th Con- as candidates, place in their living gram needs to be improved so seniors gress, we all talked about working to- rooms on their television screens ads can take advantage of the benefits that gether in a bipartisan spirit because that pronounce our commitment to a are offered by private health insurance. that is truly what the American people prescription drug benefit for senior Keep in mind, our bill only costs $370 want from us. What happened to that Americans. billion as scored by the Congressional bipartisan spirit? Why are we on the Now is the time to deliver. I recog- Budget Office. Yet we still reform floor debating a bill that will affect the nize that in a democracy that means Medicare in addition to providing high lives of over 33 million Medicare bene- we have to have at least a majority, quality prescription drugs to our peo- ficiaries and millions of future bene- and probably under the rules of the ple. There is nothing in the Daschle- ficiaries without a Finance Committee Senate not just a majority but three Graham-Miller bill to improve the mark-up? I just do not understand why out of every five Senators be prepared Medicare program. It just tacks on a members of the Finance Committee to vote for a single piece of legislation. prescription drug program and ignores were not even given that opportunity Therefore, I reach my hand out the larger problem. Medicare bene- and, in fact, completely excluded from across the aisle to two of my favorite ficiaries deserve better. the process, other than that we can file colleagues, the Senator from Utah, who Senator BREAUX deserves an awful whatever bill we want to, which we is now being joined by the Senator lot of credit for our bill in this area. He have done. from Iowa, with whom I worked on has wanted to reform Medicare for a I want to do everything I can to pass many issues in the past, to say we look long time and has come close from a Medicare prescription drug bill into forward to engaging in that com- time to time. This is the best oppor- law this year. But it appears that elec- promise. tunity to do it. I think he sees the tion year politics are more important I do want to have printed in the value of what we have tried to do. He than passing a well-thought out pre- RECORD, and I ask unanimous consent not only sees it, he helped implement scription drug bill which is extremely to do so, the CBO estimate of our bill. it. unfortunate. There being no objection, the mate- The larger problem is the overall I stand ready to work with my col- rial was ordered to be printed in the Medicare benefits package which is leagues so that we can provide afford- RECORD, as follows: outdated, inefficient and it does not able prescription drug coverage to our Democratic Drug Bill—Preliminary CBO provide seniors with decent health care Medicare beneficiaries this year. We Estimates options. Let me give you an example. need to have Medicare available for to- [In billions of dollars] Today, Medicare beneficiaries do not day’s seniors, our children and our Full Score (2005–12) have any serious illness protection. grandchildren. So let’s stop playing Gross estimate ...... 594 Beneficiaries who are seriously ill end politics and start working on getting a Score with % drug reduction from up paying a lot of money out of pocket Medicare prescription drug bill signed GAAP 1 ...... 584 for their health care coverage each into law this year. I have no doubt if Score with Federal GAAP savings 2 576 year. In our Tripartisan legislation, if the distinguished Senator from Florida Score with Contingency (2005–10) a beneficiary is covered under the new and I could sit down together we could Gross estimate ...... 421

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00058 Fmt 4624 Sfmt 0655 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7025 Score with % drug reduction from ing what I call a ‘‘defined benefit plan’’ improvements to Medicare by adding GAAP 1 ...... 415 where seniors would know what they the comprehensive prescription drug 2 Score with Federal GAAP savings 407 are buying as opposed to a defined con- benefits, and a new Medicare fee-for- 1 CBO estimate of Democratic drug bill assuming tribution plan where there would not service option to the 1965 program. lower drug prices for Medicare beneficiaries that would result from enactment of the GAAP bill (S. be that assurance. These are all first improvements in 812). Those are all legitimate issues for us Medicare since it was introduced in 2 Estimate of Democratic drug bill assuming lower to debate. 1965. drug prices for Medicare beneficiaries that would re- As I indicated to you, I have been sult from enactment of the GAAP bill (S. 812) and I suggest to my colleagues that they savings from lower costs associated with prescrip- might take the time over the weekend honored to work with a top-notch tion drugs that the government current pays for to read the letters of endorsement from group of Senators on this bill. That under the Medicaid, veterans, and other programs. groups such as the AARP, which clear- tripartisan group is OLYMPIA SNOWE, a Mr. GRAHAM. Mr. President, the es- ly has no interest other than rep- Republican; JOHN BREAUX, a Democrat; timate of our bill is that, in conjunc- resenting the best interests of their JIM JEFFORDS, an Independent; and tion with the underlying generic drug millions of members—most of whom ORRIN HATCH, a Republican. The group bill, if that passes and makes generic are part of this 39 million Americans has dedicated countless hours to this drugs more available, our bill, which who are Medicare participants because effort. would only charge a $10 copayment for they are over the age of 65. There is no I must express my disappointment generic drugs as opposed to a $40 co- reason to suspect their motives, or that the Senate Finance Committee payment for brand name drugs—our that they have some hidden agenda has not had an opportunity to consider bill would have a cost over the next 8 other than what they think is in the legislation as part of the committee years of $407 billion—not $600 billion, interest of senior Americans. process. I trust that Senator GRAHAM or $800 billion, or, as some have even I recommend reading their rationale of Florida will feel the same way. How- said, $1 trillion—and over the next 10 for reaching the conclusion of their ever, the bottom line is America’s sen- years would have a cost of $576 billion. support for our proposal. iors have waited too long—and too long I might point out that this is the I conclude tonight with a sense of op- already—for Medicare prescription same program for 8 years that will cost timism. We have gotten further this drug coverage. $407 billion, and for 10 years will cost week than we have gotten in a decade The House has acted in their fashion. $576 billion. in terms of closure on providing our The Senate must act as well. We can- That differential is a reflection of older Americans with a key but miss- not afford to waste a single day. I look forward to debating this im- how significant two factors are: One, ing part of their health care coverage; portant issue over the next few days inflation of prescription drug costs; that is, assistance with their prescrip- and hope that the same bipartisan spir- and, second, the change in the demo- tion drug costs. it of cooperation and compromise that graphics of Medicare beneficiaries. I hope next week we can complete guided the tripartisan group over the I happened to have been born in 1936. this by the passage of a prescription last year to write this bill will guide I was 65 years old on November 9 of last drug bill recognizing that we have to all Senators in this Chamber to an year. I belong to the second lowest negotiate with the House, and then se- agreement that will give long overdue birth rate year in the 20th century. cure final passage, and hopefully gath- Only 1933 had a lower birth rate than help to our seniors. er in the Rose Garden where I suspect Since the tripartisan bill is now in- 1936. Therefore, there are not very that the President will, with great en- troduced, since we have the Democrat many people my age. We are not put- thusiasm, be there to sign this bill into version, and Senator GRAHAM’s bill is ting a particular demand on Medicare law and provide what America’s older introduced, and since there is some or on the Social Security Program. citizens have so long sought, an afford- misunderstanding of the differences be- But, in 10 years, it will be the people able, comprehensive, and universally tween the two, I will take just a little who were born in 1946—not 1936—which available prescription drug benefit. bit of time to go over those. I also will was the beginning of one of the great- The PRESIDING OFFICER. The Sen- take just a little bit of time to express est demographic revolutions in Amer- ator from Iowa. some differences between the bill that ica history. Mr. GRASSLEY. Mr. President, I am passed the House of Representatives We are going to begin to feel the im- surely glad that this debate has begun. because some people have alluded to pact of that revolution at the outer It is too bad we could not have started that bill as something just exactly like years of the 10 years. We are now calcu- the debate on this bill on Monday or the tripartisan bill, which it is not. lating the cost of this program. It is Tuesday of this week when the major- In regard to differences between Sen- my judgment that it is critically im- ity leader led us to believe that we ator GRAHAM’s proposal and the portant that we now get started on this would be doing nothing but prescrip- tripartisan proposal that I have of- prescription drug benefit so that we tion drugs until we got it done. fered, the first would be cost. can learn as much as we possibly can I am glad that we now have Senator The sheer magnitude of Federal about what the implications are of de- GRAHAM’s alternative before us. spending in the Senate Democrat bill— livery systems, of methods of providing I thank Senator HATCH, who took the an amount that is obscured by a sunset benefits, and how to attract healthy, position as manager, while I was on the provision that kills the benefit in older citizens to participate in a pre- CNN program just a few minutes ago, 2010—threatens Medicare’s long-term scription drug benefit—all the things to introduce the tripartisan bill on my stability. As such, the Senate Demo- that will be critical to the long-term behalf. That bill is a comprehensive crat bill gives seniors temporary help, stability of a prescription drug benefit. prescription drug bill that represents a not a permanent entitlement. We need to start that process today year of hard work by dedicated mem- By contrast, the Congressional Budg- when the demand is relatively low—not bers of the Finance Committee, the et Office official estimate concluded 5 or 10 years from now when the de- committee that has jurisdiction over that the tripartisan 21st Century Medi- mand will begin to rapidly escalate. Medicare. care Act totals $370 billion over 10 We have before us two different vi- We have Senator GRAHAM’s bill that years, a figure that guarantees perma- sions of how to get to the same des- you have heard about tonight. Then we nent, affordable drug coverage without tination. The Senator from Utah has have this tripartisan bill. People won- breaking the Medicare bank. outlined a number of issues of concern der what the term ‘‘tripartisan’’ There is also the issue of choice that to him. I look forward to having a full means. It means three Republicans, separates the tripartisan plan from the debate on Monday. Hopefully, we can one Democrat, and one Independent in Democrat plan. The Democrat plan re- frame each one of these issues, such as the Senate, but it also implies biparti- lies on the Government to pick one the relative benefits of using the Medi- sanship, or across-party cooperation standard prescription drug plan for care system as a means of delivering that must be done to get any bill over 40 million seniors with Medicare. prescription drugs, or delivering it passed in the Senate. The one-size-fits-all approach means through subsidized private insurance Our legislation is called the 21st Cen- seniors cannot shop for a prescription policies—the relative benefits of hav- tury Medicare Act. It makes essential drug plan that best suits their needs.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7026 CONGRESSIONAL RECORD — SENATE July 18, 2002 Under the tripartisan 21st Century They can keep what they have. Even 50 care and a strengthened Medicare Act, seniors are guaranteed years from now they will still have Medicare+Choice. Seniors can keep to have at least two competing pre- that same choice, but they can also what they have if they like it or choose scription drug plans in their commu- have the enhanced coverage as well. So the new option. In all three settings, nity, even in rural areas, using local it is voluntary. And Medicare, as we access to affordable prescription drug pharmacies as well. Seniors will have know it today, will always remain coverage would be guaranteed. the choice of picking plans on the basis available to seniors who prefer to keep I just mention the difference, that of cost, benefits, and quality. All plans what they have, if they like it. the House bill does not have a new and will be required to meet Federal qual- Improvements are made to yet an- improved and modernized Medicare op- ity standards and to provide a standard other coverage option. That coverage tion that we have in the tripartisan benefit package, or its actuarial equiv- option exists today. Medicare+Choice bill. alent, including a $3,700 cap on out-of- plans are also included. Beneficiaries (Mr. JEFFORDS assumed the Chair.) pocket drug expenses for seniors. need not elect the enhanced option in Mr. GRASSLEY. Since the distin- There is a difference in drug pricing. order to have access to the drug benefit guished Senator from Vermont has now Because the Democrat plan is overly plan. come to the chair to be the Presiding bureaucratic and excessively generous, I will finish, then, with a short de- Officer of the Senate, it gives me an that plan does nothing to curtail or scription of why what the House of opportunity to say that this provision even slow skyrocketing prescription Representatives passed has nothing to in the tripartisan bill, of improving drug costs. That is why it is essential do with the tripartisan plan. Medicare, bringing Medicare from a that any new prescription drug benefit The tripartisan plan was adopted on 1965 model to a 21st century model, im- contain cost management controls that principles and pricing and costs, the proving it beyond the prescription drug moderate growth in price. way the five of us decided to do it. For provisions, was very much a concern of While guaranteeing a comprehensive instance, the House bill has a higher the Senator from Vermont, the Inde- drug coverage for all citizens, the average premium. This is according to pendent member of the Senate, Mr. the CBO estimate. The average pre- tripartisan 21st Century Medicare Act JEFFORDS. I thank him very much for imposes reasonable cost-sharing obli- mium under the House bill is $34 per his contribution to that. gations on beneficiaries and promotes month. The average premium under It really has probably done as much competition among prescription drug the tripartisan 21st Century Medicare for Medicare as the prescription drug plans. And with competition being pro- Act is substantially more affordable, at provisions will, as we look to the day just $24 per month. moted in the bill, that then leads to a when we have baby boomers going into We have a much better benefit. The better overall effect on drug prices. transition from their employer’s health House bill limits the initial prescrip- And that, again, is according to the tion drug benefit to $2,000 before expos- plans to Medicare. There will be a nonpartisan Congressional Budget Of- ing seniors to a gap in coverage. The smooth transition if they choose the fice that does policy analysis and scor- tripartisan 21st Century Medicare Act enhanced option; whereas all the other ing for the Senate. basic drug benefit is better and is rich- plans, including the Republican plan in The other issue is affordability, af- er than that in the House bill. Seniors the House of Representatives, includ- fordability for seniors. Under the Sen- will have drug coverage under the ing even the President’s plan, Medicare ate Democrat plan, seniors face fixed tripartisan plan worth 50 percent of will still be a 1965 model. And for baby copayment amounts that, in many in- their drug spending up to $3,450 after boomers going from their modernized stances, mean they will actually pay the deductible is met, and that is $1,450 employer’s health plan to the 1965 more for many of the most commonly more than what the House bill offers, model of Medicare, if that is the only prescribed drugs than they would under even in its initial benefit. choice they had, it would not be a very a system that gives prescription drug We have greater protection for low- good day for those baby boomers going plans more flexibility to offer lower income seniors in this Senate version. into retirement. cost copayments. The tripartisan 21st Century Medicare It has been such a pleasure to work That flexibility is a feature of the Act steps in to give more help to low- with Senator JEFFORDS on this whole tripartisan 21st Century Medicare Act income seniors where the House bill package, but most importantly, to because it gives plans the freedom to does not. It provides full assistance have his leadership on this part that offer copayments and deductibles that with premiums and substantial assist- deals with the enhanced option, the save seniors more money. Moreover, ance with cost sharing for seniors new and improved and strengthened the tripartisan proposal has a lower av- below 135 percent of poverty with no Medicare. erage premium than the Democrat gaps in coverage. For seniors between Mr. KENNEDY. Mr. President, I ask plan, and that would be $24. Again, this 135 percent and 150 percent of poverty, unanimous consent to have printed in is according to a Congressional Budget assistance with premiums and cost the RECORD this letter to Mr. Carl Office estimate. sharing is provided on a sliding scale, Feldbaum of the Biotechnology Indus- We have Medicare enhancements in also with no gaps in coverage. This try Organization. the tripartisan bill that the Senate critical additional coverage for our There being no objection, the letter Democrat plan does not have because most vulnerable seniors is an impor- was ordered to be printed in the that plan leaves current Medicare as it tant distinction that reflects the RECORD, as follows: is and simply dumps a massive entitle- tripartisan commitment to universal, ment expansion, which would be the affordable drug coverage for all. U.S. SENATE, prescription drug plan, into the old 1965 And then, lastly, I will speak about Washington, DC, July 18, 2002. model. our enhanced option to which I have al- Mr. CARL B. FELDBAUM, The tripartisan 21st Century Medi- ready referred. The House bill leaves President, Biotechnology Industry Organiza- tion, Washington, DC. care Act takes long overdue steps to the 1960s-style Medicare largely as it is strengthen and improve Medicare’s DEAR MR. FELDBAUM: I was surprised to re- today. It does provide $30 billion in ad- ceive you letter of July 15, 2002, opposing S. basic benefit package. In addition to ditional funds to Medicare providers, 812. The Greater Access to Affordable Phar- adding prescription drug coverage, the but it does little to strengthen or im- maceuticals Act (the GAAP Act or Schumer- bill offers seniors a new enhanced op- prove Medicare’s basic benefit package. McCain). The record is abundantly clear that tion, including catastrophic protection Rather than addressing provider pay- the pharmaceutical industry is exploiting and free—let me emphasize, free—pre- ment issues, the tripartisan 21st Cen- loopholes in our Hatch-Waxman drug patent ventive care; in other words, adopting tury Medicare Act addresses Medicare’s laws to block less costly generic drugs from the principle that an ounce of preven- benefit flaws. It offers seniors a vol- coming to market. As our hearings revealed, tion is worth a pound of cure. these actions hurt millions of American pa- untary enhanced option, including cat- tients who are burdened with rising health This entire enhanced option is vol- astrophic protection, free preventive care costs. untary. If seniors like what they have care, and better Medigap plans. The exciting new cures brought forward had since 1965, they do not have to The new option would be offered each day by America’s biotech companies are sweat it. They do not have to do it. alongside current fee-for-service Medi- paving the way for what I believe is the new

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7027 century of the life sciences, and I remain a against a generic drug company, or a person the applicant is not seeking approval for a proud champion of the biotechnology indus- who manufactures, develops, uses, offsets to use claimed in the patent. In either case, no try in Massachusetts and across the nation. sell, or sells a generic drug, if the patent certification is necessary and the paragraph It is important, therefore, as an industry owner has failed to list the patent informa- III certification essentially goes away. concerned about the health of all Americans, tion at FDA. This provision provides an ef- Should the generic applicant lose a for BIO to acknowledge the harm to Amer- fective enforcement tool for a current re- delisting case, however, it will have to recer- ican patients and consumers caused by to- quirement. tify and challenge the patent under para- day’s Hatch-Waxman abuses. Clearly, collu- Drug companies are required currently to graph IV. This could trigger a 30 month stay, sive agreements between brand-name compa- list patents at FDA, and I am not aware of and at a minimum would delay the resolu- nies and generic companies to block cheaper any complaints about this requirement from tion of the patent issues involved. It is there- generic drugs from coming to market do not the brand pharmaceutical industry. We un- fore my view that there are strong incen- serve the public interest. Similarly, patients derstand that now companies generally com- tives for generic applicants to bring these are harmed when generic drugs are stymied ply with this requirement because patents delisting cases only when there is strong year after year by unfounded patent can trigger 30 month stays of the effective merit to the case. Because this is the case, it evergreening for brand name drugs. I would approval of generic drugs. is difficult to argue that delisting cases will strongly encourage BIO to be part of the so- As you know, however, Section 4 of Schu- be either unnecessary or harassing. lution to these challenges. mer-McCain limits 30 month stays to one per To the contrary, in such cases, the The Schumer-McCain legislation addresses generic application, and on only certain pat- delisting of a patent, or correction of patent these abuses and restores the balance in- ents. The Committee’s concern was that lim- information, serves a public good. This is be- tended under the Drug Price Competition iting 30 month stays in this way reduces the cause a patent to which other generic drugs and Patent Term Restoration Act of 1984 incentive to list patents. We therefore con- would otherwise have to certify is instead ei- (the Hatch-Waxman Act). As your letter ex- presses concerns about the legislation, this cluded that we needed to provide an effective ther delisted or corrected so that no certifi- letter describes in further detail the Com- incentive for compliance with the current re- cation is necessary. In such cases, generic mittee’s intent in addressing them,. The quirement to list patents at FDA. Otherwise, drugs may get more quickly to market, to issues you raised include incorrectly listed we were concerned about increased abuses of the great benefit of consumers. patents or patent information with the Food the listing requirement. BIOEQUIVALENCE Currently, under section 505(e)(4) of the and Drug Administration (FDA), use of pat- BIO requests that section 7 of Schumer- Federal Food, Drug, and Cosmetic Act (the ents to trigger multiple thirty month stays McCain be stricken in its entirety. I do not FFDCA), FDA can withdraw a drug from the that delay effective approval of generic believe this provision raises the concerns market if the patent information is not filed drugs, collusive agreements between brand that BIO thinks it does. after the agency gives written notice of fail- and generic pharmaceutical companies to Section 7 allows FDA to amend its regula- ure to file the information. FDA has never block subsequent generic applicants from tions, but it does not say that those amended used this enforcement tool, and it would not gaining effective approval of their drug prod- regulations are legitimate exercises of au- withdraw a drug from the market for this ucts and litigation attacking FDA’s bio- thorities under the FFDCA. Only the current reason when the drug presumptively is being equivalence regulations that have delayed regulations are identified as continuing in used safely for treatment of patients by entry of generic versions of drugs. effect as an exercise of authority under the health care providers. I believe that Section THE 45 DAY PERIOD TO ASSERT PATENT RIGHTS FFDCA. Should FDA ever amend its bio- 3 of Schumer-McCain provides effective en- You express concern that a patent owner’s equivalence regulations, they would be sub- forcement of the FDA listing requirement. rights will be forfeited under Schumer- ject to judicial review under the Administra- Your letter raises the real concern about McCain. I want to reassure BIO that this is tive Procedure Act. situations in which a patent is not listed, or not the case. Indeed, earlier drafts of section 7(a) cov- the information is incorrect, because of an Section 4 of Schumer-McCain says that a ered the FDA’s current regulations and suc- oversight or a clerical error. But Schumer- patent owner that does not sue within 45 cessor regulations. But we did not intend to McCain addresses this problem as well. days of receiving notice that a generic drug protect amended regulations from judicial Section 3 of Schumer-McCain allows FDA applicant has challenged its patent will be review, so the language on successor regula- to extend the date for listing patents if there barred from suing that generic drug later. tions was removed. are extraordinary or unusual circumstances. This provision provides the patent owner Also, under section 7(a), the application of An honest administrative or clerical error is with the opportunity to protect its patent the current regulations in any particular clearly such a circumstance. Because FDA rights. It also clarifies those rights in rela- case would be legitimate issues for judicial tion to the generic drug product at issue if publishes patent information immediately review under the Administrative Procedure the patent is not defended, thereby enabling upon receipt, the drug company and the pat- Act. So FDA can be challenged if its applica- the generic drug product to be marketed im- ent owner can promptly check that patent tion of those regulations will pose potential mediately. The 45 day period may be thought information is published and that it is cor- risks to patients or to public health. of as a statute of limitations, and Congress rect. If there is an error, or a patent was not Finally, BIO believes that section 7(c) is has plenary authority to establish statutes listed, the error can be spotted quickly and of limitations for federally created rights inadequate. This language, which we added immediately corrected. Accordingly, Schu- in part in response to concerns from BIO, such as patents. In addition, comparable pe- mer-McCain allows patent owners to avoid riods of time for claiming or defending prop- says that section 7 shall not be construed to the consequences of the inadvertent failure alter the authority of the Secretary of erty rights have been upheld by the Supreme to list a patent with the FDA. Court. Health and Human Services to regulate bio- This provision does not eliminate the pat- THE CAUSE OF ACTION TO DELIST OR CORRECT A logical products under the Federal Food, ent owner’s rights against the generic drug PATENT Drug, and Cosmetic Act. Any such authority applicant and its generic drug product. Rath- Your letter also raised questions about the shall be exercised under that Act as in effect er, it specifies the time within which the cause of action in Section 3 of Schumer- on the day before the date of enactment of patent owner must assert those rights McCain to delist patents from FDA’s Orange this Act. against that applicant and its drug product. Book or to correct patent information. In This language is very similar to a state- I cannot overemphasize that the bar on en- particular, BIO is concerned that generic ment that Senator Jeffords and I made on forcing the patent right under this 45 day companies will bring these cases unneces- December 3, 1997, in a letter to Michael rule applies only to the particular generic sarily, to harass a drug company or patent Friedman, then Lead Deputy Commissioner product of the particular generic company owner. I do not believe that this will be the at FDA. It makes it clear that we are not that has challenged the patent in its generic case. changing FDA’s authority under the FFDCA drug application. It does not affect the abil- A generic drug company must certify to over biological products—in particular that ity of the patent owner to enforce its rights the patents listed on a drug when it files a we are not making changes to newly author- with respect to any other generic company, generic drug application. A generic company ize the approval of generic biologics under or with respect to a licensee who strays be- must do so even if it intends to seek the cor- the FFDCA. That was good enough in 1997 yond the bounds of a licensing agreement rection or delisting of a patent. and should be good enough today. under which the patent owner has licensed If a generic wants to delist a patent or cor- I remain committed to the reforms of the use of the patent. rect information, it will likely chose to Hatch-Waxman Act provided for in Schumer- That being said, I also point out that the make a paragraph III certification to the McCain, just as I remain committed to a bar does protect downstream distributors of patent, saying that the applicant does not strong and vibrant biotechnology industry, the particular generic drug product, such as contest the patent and requesting that its both in Massachusetts and throughout the wholesalers and pharmacies, as well as doc- drug approval be made effective when the nation. I believe that the adjustments to the tors and patients who will use the generic patent expires. The generic applicant will Hatch-Waxman Act found in Schumer- drug product for treatment. then sue to have the patent delisted or cor- McCain correct imbalances in and will stop ENFORCEMENT OF THE PATENT LISTING rected. abuses of the generic drug approval process REQUIREMENT If it wins, the patent is delisted, or the pat- that have arisen in recent years. I do not be- Seciton 3 of Schumer-McCain says that a ent information is corrected so that the ge- lieve that these reforms will adversely im- patent owner cannot enforce its patent neric applicant may make a statement that pact in any way a company or patent owner

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7028 CONGRESSIONAL RECORD — SENATE July 18, 2002 that diligently sees to its legal rights and We said: What do you want? Mr. Cooke ‘‘a force for good in the federal obligations under Federal law. They told Senator DASCHLE: We want government.’’ I hope that this letter addresses your con- four Democrats, three Republicans. Mr. Cooke’s many honors included seven cerns, and I remain willing to work closely We said: Fine, we will go for that. awards of the Defense Medal for Distin- with my many friends in the biotechnology They still won’t let us clear this. It is guished Civilian Service. In 1999, he was given the President’s Award for Distin- industry in Massachusetts and elsewhere as my understanding the House is going this legislation moves forward. guished Federal Service, the highest govern- Sincerely, out of session for the summer next Fri- ment service award. EDWARD M. KENNEDY. day. So we have just a few days to do Mr. Cooke called in some of his consider- this. Everyone should understand why able chits in the late 1980s and early 1990s as Mr. REID. I suggest the absence of a it is not being done. he argued vociferously for a billion-dollar quorum. The PRESIDING OFFICER. Objec- renovation of the Pentagon. Up until Sept. The PRESIDING OFFICER. The tion is heard. 11, it was scheduled for completion in 2004. clerk will call the roll. The hijacked airliner that slammed into Mr. REID. I will put it back on my the side of the building that day, killing 189 The assistant legislative clerk pro- desk, and I will return with this in the ceeded to call the roll. people, hit a wedge of the Pentagon that had future. undergone upgrading. Some of those features Mr. REID. Mr. President, I ask unan- f supported by Mr. Cooke have been credited imous consent that the order for the with saving many lives. quorum call be rescinded. TRIBUTE IN REMEMBRANCE OF ‘‘The steel that we used to strengthen the The PRESIDING OFFICER. Without DAVIS O. COOKE walls, the blast-resistant windows, the objection, it is so ordered. Mr. THURMOND. Mr. President, I Kevlar cloth, all those things working to- rise today to pay tribute to the late gether helped protect countless people,’’ f Walker Lee Evey, the program manager for David O. Cooke, Defense Department MORNING BUSINESS the Pentagon renovation, said. ‘‘Doc Cooke Director of Administration and Man- strongly supported all of these.’’ Mr. REID. Mr. President, I ask unan- agement. I would like to offer my con- Mr. Cooke also was a strong supporter of imous consent that the Senate now dolences to Mr. Cooke’s three children, the government as an institution and was ac- proceed to a period of morning business Michele, Lot and Davis, along with his tive in good-government groups and commu- with Senators permitted to speak for other family members, friends, and co- nity service projects. workers. Mr. Cooke has truly im- He served on the President’s Interagency up to 5 minutes each. Council on Administrative Management and The PRESIDING OFFICER. Without printed an everlasting legacy on the was a leader of the Combined Federal Cam- objection, it is so ordered. American defense system and our great paign and an active member of the American f Nation. Although our Nation mourns Society for Public Administration. for this tragic loss, we must remain In the early 1990s, he worked to create a UNANIMOUS-CONSENT REQUEST— strong in honoring such an outstanding Public Service Academy at Anacostia High H.R. 3210 individual. For six decades, David O. School that has been credited with improv- Cooke served the federal government ing the school’s graduation rates. He also Mr. REID. Mr. President, I ask unan- was known in the Pentagon as a strong pro- imous consent that the Senate proceed distinguishing himself as one of the moter of employment opportunities for mi- to immediate consideration of Cal- most exceptional and honorable civil norities, women and disabled people. endar No. 252, H.R. 3210, the House- servicemen of our time. He was truly a Mr. Cooke was born and raised in Buffalo, passed terrorism insurance bill; that visionary, epitomizing the core values where his parents were teachers. He began all after the enacting clause be strick- of exemplary public service. I ask following their path, receiving a bachelor’s degree from the New York State Teachers en, and that the text of S. 2600, as unanimous consent to have printed in the Record an article from the Wash- College at Buffalo and later a master’s de- passed the Senate, be inserted in lieu gree in political science from the State Uni- thereof; that the bill, as amended, be ington Post. versity of New York at Albany. read a third time, passed, and the mo- There being no objection, the article His teaching career was interrupted by tion to reconsider be laid on the table; was ordered to be printed in the World War II, when he served as an officer that the Senate insist on its amend- RECORD,as follows: aboard the USS Pennsylvania, a battleship ment, request a conference with the [From the Washington Post, June 27, 2002] that saw action in the Pacific. Mr. Cooke returned to teach high school in DAVID COOKE, ‘MAYOR OF THE PENTAGON,’ House on the disagreeing votes of the Buffalo in the late 1940s, but was recalled to DIES two Houses; and that the chair be au- the Navy during the Korean War. After get- thorized to appoint conferees on the (By Graeme Zielinski) ting his law degree from George Washington part of the Senate with the ratio of 4 to David O. ‘‘Doc’’ Cooke, 81, the high-rank- University in 1950, he served as a Navy attor- 3; all without intervening action or de- ing administrative director who was known ney and instructor. bate. as the ‘‘Mayor of the Pentagon’’ for his work His Pentagon career began in 1958, when he over six decades to keep the gargantuan I have indicated I was going to pro- was assigned as a civilian to a Defense De- complex humming, died June 22 at the Uni- partment reorganization sought by then-Sec- pound this. I know there is no one versity of Virginia Medical Center. retary Neil McElroy. present from the other side. I object on He died of injuries received June 6 in a car Mr. Cooke retained his professorial ways behalf of the minority, the Repub- accident two miles north of Ruckersville, throughout his career, but his humor often licans. I do that with some reluctance Va., when his vehicle veered off Route 29 and helped leaven the serious atmosphere in the because we have to move this legisla- rolled over several times, Greene County Pentagon. Mr. Cooke was just as likely to tion forward. It is important. I don’t do Sheriff William Morris said yesterday. It quote a Greek philosopher as a pithy joke or wasn’t known what caused the accident, homespun tale. this to embarrass anyone or to try to Morris said. Evey, the Pentagon renovation manager, minimize what is taking place. In fact, Mr. Cooke had served at the Pentagon recalled an aside at a dedication ceremony it is just the opposite. We have to move since the late 1950s and as its top civil serv- last summer. ‘‘He said that he took it as a forward on terrorism insurance. ant had a hand in every major Defense De- sign that the building needed to be renovated I get calls in my office every day say- partment reorganization during that time. when the fungus on the wall took the shape ing: Why can’t you move this bill? The He knew virtually every inch of the 20 miles of Elvis,’’ he said. reason we can’t move it is because we of corridors in the building and was the de- Mr. Cooke was not laughing when he ar- partment’s highest-ranking career civil serv- gued in the 1980s for the renovation and for have an objection. I repeat what I said ant. the Pentagon to be transferred from under yesterday and the day before and the As Defense Department director of admin- the auspices of the General Services Admin- day before: We fought to get this bill istration and management, he had a vast in- istration to the Defense Department. He said on the floor. We were held up getting stitutional memory and numerous friends it was a crucial step in rehabilitating the the bill on the floor. Once we got the spread throughout Washington’s power world’s largest office building. bill passed, then we have fought to get structure. It meant that he had the ear and Mr. Cooke would make routine trips to conferees appointed. respect of flag officers, members of Congress Capitol Hill with what he called his ‘‘horror The sad part about this is we were and Cabinet officials—and not only because board,’’ a convincing collage of fallen asbes- he dispensed office space and the Pentagon’s tos or rotted piping from the Pentagon. told initially: We don’t like the ratio; 8,700 parking places. In 1998, Mr. Cooke testified before a federal the ratio is three Democrats to two Re- In a 2001 edition of Government Executive grand jury about alleged leaks by then-As- publicans. Magazine, editor Timothy B. Clark called sistant Defense Secretary Kenneth Bacon of

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7029 personnel information about Linda Tripp to advisor responsible for the planning, immensely for the invaluable 30-years a reporter. With characteristic good humor, coordination, management, direction of service he has provided to the United he told reporters after he testified that and administration of broad, multi-dis- States of America. Tripp’s name came up ‘‘now and again.’’ ciplinary scientific, engineering and Mr. Cooke was a presence on Sept. 11, rush- f ing to aid rescue and recovery operations. In technical programs of the command. the months after the rebuilding began, the Under his guidance, the command has PEOPLE PEDALING PEACE usually low-key administrator began making made tremendous inroads in the fields Mr. LEVIN. Mr. President, last more public appearances, speaking in mem- of basic and applied Oceanography month more than 25 cyclists made the ory of the victims. through the application of supercom- 190-mile trip from Hampton, VA, to At a speech in November, he told an Al- puting technology, providing detailed Washington, DC, to honor and remem- bany, N.Y., crowd: ‘‘The damage to the build- environmental analysis that our naval ing will be rebuilt. You’ll never know the dif- ber victims of gun violence. According forces could have only dreamed about a to the Brady Campaign to Prevent Gun ference eventually.’’ few years ago. His persistence towards His wife of 52 years, Marion McDonald Violence, the People Pedaling Peace achieving excellence in his field of ex- Cooke, died in 1999. cyclists rode not only in honor of the pertise is highly commendable. Survivors include three children, Michele victims of gun violence, but they rode Dr. Durham’s many awards include C. Sutton of Springfield and David Cooke for stronger, more sensible gun safety the Distinguished Executive Presi- and Lot Cooke, both of Fairfax; and four laws in America. grandchildren. dential Rank Award, Meritorious Exec- utive Presidential Rank Award, DoD Sandra and Mike McSweeney started People Pedaling Peace last year after f Secretary of Defense Meritorious Civil- ian Service Award, Secretary of Navy their daughter, Stephanie, was killed TRIBUTE TO DR. DONALD L. Distinguished Civilian Service Award, while walking out of a roller rink in DURHAM Department of the Navy Meritorious Hampton, VA. Money raised by this Mr. LOTT. Mr. President, I wish to Civilian Service Award, three Army year’s bike ride will be used to build a take this opportunity to recognize and Corps of Engineers’ Special Act/Service new playground in Stephanie’s neigh- say farewell to an outstanding leader, Awards, Presidential Letter of Com- borhood so children can have a safe Dr. Donald L. Durham, upon his retire- mendation, two Navy Commendations place to play. Elisha Encinias, a Col- ment from the Senior Executive Serv- for Special Achievement, Marine Tech- umbine survivor who narrowly escaped ice as Deputy Director of the Naval nology Society Special Commendation the two gunmen in her classroom that Meteorology and Oceanography Com- Award, Defense Mapping Agency Re- tragic day in 1999, and Amber Hensley, mand at the John C. Stennis Space search and Development Award, who witnessed the 1999 rampage at Center. Throughout his career, Dr. Kiwanis International Distinguished Thurston High School in Springfield, Durham has served with distinction. It Service Award, Center College Distin- OR, also joined in this year’s bike trip. is my privilege to recognize his many guished Alumnus Award, Danville High Unfortunately, the number of people accomplishments and to commend him School Distinguished Alumnus Award, like them is likely to grow. They rep- for the superb service he has provided Mississippi Academy of Sciences Re- resent only a small number of Ameri- the Navy, the great State of Mis- search Award, Who’s Who in the South cans who have lost family and friends sissippi, and our Nation. and Southwest, International Who’s to gun violence. Dr. Durham received a Bachelor of Who of Professionals and the Inter- According to the Detroit Free Press, Science Degree in Physics and Mathe- national Who’s Who of Intellectuals. In through July 14th of this year, 10 chil- matics from Centre College, Danville, addition, he has published over 50 pro- dren under the age of 16 have been KY in 1964; a Master of Science Degree fessional papers, technical reports and killed by gun fire and 25 children have in Oceanography, Math, from Texas presentations and served twice as guest been wounded by gunfire in metro De- A&M University in 1967; and a PhD in editor for Marine Technology Society troit. This past Sunday, a 3-year-old Physical Oceanography, Geophysics Journals. His professional affiliations boy found a shotgun, picked it up, and and Math, from Texas A&M University include the Marine Technology Soci- it discharged. He wounded two other in 1972. ety, The Oceanography Society, The children, his 11-year-old sister and 9- Following his doctoral thesis, Dr. Society of Research Administrators, year-old cousin. A week ago on De- Durham joined the Army Corps of En- The Hydrographic Society of America, troit’s east side, an 11-year-old boy was gineers as a research oceanographer at International Oceanographic Founda- accidentally shot in the chest by his 13- its Waterways Experiment Station in tion, Mississippi Academy of Sciences year-old neighbor after they found a Vicksburg, MS. In 1978, he joined the and Sigma Xi. Also, he has served as handgun. Last month, a 14-year-old boy staff of the Naval Oceanographic and Vice Chair and Chair of the Mississippi shot a 13-year-old girl while the two Atmospheric Research Laboratory, Science and Technology Commission; were arguing in a Detroit home. NOARL, at the John C. Stennis Space Member of Mississippi State Univer- Thankfully, they all survived, but Center, MS as an oceanographer re- sity’s External Research Advisory many have not. The need for sensible sponsible for analyzing and assessing Council and Mississippi Economic De- gun safety legislation and vigorous en- numerous Navy oceanographic research velopment Special Task Force; and forcement of our gun laws is des- programs and special projects, includ- board member of Mississippi Enterprise perately needed. ing several environmental acoustic/ for Technology, Inc. and Mississippi I know my colleagues will join me in oceanographic studies and tactical Technology Alliance. recognizing the participants in the fleet exercises. From 1981–1986 at Throughout his very distinguished People Pedaling Peace bike ride and NOARL, Dr. Durham was Head of the career, Dr. Durham has served our expressing our thoughts and prayers to Mapping, Charting and Geodesy, great Nation with pride and excellence. family, friends, and communities MC&G, Division, which was responsible He has been an integral element of, and across America that have been affected for project management and technical contributed greatly to, the best- by gun violence. And I urge my col- performance of the integrated Navy trained, best-equipped, and best-pre- leagues to join me in supporting sen- Research Development, Test and Eval- pared naval force in the history of the sible gun safety legislation. uation, RDT&E, program in MC&G. world. Dr. Durham’s superb leadership, f In 1986, Dr. Durham joined the staff integrity, and limitless energy have of the Naval Meteorology and Oceanog- had a profound impact on our Nation’s LOCAL LAW ENFORCEMENT ACT raphy Command, Stennis Space Center, Oceanography community and he will OF 2001 MS and served as Assistant Chief of be greatly missed in the Navy’s Senior Mr. SMITH of Oregon. Mr. President, Staff for Program Integration until his Executive Service. Dr. Durham retires I rise today to speak about hate crimes selection as Technical/Deputy Director as an SES–5 on August 3, 2002. On be- legislation I introduced with Senator on January 1, 1989. As Technical/Dep- half of my colleagues on both sides of KENNEDY in March of last year. The uty Director, Dr. Durham was the sen- the aisle, I wish Dr. Durham all the Local Law Enforcement Act of 2001 ior civilian manager and top scientific success in his future and thank him would add new categories to current

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7030 CONGRESSIONAL RECORD — SENATE July 18, 2002 hate crimes legislation sending a sig- sistance it is clear they will so des- ucts. Canadian producers are applying nal that violence of any kind is unac- perately need. I urge the administra- less expensive pesticides to their crops ceptable in our society. tion to quickly act to help my farmers. and exporting their commodities to the I would like to describe a terrible President Bush is scheduled to travel U.S., where the same chemicals cannot crime that occurred April 13, 2001 in to Greensboro, one of the most parched be legally purchased at the Canadian San Antonio, TX. A 39 year old man areas of North Carolina next week. I reduced price by American producers. was attacked because he was thought hope by then his administration will Our farmers are not allowed access to to be a homosexual, according to po- have recognized the dire conditions and these pesticides, but must still com- lice. The victim was attacked in a park approved my State’s request for help. pete with Canadian crops grown with by a man with a knife. The man held In the meantime, I am proud to co- these products. the victim in a bear hug before stab- sponsor the Small Business Drought American farmers are at a clear dis- bing him in the chest with what was Relief Act, S. 2734. This is a straight- advantage to Canadian farmers due to described as a three-inch Buck knife. forward measure that will bring impor- the price differences in agricultural The suspect was heard to call the vic- tant relief to thousands of small busi- pesticides. This is another example of tim anti-gay names as he stabbed him. ness owners by expanding the Small how NAFTA has put American pro- I believe that government’s first duty Business Administration’s definition of ducers at a disadvantage. I did not sup- is to defend its citizens, to defend them disaster to include droughts. port or vote for NAFTA, even though against the harms that come out of Another measure that I am sup- supporters claimed that the trade hate. The Local Law Enforcement En- porting is the National Drought Pre- agreement would create free, equal hancement Act of 2001 is now a symbol paredness Act of 2002, S. 2528. This trade between the U.S., Canada and that can become substance. I believe measure creates a Federal drought pre- Mexico. In fact, NAFTA contributes to that by passing this legislation and paredness and response policy, one that the present agricultural pesticide dif- changing current law, we can change is so obviously needed. We in North ferential pricing problem. Allowing hearts and minds as well. Carolina know all too well the exper- Canada to export millions of bushels of f tise and assistance the Federal Emer- grain into the U.S. without restriction gency Management Agency provides was intended to create equal trade, but DROUGHT EMERGENCY IN NORTH following a hurricane or tornado. We has instead placed our agricultural in- CAROLINA need that same clear, concise policy for dustry at a disadvantage. Mr. EDWARDS. Mr. President, I rise droughts. Furthermore, the agricultural dis- today to draw attention to a dire situa- But these measures can’t help with advantage that hinders American farm- tion in my state. North Carolina is in the impact this drought is having on ers in this situation, benefits no one the midst of a severe drought, and my State right this moment. North other than the pesticide industry. This there is no significant rainfall in sight. Carolinians are doing their part. Under industry sells the same product to North Carolinians are used to hot, the leadership of Governor Easley, cit- Americans for twice the price that it is dry summers. But the dry spell has lin- ies and towns are advancing reasonable sold to the Canadians producers across gered and transformed itself into one of water-use restrictions. Residents are the boarder. the worst droughts in the state’s his- conserving, and we are all hoping and S. 532 would eliminate the competi- tory. The entire State is under drought praying for a good rain. tive advantage Canadian producers condition and most areas are experi- We need the administration to act have over American producers by encing ‘‘extreme drought.’’ A signifi- quickly on the state’s disaster re- amending the Federal Insecticide, Fun- cant portion of the Piedmont is experi- quests. We need to get these residents gicide, and Rodenticide Act. This legis- encing an ‘‘exceptional drought,’’ ac- the help they need. lation would permit a State to register cording to the U.S. Geological Survey. f a Canadian pesticide for distribution In fact, the Piedmont is short almost a and use within that State if the pes- PESTICIDE HARMONIZATION ACT full year’s worth of rain and the city of ticide is substantially similar or iden- OF 2002 Greensboro has a little more than 100 tical to one already registered in the days supply of water. Mr. JOHNSON. Mr. President, I rise U.S. The damage estimates are already today to thank Senators CONRAD and I am confident the time to act on staggering. This drought has put many ROBERTS for holding an important this matter is now. of our farmers on the edge of financial hearing today in the Senate Agri- f ruin. At a time of the year when you culture Production and Price Competi- can drive down any rural North Caro- tiveness Subcommittee concerning S. THE NATIONAL FARMWORKER lina road and see lush, green crops 532, the Pesticide Harmonization Act. JOBS PROGRAM ready for harvest, farmers are strug- It is my pleasure to cosponsor this im- Mr. CORZINE. Mr. President, I rise gling to find enough water to save portant legislation. today to urge Congress to support full what hasn’t already withered in the Differences in the prices of agricul- funding for the National Farmworker blazing sun. Farmers in more than half tural pesticides in the United States Jobs Program. of North Carolina’s 100 counties have and Canada are one of the most impor- Zeroing out funding for the National already experienced more than 35 per- tant issues in bilateral trade discus- Farmworker Jobs Program as proposed cent crop loss and it is still early in sions. Grains harvested in the United in the Bush Administration’s Fiscal our growing season. States compete on the open market Year 2003 budget would be wrong for But it is not just North Carolina’s against grains grown in Canada. Much our country and wrong for New Jersey. farmers that are suffering. Small busi- of Canadian grain is treated with pes- Close to 600 migrant workers make nesses are particularly impacted by the ticides substantially less expensive Cumberland County in southwestern mandatory water restrictions. Believe than those used in the United States. I New Jersey their permanent residence, it or not, drought is not a recognized feel it is necessary for the United with another 6,500 migrant workers es- disaster under the Small Business Ad- States to allow growers to access Cana- timated to arrive in the county for ministration’s Disaster Assistance Pro- dian pesticides in order to remain com- farm work each year. If the proposed gram. petitive on the open market. I com- cut is ultimately enacted, I am con- Of course, we can’t make it rain. We mend Senator DORGAN for his leader- vinced that the quality of life for these can’t cool the weather and slow the ship on this issue, as lead sponsor of workers and workers throughout the evaporation of our lakes and streams. this legislation, which would allow State and country will fall substan- But there are things we can do to help U.S. farmers to access chemicals ap- tially. those impacted by this disaster. There proved in the U.S. but sold at dis- The National Farmworker Jobs Pro- are steps we should take immediately. counted rates in Canada. gram was created in 1964 to address the I have asked Secretary Ann Veneman Currently, farmers pay 117 to 193 per- specific problems migrant workers to certify our counties as disaster so cent higher pries in the U.S. than in face. By the very nature of their em- our farmers can get the crop loss as- Canada for virtually identical prod- ployment, migrant workers often find

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7031 themselves unemployed or under- his training at the Tuskegee Army Air ple template on how to conduct our- employed, scraping by on an income Base. In 1942 he took command of the selves in service to our country. Be of well below the poverty line. Language first all-black air unit, the 99th fighter great courage, character and humility. and educational barriers often prevent squadron. Due to his excellent service f these workers from receiving perma- in North Africa and Italy during World nent employment or attaining eco- War II, he was promoted to colonel of ADDITIONAL STATEMENTS nomic self-sufficiency. the 322nd fighter group. As a colonel, Because their work takes them Davis led 200 air combat missions. TRIBUTE TO LARRY BROWN across various State and municipal Davis would tell his men, ‘‘We are not ∑ borders, only a national program can out looking for glory. We’re out to do Mr. SMITH of Oregon. Mr. President, address the problems faced by the mi- our mission.’’ During his first mission, ever since the days of the pioneers, grant farmworker population. The Na- his 38 pilots held off over 100 German when folks from miles around would tional Farmworker Jobs Program pro- fighters. Davis’s fighter group boasted gather to participate in community vides housing, healthcare, and an inspiring 100-percent success rate. barn-raisings, the spirit of neighbor childcare assistance to workers they None of the bombers he protected was helping neighbor has been part of the can remain employed and provide for ever lost to enemy fire. Despite his suc- Oregon story. That spirit is alive and their families. Considering that many cess, he was not allowed to command well today, as in every Oregon commu- of these hardworking families are not white troops and was turned away from nity you can find individuals who give fluent in English, obtaining these serv- segregated officers’ clubs. their time and their talent to make ices would otherwise be a daunting if After World War II, Davis led a fight- that community a better place in not impossible task. er wing in the Korean War and, in 1953, which to live, work, and raise a family. The National Farmworker Jobs Pro- was promoted to brigadier general, be- For the past 35 years, in the commu- gram has assisted migrant workers coming the first black general in the nity of Grants Pass, that individual with education and job training since Air Force. Over the next 13 years he was Larry Brown, who passed away last its inception. It has also played an ac- would rise in rank to lieutenant gen- week after a courageous fight against tive role in job placement, minimizing eral and serve as deputy-commander- cancer. the amount of time migrant workers in-chief of U.S. Strike Command. When Larry was a forester by profession, remain unemployed. In the fiscal year Davis retired from the Air Force in and served in leadership positions for ending June 30, 2000, 85 percent of the 1970, he was the highest-ranking Afri- the Southern Oregon Timber Industries National Farmworker Jobs Program can American officer in the military. Association, the Oregon Small Wood- enrollees received services that enabled After hanging up his uniform Davis land Owners Association, and the Or- them to retain or enhance their agri- continued serving our country. He su- egon Board of Forestry Forest Prac- cultural employment or secure new pervised the Federal Air Marshal Pro- tices Commission. jobs at better wages. And that is with gram and, in 1971, was named Assistant Larry was not only dedicated to a budget of just $80 million. Secretary of Transportation. growing healthy trees, he was also The National Farmworker Jobs Pro- In 1998 President Clinton awarded dedicated to growing healthy children. gram services a vital social role, and I Davis his fourth star. ‘‘One person can He served 5 years on the Grants Pass urge my colleagues to support it. bring about extraordinary change’’ School Board, and was a passionate ad- f President Clinton said when speaking vocate for programs benefitting youth HONORING GENERAL BENJAMIN O. of the general. At the White House during his many years of service and DAVIS, JR. ceremony then-Defense Secretary Wil- leadership in the Grants Pass Rotary liam S. Cohen stated that ‘‘General Club. Mr. EDWARDS. Mr. President, 2 Davis is often held up as a shining ex- Larry’s love for his country could be weeks ago as America celebrated the ample of what is possible for African seen in his 20 years of service in the Or- birth of our Nation, one of its greatest Americans. But today we honor him egon National Guard. Larry retired military leaders passed away. General not only as a great African American. from the National Guard as a major in Benjamin O. Davis Jr., 89, the leg- We honor him because like his father 1982, and during his service he was endary commander of the Tuskegee before him, he is a great warrior, a awarded the Meritorious Service Medal Airmen, died at Army Reed Medical great officer, and a great American.’’ and the Army Commendation Medal Center on the Fourth of July. Yester- Indeed like his father, General Ben- with 5 bronze oak leaf clusters. day, General Davis was laid to rest in jamin Oliver Davis Sr., he served his Larry was also a passionate Repub- Arlington National Cemetery. country with great patriotism in the lican. I am just one of many elected of- From his youth Davis knew that he face of discrimination. His father was ficials who was constantly calling on wanted to become a pilot and serve his the first African-American general in Larry to organize an event or a meet- country. In 1932 he entered the U.S. the U.S. Armed Forces. ing. I knew that when I called on Military Academy at West Point. Even in his 80s, General Benjamin Larry, I was calling on someone who Throughout his years at West Point he Oliver Davis Jr. still spoke with the knew and loved his community, and was shunned by his fellow cadets who strong, dignified and commanding who would get the job done right. refused to speak with him. Think of it, manner he was known for during his Oliver Wendell Holmes once said, ‘‘To 4 years at one of the Nation’s best in- professional career. Steve Crump, an live fully is to be engaged in the pas- stitutions of higher education where no Emmy-Award-winning journalist in sions of one’s time.’’ There can be no one spoke to you and you ate all of Charlotte, NC who did a documentary doubt that Larry Brown lived a full your meals alone. Davis once spoke of on the Tuskegee Airmen, recalled a life, because he truly made a difference the intimidation and harassment he speech by General Davis to many of his in the passions of his time. endured at the academy, saying, ‘‘I fellow airmen. Crump said that the I extend my condolences to Larry’s wasn’t leaving, this is something I general’s attendance was a surprise to wife, Georgette, who continues the wanted to do and I wasn’t going to let the audience and that upon seeing him family tradition of public service anybody drive me out.’’ In 1936, Davis walk out on to the stage, they snapped through her service as Josephine Coun- became the first African American in to attention just as they had done ty Clerk, and to his daughters Monique the 20th century to graduate from West more than 50 years earlier. and Martie. Point. At Seymour Johnson Air Force Base I am just one of many elected offi- After graduation Davis applied for in Goldsboro, NC there is a KC–135 cials who relied on Larry’s counsel, ad- the Army Air Corps but was rejected tanker with a portrait of Davis on its vice, and friendship.∑ because of his race. He became pro- nose. The aircraft is dedicated to all f fessor of military science at the the Tuskegee Airmen. Tuskegee Institute in Alabama. In 1940, One of the greatest of the greatest HONORING MAJOR W. WHEELOCK President Roosevelt issued an order al- generation is gone. As those who ∑ Mr. SMITH of New Hampshire. Mr. lowing African Americans to fly for the passed on before him did, General Ben- President, I rise today to pay tribute military, and Davis immediately began jamin O. Davis, Jr. left us with a sim- to a man that has dedicated the last 7

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7032 CONGRESSIONAL RECORD — SENATE July 18, 2002 years of his life to helping those less high-quality rifles, shotguns, pistols, HONORING NEW HAMPSHIRE REV- fortunate than himself, Major W. and revolvers that law enforcement ENUE COMMISSIONER STANLEY Wheelock. and sporting enthusiasts have come to ARNOLD Among his many accomplishments, expect. Ruger kept a watchful eye on ∑ Mr. SMITH of New Hampshire. Mr. Major Wheelock has most recently the company as it prospered, building President, I rise today to pay tribute served as the President/CEO of manufacturing facilities in a number of to a colleague for his service to the Crotched Mountain foundation in New Hampshire’s towns providing work citizens of New Hampshire, Mr. Stanley Greenfield, New Hampshire and has for many. Arnold. previously served as Executive Vice I have found great friendship with After 19 years of service to New President/Treasurer of Franklin Pierce Ruger throughout the last years of his Hampshire Stanley will be retiring in College. Major Wheelock retired in life and continue to admire and cherish September 2002. His service as commis- June of this year. As part of his tire- the friendship that I have with his fam- sioner began in 1988 when appointed, by less service to others, Major partici- ily. He was not only a great husband then Governor, John Sununu. Prior to pates in the River Mead Retirement and father but a great businessman, becoming commissioner Stanley was Community as a board member; the American patriot, and friend. an auditor in the Department of Rev- Yankee Publishing, Inc. as a board It was an honor representing William enue. Praised by Governor Jeanne Sha- member; New Hampshire 2002 Health Ruger in the U.S. Senate and remains a heen as, ‘‘Essential in difficult and and Educational Facilities Authority distinct privilege in serving his fam- complicated policy debates,’’ . . . ‘‘Ar- ∑ as Board Vice Chair; and New Hamp- ily. nold has been a straight shooter shire Hospital Association as a Board f through the five years that I have Vice Chair. THE MOUNT WASHINGTON HOTEL worked with him.’’ Stanley has always The service Major Wheelock has pro- & RESORT CELEBRATES A CEN- strived to provide the best possible vided Crotched Mountain School was TURY OF GRANDEUR service to the people of the commu- doubtless a devotion to those that re- ∑ Mr. SMITH of New Hampshire’s. Mr. nity. ceive an education there. Crotched Lauded as one of Governor Shaheen’s Mountain School provides outstanding President, I rise today to congratulate The Mount Washington Hotel & Resort most trusted advisers, Stanley in- rehabilitative programs for students creased use of technology and estab- with disabilities in Kindergarten on 100 years of New England splendor. Located in New Hampshire’s White lished a unit to focus on businesses not through twelfth grade. His duty and filing tax returns. service are apparent through his love Mountains, The Mount Washington Hotel & Resort emanates the elegance It is an honor to represent Mr. Stan- and devotion for the students at ley Arnold in the U.S. Senate.∑ Crotched Mountain. and style of a bygone era. Beginning as More than doing an exceptional job, a dream of Joseph Strickney in 1902, f this superlative of Spanish Renaissance Major Wheelock is to be commended LAUD FOR DR. JOAN LEITZEL for his service to such a worthy organi- architecture quickly became the place ∑ zation. A man of better character, I to hobnob with poets, presidents and Mr. SMITH of New Hampshire. Mr. rarely meet. It is an honor and privi- princes. Serving the wealthiest of pa- President, I rise today to pay tribute lege representing Major Wheelock in trons, The Mount Washington was the to the outstanding successes of a friend the U.S. Senate.∑ vacation resort of choice, finding ap- and colleague in the field of education, the President of the University of New f peal by epicureans of the era. The picturesque National Historic Hampshire, Dr. Joan Leitzel. CELEBRATING THE LIFE AND Landmark was once the meeting place As UNH’s 17th President, Dr. Leitzel ACHIEVEMENTS OF WILLIAM for more than 44 nations as they dis- began her term by renovating build- BATTERMAN RUGER cussed the creation of the World Bank ings, adding a diverse program list and ∑ Mr. SMITH of New Hampshire. Mr. and International Monetary Fund in developing key buildings that provided President, I rise today to honor the life 1944. The formal signing of the Bretton needed space for classes and research. of a dear friend William Ruger, one of Woods International Monetary Con- Thanks to Dr. Leitzel’s work, the num- the greatest gun designers and manu- ference took place in the now historic ber of donors increased substantially to facturers in the nation. Gold Room located off the Hotel support the beloved University. Dr. Joining with Alexander McCormick Lobby. Leitzel also increased enrollment for Sturm in 1949 Ruger founded Sturm Continuing the opulence and gran- subsequent years. Ruger & Co., the largest firearms de- deur of the The Mount Washington A large portion of her success is at- signer, manufacturer, and distributer Hotel & Resort was at the forefront as tributed to her attention to the needs in the United States. At the time five entrepreneurs, Joel Bedor, Wayne of New Hampshire’s business by pro- Ruger’s company produced more vari- Presby, Jere Eames, Robert Clement, viding a quality professional work- eties of sport firearms than any other and Bill Presby, rallied to purchase the force. By working with businesses in firm in the world. Turning out his first property off the FDIC auction block in the area, Dr. Leitzel better prepares design in 1949, Ruger’s pistol soon be- 1991. This would be the first time since students for the competitive job mar- came one of America’s favorite hand Stickney that the property would be in ket. Dr. Leitzel more than doubled re- guns, still widely used by many gun the hands of New Hampshire owners. search funding from $43 million in 1996 owners today. One hundred years after the 250 mas- to $82 million in 2001 by making the re- Ruger would soon design a light ma- ter craftsmen began construction on search proposals more competitive. chine gun for the United States Army the grand hotel of yesteryear, The Greater funding from the state and and would continue designing and pat- Mount Washington Hotel & Resort car- forthcoming building projects help add enting dozens of guns throughout the ries on the timeless beauty and tradi- to the University’s prominence. It is so last 53 years. ‘‘Ruger was a true fire- tion of cordial service spanning the small accomplishment to steer a Uni- arms genius who mastered the dis- decades. versity to the level that has been ciplines of inventing, designing, engi- I recommend Joel Bedor, Wayne reached under Dr. Leitzel. neering, manufacturing and marketing Presby, Jere Eames, Robert Clement, I commend Dr. Joan Leitzel on re- better than anyone since Samuel and Bill Presby on their commitment ceiving magna cum laude status for her Colt,’’ said R.L. Wilson, a firearms his- to preserving the glory and vintage of leadership and for her many accom- torian and Ruger Biographer. ‘‘No one the early 1900’s in The Mount Wash- plishments that have put the Univer- in the 20th century so clearly domi- ington and for receiving the ‘‘Business sity of New Hampshire on track to a nated the field or was so skilled at ar- of the Decade’’ award by Business New successful future. I wish her all the ticulating the unique appeal of quality Hampshire Magazine. happiness life can bring in her retire- firearms for legitimate uses.’’ It is truly an honor and privilege rep- ment. Recently as chairman emeritus resenting these fine men in the U.S. It is an honor and privilege rep- Ruger oversaw the manufacturing of Senate.∑ resenting her in the U.S. Senate.∑

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00066 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7033 MESSAGES FROM THE PRESIDENT of the Senate amendment, and modi- By Ms. LANDRIEU: S. 2751. A bill to amend title 10, United Messages from the President of the fications committed to conference: Mr. THOMAS, Mr. MCCRERY, and Mr. RAN- States Code, to revise the age and service re- United States were communicated to quirements for eligibility to receive retired GEL. the Senate by Ms. Evans, one of his pay for non-regular service; to the Com- secretaries. At 5:13 p.m., a message from the mittee on Armed Services. House of Representatives, delivered by By Mr. JEFFORDS (for himself, Mr. f Ms. Niland, one of its reading clerks, FRIST, Mr. GREGG, Mr. BREAUX, and EXECUTIVE MESSAGES REFERRED announced that the House has passed Mr. FEINGOLD): the following bill, in which it requests S. 2752. A bill to amend title XVIII of the As in executive session the PRE- the concurrence of the Senate: Social Security Act to provide for the estab- SIDING OFFICER laid before the Sen- lishment of medicare demonstration pro- H.R. 5121. An act making appropriations ate messages from the President of the grams to improve health care quality; to the for the Legislative Branch for the fiscal year United States submitting sundry nomi- Committee on Finance. ending September 30, 2003, and for other pur- By Mr. KERRY (for himself, Mr. BOND, nations which were referred to the ap- poses. propriate committees. Mr. CLELAND, Ms. CANTWELL, Mr. f (The nominations received today are BINGAMAN, and Mrs. CARNAHAN): printed at the end of the Senate pro- MEASURES PLACED ON THE S. 2753. A bill to provide for a Small and CALENDAR Disadvantaged Business Ombudsman for Pro- ceedings.) curement in the Small Business Administra- f The following bills were read the first tion, and for other purposes; to the Com- and second times by unanimous con- mittee on Small Business and Entrepreneur- MESSAGES FROM THE HOUSE sent, and placed on the calendar. ship. At 1:45 p.m., a message from the H.R. 5093. An act making appropriations By Ms. COLLINS: House of Representatives, delivered by for the Department of the Interior and re- S. 2754. A bill to establish a Presidential Ms. Niland, one of its reading clerks, lated agencies for the fiscal year ending Sep- Commission on the United States Postal Service; to the Committee on Governmental announced that the House has passed tember 30, 2003, and for other purposes. H.R. 5121. An act making appropriations Affairs. the following bill, in which it requests By Mr. SANTORUM (for himself and the concurrence of the Senate: for the Legislative Branch for the fiscal year ending September 30, 2003, and for other pur- Mr. SPECTER): H.R. 5093. An act making appropriations poses. S. 2755. A bill to require the Secretary of for the Department of the Interior and re- the Treasury to mint coins in commemora- lated agencies for the fiscal year ending Sep- f tion of the opening of the National Constitu- tember 30, 2003, and for other purposes. REPORTS OF COMMITTEES tion Center in Philadelphia, Pennsylvania, The message also announced that the scheduled for July 4, 2003; to the Committee The following reports of committees on Banking, Housing, and Urban Affairs. House disagrees to the amendment of were submitted: By Mr. JEFFORDS (for himself, Mr. the Senate to the bill (H.R. 3763) to By Mr. INOUYE, from the Committee on LEAHY, Mr. SCHUMER, and Mrs. CLIN- protect investors by improving the ac- Appropriations, with an amendment in the TON): curacy and reliability of corporate dis- nature of a substitute: S. 2756. A bill to establish the Champlain closures made pursuant to the securi- H.R. 5010: A bill making appropriations for Valley National Heritage Partnership in the ties laws, and for other purposes, and the Department of Defense for the fiscal year States of Vermont and New York, and for agrees to the conference asked by the ending September 30, 2003, and for other pur- other purposes; to the Committee on Energy Senate on the disagreeing votes of the poses. (Rept. No. 107–213). and Natural Resources. By Mr. BIDEN: two Houses thereon; and appoints the By Mr. LEAHY, from the Committee on the Judiciary, without amendment and with S. 2757. A bill to amend title XVIII of the following Members as the managers of a preamble: Social Security Act to provide coverage of the conference on the part of the S. Res. 293: A resolution designating the outpatient prescription drugs under the House: week of November 10 through November 16, medicare program; to the Committee on Fi- From the Committee on Financial 2002, as ‘‘National Veterans Awareness nance. Services, for consideration of the Week’’ to emphasize the need to develop edu- By Mr. DODD (for himself, Ms. SNOWE, House bill and the Senate amendment, cational programs regarding the contribu- Mr. JEFFORDS, Mr. REED, Mr. BINGA- and modifications committed to con- tions of veterans to the country. MAN, Mrs. CLINTON, Mrs. MURRAY, and By Mr. LEAHY, from the Committee on Mr. EDWARDS): ference: Mr. OXLEY, Mr. BAKER, Mr. the Judiciary, without amendment: S. 2758. A bill entitled ‘‘The Child Care and ROYCE, Mr. NEY, Mrs. NELLY, Mr. COX, S. 862: A bill to amend the Immigration Development Block Grant Amendments Mr. LAFALCE, Mr. FRANK, Mr. KAN- and Nationality Act to authorize appropria- Act’’; to the Committee on Health, Edu- JORSKI, and Ms. WATERS: tions for fiscal years 2002 through 2006 to cation, Labor, and Pensions. That Mr. SHOWS is appointed in lieu carry out the State Criminal Alien Assist- By Mr. HOLLINGS (for himself, Mr. of Ms. WATERS for consideration of sec- ance Program. LOTT, and Mr. BREAUX): tion 11 of the House bill and section 305 By Mr. LEAHY, from the Committee on S. 2759. A bill to protect the health and of the Senate amendment, and modi- the Judiciary, with an amendment in the na- safety of American consumers under the Federal Food, Drug, and Cosmetic Act from fications, committed to conference. ture of a substitute: S. 2395: A bill to prevent and punish coun- seafood contaminated by certain substances; From the Committee on Education terfeiting and copyright piracy, and for to the Committee on Health, Education, and the Workforce, for consideration of other purposes. Labor, and Pensions. sections 306 and 904 of the Senate S. 2513: A bill to asses the extent of the By Mr. SPECTER (for himself and Mr. amendment, and modifications com- backlog in DNA analysis of rape kit samples, HARKIN): mitted to conference: Mr. BOEHNER, and to improve investigation and prosecu- S.J. Res. 41. A joint resolution calling for Mr. SAM JOHNSON of Texas, and Mr. tion of sexual assault cases with DNA evi- Congress to consider and vote on a resolu- tion for the use of force by the United States GEORGE MILLER of California. dence. Armed Forces against Iraq before such force f From the Committee on Energy and is deployed; to the Committee on Foreign Commerce, for consideration of sec- INTRODUCTION OF BILLS AND Relations. tions 108 and 109 of the Senate amend- JOINT RESOLUTIONS ment, and modifications committed to f The following bills and joint resolu- conference: Mr. TAUZIN, Mr. GREEN- tions were introduced, read the first ADDITIONAL COSPONSORS WOOD, and Mr. DINGELL. and second times by unanimous con- From the Committee on the Judici- S. 267 sent, and referred as indicated: ary, for consideration of section 105 At the request of Mr. AKAKA, the and titles 8 and 9 of the Senate amend- By Mr. CRAPO (for himself and Mr. name of the Senator from Oregon (Mr. CONRAD): ment, and modifications committed to WYDEN) was added as a cosponsor of S. S. 2750. A bill to improve the provision of conference: Mr. SENSENBRENNER, Mr. telehealth services under the medicare pro- 267, a bill to amend the Packers and SMITH of Texas, and Mr. CONYERS. gram, to provide grants for the development Stockyards Act of 1921, to make it un- From the Committee on Ways and of telehealth networks, and for other pur- lawful for any stockyard owner, mar- Means, for consideration of section 109 poses; to the Committee on Finance. ket agency, or dealer to transfer or

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00067 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7034 CONGRESSIONAL RECORD — SENATE July 18, 2002 market nonambulatory livestock, and vaccines and improving and clarifying from Idaho (Mr. CRAIG) and the Senator for other purposes. the vaccine injury compensation pro- from Pennsylvania (Mr. SANTORUM) S. 654 gram, and for other purposes. were added as cosponsors of S. 2554, a At the request of Mr. TORRICELLI, the S. 2085 bill to amend title 49, United States name of the Senator from Massachu- At the request of Ms. COLLINS, the Code, to establish a program for Fed- setts (Mr. KENNEDY) was added as a co- name of the Senator from Maine (Ms. eral flight deck officers, and for other sponsor of S. 654, a bill to amend the SNOWE) was added as a cosponsor of S. purposes. Internal Revenue Code of 1986 to re- 2085, a bill to amend title XVIII of the S. 2611 store, increase, and make permanent Social Security Act to clarify the defi- At the request of Mr. REED, the name the exclusion from gross income for nition of homebound with respect to of the Senator from Montana (Mr. BAU- amounts received under qualified group home health services under the medi- CUS) was added as a cosponsor of S. legal services plans. care program. 2611, a bill to reauthorize the Museum S. 786 S. 2119 and Library Services Act, and for other RASSLEY At the request of Mr. DURBIN, the At the request of Mr. G , the purposes. name of the Senator from South Da- name of the Senator from Minnesota S. 2614 kota (Mr. JOHNSON) was added as a co- (Mr. WELLSTONE) was added as a co- At the request of Mr. CORZINE, the sponsor of S. 2119, a bill to amend the sponsor of S. 786, a bill to designate name of the Senator from Minnesota Internal Revenue Code of 1986 to pro- certain Federal land in the State of (Mr. DAYTON) was added as a cosponsor vide for the tax treatment of inverted Utah as wilderness, and for other pur- of S. 2614, a bill to amend title XVIII of corporate entities and of transactions poses. the Social Security Act to reduce the with such entities, and for other pur- S 1502 work hours and increase the super- . poses. At the request of Mr. JEFFORDS, the vision of resident physicians to ensure S. 2233 name of the Senator from Missouri the safety of patients and resident phy- At the request of Mr. THOMAS, the sicians themselves. (Mrs. CARNAHAN) was added as a co- name of the Senator from Arkansas sponsor of S. 1502, a bill to amend the S. 2674 (Mr. HUTCHINSON) was added as a co- Internal Revenue Code of 1986 to allow sponsor of S. 2233, a bill to amend title At the request of Mr. BROWNBACK, the a refundable tax credit for health in- XVIII of the Social Security Act to es- names of the Senator from Massachu- surance costs for COBRA continuation tablish a medicare subvention dem- setts (Mr. KENNEDY) and the Senator coverage, and for other purposes. onstration project for veterans. from North Carolina (Mr. HELMS) were S. 1785 S. 2239 added as cosponsors of S. 2674, a bill to At the request of Mr. CLELAND, the At the request of Mr. SARBANES, the improve access to health care medi- name of the Senator from Nevada (Mr. name of the Senator from Oregon (Mr. cally underserved areas. ENSIGN) was added as a cosponsor of S. SMITH) was added as a cosponsor of S. At the request of Mr. BINGAMAN, his 1785, a bill to urge the President to es- 2239, a bill to amend the National name was added as a cosponsor of S. tablish the White House Commission Housing Act to simplify the downpay- 2674, supra. on National Military Appreciation ment requirements for FHA mortgage S. 2692 Month, and for other purposes. insurance for single family home- At the request of Mr. CORZINE, the S. 1924 buyers. names of the Senator from Missouri At the request of Mr. LIEBERMAN, the S. 2268 (Mrs. CARNAHAN) and the Senator from name of the Senator from Oregon (Mr. At the request of Mr. MILLER, the South Carolina (Mr. HOLLINGS) were SMITH) was added as a cosponsor of S. name of the Senator from Utah (Mr. added as cosponsors of S. 2692, a bill to 1924, a bill to promote charitable giv- HATCH) was added as a cosponsor of S. provide additional funding for the sec- ing, and for other purposes. 2268, a bill to amend the Act estab- ond round of empowerment zones and S. 1945 lishing the Department of Commerce enterprise communities. At the request of Mr. JOHNSON, the to protect manufacturers and sellers in S. 2712 names of the Senator from South Caro- the firearms and ammunition industry At the request of Mr. HAGEL, the lina (Mr. HOLLINGS) and the Senator from restrictions on interstate or for- name of the Senator from North Caro- from Nebraska (Mr. NELSON) were eign commerce. lina (Mr. EDWARDS) was added as a co- added as cosponsors of S. 1945, a bill to At the request of Mr. CRAIG, the sponsor of S. 2712, a bill to authorize provide for the merger of the bank and name of the Senator from Oklahoma economic and democratic development savings association deposit insurance (Mr. NICKLES) was added as a cosponsor assistance for Afghanistan and to au- funds, to modernize and improve the of S. 2268, supra. thorize military assistance for Afghan- safety and fairness of the Federal de- S. 2480 istan and certain other foreign coun- posit insurance system, and for other At the request of Mr. LEAHY, the tries. name of the Senator from Washington purposes. S. 2721 (Ms. CANTWELL) was added as a cospon- S. 1961 At the request of Mr. SARBANES, the sor of S. 2480, a bill to amend title 18, name of the Senator from Connecticut At the request of Mr. SMITH of New United States Code, to exempt quali- (Mr. DODD) was added as a cosponsor of Hampshire, his name was withdrawn as fied current and former law enforce- S. 2721, a bill to improve the voucher a cosponsor of S. 1961, a bill to improve ment officers from state laws prohib- financial and environmental sustain- iting the carrying of concealed hand- rental assistance program under the ability of the water programs of the guns. United States Housing Act of 1937, and United States. for other purposes. S. 2531 S. 2734 S. 2027 At the request of Ms. COLLINS, the At the request of Mr. DURBIN, the name of the Senator from Illinois (Mr. At the request of Mr. KERRY, the name of the Senator from South Da- DURBIN) was added as a cosponsor of S. names of the Senator from Georgia kota (Mr. JOHNSON) was added as a co- 2531, a bill to amend the Public Health (Mr. CLELAND), the Senator from Mis- sponsor of S. 2027, a bill to implement Service Act to authorize the Commis- souri (Mrs. CARNAHAN) and the Senator effective measures to stop trade in con- sioner of Food and Drugs to conduct from Wyoming (Mr. ENZI) were added flict diamonds, and for other purposes. oversight of any entity engaged in the as cosponsors of S. 2734, a bill to pro- S. 2053 recovery, screening, testing, proc- vide emergency assistance to non-farm At the request of Mr. FRIST, the essing, storage, or distribution of small business concerns that have suf- name of the Senator from Oregon (Mr. human tissue or human tissue-based fered economic harm from the dev- SMITH) was added as a cosponsor of S. products. astating effects of drought. 2053, a bill to amend the Public Health S. 2554 S. RES. 242 Service Act to improve immunization At the request of Mr. SMITH of New At the request of Mr. THURMOND, the rates by increasing the distribution of Hampshire, the names of the Senator name of the Senator from Virginia (Mr.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7035 WARNER) was added as a cosponsor of S. tive. However, by using much of the effort to better align the incentives to Res. 242, a resolution designating Au- same technologies that we use to com- provide care with best practice guide- gust 16, 2002, as ‘‘National Airborne municate with our constituents from lines, appropriate utilization, adher- Day’’. here in Washington, we can bring qual- ence to best medical information, and S. RES. 266 ity health care, and specialty care, to best outcomes we have written legisla- At the request of Mr. FRIST, his name their local health care provider. tion to address these issues through a was added as a cosponsor of S. Res. 266, I would like to thank Senator CON- Medicare demonstration project. This a resolution designating October 10, RAD, who has been a longtime sup- project will implement continuous 2002, as ‘‘Put the Brakes on Fatalities porter of telehealth services, for join- quality improvement mechanisms that Day’’. ing me in introducing this important are aimed at integrating primary care, legislation. Our bill would allow a wide referral care, support care, and out- S. RES. 293 variety of health care practitioners to patient services. The bill will encour- At the request of Mr. BIDEN, the provide telehealth services under Medi- age patient participation in care deci- name of the Senator from Missouri care. One of the biggest challenges for sions; strive to achieve the proper allo- (Mrs. CARNAHAN) was added as a co- rural practitioners is obtaining the re- cation of health care resources; iden- sponsor of S. Res. 293, a resolution des- sources and infrastructure to provide tify the appropriate use of culturally ignating the week of November 10 technologically advanced telehealth and ethnically sensitive services in through November 16, 2002, as ‘‘Na- services. Our bill would also provide health care delivery; and document the tional Veterans Awareness Week’’ to valuable resources for the development financial effects of these decisions on emphasize the need to develop edu- of new telehealth networks in rural the medical marketplace. cational programs regarding the con- As we enter an era of rapidly increas- and underserved areas. tributions of veterans to the country. ing numbers of Medicare beneficiaries, Technology in America is booming. it will be increasingly important that AMENDMENT NO. 4305 We must embrace this technology as a we re-evaluate the Medicare program At the request of Ms. STABENOW, the cost-effective way to improve health to insure that the quality of care re- names of the Senator from North Da- care in rural and underserved areas. ceived is uniformly exceptional in its kota (Mr. DORGAN), the Senator from This legislation takes a large step in New York (Mr. SCHUMER), the Senator delivery and quality. It is appropriate providing a modest investment toward that we continue to find better ways to from Wisconsin (Mr. FEINGOLD), the the improvement of rural health care. Senator from New Jersey (Mr. insure that the norms of quality health TORRICELLI), the Senator from Missouri By Mr. JEFFORDS (for himself, care are established and followed. It is (Mrs. CARNAHAN), the Senator from Mr. FRIST, Mr. GREGG, Mr. my sincere hope that my colleges will join me in this endeavor. Michigan (Mr. LEVIN), the Senator BREAUX, and Mr. FEINGOLD): Mr. FRIST. Mr. President, I rise from South Dakota (Mr. JOHNSON), the S. 2752. A bill to amend title XVIII of today to introduce the Medicare Qual- Senator from Maine (Ms. SNOWE), the the Social Security Act to provide for ity Improvement Act—a bill to help re- Senator from Vermont (Mr. JEFFORDS), the establishment of medicare dem- vitalize the Medicare Program by pro- the Senator from Illinois (Mr. DURBIN), onstration programs to improve health viding for the alignment of payment the Senator from New York (Mrs. CLIN- care quality; to the Committee on Fi- and other incentives. I want to thank TON) and the Senator from Vermont nance. Senators JEFFORDS, GREGG, and (Mr. LEAHY) were added as cosponsors Mr. JEFFORDS. Mr. President, I ap- BREAUX for their work in helping craft of amendment No. 4305 proposed to S. preciate the opportunity to speak this crucial legislation. 812, a bill to amend the Federal Food, today on an issue that has been and To meet the needs of the 21st century Drug, and Cosmetic Act to provide will continue to be important and vital health care system, it is critical that greater access to affordable pharma- to the health of all Medicare bene- payment policies be aligned to encour- ceuticals. ficiaries. Medicare’s origins date back age and support quality improvement f to 1965; since that time little has efforts. Even among health profes- changed in the relationship between in- sionals motivated to provide the best STATEMENTS ON INTRODUCED centives to provide care and quality of BILLS AND JOINT RESOLUTIONS care possible, the structure of payment care received. The current system does and other incentives may not facilitate By Mr. CRAPO (for himself and not reward or provide incentives for the actions needed to systematically Mr. CONRAD): providing quality health care. Instead, improve the quality of care, and may S. 2750. A bill to improve the provi- what has evolved over the last years is even prevent such actions. For exam- sion of telehealth services under the a perplexing data base of well docu- ple, redesigning care processes to im- Medicare program, to provide grants mented facts concerning quality and prove follow-up for chronically ill pa- for the development of telehealth net- utilization. This information is very tients through electronic communica- works, and for other purposes; to the difficult to explain but hard to ignore. tion may reduce office visits and de- Committee on Finance. Why is it that the utilization of some crease revenues for a medical group Mr. CRAPO. Mr. President, I am surgical procedures varies tremen- under some payment schemes. pleased to rise today to introduce, dously from one part of the country to Current payment practices are com- along with Senator CONRAD of North the next? Why is it that the cost of plex and contradictory; and although Dakota, legislation that would greatly care per beneficiary varies from loca- incremental improvements are pos- enhance the use of telehealth tech- tion to location without clear dif- sible, more fundamental reform will be nology to bring badly-needed health ferences in outcomes, survival, or qual- needed. In this report, ‘‘Crossing the care services to rural and underserved ity? Today, after much work with nu- Quality Chasm,’’ the Institute of Medi- areas throughout the country. merous health systems, patient advo- cine encouraged the Centers for Medi- This bill would allow for greater re- cacy organizations, and medical qual- care and Medicaid Services and the imbursement for telehealth services ity researchers, my colleagues Sen- Agency for Healthcare Research and under Medicare and calls for a valuable ators FRIST, GREGG, BREAUX and FEIN- Quality to develop a research agenda to investment in the development of new GOLD and I are pleased to announce the identify, test, and evaluate options for and more advanced telehealth net- introduction of legislation to create better aligning payment methods with works in underserved areas. Telehealth Medicare demonstration projects to ad- quality improvement goals. The dem- is the future of rural health care. Ac- dress these issues. onstration project authorized by this cess to quality health care in rural The incentives, both financial and legislation is part of that larger re- areas is at a critical stage. Today, non-financial, to provide best search agenda—to help us understand many ill and disabled people must healthcare to Medicare beneficiaries the appropriate alight of payment and drive hundreds of miles, often in bad are complex and poorly understood. other incentives and improve the qual- weather on dangerous roads, just to re- These incentives have historically been ity of health care in a way that will ceive the most basic of health care. Ac- rooted in the longstanding Medicare not increase the overall costs of Medi- cess to specialists is even more prohibi- fee-for-service payment model. In an care.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7036 CONGRESSIONAL RECORD — SENATE July 18, 2002 We already have identified appro- tion’s, SBA, regulatory ombudsman, rector of the Office of Small and Dis- priate ways to align provider incen- which could focus solely on procure- advantaged Business Utilization at tives. Research supported by the Rob- ment matters. A new ombudsman for each Federal agency shall report to the ert Wood Johnson Foundation has small business procurement, or the head or deputy head of the agency. noted at least 11 different incentive Small and Disadvantaged Business Om- Late last year, with the support of models—models that can be imple- budsman, is needed to fill this role for Ranking Member BOND, I sent a letter mented by a wide variety of organiza- procurement matters, just as the to 21 Federal agencies to gauge compli- tions and applied to a range of medical SBA’s National Ombudsman does for ance with this provision. Using a very groups, providers, and health plans. In regulatory issues. By creating a par- lenient standard of compliance, I have many circumstances, key components allel position, each ombudsman can concluded that at least nine of the Fed- of these models have been implemented focus on his or her key mission, with- eral agencies surveyed are in violation in several health care markets, and the out detracting from either regulatory of Section (k) of the Small Business research has shown that both financial or procurement issues important to the Act. This is unacceptable. and nonfinancial incentives, such as small business community. On June 19, 2002, the Committee on technical assistance, are important in While no legislation alone can ever Small Business and Entrepreneurship motiving appropriate care. However, solve the complex problems faced by help a roundtable to discuss Federal we do not know how these incentives small businesses in today’s Federal procurement policies. The roundtable, might apply to Medicare, and that is procurement environment, I believe title ‘‘Are Government Purchasing why this demonstration is so vital. the creation of a Small and Disadvan- Policies Hurting Small Business?’’ was It has been an honor and a pleasure taged Business Ombudsman at the SBA attended by a wide range of small busi- to work closely with my distinguished will put us firmly on the right track ness advocates, small business owners colleagues on this bill, and I look for- and address several procurement issues and government officials. One of the ward to continuing to work with them raised through program oversight and topics discussed during the roundtable and others as we move forward on the communication with small business was my draft proposal, the SDB Om- debate about how to more appro- owners. budsman Act, to create a new position priately reform Medicare. For example, small businesses fre- at the SBA to monitor Federal agency quently contact my office to report compliance with certain provisions of By Mr. KERRY (for himself, Mr. problems they are having with a prime the Small Business Act and serve as a BOND, Mr. CLELAND, Ms. CANT- contractor or a contracting agency. focal point to assist small businesses WELL, Mr. BINGAMAN, and Mrs. Too often, these businesses are afraid that were treated unfairly in the Fed- CARNAHAN: to come forward and make an official eral procurement process. S. 2753. A bill to provide for a Small complaint for fear of being blackballed During the Roundtable, I asked the and Disadvantaged Business Ombuds- and denied future contracting opportu- participants for their recommenda- man for Procurement in the Small nities. The SDB Ombudsman will pro- tions on how to improve the legislation Business Administration, and for other vide one solution for these small busi- to ensure that the SDB Ombudsman purposes; to the Committee on Small nesses who fear being blacklisted by al- serves as the most effective advocate Business and Entrepreneurship. lowing them to submit confidential possible for small business. The Com- Mr. KERRY. Mr. President, I am complaints. The SDB Ombudsman will mittee record was also kept open for pleased today to introduce a critical have the responsibility of tracking two weeks so that participants could piece of legislation intended to help these complaints and trying to rectify submit further comments. small businesses receive their fair them. I have now reviewed the Committee share of the Federal procurement pie The SDB Ombudsman will also work record and further submissions and am and to ensure that they are being to change the culture at Federal pro- pleased to say that the responses were treated fairly within the Federal pro- curing agencies by tracking and report- very positive. Several important sug- curement system. I would like to ing on the training of procurement per- gestions were made to strengthen the thank my cosponsors, Senators BOND, sonnel and working to ensure that this Office of Small and Disadvantaged CLELAND, CANTWELL, BINGAMAN and training not only includes the ‘‘How Business Utilization at each Federal CARNAHAN for working with me and to’s’’ of small business participation, agency as an important corollary to small business groups to craft this leg- but also includes training on why small the creation of the SDB Ombudsman, islation, as well as Congressman AL- business participation is crucial to since the SDB Ombudsman would be re- BERT WYNN, for his partnership on this agency success and the national econ- lying on each OSDBU to fulfill his or legislation. Congressman WYNN will omy. her statutory responsibilities. soon be introducing companion legisla- Until the Federal Government, at all Many other small businesses have tion in the House. levels, realizes the importance of doing come to the Committee on Small Busi- In my time as Chairman of the Com- business with small business, small ness and Entrepreneurship and re- mittee on Small Business and Entre- business participation in Federal pro- quested that we strengthen the preneurship and previously as Ranking curement will continue to decline, our OSDBUs at each agency as well. This Member, two facts regarding small Nation will lose its access to a wide legislation fulfills that request by in- business procurement have made them- range of small business suppliers, and cluding six new provisions. selves very clear, small businesses are small businesses across the country First, the legislation clarifies that not getting their fair share of Federal will continue to lose billions of dollars OSDBU Directors shall report to the procurement and there is no one in the in procurement opportunities year highest level at each agency. In the entire Federal Government with the after year. Of critical importance in study I mentioned previously, too sole responsibility of advocating for the legislation is the first statutory often, an agency cited a bifurcated re- small businesses, governmentwide, in consequence of an agency failing to porting system whereby the OSDBU the procurement process and ensuring meet its small business goals. Under Director reports to the head or deputy that Federal agencies and large busi- the legislation, if an agency fails to head on small business matters, but to ness prime contractors treat small meet any small business goal, the other, lower-ranking personnel for businesses fairly. Some individuals are agency would be required to submit a budgetary or personnel matters. The responsible for portions of this job, but report and an action plan to the SDB Small Business Act does not envision no one performs this role as their pri- Ombudsman detailing why the agency such a system. Therefore, I felt it nec- mary job function or has the authority failed to meet its small business goal essary to clarify, in no uncertain to do so solely. or goals, and what the agency intends terms, that the OSDBU Director must I felt this was a glaring oversight and to do to remedy the situation. report to the head or deputy head of looked to the current make-up of the The SDB Ombudsman will also be re- his or her agency only, for all matters. SBA to see if it could be rectified. My sponsible for tracking compliance with Second, the legislation requires that solution is a new position modeled Section (k) of the Small Business Act, all OSDBU Directors now be career per- along the Small Business Administra- which stipulates, in part, that the Di- sonnel. The Director’s position is one

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7037 of advocacy, which often entails chal- crease the governmentwide small busi- and support, and I look forward to con- lenging co-workers and political per- ness prime contracting procurement tinuing to work with them on this and sonnel, including superiors. Under cur- goal from 23 percent to 30 percent has other important issues. rent law, OSDBU Directors may be po- been retained, although it will now be I ask unanimous consent that the litical appointees. While this has phased in over three years: 26 percent text of the Small and Disadvantaged worked in some instances, I believe the in FY 2004, 28 percent in FY 2005 and 30 Business Ombudsman Act be printed in small business community would be percent in FY 2006 and thereafter. the RECORD. better served by career personnel with When I first made the suggestion There being no objection, the bill was job protections. that the small business procurement ordered to be printed in the RECORD, as Third, the legislation requires the goal should be increased seven percent- follows: OSDBU Director to be well-qualified in age points, my office received numer- Be it enacted by the Senate and House of Rep- assisting small businesses with pro- ous calls, both in support of the in- resentatives of the United States of America in curement matters. No one disputes the crease and in opposition. Some even Congress assembled, expertise of Federal procurement offi- suggested raising the goal to a level of SECTION 1. SHORT TITLE. cials; however, procurement expertise 40 percent. But, by and large, those in This Act may be cited as the ‘‘Small and Disadvantaged Business Ombudsman Act’’. does not always translate to small opposition pointed to one fact: The SEC. 2. SBA SMALL AND DISADVANTAGED BUSI- business procurement expertise. This Federal Government has never NESS OMBUDSMAN FOR PROCURE- provision will help ensure that small achieved such a level of small business MENT. businesses are being served by those procurement participation. And while Section 30 of the Small Business Act (15 who understand their particular pro- that is true, no one said that it was im- U.S.C. 657) is amended— curement needs. possible. Given the disappointing (1) in subsection (a)— Fourth, the legislation requires that, achievement of the Federal Govern- (A) in paragraph (1), by striking ‘‘and’’; at major Federal agencies, the OSDBU ment on the current small business (B) in paragraph (2), by striking the period Director have no job responsibilities and adding a semicolon; and goal of 23 percent, I believe it is time (C) by adding at the end the following: outside the scope of the authorizing to raise the bar. ‘‘(3) ‘SDB Ombudsman’ means the Small legislation. This provision was included When Congress enacted goals as part and Disadvantaged Business Ombudsman for because far too many agencies assign of the Small Business act, the goals Procurement, designated under subsection the OSDBU Director title to their pro- were intended to be a minimum stand- (e); and curement chief or another official with ard of achievement. For too long, the ‘‘(4) ‘Major Federal agency’ means an agen- similar responsibilities, while the ac- goals have been treated as a target for cy of the United States Government that, in tual OSDBU program is run by some- attainment, not a minimum level of the previous fiscal year, entered into con- one else. This provision will stop this acceptable small business participa- tracts with non-Federal entities to provide the agency with a total of not less than abuse. tion. This too must change. Almost $200,000,000 in goods or services.’’; and Fifth, the legislation requires that a every year the Federal Government (2) by adding at the end the following: procurement chief not serve as the Di- comes very close to hitting the small ‘‘(e) SBA SMALL AND DISADVANTAGED BUSI- rector of the OSDBU program at a Fed- business prime contracting goal of 23 NESS OMBUDSMAN FOR PROCUREMENT.— eral agency. I firmly believe that the percent right on the head. Some years ‘‘(1) APPOINTMENT.— OSDBU Director’s goal is fundamen- it does slightly better, and some years, ‘‘(A) IN GENERAL.—Not later than 180 days tally different from, and at times even unfortunately, it does slightly worse. after the date of enactment of the Small and opposed to, that of a chief procurement Disadvantaged Business Ombudsman Act, However, this trend demonstrates one the Administrator shall designate a Small official who must be fair to all Federal important principle, the government is and Disadvantaged Business Ombudsman for contractors. An OSDBU Director’s role firmly shooting for 23 percent, no Procurement (referred to in this section as is one of advocacy. He or she must take more—no less. the ‘SDB Ombudsman’). the side of small business, and no pro- By raising the statutory goal, it is ‘‘(B) QUALIFICATIONS.—The SDB Ombuds- curement chief can do this and perform my hope that the Federal Government man shall be— both jobs fairly and effectively. While will shoot for the higher target and ‘‘(i) highly qualified, with experience as- OSDBU Directors at major Federal succeed. But I ask my colleagues to sisting small business concerns with Federal agencies are barred from having addi- look at this critically in that the goal procurement; and ‘‘(ii) designated from among employees of tional responsibilities under this legis- for small business isn’t so much being the Federal Government, to the extent prac- lation, non-major Federal agency raised as the 77 percent of Federal pro- ticable. OSDBU Directors may. This provision curement that now goes to large busi- ‘‘(C) LINE OF AUTHORITY.—The SDB Om- will help ensure that at our non-major nesses, which represent only a tiny budsman shall report directly to the Admin- Federal agencies, the OSDBU Director portion of all Federal contractors, is istrator. can act fairly on behalf of small busi- being reduced to 70 percent. So if the ‘‘(D) SENIOR EXECUTIVE SERVICE.—The SDB nesses. small business goal should increase to Ombudsman shall be paid at an annual rate Sixth, the legislation provides statu- 30 percent, 70 percent of all Federal not less than the minimum rate, nor more tory authority for the OSDBU Council. than the maximum rate, for the Senior Exec- procurement will still be awarded to a utive Service under chapter 53 of title 5, Under the legislation, each OSDBU Di- relatively small number of all Federal United States Code. rector will have membership on the contractors. Is this fair to small busi- ‘‘(2) DUTIES.—The SDB Ombudsman shall— Council, which will meet at least once ness? No. But it is an improvement. ‘‘(A) work with each Federal agency with every two months. The Council’s role is I am pleased to say that my legisla- procurement authority to ensure that small to discuss issues of importance to the tion is supported by groups rep- business concerns are treated fairly in the OSDBUs and the small business com- resenting primarily small businesses or procurement process; munity they serve. OSDBU Directors small business contractors, such as the ‘‘(B) establish a procedure for receiving serving at major Federal agencies have National Small Business United, comments from small business concerns and personnel of the Office of Small and Dis- as a part of their responsibilities an ob- NSBU, Women Impacting Public Pol- advantaged Business Utilization of each Fed- ligation, under this legislation, to at- icy, WIPP, and the Association of eral agency regarding the activities of agen- tend Council meetings. This provision Small and Disadvantaged Business, as cies and prime contractors that are not was included to once again prevent well as advocacy groups such as the small business concerns on Federal procure- Federal agencies from circumventing Latin American Management Associa- ment contracts; and the Small Business Act. Attendance at tion, LAMA, the Minority Business En- ‘‘(C) establish a procedure for addressing Council meetings will help ensure that terprise Legal Defense and Education the concerns received under subparagraph Federal agencies are complying with Fund, MBELDEF, and the Veterans of (B). ‘‘(3) ANNUAL REPORT.— the law and that OSDBU Directors are Foreign Wars, VFW. ‘‘(A) IN GENERAL.—No later than 1 year small business advocates, not simply I thank them as well as the cospon- after the date of enactment of this sub- procurement personnel with two hats. sors of this legislation, Senators BOND, section, and annually thereafter, the SDB One final note on the legislation is CLELAND, CANTWELL, BINGAMAN and Ombudsman shall provide a report to the that the inclusion of a provision to in- CARNAHAN for their assistance, input Committee on Small Business of the House

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of Representatives and the Committee on ‘‘(4) INTERAGENCY COORDINATION.—Each ‘‘(12) if the officer is employed by a major Small Business and Entrepreneurship of the Federal agency, through its Office of Small Federal agency (as defined in section 30)— Senate. and Disadvantaged Business Utilization, ‘‘(A) have no other job duties beyond those ‘‘(B) CONTENTS.—The report required under shall assist the SDB Ombudsman to ensure described under this subsection; subparagraph (A) shall contain— compliance with— ‘‘(B) receive basic pay at a rate equal to ‘‘(i) information from the Federal Procure- ‘‘(A) the Federal procurement goals estab- the rate of pay for grade 15 of the General ment Data System pertaining to contracting lished pursuant to section 15(g); Schedule, under section 5332 of title 5, United and subcontracting goals of the Federal Gov- ‘‘(B) the procurement policy outlined in States Code; and ernment and each Federal agency with pro- section 8(d), which states that small business ‘‘(C) attend the meetings of the Office of curement authority; concerns should be given the maximum prac- Small and Disadvantaged Business Utiliza- ‘‘(ii) a copy of the report submitted to the ticable opportunity to participate in Federal tion Council.’’. SDB Ombudsman by each major Federal contracts; (b) OFFICE OF SMALL AND DISADVANTAGED agency and an evaluation of the goal attain- ‘‘(C) Federal prime contractors small busi- BUSINESS UTILIZATION COUNCIL.— ment plans submitted to the SDB Ombuds- ness subcontracting plans negotiated under (1) ESTABLISHMENT.—There is established man pursuant to paragraph (5); section 8(d)(4)(B); an interagency council to be known as the ‘‘(iii) an evaluation of the success or fail- ‘‘(D) the responsibilities outlined under ‘‘Office of Small and Disadvantaged Business ure of each major Federal agency in attain- section 15(k); and Utilization Council’’ (in this subsection re- ing its small business procurement goals, in- ‘‘(E) any other provision of this Act. ferred to as the ‘‘Council’’). cluding a ranking by agency on the attain- ‘‘(5) GOAL ATTAINMENT PLAN.—If a major (2) MEMBERSHIP.—The Council shall be ment of such goals; Federal agency fails to meet any small busi- composed of— ‘‘(iv) a summary of the efforts of each ness procurement goal under this Act in any (A) the Director of Small and Disadvan- major Federal agency to promote con- fiscal year, such agency shall submit a goal taged Business Utilization from each Federal tracting opportunities for small business attainment plan to the SDB Ombudsman not agency; concerns by— later than 90 days after the end of the fiscal (B) the Small and Disadvantaged Business ‘‘(I) educating and training procurement year in which the goal was not met, con- Ombudsman for Procurement, as an ex offi- officers on the importance of small business taining— cio member; and concerns to the economy and to Federal con- ‘‘(A) a description of the circumstances (C) other individuals, as ex officio mem- tracting; and that contributed to the failure of the agency bers, as the Council considers necessary. ‘‘(II) conducting outreach initiatives to to reach its small business procurement (3) LEADERSHIP.— promote prime and subcontracting opportu- goals; and (A) CHAIRPERSON.—The members of the nities for small business concerns; ‘‘(B) a detailed plan for meeting the small Council shall elect a chairperson, who shall ‘‘(v) an assessment of the knowledge of the business procurement goals in the fiscal year serve for a 1-year, renewable term. procurement staff of each major Federal immediately following the fiscal year in (B) OTHER POSITIONS.—The members of the agency concerning programs that promote which the goal was not met. Council may elect other leadership positions, small business contracting; ‘‘(6) EFFECT ON OTHER OFFICES.—Nothing in as necessary, from among its members. ‘‘(vi) substantiated comments received this section is intended to replace or dimin- (C) VOTING.—Each member of the Council, from small business concerns and personnel ish the activities of the Office of Small and except for ex officio members, shall have of the Office of Small and Disadvantaged Disadvantaged Business Utilization or any voting rights on the Council. Business Utilization of each Federal agency similar office in any Federal agency. (4) MEETINGS.— regarding the treatment of small business ‘‘(7) ADMINISTRATIVE RESOURCES.—To en- (A) FREQUENCY.—The Council shall meet concerns by Federal agencies on Federal pro- able the SDB Ombudsman to carry out the not less frequently than once every 2 curement contracts; duties required by this subsection, the Ad- months. ‘‘(vii) an analysis of the responsiveness of ministrator shall provide the SDB Ombuds- (B) ISSUES.—At the meetings under sub- each Federal agency to small business con- man with sufficient— paragraph (A), the Council shall discuss cerns with respect to Federal contracting ‘‘(A) personnel; issues faced by each Office of Small and Dis- and subcontracting; advantaged Business Utilization, including— ‘‘(viii) an assessment of the compliance of ‘‘(B) office space; and (i) personnel matters; each Federal agency with section 15(k) of the ‘‘(C) dedicated financial resources, which (ii) barriers to small business participation Small Business Act (15 U.S.C. 644(k); and are specifically identified in the annual ‘‘(ix) a description of any discrimination budget request of the Administration.’’. in Federal procurement; faced by small business concerns based on SEC. 3. OFFICE OF SMALL AND DISADVANTAGED (iii) agency compliance with section 15(k) their status as small business concerns or BUSINESS UTILIZATION. of the Small Business Act (15 U.S.C. 644(k)), the gender or the social or economic status (a) DIRECTOR.—Section 15(k) of the Small as amended by this Act; and of their owners. Business Act (15 U.S.C. 644(k)) is amended— (iv) any other matter that the Council con- ‘‘(C) NOTICE AND COMMENT.— (1) in the first sentence, by inserting ‘‘(ex- siders necessary to further the mission of ‘‘(i) IN GENERAL.—The SDB Ombudsman cept for the Administration)’’ after ‘‘Federal each Office of Small and Disadvantaged shall provide notice to each Federal agency agency’’; Business Utilization. identified in the report prepared under sub- (2) by striking paragraph (2), and inserting (5) FUNDING LIMITATION.—The Small Busi- paragraph (A) that such agency has 60 days the following: ness Administration shall not provide the to submit comments on the draft report to ‘‘(2) be well qualified, with experience as- Council with financial assistance to carry the SDB Ombudsman before the final report sisting small business concerns with Federal out the provisions of this section. is submitted to Congress under subparagraph procurement, and receive basic pay at a rate SEC. 4. GOVERNMENTWIDE SMALL BUSINESS (A). not to exceed the rate of pay for grade 15 of GOAL. ‘‘(ii) INCLUSION OF OUTSIDE COMMENTS.— the General Schedule, under section 5332 of Section 15(g)(1) of the Small Business Act ‘‘(I) IN GENERAL.—The final report prepared title 5, United States Code;’’; (15 U.S.C. 644(g)(1)) is amended in the second under this paragraph shall contain a section (3) by striking paragraph (3) and inserting sentence, by striking ‘‘23 percent of the total in which Federal agencies are given an op- the following: value of all prime contract awards for each portunity to respond to the report contents ‘‘(3) be appointed by the head of such agen- fiscal year.’’ and inserting ‘‘26 percent of the with which they disagree. cy, be responsible to, and report only to, the total value of all prime contract awards for ‘‘(II) NO RESPONSE.—If no response is re- head or deputy head of such agency for pol- fiscal year 2004, not less than 28 percent of ceived during the 60-day comment period icy matters, personnel matters, budgetary the total value of all prime contract awards from a particular agency identified in the re- matters, and all other matters;’’; for fiscal year 2005, and not less than 30 per- port, the final report under this paragraph (4) in paragraph (9), by striking ‘‘, and’’ and cent of the total value of all prime contract shall indicate that the agency was afforded inserting a semicolon; awards for fiscal year 2006 and each fiscal an opportunity to comment. (5) in paragraph (10)— year thereafter.’’. ‘‘(D) CONFIDENTIALITY.—In preparing the (A) by striking ‘‘or section 8(a) of this Act report under this paragraph, the SDB Om- or section 2323 of title 10, United States By Ms. COLLINS: budsman shall keep confidential all informa- Code. Such recommendations’’ and inserting S. 2754. A bill to establish a Presi- tion that may expose a small business con- ‘‘section 8(a), or section 2323 of title 10, dential Commission on the United cern or an employee of an Office of Small United States Code, which recommenda- States Postal Service; to the Com- and Disadvantaged Business Utilization to tions’’; and mittee on Governmental Affairs. possible retaliation from the agency or (B) by striking the period at the end and Ms. COLLINS. Mr. President, I rise prime contractor identified by the small inserting a semicolon; and today to introduce the ‘‘United States business concern, unless the small business (6) by striking the undesignated matter concern or employee of the Office of Small after paragraph (10) and inserting the fol- Postal Service Commission Act of and Disadvantaged Business Utilization con- lowing: 2002.’’ This legislation will establish a sents in writing to the release of such infor- ‘‘(11) not concurrently serve as the chief Commission to examine the challenges mation. procurement officer for such agency; and facing the Postal Service and develop

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7039 solutions to ensure its long term via- delivery as their primary means of to ensure its survival, but it fails to bility and increased efficiency. communication. The Postal Service de- lay out specific steps the Postal Serv- The Postal Service’s problems have livers more than 200 billion pieces of ice will take and a timeline for action. reached a near crisis level. In 2000, the mail each year to nearly 140 million ad- It is also unclear whether these meas- Postal Service lost nearly $200 million, dresses, which accounts for more than ures will result in the cost savings nec- while in 2001, this loss ballooned to 40 percent of the world’s mail. More- essary to ensure the long-term survival $1.68 billion. Losses are projected to be over, 1.7 million new delivery points of the Postal Service. $1.35 billion this year, despite the $675 are added each year—roughly the Many attempts have been made to re- million in appropriations from Con- equivalent of adding the number of ad- form the Postal Service over the years. gress to cover the unanticipated costs dresses in Chicago. More than seven My colleagues in the House of Rep- associated with the September 11 at- million Americans visit post offices resentatives have tried for nearly eight tacks and the anthrax incidents. The each day. years to pass postal reform legislation, Postal Service is mandated by law to In States with large rural areas, such but to no avail. Stakeholders have break even on its operating expenses as Maine, it is vital that postal serv- widely diverging views on what shape and its capital needs, both of which ices remain in place. If the Postal postal reform should take, if any. This continue to grow. Service were no longer obligated to lack of consensus on how or whether to The Postal Service is also fast ap- provide universal service and deliver deal with divisive issues has led only to proaching its $15 billion statutory bor- mail to every customer, six days a stalemates in Congress. rowing limit. Given its recent history week, the affordable communication To take a fresh look at these difficult of increasing rather than paying down link upon which many Americans rely issues, I rise today to introduce legisla- its debt, increasing the Postal Serv- would be jeopardized. Most commercial tion establishing a Presidential Postal ice’s debt ceiling is not the answer. In enterprises would find it uneconomical, Commission charged with examining addition, the Postal Service’s long if not impossible, to deliver mail and the problems that the Postal Service term liabilities are enormous, to the packages to these areas at rates that faces, and developing specific rec- tune of nearly $6 billion for Workers the Postal Service has been offering. ommendations and legislative pro- Compensation claims, a staggering $32 In addition to providing a critical posals that Congress and the Postal billion in retirement costs and perhaps service to consumers, the Postal Serv- Service can implement. Precedent ex- as much as $45 billion to cover retiree ice is the eleventh largest enterprise in ists for such a commission. In the late health care costs. Meanwhile, on June the Nation with $66 billion in annual 1960s, the Kappel Commission was 30, consumers experienced a third post- revenues. This is more than Microsoft, formed to resolve the crisis situation al rate increase in just 18 months. McDonald’s and Coca Cola combined. that the former Postal Department How could the Postal Service have While the Postal Service itself employs then found itself in, train cars of unde- landed in such dire straits? The Postal more than 700,000 career employees, it livered mail, strikes, and a host of Service’s problems stem from many is also the linchpin of a $900 billion other problems. The Kappel Commis- causes. For example, the overall mailing industry that employs nine sion’s efforts laid the groundwork for growth rate of mail has been declining million Americans in fields as diverse the Postal Service we have today, since 1997, and first class mail volumes as direct mailing, printing and paper which has functioned admirably for actually have declined over the past production. many years but is now in serious trou- four years. This is particularly signifi- Affordable postal rates are vital to ble. cant, as first class mail accounts for 48 the economic health of many compa- Mindful of the body of work that has percent of total mail volume. In addi- nies, especially magazines, catalog been done in this area by my col- tion, revenues from first class mail houses and the service providers they leagues in the House and Senate, by cover more than two-thirds of institu- use. The June 2002 rate hike alone rep- the General Accounting Office, by the tional costs, such as post offices. resents a ten percent increase for peri- Postal Service itself and by others, I Shortfalls must be made up by decreas- odicals, and a nine percent increase for intend that this commission have a ing costs, increasing volumes in other catalogs. It is estimated that the com- short life of one year, during which it categories of mail or by increasing bined effect of the past three rate in- will carry out its study and produce postal rates. creases, totaling 22 percent over just 18 legislative proposals for consideration Some of this declining volume can be months, have cost the magazine indus- by the Administration and the Con- attributed to the increasing forms of try about $400 million. gress. electronic communication, particu- In May I met with a group of about Finally, I intend that the commis- larly the Internet, which has revolu- twenty Maine businessmen and women sion consider all relevant aspects of the tionized the way we communicate and involved in the mailing industry, who Postal Service. Everything should be transact business. For example, while described for me the impact that rising put on the table and evaluated. We financial statements, bills and bill pay- postal rates have on their businesses. need to ensure that the Postal Service ments constitute about half of first One magazine publisher told me that will stand up to the challenges it is fac- class mail revenue, or about $17 billion postage represents ten percent of her ing today and will face tomorrow. annually, electronic bill payment is costs. I was amazed to hear that one of These and many more issues must be quickly becoming a major means of the catalog busineses pays more for examined in depth, if we are to pre- doing business. It is estimated that 75 postage a year than it pays to any one serve this vital service upon which so percent of banks will provide online of the companies that supply the raw many Americans rely for communica- banking services by 2003. This is in ad- materials for its products. It was also tion and for their livelihood. The Post- dition to other competing methods of startling to hear from one printer that al Service has successfully overcome communication such as faxes and tele- his postage costs have doubled over the numerous difficulties over its 226-year phones. In addition, filing tax returns, last ten years. history, and has continued to deliver receiving Social Security payments, Most of the people I met with are the mail faithfully. Yet it has reached and many other transactions are also small business owners, and there are a critical juncture and once again, it is available electronically. millions more across the country, all time for a thorough evaluation of the The Postal Service also faces signifi- grappling with the same effects of rap- Postal Service’s operations and re- cant labor-related costs. Indeed nearly idly rising postage costs. quirements. 80 percent of its expenses are related to At the request of the Senate Govern- compensation and benefits. By com- mental Affairs Committee and House By Mr. SANTORUM (for himself parison, 56 percent of FedEx’s expenses Committee on Government Reform, the and Mr. SPECTER): and 42 percent of UPS’s expenses are Postal Service produced a comprehen- S. 2755. A bill to require the Sec- related to compensation and benefits. sive Transformation Plan, which it pre- retary of the Treasury to mint coins in The need to preserve a viable Postal sented to Congress in April. The Plan commemoration of the opening of the Service is clear. Americans rely on af- addresses general measures that the National Constitution Center in Phila- fordable, reliable and universal mail Postal Service believes it needs to take delphia, Pennsylvania scheduled for

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Mr. President I am herence to human rights standards; coins under this Act. pleased to introduce legislation along (5) the principles of the United States Con- (c) PERIOD FOR ISSUANCE.—The Secretary stitution have been enacted into the gov- may issue coins minted under this Act begin- with my colleague Senator SPECTER to erning laws of numerous free countries ning on January 1, 2003, and ending when the establish a one dollar silver coin that around the globe, and are reflected in the quantity of coins issued under this Act will benefit the National Constitution founding documents of the United Nations; reaches the limit under section 3(a). Center in Philadelphia, PA. (6) the United States Constitution created SEC. 7. SALE OF COINS. As the first national center of its the framework for what is now the oldest (a) SALE PRICE.—The coins minted under kind in the country, the National Con- representative democracy in the world; this Act shall be sold by the Secretary at a stitution Center will promote under- (7) in its wisdom, the Constitutional Con- price equal to the sum of— vention created a mechanism through which standing of the United States Constitu- (1) the face value of the coins; the United States Constitution can be per- (2) the surcharge provided in subsection (d) tion and its values. The events of the fected, as it has been 27 times to date, to bet- past year in our nation as well as re- with respect to such coins; and ter reflect its founding ideals, as well as to (3) the cost of designing and issuing the cent judicial rulings have brought in- accommodate changing circumstances; coins (including labor, materials, dies, use of creased attention to those principles (8) the rights and freedoms secured to machinery, overhead expenses, marketing, and values that define and bind us as Americans by the United States Constitu- and shipping). tion have and continue to draw millions Americans. All would agree that the (b) BULK SALES.—The Secretary shall from around the globe to the shores of this make bulk sales of the coins issued under United States Constitution is central Nation; this Act at a reasonable discount. to defining our country, who we are, (9) all Americans should gain an under- (c) PREPAID ORDERS.— and how we live as Americans. Even as standing of and appreciation for the United (1) IN GENERAL.—The Secretary shall ac- we often debate in the halls of Congress States Constitution and the role this re- cept prepaid orders for the coins minted markable document plays in the freedoms and the Supreme Court those policies under this Act before the issuance of such and quality of life they enjoy; and laws that best reflect the values coins. (10) the National Constitution Center was and intent of the Constitution, we all (2) DISCOUNT.—Sale prices with respect to established by the Constitution Heritage Act prepaid orders under paragraph (1) shall be recognize the freedoms and oppor- of 1988 (16 U.S.C. 407aa et seq.), which was tunity that this remarkable document signed into law by President Ronald Reagan at a reasonable discount. secures for us. on September 16, 1988, to provide for con- (d) SURCHARGES.—All sales of coins issued The National Constitution Center tinuing interpretation of the Constitution under this Act shall include a surcharge es- has been an important project in Phila- and to establish a national center for the tablished by the Secretary, in an amount equal to not more than $10 per coin. delphia with which Senator Specter United States Constitution; and and I have been involved. Construction (11) the National Constitution Center, lo- SEC. 8. DISTRIBUTION OF SURCHARGES. (a) IN GENERAL.—Subject to section 5134(f) began on September 17, 2000. When the cated at the site of the birth of the Constitu- tion, only steps away from the Liberty Bell of title 31, United States Code, the proceeds Constitution Center is completed as ex- and Independence Hall in the Independence from the surcharges received by the Sec- pected on July 4, 2003, it will be a key National Historic Park in Philadelphia, retary from the sale of coins minted under feature of a revitalized Independence Pennsylvania, is the only center in the world this Act shall be paid promptly by the Sec- Mall where it will join Independence solely dedicated to promoting understanding retary to the National Constitution Center. Hall and the Liberty Bell. The issuance of the Constitution and its values and ideals. (b) USE OF PROCEEDS.—The proceeds re- of this coin would coincide with the SEC. 3. COIN SPECIFICATIONS. ceived by the National Constitution Center opening of the Center. (a) $1 SILVER COINS.—The Secretary of the under subsection (a) shall be used by the Center to promote a greater understanding I encourage all of my colleagues to Treasury (in this Act referred to as the ‘‘Sec- retary’’) shall mint and issue not more than of the Constitution and its values and ideals. support the National Constitution Cen- 500,000 $1 coins, which shall— (c) AUDITS.—The Comptroller General of ter by cosponsoring this bill. (A) weigh 26.73 grams; the United States shall have the right to ex- I ask unanimous consent that the (B) have a diameter of 1.500 inches; and amine such books, records, documents, and text of the bill be printed in the record. (C) contain 90 percent silver and 10 percent other data of the National Constitution Cen- There being no objection, the bill was copper. ter as may be related to the expenditures of ordered to be printed in the RECORD, as (b) LEGAL TENDER.—The coins minted amounts paid under subsection (a). follows: under this Act shall be legal tender, as pro- SEC. 8. FINANCIAL ASSURANCES. Be it enacted by the Senate and House of Rep- vided in section 5103 of title 31, United States (a) NO NET COST TO THE GOVERNMENT.—The resentatives of the United States of America in Code. Secretary shall take such actions as may be Congress assembled, SEC. 4. SOURCES OF BULLION. necessary to ensure that minting and issuing The Secretary may obtain silver for mint- coins under this Act will not result in any SECTION 1. SHORT TITLE. ing coins under this Act from stockpiles es- This Act may be cited as the ‘‘National net cost to the United States Government. tablished under the Strategic and Critical (b) PAYMENT FOR COINS.—A coin shall not Constitution Center Commemorative Coin Materials Stock Piling Act, to the extent Act of 2002’’. be issued under this Act, unless the Sec- available, and from other available sources, retary has received— SEC. 2. FINDINGS. if necessary. (1) full payment for the coin; Congress finds that— SEC. 5. DESIGN OF COINS. (2) security satisfactory to the Secretary (1) a Constitutional Convention was con- (a) DESIGN REQUIREMENTS.— to indemnify the United States for full pay- vened in the summer of 1787 in Philadelphia, (1) IN GENERAL.—The design of the coins ment; or Pennsylvania for the purposes of replacing minted under this Act shall be emblematic (3) a guarantee of full payment satisfac- the failed Articles of Confederation as a of the National Constitution Center in Phila- tory to the Secretary from a depository in- framework for governing the 13 American delphia, Pennsylvania. stitution, the deposits of which are insured colonies newly independent from Great Brit- (2) DESIGNATION AND INSCRIPTIONS.—On by the Federal Deposit Insurance Corpora- ain; each coin minted under this Act, there shall tion or the National Credit Union Adminis- (2) the United States Constitution pro- be— tration. duced by the Convention would set the (A) a designation of the value of the coin; United States of America on a unique course (B) an inscription of the year ‘‘2003’’; and By Mr. JEFFORDS (for himself, of experiment in self-government that would (C) inscriptions of the words ‘‘Liberty’’, Mr. LEAHY, Mr. SCHUMER, and profoundly impact the United States and the ‘‘In God We Trust’’, ‘‘United States of Amer- world; ica’’, and ‘‘E Pluribus Unum’’. Mrs. CLINTON): (3) in its deliberations and promotion (b) DESIGN SELECTION.—The design for the S. 2756. A bill to establish the Cham- through such literary works as The Fed- coins minted under this Act shall be— plain Valley National Heritage Part- eralist Papers, the United States Constitu- (1) selected by the Secretary, after con- nership in the States of Vermont and tion drew upon the successes and failures of sultation with the Constitution Center Coin New York, and for other purposes; to nations and peoples dating as far back as the Advisory Committee; and the Committee on Energy and Natural city-state republics of ancient Greece in (2) reviewed by the Citizens Commemora- Resources. forming representative governments; tive Coin Advisory Committee. Mr. JEFFORDS. Mr. President, I am (4) the first 10 amendments to the Con- SEC. 6. ISSUANCE OF COINS. stitution, known as the Bill of Rights, com- (a) QUALITY OF COINS.—Coins minted under very pleased to introduce the Cham- prise the best written set of legal protections this Act shall be issued in uncirculated and plain Valley National Heritage Act of of the rights and dignity of the individual in proof qualities. 2002. I am joined by Senator LEAHY and

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00074 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7041 Senators SCHUMER and CLINTON of New Over the July 4th recess, I was able munities and organizations through York. This bill will establish a Na- to participate in the Lake Champlain the Lake Champlain Basin Program. tional Heritage Partnership within the Maritime Museum’s opening of a new I think it is most fitting that we Champlain Valley. Passage of this bill exhibit featuring artifacts recovered have come here together to introduce will culminate a process to enhance the from the 1776 Revolutionary War Bat- this long-awaited bill, reasserting our incredible cultural resources of the tle of Valcour. It was just 1 year ago partnership for Lake Champlain: Champlain Valley. that Senator CLINTON and I were at the Vermont and New York engaged in a The Champlain Valley of Vermont site of the Battle to take part in the cooperative effort to conserve, inter- and New York has one of the richest recovery and beginning of the con- pret, and honor our common heritage. and most intact collections of historic servation process of those artifacts. resources in the United States. Fort The Valcour Bay Research Project By Mr. BIDEN: Ticonderoga still stands where it has followed the 1997 discovery of the miss- S. 2757. A bill to amend title XVIII of for centuries, at the scene of numerous ing American gunboat from the Battle. the Social Security Act to provide cov- battles critical to the birth of our Na- I bring this up because our purpose erage of outpatient prescription drugs tion. Revolutionary gunboats have re- today as we introduce this legislation under the medicare program; to the cently been found fully intact on the underscores to the rest of our Nation a Committee on Finance. bottom of Lake Champlain. Our ceme- message we Vermonters and New York- Mr. BIDEN. Mr. President, today I teries are the permanent resting place ers have long proclaimed: the role of am introducing a bill to add outpatient for great explorers, soldiers and sailors. Lake Champlain in the cause of Amer- prescription drug coverage as a new The United States and Canada would ican independence cannot be over- and integral benefit under Part B of not exist today but for events that oc- looked. Medicare. Under this bill, like the rest curred in this region. The evidence of the struggle for this of the services under Part B, Medicare We in Vermont and New York take strategic waterway from the days of will pick up 80 percent of the cost of great pride in our history. We preserve Native American excursions, through prescription drugs. This would be the it, honor it and show it off to visitors the colonial rivalry between Britain case until a beneficiary hits a $4000 an- from around the world. These visitors and France, our War of Independence, nual out-of-pocket limit, at which are also very important to our econ- until the end of the War of 1812, con- point the government picks up 100 per- omy. Tourism is among the most im- stantly surrounds those of us who cent of drug costs. Moreover, bene- portant industries in this region and make our homes in this Valley. ficiaries will not have to pay increased has much potential for growth. This act is intended to advance the monthly premiums or annual The Champlain Valley Heritage Part- cultural heritage goals of ‘‘Opportuni- deductibles as a result of this new drug nership will bring together more than ties for Action,’’ the comprehensive benefit. one hundred local groups working to plan developed under the Lake Cham- Now, we have been discussing pre- preserve and promote our heritage. Up plain Special Designation Act by the scription drug coverage for seniors in to $2 million a year will be made avail- Lake Champlain Basin Program with this chamber for many years, and there able from the National Park Service broad public input and support as well have been numerous proposals brought though the Lake Champlain Basin Pro- as with the involvement of local, State forward. Some might ask, why do you gram to support local efforts to pre- and Federal Governments. feel the need to propose your own pre- serve and interpret our heritage and We envision activities such as locally scription drug plan; what is wrong with present it to the world. Most of the planned and managed heritage net- the many previous proposals. funding will be given to small commu- works and programs, a management Well, to my way of thinking, we have nities to help preserve their heritage strategy for the Lake’s underwater cul- lost our focus on this issue. In devel- and develop economic opportunities. tural resources and strengthening the oping a drug plan, we have con- This project has taken many years centrated too much on such things as for me to bring to the point of intro- links between cultural resources and economic development. This legisla- budget allotments, philosophy of gov- ducing legislation. This has been time ernment, desires of committee chairs, well spent working at the grass-roots tion will also help provide assistance as election politics, and other related level to develop a framework to direct the 400th anniversary of Samuel De issues, while ignoring the one thing federal resources to where it will do Champlain’s arrival in the Valley is that really counts: what do the citizens the most good. I am confident that we commemorated in 2009. of this country, the ones who are sup- have found the best model. This will be Today, we are taking a significant posed to use this plan, really want? All a true partnership that supports each step in helping all Americans better of these prescription drug plans will be member but does not impose any new appreciate the full history of the Lake voluntary, and yet unless a plan is at- Federal requirements. Champlain Valley which holds such an The Champlain Valley National Her- extensive collection of historic sites tractive enough to ensure the partici- itage Partnership will preserve our his- and artifacts. pation of close to 100 percent of those toric resources, interpret and teach As Vermonters and New Yorkers the eligible, it probably won’t work from about the events that shaped our Na- stewards of Lake Champlain, we have a an economic point of view. Those of us tion and will be an engine for economic serious responsibility to conserve this who were around in 1988 for the debates growth. I am hopeful that this bill soon evidence for future generations. We be- about catastrophic health care remem- become law. lieve that what we do here, how we ber with great clarity the consequences Mr. LEAHY. Mr. President, I am very manage the cultural heritage of the of passing a health-related bill that the pleased to join with my Senate col- Valley, can contribute to the growing citizens don’t want. leagues from Vermont and New York debate on how present generations can Frankly, I have some doubts about as we introduce the Lake Champlain live and prosper on the same ground whether any of the prescription drug Heritage Act of 2002. With this legisla- that we conserve as our natural and proposals to date provide what the citi- tion, we will take an important step in cultural heritage. zens in Delaware or elsewhere really recognizing the importance of the Lake Our Vermont and New York Cham- want. And I think I have a pretty good Champlain Valley in the history of plain Valley communities share this idea of what people want in a prescrip- America. heritage and have helped us develop a tion drug plan, at least people in my I want to thank Senator JEFFORDS vision to enhance the conservation, in- home state of Delaware. I live in Dela- and his staff for all the work they have terpretation and enjoyment of our ware, and I commute back and forth on put into this effort. I know that many shared history and to make it more AMTRAK every day between Delaware hours have gone into the research, dis- readily available to residents and visi- and Washington DC. I have been a Sen- cussion and editing to get where we are tors alike. We can help revitalize local ator for 30 years and people in Dela- today. I also want to thank Senators economies and promote heritage tour- ware know me well. They have no re- CLINTON and SCHUMER who are our val- ism as we improve the stewardship of luctance about walking up to me at the uable New York partners in all things the Valley’s cultural legacy by making local diner, on the train, or at the related to Lake Champlain. additional resources available to com- drugstore, to give me a piece of their

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00075 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7042 CONGRESSIONAL RECORD — SENATE July 18, 2002 minds. And here is what Delawareans crease the voluntary participation rate of child care. The bill that we are in- want in a prescription drug bill. close to 100 percent. troducing today further strengthens They want something simple and eas- Can we afford such a bill? Absolutely. and improves that legislation. ily understandable. They don’t want a It’s just a matter of priorities and Compared to S. 2117, the new legisla- plan with a lot of fine print, exclusions, choices. And these choices simply re- tion we are introducing today: further complicated payment formulas, gaps in flect our values. My values tell me that strengthens the coordination among coverage, lengthy paragraphs filled providing life-saving prescription drugs agencies and outreach about the avail- with whereases and wherefores. They to the seniors and disabled is a higher ability of child care assistance, so that don’t want to be in a state of constant priority than, say, making permanent the child care agency and TANF agen- anxiety because they really don’t know a tax cut for the well-to-do that they cy coordinate in providing information what they have signed up for and what probably don’t need and have not real- to eligible parents about the avail- they are covered for. They don’t want ly requested. ability of child care assistance; in- to have to spend hours on the phone Many of my colleagues in the Senate, cludes a new section to improve parent listening to music while waiting for an and a large number of their staff, have access to the process of obtaining child insurance company clerk to answer the been working enormously hard to de- care subsidies; strengthens account- phone and try to explain what the ben- velop a Medicare prescription drug bill ability for the use of quality funds by efits are. They don’t want to spend a that satisfies everybody’s concerns. requiring States to set State child care whole day filling out paperwork to try However, I am reminded of the state- quality goals, set quantifiable meas- to get reimbursed for their expenses ment by the noted British engineer Sir ures for each goal; and requires States when they could just as well be playing Alec Issigonis, who commented that ‘‘A to describe their progress in meeting with their grandchildren. They don’t camel is a horse designed by com- each goal in an annual report; want to be caught in the middle of a mittee’’. If the public is expecting a strengthens provisions to improve the fight between their drug insurance plan horse, we better not end up with a quality and availability of child care and their Medicare over who is going to camel. for infants and toddlers, child care for pay for what. Our current situation here in Con- disabled children, and child care for They want a plan that provides gress brings to mind a story related by children who need care during non- meaningful and substantial financial a local TV weatherman here in Wash- traditional hours; allows States to op- help towards the cost of their medica- ington, DC. This weatherman works in erate an At Home Infant Care program tions. For most people I talk to, a cut a very high tech underground office to improve the quality of care for in- in prescription drug costs from $5000 with fancy color radars, computers, fants, currently successful in Montana per year down to $4700 per year is not split-second communications devices, and Minnesota; consolidates the gen- very helpful; they are still faced with and state of the art graphics. Yet be- eral quality setaside and the child care choosing between paying for medica- fore each broadcast, the weatherman workforce development setaside under tions and paying for rent. With the in- goes upstairs and looks out the window S. 2117 into one 10 percent quality set- creasing costs of prescription drugs to make sure it is not raining. I would aside to be used by States to improve these days, this is a criterion that is ask my colleagues, as they work the quality of care that children re- just as important to the middle class through their cost estimates, economic ceive, regardless of setting; consoli- as it is to those with low incomes. projections, and so forth in developing dates data collection under current law They want a plan that is stable, reli- a prescription drug plan, to walk up- to make data collection and reporting able, and predictable. They don’t want stairs and look out the window. Policy requirements easier for States while to sign up with an insurance company makers must not work in protective retaining useful information for policy- and then have the company pull out of isolation, in a vacuum; they need a makers; deletes the section on school the state the following year. They strong dose of reality to inform their readiness incentive grants under S. don’t want the specifics of their bene- deliberations. 2117, instead, replacing these grants fits to be changing every year. They I believe that my bill provides the with the text of S. 2566, the Early Care want to know what they are getting. kind of prescription drug plan that and Education Act authorized sepa- They want a guarantee that a plan Medicare beneficiaries in Delaware, rately under Title III of this new legis- will be available to them. They don’t and around the country, really want. I lation; shifts the text of the Child Care want a guarantee that a plan will be encourage my colleagues to keep the Centers in Federal Facilities Act and available only if an insurance company wants of their constituents foremost as the Technical and Financial Assistance decides it will offer a plan or if an in- they move to craft a vitally-needed Grants Act under S. 2117 to Title II of surance company decides they are a prescription drug bill for Medicare the new bill as separate authorizations; good risk. beneficiaries. adds the text of the Book Stamps Act They want a plan that is uniform, to Title II as a separate authorization; not one whose benefits change dras- By Mr. DODD (for himself, Ms. and, authorizes $1 billion in FY2003 and tically if they happen to move a few SNOWER, Mr. JEFFORDS, Mr. such sums as necessary in the out miles. Delaware is a small state, and REED, Mr. BINGAMAN, Mrs. CLIN- years 2004–2007. people who live or work in Delaware TON, Mrs. MURRAY, and Mr. In short, the Access to High Quality move back and forth across state lines EDWARDS): Child Care Act is about putting ‘‘Devel- with great frequency. S. 2758. A bill entitled ‘‘The Child opment’’ back into the Child Care and My prescription drug bill is focused Care and Development Block Grant Development Block Grant. on what consumers want, and it fulfills Amendments Act’’; to the Committee The fact is that 78 percent of school- all of these requirements. People are on Health, Education, Labor, and Pen- age parents are working today; 65 per- already very familiar with Medicare sions. cent of parents with children under 6 Part B, so the addition of a prescrip- Mr. DODD. Mr. President, I am are working today; and, over half of tion drug benefit will not add any con- pleased to join with my colleagues Sen- mothers with infants are in the work- fusion. People know that Medicare is ator SNOWE, Senator JEFFORDS, Sen- force today. stable, reliable, predictable, and the ator REED, Senator BINGAMAN, Senator That means about 14 million chil- same all over the country. People know CLINTON, Senator MURRAY, and Senator dren, including 6 million infants and that Medicare Part B covers a substan- EDWARDS today in introducing the new toddlers, under the age of 5 are in some tial 80 percent of their medical ex- Access to High Quality Child Care Act. type of child care arrangement. Many pense. We know that people like Medi- On April 11, I introduced, S. 2117, of them are in child care every week care Part B, since 94 percent of those which represented a bipartisan partner- for many hours. eligible have voluntarily signed up for ship with the Senate Finance Com- While their parents work, children it. The addition of a new prescription mittee and Senate Health, Education, are being cared for in a variety of set- drug benefit to Part B, without any Labor, and Pensions, HELP, Com- tings. Some of them are very good, but change in monthly premiums or mittee to both improve the quality of sadly, some of them are not. What we deductibles, is almost certain to in- child care and expand the availability know is that 46 percent of kindergarten

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00076 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7043 teachers report that half or more of to be sufficient ‘‘to ensure equal access for health and well-being of American con- their students enter kindergarten not eligible children to comparable child care sumers. As part of that approach, we ready to learn. services in the state or substate area that have banned the use of certain harmful This new legislation that we are in- are provided to children whose parents are substances in food-producing animals troducing today further strengthens not eligible to receive assistance’’. But, cur- rent low state reimbursement rates do not due to the extreme hazards they pose our efforts to improve the quality of offer parents comparable care for their chil- to human health. While these stand- care to promote school readiness while dren. ards also apply to imported foods that expanding child care assistance to Allow states to operate an at-home infant cross our borders, these protections more working poor families. care program to promote the quality of care cannot be enforced without adequate We filed this legislation yesterday in for infants. inspection and testing. The children of working parents need qual- the HELP Committee and will proceed Unfortunately, not all countries are to markup next Wednesday, July 24th. ity child care if they are to enter school ready to learn. Yet, 30 states require no applying the same rigorous standards I urge my colleagues to join us in sup- that the United States demands for our porting this legislation that so many training in early childhood development be- fore a teacher walks into a child care class- consumers. In the last few months, one working families with children need. room. 42 states require no training in early of the banned substances, namely the I ask unanimous consent that sum- childhood development before a family day antibiotic chloramphenicol, was de- mary of the legislation be printed in care provider opens its home to unrelated tected in shrimp and other food prod- the RECORD. children. The 2002 Access Act will: Require uct imported from several countries to There being no objection, the sum- states to set training standards, just as they the United States, the European Union mary was ordered to be printed in the are required to do now for health and safety and Canada. Shockingly these sub- RECORD, as follows: under current law. Such training would go stances have not been detected by the THE 2002 ACCESS ACT—THE ACCESS TO HIGH beyond CPR and first aid to include training inspectors for the federal Food and QUALITY CHILD CARE ACT BRIEF SUMMARY in the social, emotional, physical, and cog- nitive development of children. Background: The Access to High Quality Drug Administration, FDA, the agency Exempt relatives from the training re- Child Care is about putting ‘‘Development’’ responsible for protecting U.S. con- quirements, but through the quality funding back into the Child Care and Development sumers from adulterated food imports. in CCDBG states could partner with colleges Block Grant. About 14 million children, in- Rather, these substances were detected and R&Rs to provide training to relatives cluding 6 million infants and toddlers, under and informal caregivers on a voluntary basis. in the United States by independent the age of 5 are in some type of child care ar- Initial evaluations in Connecticut of such ef- testing done by State authorities in rangement. Many of them are in child care forts show that relatives and informal care- Louisiana. every week for many hours. The fact is that givers are voluntarily participating and are 78% of school-age parents are working today; While these products are prohibited feeling better about themselves and their 65% of parents with children under 6 are by law, FDA testing has never detected interactions with the children have im- working today; and, over half of mothers such substances in food imports. We proved. with infants are in the workforce today. were alarmed to discover that FDA Reduce administrative barriers and im- While these parents work, their children are prove coordination among agencies so that currently tests only 1 to 2 percent of being cared for in a variety of settings—some low income working parents can more easily all food imports for compliance with of which are very good, but sadly, some of access the process for obtaining and retain- food safety standards. This failure to them are not. What we know is that 46% of ing child care assistance. detect such substances may be due not kindergarten teachers report that half or more of their students enter kindergarten SEPARATE AUTHORIZATIONS FOR QUALITY CHILD only to inadequate frequency of test- not ready to learn. This reauthorization bill CARE INITIATIVES ing, but also may be attributed to inad- is geared toward improving the quality of Separate authorizations include the fol- equate testing methods employed by care to promote school readiness while ex- lowing measures: the Child Care Centers in the FDA. While the testing protocol panding child care assistance to more work- Federal Facilities Act, the Technical and Fi- used in Europe and Canada can detect ing poor families. nancial Assistance Grants Act, the Book such substances to 0.3 parts per billion Key Provisions: The Child Care and Devel- Stamps Act, and the Early Care & Education ppb, FDA until very recently used a opment Block Grant is designed to give par- Act. technique that only measures up to 3 ents maximum choice among child care pro- viders. The bill retains parental choice, but By Mr. HOLLINGS (for himself, ppb, and now is using a test that only provides states with a number of ways to Mr. LOTT, and Mr. BREAUX): detects to 1 ppb. help child care providers improve the quality S. 2759. A bill to protect the health It is vital that we close this inspec- of care that they provide. The 2002 Access and safety of American consumers tion gap at our borders and ensure the Act will: Strengthen the coordination among safety of our food supply, while not agencies and outreach about the availability under the Federal Food, Drug, and Cos- metic Act from seafood contaminated placing unreasonable burdens on the of child care assistance; Promote greater co- men and women who are tasked with ordination among federal, state, and local by certain substances; to the Com- care and early childhood development pro- mittee on Health, Education, Labor, this huge inspection job. This bill grams, including the transition from early and Pensions. would ensure that U.S. consumers are care programs to elementary school; Set Mr. HOLLINGS. Mr. President, I rise protected from serious health risks as- aside 10% of CCDBG funds to improve the today as Chairman of the Commerce, sociated with harmful substances, quality of child care for any of the following Science and Transportation Committee while allowing the continued flow of activities—initiatives to improve recruit- to introduce the Seafood Safety En- imports that are shown to be free of ment, education, and retention of child care forcement Act of 2002. I am pleased to these harmful substances. It would re- staff; initiatives to improve the quality and quire FDA to ensure that imports sus- availability of care for infants and toddlers, be joined by the Republican minority children with disabilities, or care during leader, Senator TRENT LOTT, and by pected of containing such substances nontraditional hours; resource and referral Senator JOHN BREAUX, both distin- are demonstrated to meet food safety services; training and technical assistance; guished members of the Commerce standards. Such demonstration would grants or loans to improve provider compli- Committee. This Act would ensure that be made by the importer or exporter, ance with state or local law; support for imports of seafood into the United and subject to FDA approval. states to monitor compliance or other ac- States are meeting the same food safe- Due to the health threats posed by tivities deemed by the state to improve the such substances in our food supply, and quality of care, including the provision of ty standards imposed on seafood that emergency child care. originates from the United States. the national interest of having a uni- Improve the accountability of the use of Shrimp and other seafood harvested form inspection and testing standard, quality funds by requiring states to set qual- and processed in the United States is federal action is appropriate. This bill ity improvement goals that are measurable some of the best quality seafood in the provides the safety and security we to ensure that states are making progress in world. I know how hard the shrimpers seek, while not placing unreasonable improving the quality of child care. Set in my State of South Carolina work to burdens on our federal food safety in- aside 5% of CCDBG funds to help states in- spection system. crease the reimbursement rate for child care bring good, wholesome products to our providers to ensure that parents have real tables. To preserve the quality of sea- I ask unanimous consent that the choices among quality providers. Under cur- food, the United States has established text of the bill be printed in the rent law, CCDBG payment rates are supposed rigorous food standards to protect the RECORD.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00077 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7044 CONGRESSIONAL RECORD — SENATE July 18, 2002 There being no objection, the bill was (2) redesignating subsections (b) through on Health, Education, Labor, and Pensions ordered to be printed in the RECORD, as (n) as subsections (c) through (o), respec- and the House of Representatives Committee follows: tively; and on Energy and Commerce before issuing that (3) inserting after subsection (a) the fol- tolerance. The Secretary shall include in the S. 2759 lowing: notification a draft of any changes in Fed- Be it enacted by the Senate and House of Rep- ‘‘(b)(1) Notwithstanding clause (5) of the eral statute law that may be necessary. resentatives of the United States of America in third sentence in subsection (a) of this sec- SEC. 6. CONFORMING AMENDMENTS. Congress assembled, tion, the Secretary may permit individual Section 801 of the Federal Food, Drug, and SECTION 1. SHORT TITLE. shipments of seafood originating in a coun- Cosmetic Act (21 U.S.C. 381), as amended by This Act may be cited as the ‘‘Seafood try or from an exporter listed in guidance to subsection (a), is amended by— Safety Enforcement Act’’. be admitted into the United States if evi- (1) striking ‘‘subsection (b)’’ in subsection SEC. 2. FINDINGS. dence acceptable to the Secretary is pre- (d), as redesignated by section 2(2) of this (1) Chloramphenicol, a potent antibiotic, sented that the seafood in that shipment Act, and inserting ‘‘subsection (c)’’; can cause severe toxic effects in humans, in- does not bear or contain a substance listed in (2) striking ‘‘subsection (e)’’ in paragraph cluding hypo-aplastic anemia, which is usu- section 530.41(a) of title 21, Code of Federal (1) of subsection (g), as redesignated by sec- ally irreversible and fatal. The drug is ad- Regulations. tion 2(2) of this Act, and inserting ‘‘sub- ministered to humans only in life-threat- ‘‘(2) The Secretary may remove a country section (f)’’; ening situations when less toxic drugs are or exporter listed in guidance under clause (3) striking ‘‘section 801(a)’’ in paragraph not effective. (5) of the third sentence of subsection (a) of (1)(A)(i) of subsection (h), as redesignated by (2) Because of these human health impacts, this section only if the country or exporter section 2(2) of this Act, and inserting ‘‘sub- chloramphenicol and similar drugs are not has shown to the satisfaction of the Sec- section (a) of this section’’; approved for use in food-producing animals retary that each substance at issue is no (4) striking ‘‘section 801(a)’’ in paragraph in the United States. However, other coun- longer sold for use in, being used in, or being (1)(A)(ii) of subsection (h), as redesignated by tries have been found to use these drugs in used in a manner that could contaminate section 2(2) of this Act, and inserting ‘‘sub- the aquaculture of shrimp and other seafood, food-producing animals in the country at section (a) of this section’’; including Thailand, Vietnam, and China. issue.’’. (5) striking ‘‘section 801(d)(1);’’ in para- (3) The majority of shrimp consumed by graph (1)(A)(iii) of subsection (h), as redesig- the United States is imported. The nation SEC. 4. GUIDANCE FOR REFUSING ENTRY OF SEA- FOOD FROM A COUNTRY OR EX- nated by section 2(2) of this Act, and insert- imports 400,000 metric tons of shrimp annu- PORTER. ing ‘‘subsection (e)(1) of this section;’’. ally, and the percentage of shrimp imports (a) ISSUANCE OF GUIDANCE.—Upon a deter- (6) striking ‘‘Subsection (b)’’ in paragraph rises each year. Thailand and Vietnam are mination by the Secretary of Health and (2) of subsection (k), as redesignated by sec- the top two exporters of shrimp to the Human Services that, based on information tion 2(2) of this Act, and inserting ‘‘Sub- United States, and China is the fifth largest acceptable to the Secretary, an exporter or section (c)’’; exporter of shrimp to the United States. country appears to be a source of articles (7) striking ‘‘Subsection (b)’’ in paragraph (4) Upon detection of chloramphenicol in subject to refusal under section 801(a)(4) of (1) of subsection (l), as redesignated by sec- certain shipments of seafood from China and the Federal Food, Drug, and Cosmetic Act tion 2(2) of this Act, and inserting ‘‘Sub- other nations, in 2002 the European Union (21 U.S.C. 381(a)(4)), the Secretary shall issue section (c)’’; and Canada severely restricted imports of guidance described in section 801(a)(5) of that (8) striking ‘‘Subsection (b)’’ in subsection shrimp and other food from these nations. Act. (5) The United States Food and Drug Ad- (m), as redesignated by section 2(2) of this (b) DETERMINATION CRITERIA.—In making ministration inspects only 2 percent of all Act, and inserting ‘‘Subsection (c)’’; and the determination described in subsection seafood imports into the United States and (9) striking ‘‘Subsection (b)’’ in paragraph (a), or any determination under section utilizes a testing procedure that cannot de- (2)(B)(i) of subsection (n), as redesignated by 801(a) of the Federal Food, Drug, and Cos- tect the presence of chloramphenicol below 1 section 2(2) of this Act, and inserting ‘‘Sub- metic Act (21 U.S.C. 381(a)), the Secretary part per billion. The European Union and section (c)’’. may consider— Canada use testing protocols that can detect (A) the detection of substances described in such substances to 0.3 parts per billion. By Mr. SPECTER (for himself (6) While Food and Drug Administration section 801(a)(4) of that Act by the Sec- and Mr. HARKIN): import testing did not detect chloramphen- retary; S.J. Res. 41. A joint resolution call- icol in shrimp imported from these nations (B) the detection of such substances by a ing for Congress to consider and vote in 2002, independent testing performed by the person commissioned to carry out examina- on a resolution for the use of force by state of Louisiana detected chloramphenicol tions and investigations under section 702(a) of that Act; the United States Armed Forces at a level of over 2 parts per billion in craw- against Iraq before such force is de- fish imported from China. (C) findings from an inspection under sec- (7) Imports of seafood from nations that tion 704 of that Act; ployed; to the Committee on Foreign utilize substances banned in the United (D) the detection by other importing coun- Relations. States pose potential threats to United tries of such substances in shipments of sea- Mr. SPECTER. Mr. President, I States consumers. Denial of entry to con- food that originate from such country or ex- sought recognition to introduce a joint taminated shrimp and other products to the porter; and resolution on behalf of Senator HARKIN European Union and Canada will likely redi- (E) other evidence or information as deter- and myself calling upon the Congress rect imports to the United States of con- mined by the Secretary. to consider, vote on, and enact a joint (c) ANNUAL REPORT.—The Secretary shall taminated products turned away from these resolution authorizing the use of force countries. provide a report within 30 days after the end (8) Immediate and focused actions must be of each fiscal year to the Senate Committee by the U.S. Armed Forces against Iraq taken by the Federal government to improve on Health, Education, Labor, and Pensions before such force is used. enforcement of food import restrictions of and the House of Representatives Committee This resolution takes no position as seafood imports in order to protect United on Energy and Commerce setting forth the to whether the use of force should be States consumers and ensure safety of the names of all countries and exporters for authorized or it should not be author- food supply. which the guidance described in subsection ized, but goes to the essential author- SEC. 3. CONTAMINATED SEAFOOD. (a) was issued during that fiscal year. ity of the Congress under the Constitu- Section 801 of the Federal Food, Drug, and (d) RULE OF CONSTRUCTION.—Nothing in tion to declare war. Cosmetic Act (21 U.S.C. 381) is amended by— this Act, and no amendment made by this Act, shall be construed to limit the existing The President’s powers as Com- (1) striking all of the text in the third sen- mander in Chief are reserved for an tence of subsection (a) after ‘‘section 505,’’ authority of the Secretary of Health and and inserting ‘‘or (4) such article is seafood Human Services or the Secretary of the emergency where Congress does not that appears to bear or contain one or more Treasury to consider any information or to have an opportunity to deliberate and substances listed in section 530.41(a) of title refuse admission of any article under section decide. It is obvious that concerning 21, Code of Federal Regulations, or (5) such 801(a) of the Federal Food, Drug, and Cos- the current situation with Iraq, there article is seafood originating from an ex- metic Act (21 U.S.C. 381(a)). is ample time for a resolution of the porter or country that the Secretary has SEC. 5. ISSUANCE OF TOLERANCES. issue by the Congress. identified in guidance as a likely source of If, after the date of enactment of this Act, There have been repeated statements articles subject to refusal of admission under the Secretary of Health and Human Services by the administration relating to mili- clause (4) of this sentence, then such article intends to issue a tolerance under section tary action against Saddam Hussein. It shall be refused admission, except as pro- 512(b) of the Federal Food, Drug, and Cos- vided in subsection (c) of this section and, metic Act (21 U.S.C. 360b(b)) for any of the is known that Saddam has weapons of with respect to articles subject to clause (5) substances listed in section 530.41(a) of title mass destruction, such as chemicals of this sentence, except as provided in sub- 21, Code of Federal Regulations, then the which he used against the Kurds, and section (b) of this section.’’; Secretary shall notify the Senate Committee there exists evidence of biological

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00078 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7045 weapons that he possesses. The best Fourth, what will happen after a re- ture may hold if he goes unchecked. thinking is Saddam does not now have gime change? What will happen if, as But these are all complicated issues. nuclear bombs but is trying to acquire and when Saddam goes? There ought to be full hearings. The them. There is also the critical issue as to American people ought to be informed. The President of the United States, what we may expect from Saddam by We have learned from the bitter experi- in his State of the Union speech, iden- way of reprisal or by way of antici- ence of Vietnam what happens when tified Iraq, along with Iran and North patory action. We know that Saddam there is military action where the Korea, as the ‘‘axis of evil.’’ Secretary Hussein is ruthless. We have seen him American people are not supportive of State Powell in congressional testi- use chemicals against his own people, and the Congress is not supportive. mony then testified that the United the Kurds. We have his statement just Obviously, in a representative de- States was not going to go to war yesterday on the 24th anniversary of mocracy, the matter first comes to the against either Iran or North Korea, the July revolution when Saddam came Congress. There is the precedent of raising the inference that war against into power. It is a belligerent, bellicose President George H.W. Bush in 1991, Iraq by negative implication was a dis- statement. when the Congress authorized a resolu- tinct possibility. I had an opportunity to meet with tion for the use of force. I know the Presiding Officer remembers it well, as There have been repeated requests Saddam Hussein in January of 1990 at a do I. It was a historic debate, and has for regime change by the administra- meeting with Senator RICHARD SHELBY. been so characterized by the media and tion. In lieu of the limited time, I will There is no doubt in my mind, from other commentators. President Bush, not enumerate them, although they are that contact—a meeting of about an in 1990, had originally said he did not set forth in some detail in my prepared hour and a quarter—that we are deal- need congressional authorization. Then statement. ing with someone who has a mindset and a determination, having invaded Senator HARKIN took the floor on Jan- On February 13, 2002, I spoke on the uary 3, 1991, during a swearing-in cere- floor calling for hearings by the Senate Kuwait, having acted against the Kurds, that should give us every reason mony, and procedurally the course that Foreign Relations Committee and/or then followed, without going into great the Senate Armed Services Committee, to be concerned about what he may do in light of the administration’s re- detail now, was that we had the debate and by letters dated February 14, 2002, on January 10, 11, and 12 and voted 52 and March 12, 2002, wrote to the respec- peated statements about a regime change; a concern if there is action by to 47 in this body authorizing the use of tive chairmen of those committees. I force to repel Iraq from Kuwait. So am glad to note that Senator BIDEN, the United States against Iraq that there may be retaliation against Israel that precedent is with us. chairman of the Foreign Relations There is no doubt that Congress is re- or others in the Mideast. Committee, has called for a September luctant to step into the breach and to hearing on the Iraq issue. Consideration by the Congress also would be very helpful in addressing the take a position. I urged in 1998 that the The power of the Congress on the concerns which the international com- Congress authorize the use of force be- declaration of war has been eroded very munity has expressed on the fore President Clinton moved in with materially, with the President taking unilateralism of President Bush and the missile attacks against Iraq in De- unilateral action in Korea, Vietnam, President Bush’s administration. We cember of 1998. My written statement Grenada, Lebanon, Panama, Somalia, goes into detail as to what I have done have had instances of that: the Inter- and Kosovo. But in a situation where on this issue going back to 1983, when national Criminal Court, Kyoto, the there is ample time for the Congress to I conducted a debate with Senator U.N.-Bosnia peacekeeping force, and deliberate and decide, the Congress Charles Percy on the question of Korea others which I have enumerated in should assert its constitutional author- and Vietnam being a war, and the ques- greater detail in the written statement ity. tioning of Justice Souter in 1990 on which I will include at the conclusion whether Korea was a war. There has Among the many issues regarding of these remarks. been a reluctance on the part of Con- the separation of powers, none is more If there are Members of the Senate gress to step forward. If we do nothing important than this basic power to de- and House who come forward and sup- and it all works out, everything is fine, clare war and the separate power which port the President—people in this body the Congress is happy. If the President the President has as Commander in with extensive experience in the field acts unilaterally and is wrong, he gets Chief which sometimes conflict, but over many years, respected inter- the blame and we do not get the blame. not in the situation such as the one at national reputations—I think that hand where we have time to deliberate I believe we have a responsibility to would give credence to a position that step forward. We have a responsibility and decide. the President may wish to take and Earlier this month, I conducted some institutionally under the Constitution would allay some of the concerns inter- to declare war, and we have a responsi- 19 town meetings across my State of nationally on unilateralism, and per- Pennsylvania and found a great deal of bility to acquaint the American people haps persuade some of our allies that as to what is involved, and I think a re- citizen concern. People are unaware of this is the right course of conduct. the details and would like to know sponsibility to have this debate, to tell In considering what to do about Sad- our European allies what our reasons more. dam, we have the example fresh in our In my February 13, 2002 floor speech, are for what we may do. mind of al-Qaeda and Osama bin Laden. If there is to be military action I enumerated a number of issues which We have learned that 20/20 hindsight al- against Saddam and Iraq, there is no are worth repeating. First, hearings ways being very good that we should doubt it would be much stronger with a would identify with greater precision have acted against bin Laden before congressional resolution, which implic- what Saddam has by way of weapons of September 11. We had ample warning itly carries the support of the Amer- mass destruction. and ample cause to do so. Bin Laden ican people. I think the hearings which Secondly, we would get into the de- was under indictment for killing Amer- I have called for and the debate on the tails as to what Saddam and Iraq have icans in Mogadishu in 1993. Bin Laden resolution will do a great deal to in- done by way of thwarting the United was under indictment for the East Afri- form the American people and the peo- Nations from conducting inspections. ca Embassy bombings in 1998. We knew ple of the world as to what we are up Earlier this year, I met with Secretary he was involved in the U.S.S. Cole ter- to, and whatever justification it is we General Kofi Annan to get a firsthand rorism. He had made pronouncements have. briefing and to press the U.N. to do ev- about a worldwide jihad. The United I understand that my distinguished erything it could to get those inspec- States and the United Nations made colleague, Senator HARKIN, will be a tions. demands on the Taliban to turn over cosponsor of this resolution. Another issue which I think needs to bin Laden, which were refused. So we Repeated statements from the ad- be subjected to analysis and hearings had a right under international law to ministration carry the strong sugges- and national debate is what the cost proceed against bin Laden. tion that President Bush intends to would be of toppling Saddam, including There is obviously great concern take military action to change the re- the cost in casualties. about Saddam Hussein or what the fu- gime of Saddam Hussein in Iraq. There

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00079 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7046 CONGRESSIONAL RECORD — SENATE July 18, 2002 are good reasons to be concerned about the elected members of the House and use force against Iraq, there has been Saddam Hussein’s developing weapons Senate, is indispensable to successfully public concern about what Saddam of mass destruction. Iraq’s exclusion of carry out an extensive military action. Hussein might do in anticipation or re- UN inspectors raises the inference he The United States learned a better les- taliation. Saddam is well known for his has something to hide. son in Vietnam that a war cannot be ruthlessness and his disdain for life by On February 13, 2002, in a Senate successfully fought without public and use of chemicals against his own peo- floor statement, I urged that the Sen- congressional support. ple, the Kurds. Saddam is widely re- ate Armed Services and/or Senate For- Consideration by the Congress on ported to have stockpiles of biological eign Relations Committee hold hear- these key issues would provide a basis weapons. In a struggle for his own sur- ings as much as possible in public with for international understanding of our vival, why should we expect Saddam some necessarily in closed sessions, to position and perhaps even support in Hussein to refrain from using every determine: some quarters. There is a world view weapon at his disposal against an an- (1) The specifics on Iraq’s weapons of that President Bush too often acts uni- nounced attacker? A lengthy article in mass destruction; laterally on critical international the New York Times on July 6, 2002 (2) Precisely what happened on the issues such as the International Crimi- concerning U.S. plans for widespread United Nations efforts to conduct in- nal Court, the UN/Bosnia peacekeeping inoculation for smallpox carried the spections in Iraq and Iraq’s refusals; force, the Kyoto Protocol, ABM Treaty implicit suggestion of a concern for a (3) What type of a military action withdrawal, and the Biological Weap- bioterrorism attack. would be necessary to topple Saddam, ons Convention. If congressional con- Consideration by Congress on a reso- including estimates of U.S. casualties; sideration was followed by the author- lution for the use of force against Sad- (4) What is anticipated in a change in ization for the use of force supported dam would not impact on any potential regime in Iraq including Saddam’s pro- by thoughtful and experienced mem- element of surprise because there is no spective replacement. bers of the House and Senate, the element of surprise left. The news CONGRESSIONAL RECORD, S730–731, international community might well media has been full of notice to Sad- February 13, 2002. be reassured that the U.S. military ac- dam of potential U.S. plans such as: On April 4, 2002, I met with United tion was not the decision of just one The New York Times February 16, 2002, Nations Secretary General Kofi Annan man, even though he is the President edition which quoted Vice President urging the UN to press Iraq to submit of the United States. CHENEY as saying, ‘‘The President is to wide-open, including surprise inspec- There is solid precedent for President determined to press on and stop Iraq tions, to determine the facts on Iraq’s George W. Bush to request congres- . . . from continuing to develop weap- sional authority for the use of force possession and efforts to create weap- ons of mass destruction’’ and intends against Iraq, just as President George ons of mass destruction. Meetings be- to use ‘‘the means at our disposal—in- H.W. Bush did in January, 1991. On De- tween UN officials and Iraqi represent- cluding military, diplomatic and intel- cember 21, 1990, and as late as January atives on May 1 and 3, 2002 produced no ligence to address these concerns’’; 9, 1991, President Bush was quoted as results. Subsequent meetings between The Los Angeles Times on May 5, saying a congressional authorization UN officials and Iraqi representatives 2002, reported that the defense Intel- was not necessary. See Weekly Com- in early July produced no results. ligence Agency has produced an oper- pilation of Presidential Documents, A ranking U.S. intelligence official ational support study on Iraq including January 14, 1991. Vol. 27, No. 2, pp. 24– advised that wide-open and surprise in- maps and data on geography, roads, re- 25. Many Senators, including Claiborne spections in Iraq could provide reason- fineries, communication facilities, se- Pell of Rhode Island, RICHARD LUGAR of able assurances as to what Iraq has by curity organizations and military de- Indiana, TOM HARKIN of Iowa, EDWARD way of possessing and/or developing ployments; M. KENNEDY of Massachusetts, JOSEPH weapons of mass destruction. The Washington Post reported on R. BIDEN, Jr. of Delaware, Brock Presidents have acted unilaterally in May 24, 2002, General Tommy R. Adams of Washington and I sought to the past half century in initiating mili- Franks, Commander of the U.S. Cen- force debate on a resolution that would tral Command, has briefed the Presi- tary actions in Korea, Vietnam, Gre- require congressional authorization for nada, Lebanon, Panama, Somalia and dent concerning troop levels necessary the use of force against Iraq. CONGRES- Kosovo. In some of those situations to invade Iraq and oust Saddam Hus- SIONAL RECORD, S 48, January 4, 1991; where there was not time for the Con- sein; CONGRESSIONAL RECORD, S119–120, Janu- The New York Times on July 5, 2002, gress to deliberate and decide on a dec- ary 10, 1991; see also New York Times, reported on an American military doc- laration of war or an authorization for October 18, 1990, page A1, ‘‘Senators De- ument calling for air, land and sea the use of force, it was appropriate for mand Role in Approving Any Move on based forces to attack Iraq and topple the President to utilize his authority Iraq;’’ Washington Post, January 4, Saddam Hussein; as Commander-in-Chief in an emer- 1991, page A19, ‘‘Canceling Recess, Law- The New York Times on July 9, 2002, gency. There is now ample time for the makers Prepare to Debate War Pow- quoted President Bush as saying on Congress to hold hearings, deliberate ers.’’ Iraq: ‘‘It’s the stated policy of this gov- and take whatever action Congress On January 3, 1991, the date that Sen- ernment to have regime change and it deems appropriate regarding Iraq. ators who were elected and re-elected hasn’t changed. And we’ll use all tools There is a need for the American pub- the previous November took the oath at our disposal to do so.’’ lic to understand the issues involved in of office, Senator Harkin successfully In considering a pre-emptive strike the use of military force against Iraq. sought Senate debate and a vote on a against Iraq, we should consider—not There has been some public discussion, use-of-force resolution. Senate Major- that it is determinative—the con- but relatively little. Congressional ity Leader George Mitchell scheduled sequences of not acting against al- hearings would stimulate a national Senate floor action for consideration of Qaeda and Osama bin Laden before dialogue on the nation’s op-ed pages, a resolution for the use of force on Jan- September 11, 2001. We had reason in radio and television talk shows and in uary 10, 1991. Following a Senate de- that situation to anticipate a terrorist town halls across the country. I am bate which was characterized as ‘‘his- attack and we had rights under inter- glad to see that Senator JOSEPH R. torical’’ by the Washington Post, the national law to move against bin BIDEN, Chairman of the Foreign Rela- Senate authorized the use of force Laden and al-Qaeda in a pre-emptive tions Committee, has announced his against Iraq by a vote of 52 to 47. CON- strike before September 11, 2001. committee will hold hearings on Iraq GRESSIONAL RECORD, S1018–1019, Janu- Prior to September 11, Osama bin in September. ary 12, 1991. Similarly, the House of Laden was under U.S. indictment for In 19 town meetings, which I con- Representatives passed such a resolu- killing Americans in Mogadishu in ducted across the Commonwealth of tion by a vote of 250 to 183. CONGRES- 1993. He was further under U.S. indict- Pennsylvania this month, I heard con- SIONAL RECORD, H1139–1140, January 12, ment for the attacks against American siderable public concern and confusion 1991. embassies in 1998. He was known to over the President’s intentions as to With the repeated public com- have been involved in the terrorist at- Iraq. Public support, reflected through mentary on the President’s plans to tack of the USS Cole. Osama bin Laden

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00080 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7047 had spoken repeatedly and publicly thought that if the Congress and the sions into Bosnia since there was about his intention to carry out a President asked the Court to take ju- ample opportunity for Congress to con- worldwide Jihad against the United risdiction and decide this issue, the sider and decide the issue. CONGRES- States. Court might do so although even with SIONAL RECORD, S. 31102, November 1, When the Taliban in control in Af- such a joint request, the Supreme 1995. ghanistan refused to turn over bin Court might be unwilling to be in- On September 17, 1996, I spoke on the Laden to the United States after de- volved in the so-called ‘‘political thick- Senate floor on the use of force with mands by the United States and the et’’. The Reagan Administration was missile strikes against Iraq on Sep- United Nations, the United States had unwilling to join in such a request and tember 3, 1996, noting that this was an- rights under international law to use congressional leaders were reluctant to other example where the President did military force against al-Qaeda and bin do so although no final determination not seek congressional authorization Laden. was made since the issue was rendered or even consultation in advance of that With congressional hearings as a moot by the Reagan Administration’s military action. CONGRESSIONAL start, the American people should be declination. Understandably, the par- RECORD, S. 10624–10625, September 17, informed about Iraq’s threat and all ties preferred to leave the issue ambig- 1996. our efforts to deal with this threat uous with a resolution on a case-by- When there was speculation about short of use of military force. We case basis in the political process with- additional military action against Iraq should do our utmost to organize an out a finite judicial determination. in early 1998, I spoke on the Senate international coalition against Iraq, I pursued my inquiries by ques- floor on February 12, 1998, noting that which President George Bush did in tioning Supreme Court nominees as to an air attack or a missile attack con- 1991, specifying as much of the evidence whether Korea was a war. In confirma- stituted acts of war which required as possible in public congressional tion hearings for Justice David Souter congressional authority. CONGRES- hearings in order to create American on September 14, 1990, I questioned him SIONAL RECORD, S. 791–792, February 12, and worldwide public support for ap- as to whether Korea was a war, wheth- 1998. The President then ordered mis- propriate action. Such public hearings er the Presidents exceeded their con- sile strikes against Iraq in December would be supplemented by classified in- stitutional authority in military ac- 1998 without seeking congressional au- formation given to the leaders of the tion in Korea and Vietnam and wheth- thority. prospective coalition. er the War Powers Act was unconstitu- On February 23, 1999, during Senate Article I, Section 8 of the United tional in violating presidential powers debate on the President’s use of force States Constitution provides that as Commander-in-Chief. Justice Souter in Kosovo, I noted my concern that air ‘‘Congress has the authority to declare declined to express an opinion stating, strikes constituted acts of war which war.’’ Article 2 Section 2 of the United in effect, that there was no law to required authorization by Congress. States Constitution provides that the guide him in answering these ques- CONGRESSIONAL RECORD, S. 1771–1773, President ‘‘shall be commander in chief tions. See Hearings Before the Com- February 23, 1999. I again noted the of the army and navy of the United mittee on the Judiciary, United States continuing erosion of constitutional States. . . .’’ Senate, 101st Cong., 2nd Sess., on the authority and the need for Congress to In the past half century, there has Nomination of David H. Souter to be debate, deliberate and decide these been a consistent and considerable ero- Associate of the Supreme Court of the issues when there was ample time to do sion of Congress’ constitutional au- United States. so. I noted the tendency on the part of thority to declare war with a concomi- In the Fall of 1990 and in early Janu- Congress to sit back and avoid such tant expansion of the President’s pow- ary 1991, I joined other senators in suc- tough decisions. If things go wrong, ers as Commander-in-Chief. My con- cessfully taking the position that the there is always the President to blame. cerns about the erosion of congres- President needed congressional author- If things go right, we have not impeded sional authority to declare war first ization for the use of military force Presidential action. arose in 1951 when I was called to ac- against Iraq and the enforcement of UN On March 23, 1999, the Senate voted tive duty in the United States Air Security Council Resolution 678. CON- 58 to 41 to authorize air strikes in Force after having received in R.O.T.C. GRESSIONAL RECORD, S. 405–490, Janu- Kosovo after the President’s request commission as a second lieutenant ary 10, 1991. for such congressional action. CON- upon graduation from the University of I took up this question again on Sep- GRESSIONAL RECORD, S. 3118, March 23, Pennsylvania. I was glad to serve tember 13, 1994, taking the position 1999. I voted in favor of air strikes even state-side from July 29, 1951 to July 31, that the President did not have the though I had concerns about the Presi- 1953 as a special agent in the Office of constitutional authority to order an dent’s reliance on the ‘‘humanitarian Special Investigations, noting that invasion of Haiti without prior con- catastrophe’’ which was a departure President Truman had acted on his au- gressional authorization. CONGRES- from recognized U.S. policy to use thority as Commander-in-Chief to SIONAL RECORD, S. 12760, September 13, force where there was a vital U.S. na- order a ‘‘police action’’ without con- 1994. tional security interest. The House gressional authorization. On June 5, 1995, I introduced S. Res. deadlocked 213 to 213 on the same vote Early in my Senate career, I partici- 128, which stated it was the sense of the to authorize force. CONGRESSIONAL pated extensively in floor debate on the Senate that no U.S. military personnel RECORD, H. 2451–2452, April 28, 1999. War Powers Resolution concerning should be introduced into combat or On May 24, 1999, I proposed an amend- U.S. military action in Lebanon. On potential combat situations in Bosnia ment to S. 1059—the Department of De- September 27, 1983, I questioned Sen- without clearly defined objectives and fense Authorization bill—calling on the ator Charles H. Percy, Chairman of the sufficient resources to achieve those President to ‘‘seek approval from Con- Foreign Relations Committee, as to objectives. CONGRESSIONAL RECORD, S. gress prior to the introduction of whether Korea and Vietnam were wars. 7703, June 5, 1995. That resolution noted ground troops from the United States Senator Percy stated that both Korea that there was ample time for Congress Armed Forces in connection with the and Vietnam were wars even though to deliberate and decide that matter, present operations against the Federal undeclared. CONGRESSIONAL RECORD, S. stating that such a decision was a mat- Republic of Yugoslavia or funding for 12995, September 27, 1983. ter for the Congress and that there that operation will not be authorized.’’ In 1983, I prepared a legal document should be no further erosion of that au- CONGRESSIONAL RECORD, S. 5809–5811, for a declaratory judgment action to thority by the Executive Branch. May 25, 1999. take to the Supreme Court of the On November 1, 1995, noting the mili- While supporting air strikes proposed United States on the issue of the con- tary action in Somalia without con- by the President against the former stitutionality of the War Powers Act gressional authority and the military Yugloslavia, I opposed any open-ended and seeking a judicial determination of action in Haiti without congressional authorization, such as S.J. Res. 20, the respective authority of the Presi- authority, I urge the President to fol- which would have ‘‘authorized [the dent as Commander-in-Chief and the low the precedent of the Gulf war and President] to use all necessary force Congress to declare war. It was my seek congressional approval for incur- and other means in concert with

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00081 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7048 CONGRESSIONAL RECORD — SENATE July 18, 2002 United States allies to accomplish the ly to the threats posed by terrorist attacks medicare supplemental policy subject to the United States and North Atlantic Trea- and other emergencies, by providing for the special rules described in section 1882(v). ty Organization objectives in the Fed- establishment of a national emergency tech- ‘‘(b) OUTPATIENT PRESCRIPTION DRUG BENE- FITS.— eral Republic of Yugoslavia, Serbia and nology guard, a technology reliability advi- sory board, and a center for evaluating ‘‘(1) IN GENERAL.—Beginning in 2002, under Montenegro’’. I thought the broad antiterrorism and disaster response tech- the Rx Option, after the enrollee has met the wording of that resolution constituted nology within the National Institute of combined deductible under section 1860C, the a blank check which was unwise. In- Standards and Technology. Secretary shall provide a benefit for out- stead, the President should seek spe- patient prescription drugs through private f cific congressional authority after entities under section 1860D equal to 50 per- specifying the objectives and the TEXT OF AMENDMENTS cent of the lesser of— ‘‘(A) the cost of outpatient prescription means for accomplishing those objec- SA 4304. Mr. SMITH of New Hamp- drugs for such year; or tives. shire (for himself, Mr. ALLARD, Mr. ‘‘(B) $5000. There is an understandable reluc- GRASSLEY, Mr. HATCH, Mr. BURNS, Mr. ‘‘(2) COST-OF-LIVING ADJUSTMENT.—In the case of any calendar year beginning after tance on the part of Members of the CRAIG, Mr. CRAPO, and Mr. SANTORUM) House and Senate to challenge a Presi- 2002, the dollar amount in paragraph (1)(B) submitted an amendment intended to shall be increased by an amount equal to— dent, especially a popular President, on be proposed by him to the bill S. 812, to his actions as Commander-in-Chief to ‘‘(A) such dollar amount; multiplied by amend the Federal Food, Drug, and ‘‘(B) the percentage (if any) by which— protect U.S. national interests. The Cosmetic Act to provide greater access ‘‘(i) the prescription drug component of the constitutional issues on separation of to affordable pharmaceuticals; which Consumer Price Index for all urban con- powers and the respective authority of was ordered to lie on the table; as fol- sumers (all items city average) for the 12- the Congress vis-a-vis the President are lows: month period ending with August of the pre- obviously important. Of even greater At the appropriate place, insert the fol- ceding year; exceeds importance, however, is the value of a lowing: ‘‘(ii) such prescription drug component of united front with the President backed the Consumer Price Index for the 12-month SEC. ll. MEDICARE PAYMENT FOR OUTPATIENT period ending with August 2001. by congressional authorization and PRESCRIPTION DRUGS UNDER THE RX OPTION. ‘‘(3) ROUNDING.—If any increase determined American public opinion on an issue under paragraph (2) is not a multiple of $1, (a) IN GENERAL.—Title XVIII of the Social where most, if not virtually all, of the such increase shall be rounded to the nearest Security Act (42 U.S.C. 1395 et seq.) is international community is in opposi- multiple of $1. amended by redesignating part D as part E tion. and by inserting after part C the following ‘‘COMBINED DEDUCTIBLE If the Congress sits back and does new part: ‘‘SEC. 1860CC. (a) IN GENERAL.—Notwith- standing any provision of this title and be- nothing and the President is right, ‘‘PART E—VOLUNTARY MEDICARE ginning in 2002, a beneficiary electing the Rx then there is public approval. If the PRESCRIPTION DRUG COVERAGE Option shall be subject to a combined de- President turns out to be wrong, then ‘‘MEDICARE PRESCRIPTION DRUG PLAN it is his responsibility without blame ductible that shall apply in lieu of the ‘‘SEC. 1860AA. (a) IN GENERAL.—Each Medi- deductibles applied under sections 1813(a)(1) being attached to the Congress. There care Prescription Drug Plan eligible indi- and 1833(b). is an added element that the President vidual may elect coverage (beginning on ‘‘(b) AMOUNT.— may, and probably does, know more January 1, 2003) under this part in lieu of any ‘‘(1) IN GENERAL.—For purposes of sub- than the Congress. Hearings, in closed other prescription drug coverage program section (a), the combined deductible is equal session, could address that discrepancy under this title by enrolling in the Rx Option to $675. in knowledge. in order to receive coverage for outpatient ‘‘(2) COST-OF-LIVING ADJUSTMENT.—In the prescription drugs as described in section case of any calendar year after 2002, the dol- The current issue of Iraq is another lar amount in paragraph (1) shall be in- chapter, albeit a very important chap- 1860BB and to pay a combined deductible under section 1860CC. creased by an amount equal to— ter, in the ongoing effort to define con- ‘‘(b) MEDICARE PRESCRIPTION DRUG PLAN ‘‘(A) such dollar amount; multiplied by gressional and Presidential authority ELIGIBLE INDIVIDUAL DEFINED.—In this part, ‘‘(B) the percentage (if any) by which— on the critical constitutional doctrine the term ‘Medicare Prescription Drug Plan ‘‘(i) the medical component of the Con- of separation of powers. In the present eligible individual’ means an individual who sumer Price Index for all urban consumers case, there is ample time for Congress is— (all items city average) for the 12-month pe- riod ending with August of the preceding to deliberate and decide. With the ‘‘(1) eligible for benefits under part A and enrolled under part B; year; exceeds stakes so high, Congress should assert ‘‘(ii) such medical component of the Con- its constitutional authority to make ‘‘(2) not enrolled in a Medicare+Choice plan under part C; and sumer Price Index for the 12-month period this critical decision. ‘‘(3) not eligible for medical assistance for ending with August 2001. ‘‘(3) ROUNDING.—If any increase determined f outpatient prescription drugs under title XIX. under paragraph (2) is not a multiple of $1, such increase shall be rounded to the nearest AMENDMENTS SUBMITTED & ‘‘RX OPTION PROPOSED multiple of $1. ‘‘SEC. 1860BB. (a) ENROLLMENT IN THE RX ‘‘(c) APPLICATION.—In applying the com- SA 4307. Mr. NELSON of Florida submitted OPTION.— bined deductible described in subsection (a) an amendment intended to be proposed by ‘‘(1) IN GENERAL.—Except as provided in such deductible shall apply to each expense him to the bill S. 812, to amend the Federal paragraph (2), the Secretary shall establish a incurred on a calendar year basis for each Food, Drug, and Cosmetic Act to provide process for the enrollment of Medicare Pre- item or service covered under this title, and greater access to affordable pharma- scription Drug Plan eligible individuals each expense paid on a calendar year basis ceuticals; which was ordered to lie on the under the Rx Option that is based upon the for such an item or service shall be credited table. process for enrollment in Medicare+Choice against such deductible. SA 4308. Mr. TORRICELLI (for himself, Mr. plans under part C of this title. ‘‘PARTNERSHIPS WITH PRIVATE ENTITIES TO LEAHY, and Mr. JEFFORDS) submitted an ‘‘(2) EXCEPTIONS.— OFFER THE RX OPTION amendment intended to be proposed by him ‘‘(A) 2-YEAR OBLIGATION.—Except as pro- ‘‘SEC. 1860DD. (a) PARTNERSHIPS.— to the bill S. 812, supra; which was ordered to vided in subparagraph (B), a Medicare Pre- ‘‘(1) IN GENERAL.—The Secretary shall con- lie on the table. scription Drug Plan eligible individual who tract with private entities for the provision SA 4309. Mr. GRAHAM (for himself, Mr. elects the Rx Option shall be subject to the of outpatient prescription drug benefits MILLER, Mr. KENNEDY, and Mr. CORZINE) pro- provisions of this part for a minimum period under the Rx Option. posed an amendment to the bill S. 812, supra. of 2 years, beginning with the first full ‘‘(2) PRIVATE ENTITIES.—The private enti- SA 4310. Mr. HATCH (for Mr. GRASSLEY (for month during which the individual is eligible ties described in paragraph (1) shall include himself, Ms. SNOWE, Mr. JEFFORDS, Mr. for benefits under the Rx Option. insurers (including issuers of medicare sup- BREAUX, Mr. HATCH, Ms. COLLINS, Ms. LAN- ‘‘(B) FREE LOOK PERIOD.—An individual plemental policies under section 1882), phar- DRIEU, Mr. HUTCHINSON, and Mr. DOMENICI)) who elects the Rx Option may disenroll from maceutical benefit managers, chain phar- proposed an amendment to the bill S. 812, such Option no later than the last day of the macies, groups of independent pharmacies, supra. first full month following the month in and other private entities that the Secretary SA 4311. Mr. REID (for Mr. WYDEN (for which such election was made. determines are appropriate. himself and Mr. ALLEN)) proposed an amend- ‘‘(3) ENROLLMENT IN MEDICARE SUPPLE- ‘‘(3) AREAS.—The Secretary may award a ment to the bill S. 2037, to mobilize tech- MENTAL POLICIES.—An individual enrolled in contract to a private entity under this sec- nology and science experts to respond quick- the Rx Option may be enrolled only in a tion on a local, regional, or national basis.

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‘‘(4) DRUG BENEFITS ONLY THROUGH PRIVATE ‘‘SEC. 1128G. LIMITATION ON PAYMENTS TO PRO- provide an opportunity in the disclosure ENTITIES.—Outpatient prescription drug ben- VIDERS UNDER A FEDERAL HEALTH form required under paragraph (4) for a man- efits under the Rx Option shall be offered CARE PROGRAM. ufacturer, packer, or distributor to identify only through a contract with a private enti- ‘‘(a) IN GENERAL.—No Federal funds shall any such information. ty under this section. be used to provide payments under a Federal ‘‘(4) Each disclosure under this subsection ‘‘(b) SECRETARY REQUIRED TO CONTRACT health care program to any physician (as de- shall be made in such form and manner as WITH ANY WILLING QUALIFIED PRIVATE ENTI- fined in section 1861(r)), practitioner (as de- the Commissioner may require. TY.—The Secretary may not exclude a pri- scribed in section 1842(b)(18)(C)), or other in- ‘‘(5) Each manufacturer, packer, and dis- vate entity from receiving a contract to pro- dividual who charges a membership fee or tributor described in paragraph (1) shall be vide outpatient prescription drug benefits any other extraneous or incidental fee to a subject to a civil monetary penalty of not under the Rx Option if the private entity patient, or requires a patient to purchase an more than $10,000 for each violation of this meets all of the requirements established by item or service, as a prerequisite for the pro- subsection. Each unlawful failure to disclose the Secretary for providing such benefits. vision of an item or service to the patient. shall constitute a separate violation. The ‘‘(b) FEDERAL HEALTH CARE PROGRAM DE- provisions of paragraphs (3), (4), and (5) of ‘‘ELIGIBILITY FOR CATASTROPHIC COVERAGE FINED.—In this section, the term ‘Federal section 303(g) shall apply to such a violation ‘‘SEC. 1860EE. Noting in this part shall be health care program’ has the meaning given in the same manner as such provisions apply construed to prohibit an individual who that term under section 1128B(f) except that, to a violation of a requirement of this Act elects coverage under the Rx Option from ob- for purposes of this section, such term in- that relates to devices. taining catastrophic coverage under any cludes the health insurance program under ‘‘(6) For purposes of this subsection: other program under this title.’’. chapter 89 of title 5, United States Code.’’. ‘‘(A) The term ‘covered health entity’ in- (b) CONFORMING MEDIGAP CHANGES.—Sec- (b) EFFECTIVE DATE.—The amendment cludes any physician, pharmaceutical benefit tion 1882 of the Social Security Act (42 made by subsection (a) applies to payments manager, hospital, nursing home, phar- U.S.C. 1395ss) is amended by adding at the made on or after the date of enactment of macist, health benefit plan administrator, or end the following new subsection: this Act. any other entity authorized to prescribe or ‘‘(v) SPECIAL RULES FOR MEDICARE PRE- dispense drugs that are subject to subsection SCRIPTION DRUG PLAN ENROLLEES.— SA 4308. Mr. TORRICELLI (for him- (b)(1), in the District of Columbia or any ‘‘(1) REVISION OF BENEFIT PACKAGES.— self, Mr. LEAHY, and Mr. JEFFORDS) State, commonwealth, possession, or terri- tory of the United States. ‘‘(A) IN GENERAL.—Notwithstanding sub- submitted an amendment intended to ‘‘(B) The term ‘gift’ includes any gift, fee, section (p), the benefit packages established be proposed by him to the bill S. 812. to under such subsection (including the 2 plans payment, subsidy, or other economic benefit amend the Federal Food, Drug, and with a value of $50 or more, except that such described in paragraph (11)(A) of such sub- Cosmetic Act to provide greater access section) shall be revised (in the manner de- term excludes the following: scribed in subsection (p)(1)(E)) so that each to affordable pharmaceuticals; which ‘‘(i) Free samples of drugs subject to sub- of the benefit packages classified as ‘A’ was ordered to lie on the table; as fol- section (b)(1) intended to be distributed to through ‘J’ remain exactly the same, except lows: patients. that each benefit package shall include spe- At the appropriate place, insert the fol- ‘‘(ii) The payment of reasonable compensa- cial rules that apply only to individuals en- lowing: tion and reimbursement of expenses in con- nection with any clinical trial conducted in rolled in the Rx Option under section 1860B TITLE ll—GIFT AND REBATE connection with a valid scientific study de- as follows: DISCLOSURE signed to answer specific questions about ‘‘(i) COMBINED DEDUCTIBLE.—Each benefit SEC. ll01. SHORT TITLE. package shall require the beneficiary of the drugs, devices, new therapies, or new ways of This title may be cited as the ‘‘Gift and using known treatments, or in connection policy to pay annual out-of-pocket expenses Rebate Disclosure Act of 2002’’. (other than premiums) in an amount equal with a clinical trial involving the compas- to the amount of the combined deductible SEC. ll02. DISCLOSURE BY PRESCRIPTION sionate use of an experimental drug or device DRUG MANUFACTURERS, PACKERS, under section 1860C(b) before the policy be- as permitted under regulations promulgated AND DISTRIBUTORS OF CERTAIN by the Food and Drug Administration. gins payment of any benefits. GIFTS. ‘‘(ii) PRESCRIPTION DRUG COVERAGE.—In the ‘‘(iii) Any scholarship or other support for Section 503 of the Federal Food, Drug, and medical students, residents, or fellows se- case of a benefit package classified as ‘H’, ‘I’, Cosmetics Act (21 U.S.C. 353) is amended by and ‘J’, such policy may not provide cov- lected by a national, regional, or specialty adding at the end the following: medical or other professional association to erage for outpatient prescription drugs that ‘‘(h)(1) Each manufacturer, packer, or dis- duplicates the coverage for outpatient pre- attend a significant educational, scientific, tributor of a drug subject to subsection (b)(1) or policy-making conference of the associa- scription drugs provided under the Rx Option shall disclose to the Commissioner— under section 1860B(b). tion.’’. ‘‘(A) not later than June 30, 2004, and each SEC. ll03. DISALLOWANCE OF DEDUCTION FOR ‘‘(B) ADJUSTED PREMIUM.—In the case of an June 30 thereafter, the value, nature, and individual enrolled in the Rx Option, the pre- PHYSICIAN GIFT EXPENSES OF PRE- purpose of any— SCRIPTION DRUG MANUFACTURERS. mium for the policy in which the individual ‘‘(i) gift provided during the preceding cal- (a) GENERAL RULE.—Part IX of subchapter is enrolled may be appropriately adjusted to endar year to any covered health entity by B of chapter 1 of the Internal Revenue Code reflect the special rules applicable to such the manufacturer, packer, or distributor, or of 1986 (relating to items not deductible) is individual under subparagraph (A). a representative thereof, in connection with amended by adding at the end the following ENEWABILITY AND CONTINUITY OF COV- ‘‘(2) R detailing, promotional, or other marketing new section: ERAGE.—The revisions of benefit packages activities; and ‘‘SEC. 280I. PHYSICIAN GIFT EXPENSES OF PRE- under paragraph (1) shall not affect— ‘‘(ii) cash rebate, discount, or any other fi- SCRIPTION DRUG MANUFACTURERS. ‘‘(A) the renewal of medicare supplemental nancial consideration provided during the ‘‘(a) GENERAL RULE.—No deduction shall be policies under this section that are in exist- preceding calendar year to any pharma- allowed under this chapter for any physician ence on the effective date of such revisions; ceutical benefit manager by the manufac- gift expense paid or incurred by any prescrip- or turer, packer, or distributor, or a representa- tion drug manufacturer. ‘‘(B) the continuity of coverage under such tive thereof, in connection with detailing, ‘‘(b) PHYSICIAN GIFT EXPENSE.—For pur- policies.’’. promotional, or other marketing activities; poses of this section, the term ‘physician gift and expense’ means any gift provided directly or SA 4307. Mr. NELSON of Florida sub- ‘‘(B) not later than the date that is 6 indirectly to or for the benefit of a physi- mitted an amendment intended to be months after the date of enactment of this cian, including gifts of meals, sponsored proposed by him to the bill S. 812, to subsection and each June 30 thereafter, the teachings, symposia, and travel, but not in- amend the Federal Food, Drug, and name and address of the individual respon- cluding product samples. sible for the compliance of the manufac- ‘‘(c) PRESCRIPTION DRUG MANUFACTURER.— Cosmetic Act to provide greater access For purposes of this section, the term ‘pre- to affordable pharmaceuticals; which turer, packer, or distributor with the provi- sions of this subsection. scription drug manufacturer’ means— was ordered to lie on the table; as fol- ‘‘(2) Subject to paragraph (3), the Commis- ‘‘(1) any person engaged in the trade or lows: sioner shall make all information disclosed business of manufacturing or producing any At the appropriate place, insert the fol- to the Commissioner under paragraph (1) prescription drug, and lowing: publicly available, including by posting such ‘‘(2) any person who is a member of an af- SEC. ll. LIMITATION ON PAYMENTS TO PRO- information on the Internet. filiated group which includes a person de- VIDERS UNDER A FEDERAL HEALTH ‘‘(3) The Commissioner shall keep con- scribed in paragraph (1). CARE PROGRAM. fidential any information disclosed to or For purposes of the preceding sentence, the (a) IN GENERAL.—Title XI of the Social Se- otherwise obtained by the Commissioner term ‘affiliated group’ means any affiliated curity Act (42 U.S.C. 1301 et seq.) is amended under this subsection that relates to a trade group as defined in section 1504 (determined by inserting after section 1128F the following secret referred to in section 1905 of title 18, without regard to paragraphs (3) and (4) of new section: United States Code. The Commissioner shall 1504(b)).’’

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(b) CLERICAL AMENDMENT.—The table of patient drug’ means any of the following ‘‘(2) ELIGIBLE BENEFICIARY.—The term ‘eli- sections for part IX of subchapter B of chap- products: gible beneficiary’ means an individual that ter 1 of such Code is amended by adding at ‘‘(i) A drug which may be dispensed only is entitled to benefits under part A or en- the end thereof the following new item: upon prescription, and— rolled under part B. ‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible ‘‘Sec. 280I. Physician gift expenses of pre- ‘‘(I) which is approved for safety and effec- entity’ means any entity that the Secretary scription drug manufacturers.’’ tiveness as a prescription drug under section 505 of the Federal Food, Drug, and Cosmetic determines to be appropriate to provide eli- (c) EFFECTIVE DATE.—The amendments Act; gible beneficiaries with covered outpatient made by this section shall apply to amounts ‘‘(II)(aa) which was commercially used or drugs under a plan under this part, includ- paid or incurred after December 31, 2001. sold in the United States before the date of ing— enactment of the Drug Amendments of 1962 ‘‘(A) a pharmacy benefit management com- SA 4309. Mr. GRAHAM (for himself, or which is identical, similar, or related pany; Mr. MILLER, Mr. KENNEDY and Mr. (within the meaning of section 310.6(b)(1) of ‘‘(B) a retail pharmacy delivery system; CORZINE) proposed an amendment to title 21 of the Code of Federal Regulations) ‘‘(C) a health plan or insurer; the bill S. 812. to amend the Federal to such a drug, and (bb) which has not been ‘‘(D) a State (through mechanisms estab- Food, Drug, and Cosmetic Act to pro- the subject of a final determination by the lished under a State plan under title XIX); vide greater access to affordable phar- Secretary that it is a ‘new drug’ (within the ‘‘(E) any other entity approved by the Sec- meaning of section 201(p) of the Federal retary; or maceuticals; as follows: ‘‘(F) any combination of the entities de- At the end, add the following: Food, Drug, and Cosmetic Act) or an action brought by the Secretary under section 301, scribed in subparagraphs (A) through (E) if TITLE II—MEDICARE OUTPATIENT 302(a), or 304(a) of such Act to enforce section the Secretary determines that such combina- PRESCRIPTION DRUG BENEFIT PROGRAM 502(f) or 505(a) of such Act; or tion— SEC. 201. SHORT TITLE; TABLE OF CONTENTS. ‘‘(III)(aa) which is described in section ‘‘(i) increases the scope or efficiency of the (a) SHORT TITLE.—This title may be cited 107(c)(3) of the Drug Amendments of 1962 and provision of benefits under this part; and as the ‘‘Medicare Outpatient Prescription for which the Secretary has determined ‘‘(ii) is not anticompetitive. Drug Act of 2002’’. there is a compelling justification for its ‘‘(4) MEDICARE+CHOICE ORGANIZATION; (b) TABLE OF CONTENTS.—The table of con- medical need, or is identical, similar, or re- MEDICARE+CHOICE PLAN.—The terms tents of this title is as follows: lated (within the meaning of section ‘Medicare+Choice organization’ and Sec. 201. Short title; table of contents. 310.6(b)(1) of title 21 of the Code of Federal ‘Medicare+Choice plan’ have the meanings Sec. 202. Medicare outpatient prescription Regulations) to such a drug, and (bb) for given such terms in subsections (a)(1) and drug benefit program. which the Secretary has not issued a notice (b)(1), respectively, of section 1859 (relating to definitions relating to Medicare+Choice ‘‘PART D—OUTPATIENT PRESCRIPTION DRUG of an opportunity for a hearing under section organizations). BENEFIT PROGRAM 505(e) of the Federal Food, Drug, and Cos- metic Act on a proposed order of the Sec- ‘‘(5) PRESCRIPTION DRUG ACCOUNT.—The ‘‘Sec. 1860. Definitions. retary to withdraw approval of an applica- term ‘Prescription Drug Account’ means the ‘‘Sec. 1860A. Establishment of outpatient tion for such drug under such section be- Prescription Drug Account (as established prescription drug benefit pro- cause the Secretary has determined that the under section 1860K) in the Federal Supple- gram. drug is less than effective for all conditions mentary Medical Insurance Trust Fund ‘‘Sec. 1860B. Enrollment under program. under section 1841. ‘‘Sec. 1860C. Enrollment in a plan. of use prescribed, recommended, or sug- ‘‘ESTABLISHMENT OF OUTPATIENT ‘‘Sec. 1860D. Providing information to bene- gested in its labeling. PRESCRIPTION DRUG BENEFIT PROGRAM ficiaries. ‘‘(ii) A biological product which— ‘‘Sec. 1860E. Premiums. ‘‘(I) may only be dispensed upon prescrip- ‘‘SEC. 1860A. (a) PROVISION OF BENEFIT.— ‘‘Sec. 1860F. Outpatient prescription drug tion; ‘‘(1) IN GENERAL.—Beginning in 2005, the benefits. ‘‘(II) is licensed under section 351 of the Secretary shall provide for and administer ‘‘Sec. 1860G. Entities eligible to provide out- Public Health Service Act; and an outpatient prescription drug benefit pro- patient drug benefit. ‘‘(III) is produced at an establishment li- gram under which each eligible beneficiary ‘‘Sec. 1860H. Minimum standards for eligible censed under such section to produce such enrolled under this part shall be provided entities. product. with coverage of covered outpatient drugs as ‘‘Sec. 1860I. Payments. ‘‘(iii) Insulin approved under appropriate follows: ‘‘Sec. 1860J. Employer incentive program for Federal law, including needles and syringes ‘‘(A) MEDICARE+CHOICE PLAN.—If the eligi- employment-based retiree drug for the administration of such insulin. ble beneficiary is eligible to enroll in a coverage. ‘‘(iv) A prescribed drug or biological prod- Medicare+Choice plan, the beneficiary— ‘‘Sec. 1860K. Prescription Drug Account in uct that would meet the requirements of ‘‘(i) may enroll in such a plan; and the Federal Supplementary clause (i) or (ii) except that it is available ‘‘(ii) if so enrolled, shall obtain coverage of Medical Insurance Trust Fund. over-the-counter in addition to being avail- covered outpatient drugs through such plan. ‘‘Sec. 1860L. Medicare Prescription Drug Ad- able upon prescription. ‘‘(B) MEDICARE PRESCRIPTION DRUG PLAN.— visory Committee.’’. ‘‘(B) EXCLUSION.—The term ‘covered out- If the eligible beneficiary is not enrolled in a Sec. 203. Part D benefits under patient drug’ does not include any product— Medicare+Choice plan, the beneficiary shall Medicare+Choice plans. ‘‘(i) except as provided in subparagraph obtain coverage of covered outpatient drugs Sec. 204. Additional assistance for low-in- (A)(iv), which may be distributed to individ- through enrollment in a plan offered by an come beneficiaries. uals without a prescription; eligible entity with a contract under this Sec. 205. Medigap revisions. ‘‘(ii) for which payment is available under part. Sec. 206. Comprehensive immunosuppressive part A or B or would be available under part ‘‘(2) VOLUNTARY NATURE OF PROGRAM.— drug coverage for transplant B but for the application of a deductible Nothing in this part shall be construed as re- patients under part B. under such part (unless payment for such quiring an eligible beneficiary to enroll in Sec. 207. HHS study and report on uniform product is not available because benefits the program established under this part. pharmacy benefit cards. under part A or B have been exhausted), de- ‘‘(3) SCOPE OF BENEFITS.—The program es- Sec. 208. GAO study and biennial reports on termined, except as provided in subpara- tablished under this part shall provide for competition and savings. graph (C), without regard to whether the coverage of all therapeutic classes of covered Sec. 209. Expansion of membership and du- beneficiary involved is entitled to benefits outpatient drugs. ties of Medicare Payment Advi- under part A or enrolled under part B; or ‘‘(b) ACCESS TO ALTERNATIVE PRESCRIPTION sory Commission (MedPAC). ‘‘(iii) except for agents used to promote DRUG COVERAGE.—In the case of an eligible SEC. 202. MEDICARE OUTPATIENT PRESCRIPTION smoking cessation and agents used for the beneficiary who has creditable prescription DRUG BENEFIT PROGRAM. treatment of obesity, for which coverage drug coverage (as defined in section (a) ESTABLISHMENT.—Title XVIII of the So- may be excluded or restricted under section 1860B(b)(1)(F)), such beneficiary— cial Security Act (42 U.S.C. 1395 et seq.) is 1927(d)(2). ‘‘(1) may continue to receive such coverage amended by redesignating part D as part E ‘‘(C) CLARIFICATION REGARDING IMMUNO- and not enroll under this part; and and by inserting after part C the following SUPPRESSIVE DRUGS.—In the case of a bene- ‘‘(2) pursuant to section 1860B(b)(1)(C), is new part: ficiary who is not eligible for any coverage permitted to subsequently enroll under this under part B of drugs described in section part without any penalty and obtain cov- ‘‘PART D—OUTPATIENT PRESCRIPTION DRUG 1861(s)(2)(J) because of the requirements erage of covered outpatient drugs in the BENEFIT PROGRAM under such section (and would not be so eli- manner described in subsection (a) if the ‘‘DEFINITIONS gible if the individual were enrolled under beneficiary involuntarily loses such cov- ‘‘SEC. 1860. In this part: such part), the term ‘covered outpatient erage. ‘‘(1) COVERED OUTPATIENT DRUG.— drug’ shall include such drugs if the drugs ‘‘(c) FINANCING.—The costs of providing ‘‘(A) IN GENERAL.—Except as provided in would otherwise be described in subpara- benefits under this part shall be payable subparagraph (B), the term ‘covered out- graph (A). from the Prescription Drug Account.

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‘‘ENROLLMENT UNDER PROGRAM ‘‘(i) IN GENERAL.—Subject to clause (ii), for shall ensure that eligible beneficiaries are ‘‘SEC. 1860B. (a) ESTABLISHMENT OF PROC- purposes of this paragraph, an eligible bene- permitted to enroll under this part prior to ESS.— ficiary’s ‘continuous period of eligibility’ is January 1, 2005, in order to ensure that cov- ‘‘(1) PROCESS SIMILAR TO ENROLLMENT the period that begins with the first day on erage under this part is effective as of such UNDER PART B.—The Secretary shall establish which the beneficiary is eligible to enroll date. a process through which an eligible bene- under section 1836 and ends with the bene- ‘‘(3) SPECIAL ENROLLMENT PERIOD FOR BENE- ficiary (including an eligible beneficiary en- ficiary’s death. FICIARIES WHO INVOLUNTARILY LOSE CRED- rolled in a Medicare+Choice plan offered by a ‘‘(ii) SEPARATE PERIOD.—Any period during ITABLE PRESCRIPTION DRUG COVERAGE.—The Medicare+Choice organization) may make an all of which an eligible beneficiary satisfied Secretary shall establish a special open en- election to enroll under this part. Such proc- paragraph (1) of section 1836 and which ter- rollment period for an eligible beneficiary ess shall be similar to the process for enroll- minated in or before the month preceding that loses creditable prescription drug cov- ment in part B under section 1837, including the month in which the beneficiary attained erage. the deeming provisions of such section. age 65 shall be a separate ‘continuous period ‘‘(c) PERIOD OF COVERAGE.— of eligibility’ with respect to the beneficiary ‘‘(2) REQUIREMENT OF ENROLLMENT.—An eli- ‘‘(1) IN GENERAL.—Except as provided in gible beneficiary must enroll under this part (and each such period which terminates shall paragraph (2) and subject to paragraph (3), in order to be eligible to receive covered out- be deemed not to have existed for purposes of an eligible beneficiary’s coverage under the subsequently applying this paragraph). patient drugs under this title. program under this part shall be effective for ‘‘(F) CREDITABLE PRESCRIPTION DRUG COV- ‘‘(b) SPECIAL ENROLLMENT PROCEDURES.— the period provided in section 1838, as if that ERAGE DEFINED.—For purposes of this part, ‘‘(1) LATE ENROLLMENT PENALTY.— section applied to the program under this the term ‘creditable prescription drug cov- ‘‘(A) INCREASE IN PREMIUM.—Subject to the part. erage’ means any of the following: succeeding provisions of this paragraph, in ‘‘(2) OPEN AND SPECIAL ENROLLMENT.—Sub- ‘‘(i) MEDICAID PRESCRIPTION DRUG COV- the case of an eligible beneficiary whose cov- ject to paragraph (3), an eligible beneficiary ERAGE.—Prescription drug coverage under a erage period under this part began pursuant who enrolls under the program under this medicaid plan under title XIX, including to an enrollment after the beneficiary’s ini- part pursuant to paragraph (2) or (3) of sub- through the Program of All-inclusive Care section (b) shall be entitled to the benefits tial enrollment period under part B (deter- for the Elderly (PACE) under section 1934 under this part beginning on the first day of mined pursuant to section 1837(d)) and not and through a social health maintenance or- the month following the month in which pursuant to the open enrollment period de- ganization (referred to in section 4104(c) of such enrollment occurs. scribed in paragraph (2), the Secretary shall the Balanced Budget Act of 1997), but only if ‘‘(3) LIMITATION.—Coverage under this part establish procedures for increasing the the coverage provides coverage of the cost of shall not begin prior to January 1, 2005. amount of the monthly part D premium prescription drugs the actuarial value of under section 1860E(a) applicable to such which (as defined by the Secretary) to the ‘‘(d) TERMINATION.— beneficiary by an amount that the Secretary beneficiary equals or exceeds the actuarial ‘‘(1) IN GENERAL.—The causes of termi- determines is actuarily sound for each full value of the benefits provided to an indi- nation specified in section 1838 shall apply to 12-month period (in the same continuous pe- vidual enrolled in the outpatient prescrip- this part in the same manner as such causes riod of eligibility) in which the eligible bene- tion drug benefit program under this part. apply to part B. ficiary could have been enrolled under this ‘‘(ii) PRESCRIPTION DRUG COVERAGE UNDER A ‘‘(2) COVERAGE TERMINATED BY TERMINATION part but was not so enrolled. GROUP HEALTH PLAN.—Prescription drug cov- OF COVERAGE UNDER PARTS A AND B.— ‘‘(B) PERIODS TAKEN INTO ACCOUNT.—For erage under a group health plan, including a ‘‘(A) IN GENERAL.—In addition to the purposes of calculating any 12-month period health benefits plan under the Federal Em- causes of termination specified in paragraph under subparagraph (A), there shall be taken ployees Health Benefit Program under chap- (1), the Secretary shall terminate an individ- into account— ter 89 of title 5, United States Code, and a ual’s coverage under this part if the indi- ‘‘(i) the months which elapsed between the qualified retiree prescription drug plan (as vidual is no longer enrolled in either part A close of the eligible beneficiary’s initial en- defined in section 1860J(e)(3)), but only if the or B. rollment period and the close of the enroll- coverage provides coverage of the cost of ‘‘(B) EFFECTIVE DATE.—The termination de- ment period in which the beneficiary en- prescription drugs the actuarial value of scribed in subparagraph (A) shall be effective rolled; and which (as defined by the Secretary) to the on the effective date of termination of cov- ‘‘(ii) in the case of an eligible beneficiary beneficiary equals or exceeds the actuarial erage under part A or (if later) under part B. who reenrolls under this part, the months value of the benefits provided to an indi- ‘‘(3) PROCEDURES REGARDING TERMINATION which elapsed between the date of termi- vidual enrolled in the outpatient prescrip- OF A BENEFICIARY UNDER A PLAN.—The Sec- nation of a previous coverage period and the tion drug benefit program under this part. retary shall establish procedures for deter- close of the enrollment period in which the ‘‘(iii) STATE PHARMACEUTICAL ASSISTANCE mining the status of an eligible beneficiary’s beneficiary reenrolled. PROGRAM.—Coverage of prescription drugs enrollment under this part if the bene- ‘‘(C) PERIODS NOT TAKEN INTO ACCOUNT.— under a State pharmaceutical assistance pro- ficiary’s enrollment in a plan offered by an ‘‘(i) IN GENERAL.—For purposes of calcu- gram, but only if the coverage provides cov- eligible entity under this part is terminated lating any 12-month period under subpara- erage of the cost of prescription drugs the by the entity for cause (pursuant to proce- graph (A), subject to clause (ii), there shall actuarial value of which (as defined by the dures established by the Secretary under sec- not be taken into account months for which Secretary) to the beneficiary equals or ex- tion 1860C(a)(1)). the eligible beneficiary can demonstrate ceeds the actuarial value of the benefits pro- ‘‘ENROLLMENT IN A PLAN that the beneficiary had creditable prescrip- vided to an individual enrolled in the out- tion drug coverage (as defined in subpara- patient prescription drug benefit program ‘‘SEC. 1860C. (a) PROCESS.— graph (F)). under this part. ‘‘(1) ESTABLISHMENT.— ‘‘(ii) APPLICATION.—This subparagraph ‘‘(iv) VETERANS’ COVERAGE OF PRESCRIPTION ‘‘(A) ELECTION.— shall only apply with respect to a coverage DRUGS.—Coverage of prescription drugs for ‘‘(i) IN GENERAL.—The Secretary shall es- period the enrollment for which occurs be- veterans, and survivors and dependents of tablish a process through which an eligible fore the end of the 60-day period that begins veterans, under chapter 17 of title 38, United beneficiary who is enrolled under this part on the first day of the month which in- States Code, but only if the coverage pro- but not enrolled in a Medicare+Choice plan cludes— vides coverage of the cost of prescription offered by a Medicare+Choice organization— ‘‘(I) in the case of a beneficiary with cov- drugs the actuarial value of which (as de- ‘‘(I) shall make an annual election to en- erage described in clause (ii) of subparagraph fined by the Secretary) to the beneficiary roll in any plan offered by an eligible entity (F), the date on which the plan terminates, equals or exceeds the actuarial value of the that has been awarded a contract under this ceases to provide, or reduces the value of the benefits provided to an individual enrolled in part and serves the geographic area in which prescription drug coverage under such plan the outpatient prescription drug benefit pro- the beneficiary resides; and to below the actuarial value of the coverage gram under this part. ‘‘(II) may make an annual election to provided under the program under this part; ‘‘(2) OPEN ENROLLMENT PERIOD FOR CURRENT change the election under this clause. or BENEFICIARIES IN WHICH LATE ENROLLMENT ‘‘(ii) DEFAULT ENROLLMENT.—Such process ‘‘(II) in the case of a beneficiary with cov- PROCEDURES DO NOT APPLY.— shall include for the default enrollment in erage described in clause (i), (iii), or (iv) of ‘‘(A) IN GENERAL.—The Secretary shall es- such a plan in the case of an eligible bene- subparagraph (F), the date on which the ben- tablish an applicable period, which shall ficiary who is enrolled under this part but eficiary loses eligibility for such coverage. begin on the date on which the Secretary who has failed to make an election of such a ‘‘(D) PERIODS TREATED SEPARATELY.—Any first begins to accept elections for enroll- plan. increase in an eligible beneficiary’s monthly ment under this part, during which any eligi- ‘‘(B) RULES.—In establishing the process part D premium under subparagraph (A) with ble beneficiary may enroll under this part under subparagraph (A), the Secretary respect to a particular continuous period of without the application of the late enroll- shall— eligibility shall not be applicable with re- ment procedures established under para- ‘‘(i) use rules similar to the rules for en- spect to any other continuous period of eligi- graph (1)(A). rollment, disenrollment, and termination of bility which the beneficiary may have. ‘‘(B) OPEN ENROLLMENT PERIOD TO BEGIN enrollment with a Medicare+Choice plan ‘‘(E) CONTINUOUS PERIOD OF ELIGIBILITY.— PRIOR TO JANUARY 1, 2005.—The Secretary under section 1851, including—

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‘‘(I) the establishment of special election the information provided to eligible bene- ‘‘OUTPATIENT PRESCRIPTION DRUG BENEFITS periods under subsection (e)(4) of such sec- ficiaries under this part is complete, accu- ‘‘SEC. 1860F. (a) REQUIREMENT.—A plan of- tion; and rate, and uniform. fered by an eligible entity under this part ‘‘(II) the application of the guaranteed ‘‘(c) USE OF MEDICARE CONSUMER COALI- shall provide eligible beneficiaries enrolled issue and renewal provisions of subsection TIONS TO PROVIDE INFORMATION.— in such plan with— (g) of such section (other than paragraph ‘‘(1) IN GENERAL.—The Secretary may con- ‘‘(1) coverage of covered outpatient drugs— (3)(C)(i), relating to default enrollment); and tract with Medicare Consumer Coalitions to ‘‘(A) without the application of any de- ‘‘(ii) coordinate enrollments, conduct the informational activities under— ductible; and disenrollments, and terminations of enroll- ‘‘(A) this section; ‘‘(B) with the cost-sharing described in ment under part C with enrollments, ‘‘(B) section 1851(d); and subsection (b); and disenrollments, and terminations of enroll- ‘‘(C) section 1804. ‘‘(2) access to negotiated prices for such ment under this part. ‘‘(2) SELECTION OF COALITIONS.—If the Sec- drugs under subsection (c). ‘‘(2) FIRST ENROLLMENT PERIOD FOR PLAN retary determines the use of Medicare Con- ‘‘(b) COST-SHARING.— ENROLLMENT.—The process developed under sumer Coalitions to be appropriate, the Sec- ‘‘(1) COPAYMENT STRUCTURE FOR DRUGS IN- paragraph (1) shall— retary shall— CLUDED IN THE FORMULARY.— ‘‘(A) ensure that eligible beneficiaries who ‘‘(A) develop and disseminate, in such ‘‘(A) IN GENERAL.—Subject to the suc- choose to enroll under this part are per- areas as the Secretary determines appro- ceeding provisions of this subsection, in the mitted to enroll with an eligible entity prior priate, a request for proposals for Medicare case of a covered outpatient drug that is dis- to January 1, 2005, in order to ensure that Consumer Coalitions to contract with the pensed in a year to an eligible beneficiary coverage under this part is effective as of Secretary in order to conduct any of the in- and that is included in the formulary estab- such date; and formational activities described in para- lished by the eligible entity (pursuant to sec- ‘‘(B) be coordinated with the open enroll- graph (1); and tion 1860H(c)) for the plan, the beneficiary ment period under section 1860B(b)(2)(A). ‘‘(B) select a proposal of a Medicare Con- shall be responsible for a copayment for the ‘‘(b) MEDICARE+CHOICE ENROLLEES.— sumer Coalition to conduct the informa- drug in an amount equal to the following: ‘‘(1) IN GENERAL.—An eligible beneficiary tional activities in each such area, with a ‘‘(i) GENERIC DRUGS.—In the case of a ge- who is enrolled under this part and enrolled preference for broad participation by organi- neric covered outpatient drug, $10 for each in a Medicare+Choice plan offered by a zations with experience in providing infor- prescription (as defined in subparagraph (D)) Medicare+Choice organization shall receive mation to beneficiaries under this title. of such drug. coverage of covered outpatient drugs under ‘‘(3) PAYMENT TO MEDICARE CONSUMER COA- ‘‘(ii) PREFERRED BRAND NAME DRUGS.—In this part through such plan. LITIONS.—The Secretary shall make pay- the case of a preferred brand name covered ‘‘(2) RULES.—Enrollment in a ments to Medicare Consumer Coalitions con- outpatient drug (including a drug treated as Medicare+Choice plan is subject to the rules tracting under this subsection in such a preferred brand name drug under subpara- for enrollment in such a plan under section amounts and in such manner as the Sec- graph (C)), $40 for each prescription (as so de- 1851. retary determines appropriate. fined) of such drug. ‘‘PROVIDING INFORMATION TO BENEFICIARIES ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(B) REDUCTION BY ELIGIBLE ENTITY.—An ‘‘SEC. 1860D. (a) ACTIVITIES.— There are authorized to be appropriated to eligible entity offering a plan under this part ‘‘(1) IN GENERAL.—The Secretary shall con- the Secretary such sums as may be nec- may reduce the applicable copayment duct activities that are designed to broadly essary to contract with Medicare Consumer amount that an eligible beneficiary enrolled disseminate information to eligible bene- Coalitions under this section. in the plan is subject to under subparagraph (A) if the Secretary determines that such re- ficiaries (and prospective eligible bene- ‘‘(5) MEDICARE CONSUMER COALITION DE- duction— ficiaries) regarding the coverage provided FINED.—In this subsection, the term ‘Medi- under this part. care Consumer Coalition’ means an entity ‘‘(i) is tied to the performance require- ‘‘(2) SPECIAL RULE FOR FIRST ENROLLMENT that is a nonprofit organization operated ments described in section 1860I(b)(1)(C); and UNDER THE PROGRAM.—To the extent prac- under the direction of a board of directors ‘‘(ii) will not result in an increase in the expenditures made from the Prescription ticable, the activities described in paragraph that is primarily composed of beneficiaries Drug Account. (1) shall ensure that eligible beneficiaries are under this title. provided with such information at least 30 ‘‘(C) TREATMENT OF MEDICALLY NECESSARY ‘‘PREMIUMS days prior to the open enrollment period de- NONFORMULARY DRUGS.—The eligible entity scribed in section 1860B(b)(2)(A). ‘‘SEC. 1860E. (a) ANNUAL ESTABLISHMENT OF shall treat a nonformulary drug as a pre- ‘‘(b) REQUIREMENTS.— MONTHLY PART D PREMIUM RATES.— ferred brand name drug under subparagraph ‘‘(1) IN GENERAL.—The activities described ‘‘(1) IN GENERAL.—The Secretary shall, dur- (A)(ii) if such nonformulary drug is deter- in subsection (a) shall— ing September of each year (beginning in mined (pursuant to subparagraph (D) or (E) ‘‘(A) be similar to the activities performed 2004), determine and promulgate a monthly of section 1860H(a)(4)) to be medically nec- by the Secretary under section 1851(d); part D premium rate for the succeeding year. essary. ‘‘(B) be coordinated with the activities per- ‘‘(2) AMOUNT.—The Secretary shall deter- ‘‘(D) PRESCRIPTION DEFINED.— formed by the Secretary under such section mine the monthly part D premium rate for ‘‘(i) IN GENERAL.—Subject to clause (ii), for and under section 1804; and the succeeding year as follows: purposes of subparagraph (A), the term ‘pre- ‘‘(C) provide for the dissemination of infor- ‘‘(A) PREMIUM FOR 2005.—The monthly part scription’ means— mation comparing the plans offered by eligi- D premium rate for 2005 shall be $25. ‘‘(I) a 30-day supply for a maintenance ble entities under this part that are avail- ‘‘(B) INFLATION ADJUSTMENT OF PREMIUM drug; and able to eligible beneficiaries residing in an FOR 2006 AND SUBSEQUENT YEARS.— ‘‘(II) a supply necessary for the length of area. ‘‘(i) IN GENERAL.—Subject to clause (ii), in the course that is typical of current practice ‘‘(2) COMPARATIVE INFORMATION.—The com- the case of any calendar year beginning after for a nonmaintenance drug. parative information described in paragraph 2005, the monthly part D premium rate for ‘‘(ii) SPECIAL RULE FOR MAIL ORDER (1)(C) shall include a comparison of the fol- the year shall be the amount described in DRUGS.—In the case of drugs obtained by lowing: subparagraph (A) increased by an amount mail order, the term ‘prescription’ may be ‘‘(A) BENEFITS.—The benefits provided equal to— for a supply that is longer than the period under the plan, including the prices bene- ‘‘(I) such dollar amount, multiplied by specified in clause (i) or (ii) (as the case may ficiaries will be charged for covered out- ‘‘(II) the percentage (if any) by which the be) if the Secretary determines that the patient drugs, any preferred pharmacy net- amount of the average annual per capita ag- longer supply will not result in an increase works used by the eligible entity under the gregate expenditures payable from the Pre- in the expenditures made from the Prescrip- plan, and the formularies and appeals proc- scription Drug Account for the year (as esti- tion Drug Account. esses under the plan. mated under section 1860J(c)(2)(C)) exceeds ‘‘(2) BENEFICIARY RESPONSIBLE FOR NEGO- ‘‘(B) QUALITY AND PERFORMANCE.—To the the amount of such expenditures in 2005. TIATED PRICE OF NONFORMULARY DRUGS.—In extent available, the quality and perform- ‘‘(ii) ROUNDING.—If the monthly part D pre- the case of a covered outpatient drug that is ance of the eligible entity offering the plan. mium rate determined under clause (i) is not dispensed to an eligible beneficiary and that ‘‘(C) BENEFICIARY COST-SHARING.—The cost- a multiple of $1, such rate shall be rounded is not included in the formulary established sharing required of eligible beneficiaries to the nearest multiple of $1. by the eligible entity (pursuant to section under the plan. ‘‘(b) COLLECTION OF PART D PREMIUM.—The 1860H(c)) for the plan (and not treated a pre- ‘‘(D) CONSUMER SATISFACTION SURVEYS.—To monthly part D premium applicable to an el- ferred brand name drug under paragraph the extent available, the results of consumer igible beneficiary under this part (after ap- (1)(C)), the beneficiary shall be responsible satisfaction surveys regarding the plan and plication of any increase under section for the negotiated price for the drug (as re- the eligible entity offering such plan. 1860B(b)(1)) shall be collected and credited to ported to the Secretary pursuant to section ‘‘(E) ADDITIONAL INFORMATION.—Such addi- the Prescription Drug Account in the same 1860H(a)(6)(A)). tional information as the Secretary may pre- manner as the monthly premium determined ‘‘(3) COST-SHARING MAY NOT EXCEED NEGO- scribe. under section 1839 is collected and credited TIATED PRICE.— ‘‘(3) INFORMATION STANDARDS.—The Sec- to the Federal Supplementary Medical Insur- ‘‘(A) IN GENERAL.—If the amount of cost- retary shall develop standards to ensure that ance Trust Fund under section 1840. sharing for a covered outpatient drug that

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00086 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7053 would otherwise be required under this sub- beneficiaries, as determined by the Sec- ‘‘(ii) ensure that there are at least 10 dif- section (but for this paragraph) is greater retary for the 12-month period ending in ferent regions in the United States. than the applicable amount, then the July of the previous year. ‘‘(B) NO ADMINISTRATIVE OR JUDICIAL RE- amount of such cost-sharing shall be reduced ‘‘(D) ROUNDING.—If any amount determined VIEW.—The determination of coverage areas to an amount equal to such applicable under subparagraph (A) is not a multiple of under this part shall not be subject to ad- amount. $1, such amount shall be rounded to the near- ministrative or judicial review. ‘‘(B) APPLICABLE AMOUNT DEFINED.—For est multiple of $1. ‘‘(c) SUBMISSION OF BIDS.— purposes of subparagraph (A), the term ‘ap- ‘‘(c) ACCESS TO NEGOTIATED PRICES.— ‘‘(1) SUBMISSION.— plicable amount’ means an amount equal ‘‘(1) ACCESS.—Under a plan offered by an ‘‘(A) IN GENERAL.—Subject to subparagraph to— eligible entity with a contract under this (B), each eligible entity desiring to offer a ‘‘(i) in the case of a drug included in the part, the eligible entity offering such plan plan under this part in an area shall submit formulary (generic drugs and preferred brand shall provide eligible beneficiaries enrolled a bid with respect to such plan to the Sec- name drugs, including a drug treated as a in such plan with access to negotiated prices retary at such time, in such manner, and ac- preferred brand name drug under paragraph (including applicable discounts) used for pay- companied by such information as the Sec- (1)(C)), the negotiated price for the drug (as ment for covered outpatient drugs, regard- retary may reasonably require. reported to the Secretary pursuant to sec- less of the fact that only partial benefits ‘‘(B) BID THAT COVERS MULTIPLE AREAS.— tion 1860H(a)(6)(A)) less $5; and may be payable under the coverage with re- The Secretary shall permit an eligible entity ‘‘(ii) in the case of a nonformulary drug, spect to such drugs because of the applica- to submit a single bid for multiple areas if the negotiated price for the drug (as so re- tion of the cost-sharing under subsection (b). the bid is applicable to all such areas. ported). ‘‘(2) MEDICAID RELATED PROVISIONS.—Inso- ‘‘(2) REQUIRED INFORMATION.—The bids de- ‘‘(4) NO COST-SHARING ONCE EXPENSES EQUAL far as a State elects to provide medical as- scribed in paragraph (1) shall include— ANNUAL OUT-OF-POCKET LIMIT.— sistance under title XIX for a drug based on ‘‘(A) a proposal for the estimated prices of ‘‘(A) IN GENERAL.—An eligible entity offer- the prices negotiated under a plan under this covered outpatient drugs and the projected ing a plan under this part shall provide cov- part, the requirements of section 1927 shall annual increases in such prices, including erage of covered outpatient drugs without not apply to such drugs. The prices nego- differentials between formulary and nonfor- any cost-sharing if the individual has in- tiated under a plan under this part with re- mulary prices, if applicable; curred costs (as described in subparagraph spect to covered outpatient drugs, under a ‘‘(B) a statement regarding the amount (C)) for covered outpatient drugs in a year Medicare+Choice plan with respect to such that the entity will charge the Secretary for equal to the annual out-of-pocket limit spec- drugs, or under a qualified retiree prescrip- managing, administering, and delivering the ified in subparagraph (B). tion drug plan (as defined in section benefits under the contract; ‘‘(B) ANNUAL OUT-OF-POCKET LIMIT.—Sub- 1860J(e)(3)) with respect to such drugs, on be- ‘‘(C) a statement regarding whether the en- ject to paragraph (5), for purposes of this half of eligible beneficiaries, shall (notwith- tity will reduce the applicable cost-sharing part, the ‘annual out-of-pocket limit’ speci- standing any other provision of law) not be amount pursuant to section 1860F(b)(1)(B) and if so, the amount of such reduction and fied in this subparagraph is equal to $4,000. taken into account for the purposes of estab- how such reduction is tied to the perform- ‘‘(C) APPLICATION.—In applying subpara- lishing the best price under section ance requirements described in section graph (A)— 1927(c)(1)(C). ‘‘(i) incurred costs shall only include costs 1860I(b)(1)(C); incurred for the cost-sharing described in ‘‘ENTITIES ELIGIBLE TO PROVIDE OUTPATIENT ‘‘(D) a detailed description of the perform- this subsection; but DRUG BENEFIT ance requirements for which the payments ‘‘(ii) such costs shall be treated as incurred ‘‘SEC. 1860G. (a) ESTABLISHMENT OF PANELS to the entity will be subject to risk pursuant without regard to whether the individual or OF PLANS AVAILABLE IN AN AREA.— to section 1860I(b)(1)(C); another person, including a State program or ‘‘(1) IN GENERAL.—The Secretary shall es- ‘‘(E) a detailed description of access to other third-party coverage, has paid for such tablish procedures under which the Sec- pharmacy services provided under the plan; costs. retary— ‘‘(F) with respect to the formulary used by ‘‘(5) INFLATION ADJUSTMENT FOR COPAYMENT ‘‘(A) accepts bids submitted by eligible en- the entity, a detailed description of the pro- AMOUNTS AND ANNUAL OUT-OF-POCKET LIMIT tities for the plans which such entities in- cedures and standards the entity will use FOR 2006 AND SUBSEQUENT YEARS.— tend to offer in an area established under for— ‘‘(A) IN GENERAL.—For any year after 2005— subsection (b); and ‘‘(i) adding new drugs to a therapeutic ‘‘(i) the copayment amounts described in ‘‘(B) awards contracts to such entities to class within the formulary; and clauses (i) and (ii) of paragraph (1)(A) are provide such plans to eligible beneficiaries in ‘‘(ii) determining when and how often the equal to the copayment amounts determined the area. formulary should be modified; under such paragraph (or this paragraph) for ‘‘(2) COMPETITIVE PROCEDURES.—Competi- ‘‘(G) a detailed description of any owner- the previous year— tive procedures (as defined in section 4(5) of ship or shared financial interests with other ‘‘(I) increased by the annual percentage in- the Office of Federal Procurement Policy entities involved in the delivery of the ben- crease described in subparagraph (B); and Act (41 U.S.C. 403(5))) shall be used to enter efit as proposed under the plan; ‘‘(II) further adjusted to reflect relative into contracts under this part. ‘‘(H) a detailed description of the entity’s changes in the composition of drug spending ‘‘(b) AREA FOR CONTRACTS.— estimated marketing and advertising ex- among the copayment structure under para- ‘‘(1) REGIONAL BASIS.— penditures related to enrolling eligible bene- graph (1) to ensure that the percentage of ‘‘(A) IN GENERAL.—Except as provided in ficiaries under the plan and retaining such drug spending that beneficiaries enrolled subparagraph (B) and subject to paragraph enrollment; and under this part are required to pay in the (2), the contract entered into between the ‘‘(I) such other information that the Sec- year is the same (as estimated by the Sec- Secretary and an eligible entity with respect retary determines is necessary in order to retary) as the percentage required in the pre- to a plan shall require the eligible entity to carry out this part, including information vious year; and provide coverage of covered outpatient drugs relating to the bidding process under this ‘‘(ii) the annual out-of-pocket limit speci- under the plan in a region determined by the part. fied in paragraph (4)(B) is equal to the an- Secretary under paragraph (2). ‘‘(d) ACCESS TO BENEFITS IN CERTAIN nual out-of-pocket limit determined under ‘‘(B) PARTIAL REGIONAL BASIS.— AREAS.— such paragraph (or this paragraph) for the ‘‘(i) IN GENERAL.—If determined appro- ‘‘(1) AREAS NOT COVERED BY CONTRACTS.— previous year increased by the annual per- priate by the Secretary, the Secretary may The Secretary shall develop procedures for centage increase described in subparagraph permit the coverage described in subpara- the provision of covered outpatient drugs (C). graph (A) to be provided in a partial region under this part to each eligible beneficiary ‘‘(B) ANNUAL PERCENTAGE INCREASE SPECI- determined appropriate by the Secretary. enrolled under this part that resides in an FIED IN SUBPARAGRAPH (B).—The annual per- ‘‘(ii) REQUIREMENTS.—If the Secretary per- area that is not covered by any contract centage increase specified in this subpara- mits coverage pursuant to clause (i), the Sec- under this part. graph for a year is equal to the annual per- retary shall ensure that the partial region in ‘‘(2) BENEFICIARIES RESIDING IN DIFFERENT centage increase in the prices of covered out- which coverage is provided is— LOCATIONS.—The Secretary shall develop pro- patient drugs (including both price inflation ‘‘(I) at least the size of the commercial cedures to ensure that each eligible bene- and price changes due to changes in thera- service area of the eligible entity for that ficiary enrolled under this part that resides peutic mix), as determined by the Secretary area; and in different areas in a year is provided the for the 12-month period ending in July of the ‘‘(II) not smaller than a State. benefits under this part throughout the en- previous year. ‘‘(2) DETERMINATION.— tire year. ‘‘(C) ANNUAL PERCENTAGE INCREASE SPECI- ‘‘(A) IN GENERAL.—In determining regions ‘‘(e) AWARDING OF CONTRACTS.— FIED IN SUBPARAGRAPH (C).—The annual per- for contracts under this part, the Secretary ‘‘(1) NUMBER OF CONTRACTS.—The Secretary centage increase specified in this subpara- shall— shall, consistent with the requirements of graph for a year is equal to the annual per- ‘‘(i) take into account the number of eligi- this part and the goal of containing costs centage increase in average per capita aggre- ble beneficiaries in an area in order to en- under this title, award in a competitive man- gate expenditures for covered outpatient courage participation by eligible entities; ner at least 2 contracts to offer a plan in an drugs in the United States for medicare and area, unless only 1 bidding entity (and the

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plan offered by the entity) meets the min- ‘‘(A) IN GENERAL.—The eligible entity has office settings, including hardware, software, imum standards specified under this part and in place drug utilization review procedures and training costs. by the Secretary. to ensure— ‘‘(V) Implementation issues as they relate ‘‘(2) DETERMINATION.—In determining ‘‘(i) the appropriate utilization by eligible to part C of title XI, and current Federal and which of the eligible entities that submitted beneficiaries enrolled in the plan covered by State prescribing laws and regulations and bids that meet the minimum standards spec- the contract of the benefits to be provided their impact on implementation of comput- ified under this part and by the Secretary to under the plan; erized prescribing. award a contract, the Secretary shall con- ‘‘(ii) the avoidance of adverse drug reac- ‘‘(iii) DEADLINES.— sider the comparative merits of each bid, as tions among such beneficiaries, including ‘‘(I) The Secretary shall constitute the determined on the basis of the past perform- problems due to therapeutic duplication, task force under clause (ii) by not later than ance of the entity and other relevant factors, drug-disease contraindications, drug-drug April 1, 2003. with respect to— interactions (including serious interactions ‘‘(II) Such task force shall submit rec- ‘‘(A) how well the entity (and the plan of- with nonprescription or over-the-counter ommendations to Secretary by not later fered by the entity) meet such minimum drugs), incorrect drug dosage or duration of than January 1, 2004. standards; drug treatment, drug-allergy interactions, ‘‘(III) The Secretary shall develop and pro- ‘‘(B) the amount that the entity will and clinical abuse and misuse; and mulgate the national standards referred to charge the Secretary for managing, admin- ‘‘(iii) the reasonable application of peer-re- in clause (ii) by not later than January 1, istering, and delivering the benefits under viewed medical literature pertaining to im- 2005. the contract; provements in pharmaceutical safety and ap- ‘‘(C) WAIVER OF APPLICATION FOR CERTAIN ‘‘(C) the performance requirements for propriate use of drugs. RURAL PROVIDERS.—If the Secretary deter- which the payments to the entity will be ‘‘(B) AUTHORITY TO USE CERTAIN COMPENDIA mines that it is unduly burdensome on pro- subject to risk pursuant to section AND LITERATURE.—The eligible entity may viders in rural areas to comply with the re- 1860I(b)(1)(C); use the compendia and literature referred to quirements under this paragraph, the Sec- ‘‘(D) the proposed negotiated prices of cov- in clauses (i) and (ii), respectively, of section retary may waive such requirements for such ered outpatient drugs and annual increases 1927(g)(1)(B) as a source for the utilization providers. in such prices; review under subparagraph (A). ‘‘(D) REFERENCE TO AVAILABILITY OF GRANT ‘‘(E) the factors described in section ‘‘(3) ELECTRONIC PRESCRIPTION PROGRAM.— FUNDS.—Grant funds are authorized under 1860D(b)(2); ‘‘(A) IN GENERAL.—The eligible entity has section 399O of the Public Health Service Act ‘‘(F) prior experience of the entity in man- in place, for years beginning with 2006, an to provide assistance to health care pro- aging, administering, and delivering a pre- electronic prescription drug program that in- viders in implementing electronic prescrip- scription drug benefit program; cludes at least the following components, tion drug programs. ‘‘(G) effectiveness of the entity and plan in consistent with national standards estab- ‘‘(4) PATIENT PROTECTIONS.— containing costs through pricing incentives lished under subparagraph (B): ‘‘(A) ACCESS.— and utilization management; and ‘‘(i) ELECTRONIC TRANSMITTAL OF PRESCRIP- ‘‘(i) IN GENERAL.—The eligible entity en- ‘‘(H) such other factors as the Secretary TIONS.—Prescriptions are only received elec- sures that the covered outpatient drugs are tronically, except in emergency cases and accessible and convenient to eligible bene- deems necessary to evaluate the merits of other exceptional circumstances recognized ficiaries enrolled in the plan covered by the each bid. by the Secretary. contract, including by offering the services ‘‘(3) EXCEPTION TO CONFLICT OF INTEREST ‘‘(ii) PROVISION OF INFORMATION TO PRE- 24 hours a day and 7 days a week for emer- RULES.—In awarding contracts under this SCRIBING HEALTH CARE PROFESSIONAL.—The gencies. part, the Secretary may waive conflict of in- program provides, upon transmittal of a pre- ‘‘(ii) AGREEMENTS WITH PHARMACIES.—The terest laws generally applicable to Federal scription by a prescribing health care profes- eligible entity shall enter into a participa- acquisitions (subject to such safeguards as sional, for transmittal by the pharmacist to tion agreement with any pharmacy that the Secretary may find necessary to impose) the professional of information that in- meets the requirements of subsection (d) to in circumstances where the Secretary finds cludes— dispense covered prescription drugs to eligi- that such waiver— ‘‘(I) information (to the extent available ble beneficiaries under this part. Such agree- ‘‘(A) is not inconsistent with the— and feasible) on the drugs being prescribed ments shall include the payment of a reason- ‘‘(i) purposes of the programs under this for that patient and other information relat- able dispensing fee for covered outpatient title; or ing to the medical history or condition of drugs dispensed to a beneficiary under the ‘‘(ii) best interests of beneficiaries enrolled the patient that may be relevant to the ap- agreement. under this part; and propriate prescription for that patient; ‘‘(iii) PREFERRED PHARMACY NETWORKS.—If ‘‘(B) permits a sufficient level of competi- ‘‘(II) cost-effective alternatives (if any) for the eligible entity utilizes a preferred phar- tion for such contracts, promotes efficiency the use of the drug prescribed; and macy network, the network complies with of benefits administration, or otherwise ‘‘(III) information on the drugs included in the standards under subsection (e). serves the objectives of the program under the applicable formulary. ‘‘(B) ENSURING THAT BENEFICIARIES ARE NOT this part. To the extent feasible, such program shall OVERCHARGED.—The eligible entity has pro- ‘‘(4) NO ADMINISTRATIVE OR JUDICIAL RE- permit the prescribing health care profes- cedures in place to ensure that each phar- VIEW.—The determination of the Secretary sional to provide (and be provided) related macy with a participation agreement under to award or not award a contract to an eligi- information on an interactive, real-time this part with the entity complies with the ble entity with respect to a plan under this basis. requirements under subsection (d)(1)(C) (re- part shall not be subject to administrative or ‘‘(B) STANDARDS.— lating to adherence to negotiated prices). judicial review. ‘‘(i) DEVELOPMENT.—The Secretary shall ‘‘(C) CONTINUITY OF CARE.— ‘‘(f) APPROVAL OF MARKETING MATERIAL provide for the development of national ‘‘(i) IN GENERAL.—The eligible entity en- AND APPLICATION FORMS.—The provisions of standards relating to the electronic prescrip- sures that, in the case of an eligible bene- section 1851(h) shall apply to marketing ma- tion drug program described in subparagraph ficiary who loses coverage under this part terial and application forms under this part (A). Such standards shall be compatible with with such entity under circumstances that in the same manner as such provisions apply standards established under part C of title would permit a special election period (as es- to marketing material and application forms XI. tablished by the Secretary under section under part C. ‘‘(ii) ADVISORY TASK FORCE.—In developing 1860C(a)(1)), the entity will continue to pro- ‘‘(g) DURATION OF CONTRACTS.—Each con- such standards, the Secretary shall establish vide coverage under this part to such bene- tract awarded under this part shall be for a a task force that includes representatives of ficiary until the beneficiary enrolls and re- term of at least 2 years but not more than 5 physicians, hospitals, pharmacists, and tech- ceives such coverage with another eligible years, as determined by the Secretary. nology experts and representatives of the De- entity under this part or, if eligible, with a partments of Veterans Affairs and Defense Medicare+Choice organization. ‘‘MINIMUM STANDARDS FOR ELIGIBLE ENTITIES and other appropriate Federal agencies to ‘‘(ii) LIMITED PERIOD.—In no event shall an ‘‘SEC. 1860H. (a) IN GENERAL.—The Sec- provide recommendations to the Secretary eligible entity be required to provide the ex- retary shall not award a contract to an eligi- on such standards, including recommenda- tended coverage required under clause (i) be- ble entity under this part unless the Sec- tions relating to the following: yond the date which is 30 days after the cov- retary finds that the eligible entity agrees to ‘‘(I) The range of available computerized erage with such entity would have termi- comply with such terms and conditions as prescribing software and hardware and their nated but for this subparagraph. the Secretary shall specify, including the costs to develop and implement. ‘‘(D) PROCEDURES REGARDING THE DETER- following: ‘‘(II) The extent to which such systems re- MINATION OF DRUGS THAT ARE MEDICALLY NEC- ‘‘(1) QUALITY AND FINANCIAL STANDARDS.— duce medication errors and can be readily ESSARY.— The eligible entity meets the quality and fi- implemented by physicians and hospitals. ‘‘(i) IN GENERAL.—The eligible entity has in nancial standards specified by the Secretary. ‘‘(III) Efforts to develop a common soft- place procedures on a case-by-case basis to ‘‘(2) PROCEDURES TO ENSURE PROPER UTILI- ware platform for computerized prescribing. treat a nonformulary drug as a preferred ZATION, COMPLIANCE, AND AVOIDANCE OF AD- ‘‘(IV) The cost of implementing such sys- brand name drug under this part if the non- VERSE DRUG REACTIONS.— tems in the range of hospital and physician formulary drug is determined—

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‘‘(I) to be not as effective for the enrollee with the patient confidentiality procedures ‘‘(1) IN GENERAL.—In providing the benefits in preventing or slowing the deterioration of, described in subparagraph (F). under a contract under this part, an eligible or improving or maintaining, the health of ‘‘(H) PROCEDURES REGARDING MEDICAL ER- entity shall— the enrollee; or RORS.—The eligible entity has in place proce- ‘‘(A) employ mechanisms to provide the ‘‘(II) to have a significant adverse effect on dures for— benefits economically, such as through the the enrollee. ‘‘(i) working with the Secretary to deter use of— ‘‘(ii) REQUIREMENT.—The procedures under medical errors related to the provision of ‘‘(i) alternative methods of distribution; clause (i) shall require that determinations covered outpatient drugs; and ‘‘(ii) preferred pharmacy networks (pursu- under such clause are based on professional ‘‘(ii) ensuring that pharmacies with a con- ant to subsection (e)); and medical judgment, the medical condition of tract with the entity have in place proce- ‘‘(iii) generic drug substitution; the enrollee, and other medical evidence. dures to deter medical errors related to the ‘‘(B) use mechanisms to encourage eligible ‘‘(E) PROCEDURES REGARDING APPEAL provision of covered outpatient drugs. beneficiaries to select cost-effective drugs or RIGHTS WITH RESPECT TO DENIALS OF CARE.— ‘‘(5) PROCEDURES TO CONTROL FRAUD, ABUSE, less costly means of receiving drugs, such as The eligible entity has in place procedures to AND WASTE.— through the use of— ensure— ‘‘(A) IN GENERAL.—The eligible entity has ‘‘(i) pharmacy incentive programs; ‘‘(i) a timely internal review for resolution in place procedures to control fraud, abuse, ‘‘(ii) therapeutic interchange programs; of denials of coverage (in whole or in part and waste. and and including those regarding the coverage ‘‘(B) APPLICABILITY OF FRAUD AND ABUSE ‘‘(iii) disease management programs; of nonformulary drugs as preferred brand PROVISIONS.—The provisions of section 1128 ‘‘(C) encourage pharmacy providers to— name drugs) in accordance with the medical through 1128C (relating to fraud and abuse) ‘‘(i) inform beneficiaries of the differen- exigencies of the case and a timely resolu- apply to eligible entities with contracts tials in price between generic and brand tion of complaints, by enrollees in the plan, under this part. name drug equivalents; and or by providers, pharmacists, and other indi- ‘‘(6) REPORTING REQUIREMENTS.— ‘‘(ii) provide medication therapy manage- viduals acting on behalf of each such en- ‘‘(A) IN GENERAL.—The eligible entity pro- ment programs in order to enhance bene- rollee (with the enrollee’s consent) in ac- vides the Secretary with reports containing ficiaries’ understanding of the appropriate cordance with requirements (as established information regarding the following: use of medications and to reduce the risk of by the Secretary) that are comparable to ‘‘(i) The negotiated prices that the eligible potential adverse events associated with such requirements for Medicare+Choice or- entity is paying for covered outpatient medications; and ganizations under part C (and are not less fa- drugs. ‘‘(D) develop and implement a formulary in vorable to the enrollee than such require- ‘‘(ii) The prices that eligible beneficiaries accordance with subsection (c). ments under such part as in effect on the enrolled in the plan that is covered by the ‘‘(2) RESTRICTION.—If an eligible entity date of enactment of the Medicare Out- contract will be charged for covered out- uses alternative methods of distribution pur- patient Prescription Drug Act of 2002); patient drugs. suant to paragraph (1)(A)(i), the entity may ‘‘(ii) that the entity complies in a timely ‘‘(iii) The management costs of providing not require that a beneficiary use such meth- manner with requirements established by such benefits. ods in order to obtain covered outpatient the Secretary that (I) provide for an external ‘‘(iv) Utilization of such benefits. drugs. review by an independent entity selected by ‘‘(v) Marketing and advertising expendi- the Secretary of denials of coverage de- tures related to enrolling and retaining eligi- ‘‘(c) REQUIREMENTS FOR FORMULARIES.— scribed in clause (i) not resolved in the favor ble beneficiaries. ‘‘(1) STANDARDS.— of the beneficiary (or other complainant) ‘‘(B) TIMEFRAME FOR SUBMITTING RE- ‘‘(A) IN GENERAL.—The formulary devel- under the process described in such clause, PORTS.— oped and implemented by the eligible entity and (II) are comparable to the external re- ‘‘(i) IN GENERAL.—The eligible entity shall shall comply with standards established by view requirements established for submit a report described in subparagraph the Secretary in consultation with the Medi- Medicare+Choice organizations under part C (A) to the Secretary within 3 months after care Prescription Drug Advisory Committee (and are not less favorable to the enrollee the end of each 12-month period in which the established under section 1860L. than such requirements under such part as in eligible entity has a contract under this ‘‘(B) NO NATIONAL FORMULARY OR REQUIRE- effect on the date of enactment of the Medi- part. Such report shall contain information MENT TO EXCLUDE SPECIFIC DRUGS.— care Outpatient Prescription Drug Act of concerning the benefits provided during such ‘‘(i) SECRETARY MAY NOT ESTABLISH A NA- 2002); and 12-month period. TIONAL FORMULARY.—The Secretary may not ‘‘(iii) that enrollees are provided with in- ‘‘(ii) LAST YEAR OF CONTRACT.—In the case establish a national formulary. formation regarding the appeals procedures of the last year of a contract under this part, ‘‘(ii) NO REQUIREMENT TO EXCLUDE SPECIFIC under this part at the time of enrollment the Secretary may require that a report de- DRUGS.—The standards established by the with the entity and upon request thereafter. scribed in subparagraph (A) be submitted 3 Secretary pursuant to subparagraph (A) may ‘‘(F) PROCEDURES REGARDING PATIENT CON- months prior to the end of the contract. not require that an eligible entity exclude a FIDENTIALITY.—Insofar as an eligible entity Such report shall contain information con- specific covered outpatient drug from the maintains individually identifiable medical cerning the benefits provided between the formulary developed and implemented by the records or other health information regard- period covered by the most recent report entity. ing eligible beneficiaries enrolled in the plan under this subparagraph and the date that a ‘‘(2) REQUIREMENTS FOR STANDARDS.—The that is covered by the contract, the entity report is submitted under this clause. standards established under paragraph (1) has in place procedures to— ‘‘(C) CONFIDENTIALITY OF INFORMATION.— shall require that the eligible entity— ‘‘(i) safeguard the privacy of any individ- ‘‘(i) IN GENERAL.—Notwithstanding any ‘‘(A) use a pharmacy and therapeutic com- ually identifiable beneficiary information in other provision of law and subject to clause mittee (that meets the standards for a phar- a manner consistent with the Federal regula- (ii), information disclosed by an eligible en- macy and therapeutic committee established tions (concerning the privacy of individually tity pursuant to subparagraph (A) (except for by the Secretary in consultation with such identifiable health information) promulgated information described in clause (ii) of such Medicare Prescription Drug Advisory Com- under section 264(c) of the Health Insurance subparagraph) is confidential and shall only mittee) to develop and implement the for- Portability and Accountability Act of 1996 be used by the Secretary for the purposes of, mulary; (Public Law 104–191; 110 Stat. 2033); and to the extent necessary, to carry out ‘‘(B) include— ‘‘(ii) maintain such records and informa- this part. ‘‘(i) all generic covered outpatient drugs in tion in a manner that is accurate and time- ‘‘(ii) UTILIZATION DATA.—Subject to patient the formulary; and ly; confidentiality laws, the Secretary shall ‘‘(ii) at least 1 but no more than 2 (unless ‘‘(iii) ensure timely access by such bene- make information disclosed by an eligible the Secretary determines that such limita- ficiaries to such records and information; entity pursuant to subparagraph (A)(iv) (re- tion is determined to be clinically inappro- and garding utilization data) available for re- priate for a given therapeutic class) brand ‘‘(iv) otherwise comply with applicable search purposes. The Secretary may charge a name covered outpatient drugs from each laws relating to patient confidentiality. reasonable fee for making such information therapeutic class (as defined by the Sec- ‘‘(G) PROCEDURES REGARDING TRANSFER OF available. retary in consultation with such Medicare MEDICAL RECORDS.— ‘‘(7) APPROVAL OF MARKETING MATERIAL AND Prescription Drug Advisory Committee) as a ‘‘(i) IN GENERAL.—The eligible entity has in APPLICATION FORMS.—The eligible entity preferred brand name drug in the formulary; place procedures for the timely transfer of complies with the requirements described in ‘‘(C) develop procedures for the modifica- records and information described in sub- section 1860G(f). tion of the formulary, including for the addi- paragraph (F) (with respect to a beneficiary ‘‘(8) RECORDS AND AUDITS.—The eligible en- tion of new drugs to an existing therapeutic who loses coverage under this part with the tity maintains adequate records related to class; entity and enrolls with another entity (in- the administration of the benefits under this ‘‘(D) pursuant to section 1860F(b)(1)(C), cluding a Medicare+Choice organization) part and affords the Secretary access to such provide for coverage of nonformulary drugs under this part) to such other entity. records for auditing purposes. at the preferred brand name drug rate when ‘‘(ii) PATIENT CONFIDENTIALITY.—The proce- ‘‘(b) SPECIAL RULES REGARDING COST-EF- determined under subparagraph (D) or (E) of dures described in clause (i) shall comply FECTIVE PROVISION OF BENEFITS.— subsection (a)(3) to be medically necessary;

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‘‘(E) disclose to current and prospective ‘‘(1) IN GENERAL.—If an eligible entity uses an eligible entity is at risk under this sub- beneficiaries and to providers in the service a preferred pharmacy network to deliver section, the procedures established under area the nature of the formulary restric- benefits under this part, such network shall subsection (a) may include a methodology tions, including information regarding the meet minimum access standards established for risk adjusting the payments made to drugs included in the formulary and any dif- by the Secretary. such entity based on the differences in actu- ference in the cost-sharing for— ‘‘(2) STANDARDS.—In establishing standards arial risk of different enrollees being served ‘‘(i) drugs included in the formulary; and under paragraph (1), the Secretary shall take if the Secretary determines such adjust- ‘‘(ii) for drugs not included in the for- into account reasonable distances to phar- ments to be necessary and appropriate. mulary; and macy services in both urban and rural areas. ‘‘(4) PASS-THROUGH OF REBATES, DISCOUNTS, ‘‘(F) provide a reasonable amount of notice ‘‘PAYMENTS AND PRICE CONCESSIONS OBTAINED BY THE ELI- to beneficiaries enrolled in the plan that is ‘‘SEC. 1860I. (a) PROCEDURES FOR PAYMENTS GIBLE ENTITY.—The Secretary shall establish covered by the contract under this part of TO ELIGIBLE ENTITIES.—The Secretary shall procedures for reducing the amount of pay- any change in the formulary. establish procedures for making payments to ments to an eligible entity under subsection ‘‘(3) CONSTRUCTION.—Nothing in this part each eligible entity with a contract under (a) to take into account any rebates, dis- shall be construed as precluding an eligible this part for the management, administra- counts, or price concessions obtained by the entity from— tion, and delivery of the benefits under this entity from manufacturers of covered out- ‘‘(A) educating prescribing providers, phar- part. patient drugs, unless the Secretary deter- macists, and beneficiaries about the medical ‘‘(b) REQUIREMENTS FOR PROCEDURES.— mines that such procedures are not in the and cost benefits of drugs included in the for- ‘‘(1) IN GENERAL.—The procedures estab- best interests of the medicare program or el- mulary (including generic drugs); or lished under subsection (a) shall provide for igible beneficiaries. ‘‘(B) requesting prescribing providers to the following: ‘‘(c) PAYMENTS TO MEDICARE+CHOICE ORGA- consider a drug included in the formulary ‘‘(A) MANAGEMENT PAYMENT.—Payment for NIZATIONS.—For provisions related to pay- prior to dispensing of a drug not so included, the management, administration, and deliv- ments to Medicare+Choice organizations for as long as such a request does not unduly ery of the benefits under this part. the administration and delivery of benefits delay the provision of the drug. ‘‘(B) REIMBURSEMENT FOR NEGOTIATED under this part to eligible beneficiaries en- ‘‘(d) TERMS OF PARTICIPATION AGREEMENT COSTS OF DRUGS PROVIDED.—Payments for the rolled in a Medicare+Choice plan offered by WITH PHARMACIES.— negotiated costs of covered outpatient drugs the organization, see section 1853(c)(8). ‘‘(1) IN GENERAL.—A participation agree- provided to eligible beneficiaries enrolled ‘‘(d) SECONDARY PAYER PROVISIONS.—The ment between an eligible entity and a phar- under this part and in a plan offered by the provisions of section 1862(b) shall apply to macy under this part (pursuant to subsection eligible entity, reduced by any applicable the benefits provided under this part. (a)(3)(A)(ii)) shall include the following cost-sharing under section 1860F(b). ‘‘EMPLOYER INCENTIVE PROGRAM FOR terms and conditions: ‘‘(C) RISK REQUIREMENT TO ENSURE PURSUIT EMPLOYMENT-BASED RETIREE DRUG COVERAGE ‘‘(A) APPLICABLE REQUIREMENTS.—The OF PERFORMANCE REQUIREMENTS.—An adjust- ‘‘SEC. 1860J. (a) PROGRAM AUTHORITY.—The pharmacy shall meet (and throughout the ment of a percentage (as determined under Secretary is authorized to develop and im- contract period continue to meet) all appli- paragraph (2)) of the payments made to an plement a program under this section to be cable Federal requirements and State and entity under subparagraph (A) to ensure that known as the ‘Employer Incentive Program’ local licensing requirements. the entity, in managing, administering, and that encourages employers and other spon- ‘‘(B) ACCESS AND QUALITY STANDARDS.—The delivering the benefits under this part, pur- sors of employment-based health care cov- pharmacy shall comply with such standards sues performance requirements established erage to provide adequate prescription drug as the Secretary (and the eligible entity) by the Secretary, including the following: benefits to retired individuals by subsidizing, shall establish concerning the quality of, and ‘‘(i) CONTROL OF MEDICARE AND BENEFICIARY in part, the sponsor’s cost of providing cov- enrolled beneficiaries’ access to, pharmacy COSTS.—The entity contains costs to the Pre- erage under qualifying plans. services under this part. Such standards scription Drug Account and to eligible bene- ‘‘(b) SPONSOR REQUIREMENTS.—In order to shall require the pharmacy— ficiaries enrolled under this part and in the be eligible to receive an incentive payment ‘‘(i) not to refuse to dispense covered out- plan offered by the entity, as measured by under this section with respect to coverage patient drugs to any eligible beneficiary en- generic substitution rates, price discounts, of an individual under a qualified retiree pre- rolled under this part; and other factors determined appropriate by scription drug plan (as defined in subsection ‘‘(ii) to keep patient records (including the Secretary that do not reduce the access (e)(3)), a sponsor shall meet the following re- records on expenses) for all covered out- of such beneficiaries to medically necessary quirements: patient drugs dispensed to such enrolled covered outpatient drugs. ‘‘(1) ASSURANCES.—The sponsor shall— beneficiaries; ‘‘(ii) QUALITY CLINICAL CARE.—The entity ‘‘(A) annually attest, and provide such as- ‘‘(iii) to submit information (in a manner provides such beneficiaries with quality clin- surances as the Secretary may require, that specified by the Secretary to be necessary to ical care, as measured by such factors as— the coverage offered by the sponsor is a administer this part) on all purchases of ‘‘(I) the level of adverse drug reactions and qualified retiree prescription drug plan, and such drugs dispensed to such enrolled bene- medical errors among such beneficiaries; and will remain such a plan for the duration of ficiaries; and ‘‘(II) providing specific clinical suggestions the sponsor’s participation in the program ‘‘(iv) to comply with periodic audits to as- to improve health and patient and prescriber under this section; and sure compliance with the requirements of education as appropriate. ‘‘(B) guarantee that it will give notice to this part and the accuracy of information ‘‘(iii) QUALITY SERVICE.—The entity pro- the Secretary and covered retirees— submitted. vides such beneficiaries with quality serv- ‘‘(i) at least 120 days before terminating its ‘‘(C) ENSURING THAT BENEFICIARIES ARE NOT ices, as measured by such factors as sus- plan; and OVERCHARGED.— tained pharmacy network access, timeliness ‘‘(ii) immediately upon determining that ‘‘(i) ADHERENCE TO NEGOTIATED PRICES.— and accuracy of service delivery in claims the actuarial value of the prescription drug The total charge for each covered outpatient processing and card production, pharmacy benefit under the plan falls below the actu- drug dispensed by the pharmacy to a bene- and member service support access, response arial value of the outpatient prescription ficiary enrolled in the plan, without regard time in mail delivery service, and timely ac- drug benefit under this part. to whether the individual is financially re- tion with regard to appeals and current bene- ‘‘(2) BENEFICIARY INFORMATION.—The spon- sponsible for any or all of such charge, shall ficiary service surveys. sor shall report to the Secretary, for each not exceed the negotiated price for the drug ‘‘(2) PERCENTAGE OF PAYMENT TIED TO calendar quarter for which it seeks an incen- (as reported to the Secretary pursuant to RISK.— tive payment under this section, the names subsection (a)(5)(A)). ‘‘(A) IN GENERAL.—Subject to subparagraph and social security numbers of all retirees ‘‘(ii) ADHERENCE TO BENEFICIARY OBLIGA- (B), the Secretary shall determine the per- (and their spouses and dependents) covered TION.—The pharmacy may not charge (or col- centage (which may be up to 100 percent) of under such plan during such quarter and the lect from) such beneficiary an amount that the payments made to an entity under sub- dates (if less than the full quarter) during exceed’s the cost-sharing that the bene- paragraph (A) that will be tied to the per- which each such individual was covered. ficiary is responsible for under this part (as formance requirements described in para- ‘‘(3) AUDITS.—The sponsor and the employ- determined under section 1860F(b) using the graph (1)(C). ment-based retiree health coverage plan negotiated price of the drug). ‘‘(B) LIMITATION ON RISK TO ENSURE PRO- seeking incentive payments under this sec- ‘‘(D) ADDITIONAL REQUIREMENTS.—The GRAM STABILITY.—In order to provide for pro- tion shall agree to maintain, and to afford pharmacy shall meet such additional con- gram stability, the Secretary may not estab- the Secretary access to, such records as the tract requirements as the eligible entity lish a percentage to be adjusted under this Secretary may require for purposes of audits specifies under this section. subsection at a level that jeopardizes the and other oversight activities necessary to ‘‘(2) APPLICABILITY OF FRAUD AND ABUSE ability of an eligible entity to administer ensure the adequacy of prescription drug PROVISIONS.—The provisions of section 1128 and deliver the benefits under this part or coverage, the accuracy of incentive pay- through 1128C (relating to fraud and abuse) administer and deliver such benefits in a ments made, and such other matters as may apply to pharmacies participating in the pro- quality manner. be appropriate. gram under this part. ‘‘(3) RISK ADJUSTMENT OF PAYMENTS BASED ‘‘(4) OTHER REQUIREMENTS.—The sponsor ‘‘(e) PREFERRED PHARMACY NETWORKS.— ON ENROLLEES IN PLAN.—To the extent that shall provide such other information, and

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comply with such other requirements, as the ‘‘(A) provides coverage of the cost of pre- ‘‘(C) LEGISLATION ENACTED THAT PROVIDES Secretary may find necessary to administer scription drugs with an actuarial value (as SAVINGS.—Amounts shall continue to be ap- the program under this section. defined by the Secretary) to each retired propriated, and the Secretary shall continue ‘‘(c) INCENTIVE PAYMENTS.— beneficiary that equals or exceeds the actu- to incur obligations and expend amounts, for ‘‘(1) IN GENERAL.—A sponsor that meets the arial value of the benefits provided to an in- expenses incurred for providing coverage of requirements of subsection (b) with respect dividual enrolled in the outpatient prescrip- covered outpatient drugs after December 31, to a quarter in a calendar year shall be enti- tion drug benefit program under this part; 2010, if legislation is enacted prior to Janu- tled to have payment made by the Secretary and ary 1, 2011, which states that savings have on a quarterly basis (to the sponsor or, at ‘‘(B) does not deny, limit, or condition the been achieved equal to or greater than the the sponsor’s direction, to the appropriate coverage or provision of prescription drug difference between the full cost of the Medi- employment-based health plan) of an incen- benefits for retired individuals based on age care Outpatient Prescription Drug Act of tive payment, in the amount determined in or any health status-related factor described 2002 over the period beginning October 1, paragraph (2), for each retired individual (or in section 2702(a)(1) of the Public Health 2004, and ending September 30, 2012, and the spouse or dependent) who— Service Act. full cost of such Act over such period if this ‘‘(A) was covered under the sponsor’s quali- ‘‘(4) SPONSOR.—The term ‘sponsor’ has the paragraph had not been included in such Act. fied retiree prescription drug plan during meaning given the term ‘plan sponsor’ in ‘‘MEDICARE PRESCRIPTION DRUG ADVISORY such quarter; and section 3(16)(B) of the Employer Retirement COMMITTEE Income Security Act of 1974. ‘‘(B) was eligible for, but was not enrolled ‘‘SEC. 1860L. (a) ESTABLISHMENT OF COM- ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— in, the outpatient prescription drug benefit MITTEE.—There is established a Medicare There are authorized to be appropriated from program under this part. Prescription Drug Advisory Committee (in time to time, out of any moneys in the ‘‘(2) AMOUNT OF PAYMENT.— this section referred to as the ‘Committee’). Treasury not otherwise appropriated, such ‘‘(A) IN GENERAL.—The amount of the pay- ‘‘(b) FUNCTIONS OF COMMITTEE.—On and ment for a quarter shall be, for each indi- sums as may be necessary to carry out the after January 1, 2004, the Committee shall vidual described in paragraph (1), 2⁄3 of the program under this section. advise the Secretary on policies related to— sum of the monthly Government contribu- ‘‘PRESCRIPTION DRUG ACCOUNT IN THE FEDERAL ‘‘(1) the development of guidelines for the tion amounts (computed under subparagraph SUPPLEMENTARY MEDICAL INSURANCE TRUST implementation and administration of the (B)) for each of the 3 months in the quarter. FUND outpatient prescription drug benefit program ‘‘(B) COMPUTATION OF MONTHLY GOVERN- ‘‘SEC. 1860K. (a) ESTABLISHMENT.— under this part; and MENT CONTRIBUTION AMOUNT.—For purposes of ‘‘(1) IN GENERAL.—There is created within ‘‘(2) the development of— subparagraph (A), the monthly Government the Federal Supplementary Medical Insur- ‘‘(A) standards for a pharmacy and thera- contribution amount for a month in a year is ance Trust Fund established by section 1841 peutics committee required of eligible enti- equal to the amount by which— an account to be known as the ‘Prescription ties under section 1860H(c)(2)(A); ‘‘(i) 1⁄12 of the amount estimated under sub- Drug Account’ (in this section referred to as ‘‘(B) standards required under subpara- paragraph (C) for the year involved; exceeds the ‘Account’). graphs (D) and (E) of section 1860H(a)(4) for ‘‘(ii) the monthly Part D premium under ‘‘(2) FUNDS.—The Account shall consist of determining if a drug is medically necessary; section 1860E(a) (determined without regard such gifts and bequests as may be made as ‘‘(C) standards for— to any increase under section 1860B(b)(1)) for provided in section 201(i)(1), and such ‘‘(i) establishing therapeutic classes; the month involved. amounts as may be deposited in, or appro- ‘‘(ii) adding new therapeutic classes to a ‘‘(C) ESTIMATE OF AVERAGE ANNUAL PER priated to, the account as provided in this formulary; and CAPITA AGGREGATE EXPENDITURES.— part. ‘‘(iii) defining maintenance and non- ‘‘(i) IN GENERAL.—The Secretary shall for ‘‘(3) SEPARATE FROM REST OF TRUST FUND.— maintenance drugs and determining the each year after 2004 estimate for that year Funds provided under this part to the Ac- length of the course that is typical of cur- an amount equal to average annual per cap- count shall be kept separate from all other rent practice for nonmaintenance drugs for ita aggregate expenditures payable from the funds within the Federal Supplementary purposes of applying section 1860F(b)(1); Prescription Drug Account for that year. Medical Insurance Trust Fund. ‘‘(D) procedures to evaluate the bids sub- ‘‘(ii) TIMEFRAME FOR ESTIMATION.—The Sec- ‘‘(b) PAYMENTS FROM ACCOUNT.— mitted by eligible entities under this part; retary shall make the estimate described in ‘‘(1) IN GENERAL.—The Managing Trustee and clause (i) for a year before the beginning of shall pay from time to time from the Ac- ‘‘(E) procedures to ensure that eligible en- that year. count such amounts as the Secretary cer- tities with a contract under this part are in ‘‘(3) PAYMENT DATE.—The payment under tifies are necessary to make payments to op- compliance with the requirements under this this section with respect to a calendar quar- erate the program under this part, including part. ter shall be payable as of the end of the next payments to eligible entities under section ‘‘(c) STRUCTURE AND MEMBERSHIP OF THE succeeding calendar quarter. 1860I, payments to Medicare+Choice organi- COMMITTEE.— ‘‘(d) CIVIL MONEY PENALTIES.—A sponsor, zations under section 1853(c)(8), and pay- ‘‘(1) STRUCTURE.—The Committee shall be health plan, or other entity that the Sec- ments with respect to administrative ex- composed of 19 members who shall be ap- retary determines has, directly or through penses under this part in accordance with pointed by the Secretary. its agent, provided information in connec- section 201(g). ‘‘(2) MEMBERSHIP.— tion with a request for an incentive payment ‘‘(2) TREATMENT IN RELATION TO PART B PRE- ‘‘(A) IN GENERAL.—The members of the under this section that the entity knew or MIUM.—Amounts payable from the Account Committee shall be chosen on the basis of should have known to be false shall be sub- shall not be taken into account in computing their integrity, impartiality, and good judg- ject to a civil monetary penalty in an actuarial rates or premium amounts under ment, and shall be individuals who are, by amount up to 3 times the total incentive section 1839. reason of their education, experience, attain- amounts under subsection (c) that were paid ‘‘(c) APPROPRIATIONS TO COVER BENEFITS ments, and understanding of pharmaceutical (or would have been payable) on the basis of AND ADMINISTRATIVE COSTS.— cost control and quality enhancement, ex- such information. ‘‘(1) IN GENERAL.—Subject to paragraph (2), ceptionally qualified to perform the duties of ‘‘(e) DEFINITIONS.—In this section: there are appropriated to the Account in a members of the Committee. ‘‘(1) EMPLOYMENT-BASED RETIREE HEALTH fiscal year, out of any moneys in the Treas- ‘‘(B) SPECIFIC MEMBERS.—Of the members COVERAGE.—The term ‘employment-based re- ury not otherwise appropriated, an amount appointed under paragraph (1)— tiree health coverage’ means health insur- equal to the amount by which the benefits ‘‘(i) five shall be chosen to represent physi- ance or other coverage, whether provided by and administrative costs of providing the cians, 2 of whom shall be geriatricians; voluntary insurance coverage or pursuant to benefits under this part in the year exceed ‘‘(ii) two shall be chosen to represent nurse statutory or contractual obligation, of the premiums collected under section practitioners; health care costs for retired individuals (or 1860E(b) for the year. ‘‘(iii) four shall be chosen to represent for such individuals and their spouses and ‘‘(2) LIMITATION.— pharmacists; dependents) based on their status as former ‘‘(A) IN GENERAL.—Except as provided in ‘‘(iv) one shall be chosen to represent the employees or labor union members. subparagraphs (B) and (C), no obligations Centers for Medicare & Medicaid Services; ‘‘(2) EMPLOYER.—The term ‘employer’ has shall be incurred, no amounts shall be appro- ‘‘(v) four shall be chosen to represent actu- the meaning given the term in section 3(5) of priated, and no amounts expended, for ex- aries, pharmacoeconomists, researchers, and the Employee Retirement Income Security penses incurred for providing coverage of other appropriate experts; Act of 1974 (except that such term shall in- covered outpatient drugs after December 31, ‘‘(vi) one shall be chosen to represent clude only employers of 2 or more employ- 2010. emerging drug technologies; ees). ‘‘(B) EXPENSES FOR COVERAGE PRIOR TO ‘‘(vii) one shall be closed to represent the ‘‘(3) QUALIFIED RETIREE PRESCRIPTION DRUG 2011.—The Secretary shall make payments on Food and Drug Administration; and PLAN.—The term ‘qualified retiree prescrip- or after January 1, 2011, for expenses in- ‘‘(viii) one shall be chosen to represent in- tion drug plan’ means health insurance cov- curred to the extent such expenses were in- dividuals enrolled under this part. erage included in employment-based retiree curred for providing coverage of covered out- ‘‘(d) TERMS OF APPOINTMENT.—Each mem- health coverage that— patient drugs prior to such date. ber of the Committee shall serve for a term

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determined appropriate by the Secretary. (c) CONFORMING AMENDMENTS TO FEDERAL (C) by inserting before the last sentence The terms of service of the members ini- SUPPLEMENTARY MEDICAL INSURANCE TRUST the following: ‘‘In the case of the payments tially appointed shall begin on March 1, 2003. FUND.—Section 1841 of the Social Security under subsection (c)(8) for the provision of ‘‘(e) CHAIRPERSON.—The Secretary shall Act (42 U.S.C. 1395t) is amended— coverage of covered outpatient drugs to indi- designate a member of the Committee as (1) in the last sentence of subsection (a)— viduals enrolled under part D, such payment Chairperson. The term as Chairperson shall (A) by striking ‘‘and’’ before ‘‘such shall be adjusted for the risk factors of each be for a 1-year period. amounts’’; and enrollee as the Secretary determines to be ‘‘(f) COMMITTEE PERSONNEL MATTERS.— (B) by inserting before the period the fol- feasible and appropriate to ensure actuarial ‘‘(1) MEMBERS.— lowing: ‘‘, and such amounts as may be de- equivalence.’’. ‘‘(A) COMPENSATION.—Each member of the posited in, or appropriated to, the Prescrip- (2) AMOUNT.—Section 1853(c) of the Social Committee who is not an officer or employee tion Drug Account established by section Security Act (42 U.S.C. 1395w–23(c)) is amend- of the Federal Government shall be com- 1860K’’; ed— pensated at a rate equal to the daily equiva- (2) in subsection (g), by inserting after ‘‘by (A) in paragraph (1), in the matter pre- lent of the annual rate of basic pay pre- this part,’’ the following: ‘‘the payments pro- ceding subparagraph (A), by inserting ‘‘for scribed for level IV of the Executive Sched- vided for under part D (in which case the benefits under parts A and B’’ after ‘‘capita- ule under section 5315 of title 5, United payments shall be made from the Prescrip- tion rate’’; and States Code, for each day (including travel tion Drug Account in the Trust Fund),’’; (B) by adding at the end the following new time) during which such member is engaged (3) in subsection (h), by inserting after paragraph: in the performance of the duties of the Com- ‘‘1840(d)’’ the following: ‘‘and section 1860E(b) ‘‘(8) CAPITATION RATE FOR PART D BENE- mittee. All members of the Committee who (in which case the payments shall be made FITS.— are officers or employees of the United from the Prescription Drug Account in the ‘‘(A) IN GENERAL.—In the case of a States shall serve without compensation in Trust Fund)’’; and Medicare+Choice plan that provides coverage addition to that received for their services as (4) in subsection (i), by inserting after of covered outpatient drugs to an individual officers or employees of the United States. ‘‘section 1840(b)(1)’’ the following: ‘‘, section enrolled under part D, the capitation rate for ‘‘(B) TRAVEL EXPENSES.—The members of 1860E(b) (in which case the payments shall be such coverage shall be the amount described the Committee shall be allowed travel ex- penses, including per diem in lieu of subsist- made from the Prescription Drug Account in in subparagraph (B). Such payments shall be ence, at rates authorized for employees of the Trust Fund),’’. made in the same manner and at the same agencies under subchapter I of chapter 57 of (d) CONFORMING REFERENCES TO PREVIOUS time as the payments to the title 5, United States Code, while away from PART D.— Medicare+Choice organization offering the their homes or regular places of business in (1) IN GENERAL.—Any reference in law (in plan for benefits under parts A and B are the performance of services for the Com- effect before the date of enactment of this otherwise made, but such payments shall be mittee. Act) to part D of title XVIII of the Social Se- payable from the Prescription Drug Account ‘‘(2) STAFF.—The Committee may appoint curity Act is deemed a reference to part E of in the Federal Supplementary Medical Insur- such personnel as the Committee considers such title (as in effect after such date). ance Trust Fund under section 1841. appropriate. (2) SECRETARIAL SUBMISSION OF LEGISLATIVE ‘‘(B) AMOUNT.—The amount described in 1 ‘‘(g) OPERATION OF THE COMMITTEE.— PROPOSAL.—Not later than 6 months after this paragraph is an amount equal to ⁄12 of ‘‘(1) MEETINGS.—The Committee shall meet the date of enactment of this Act, the Sec- the average annual per capita aggregate ex- at the call of the Chairperson (after con- retary of Health and Human Services shall penditures payable from the Prescription sultation with the other members of the submit to Congress a legislative proposal Drug Account for the year (as estimated Committee) not less often than quarterly to providing for such technical and conforming under section 1860J(c)(2)(C)).’’. consider a specific agenda of issues, as deter- amendments in the law as are required by (e) LIMITATION ON ENROLLEE LIABILITY.— mined by the Chairperson after such con- the provisions of this title. Section 1854(e) of the Social Security Act (42 sultation. SEC. 203. PART D BENEFITS UNDER U.S.C. 1395w–24(e)) is amended by adding at ‘‘(2) QUORUM.—Ten members of the Com- MEDICARE+CHOICE PLANS. the end the following new paragraph: ‘‘(5) SPECIAL RULE FOR PART D BENEFITS.— mittee shall constitute a quorum for pur- (a) ELIGIBILITY, ELECTION, AND ENROLL- With respect to outpatient prescription drug poses of conducting business. MENT.—Section 1851 of the Social Security ‘‘(h) FEDERAL ADVISORY COMMITTEE ACT.— Act (42 U.S.C. 1395w–21) is amended— benefits under part D, a Medicare+Choice or- Section 14 of the Federal Advisory Com- (1) in subsection (a)(1)(A), by striking ganization may not require that an enrollee mittee Act (5 U.S.C. App.) shall not apply to ‘‘parts A and B’’ and inserting ‘‘parts A, B, pay any deductible or pay a cost-sharing the Committee. and D’’; and amount that exceeds the amount of cost- ‘‘(i) TRANSFER OF PERSONNEL, RESOURCES, (2) in subsection (i)(1), by striking ‘‘parts A sharing applicable for such benefits for an el- AND ASSETS.—For purposes of carrying out and B’’ and inserting ‘‘parts A, B, and D’’. igible beneficiary under part D.’’. its duties, the Secretary and the Committee (f) REQUIREMENT FOR ADDITIONAL BENE- (b) VOLUNTARY BENEFICIARY ENROLLMENT may provide for the transfer to the Com- FITS.—Section 1854(f)(1) of the Social Secu- FOR DRUG COVERAGE.—Section 1852(a)(1)(A) mittee of such civil service personnel in the rity Act (42 U.S.C. 1395w–24(f)(1)) is amended of the Social Security Act (42 U.S.C. 1395w– employ of the Department of Health and by adding at the end the following new sen- 22(a)(1)(A)) is amended by inserting ‘‘(and Human Services (including the Centers for tence: ‘‘Such determination shall be made Medicare & Medicaid Services), and such re- under part D to individuals also enrolled separately for the benefits under parts A and sources and assets of the Department used in under that part)’’ after ‘‘parts A and B’’. B and for prescription drug benefits under carrying out this title, as the Committee re- (c) ACCESS TO SERVICES.—Section 1852(d)(1) part D.’’. quires. of the Social Security Act (42 U.S.C. 1395w– (g) EFFECTIVE DATE.—The amendments ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.— 22(d)(1)) is amended— made by this section shall apply to items There are authorized to be appropriated such (1) in subparagraph (D), by striking ‘‘and’’ and services provided under a sums as may be necessary to carry out the at the end; Medicare+Choice plan on or after January 1, purposes of this section.’’. (2) in subparagraph (E), by striking the pe- 2005. (b) EXCLUSIONS FROM COVERAGE.— riod at the end and inserting ‘‘; and’’; and SEC. 204. ADDITIONAL ASSISTANCE FOR LOW-IN- (1) APPLICATION TO PART D.—Section 1862(a) (3) by adding at the end the following new COME BENEFICIARIES. of the Social Security Act (42 U.S.C. 1395y(a)) subparagraph: (a) INCLUSION IN MEDICARE COST-SHARING.— is amended in the matter preceding para- ‘‘(F) in the case of covered outpatient Section 1905(p)(3) of the Social Security Act graph (1) by striking ‘‘part A or part B’’ and drugs (as defined in section 1860(1)) provided (42 U.S.C. 1396d(p)(3)) is amended— inserting ‘‘part A, B, or D’’. to individuals enrolled under part D, the or- (1) in subparagraph (A)— (2) PRESCRIPTION DRUGS NOT EXCLUDED ganization complies with the access require- (A) in clause (i), by striking ‘‘and’’ at the FROM COVERAGE IF REASONABLE AND NEC- ments applicable under part D.’’. end; ESSARY.—Section 1862(a)(1) of the Social Se- (d) PAYMENTS TO ORGANIZATIONS FOR PART (B) in clause (ii), by inserting ‘‘and’’ at the curity Act (42 U.S.C. 1395y(a)(1)) is amend- D BENEFITS.— end; and ed— (1) IN GENERAL.—Section 1853(a)(1)(A) of (C) by adding at the end the following new (A) in subparagraph (H), by striking ‘‘and’’ the Social Security Act (42 U.S.C. 1395w– clause: at the end; 23(a)(1)(A)) is amended— ‘‘(iii) premiums under section 1860E(a).’’; (B) in subparagraph (I), by striking the (A) by inserting ‘‘determined separately and semicolon at the end and inserting ‘‘, and’’; for the benefits under parts A and B and (2) in subparagraph (B), by inserting ‘‘and and under part D (for individuals enrolled under cost-sharing described in section 1860F(b)’’ (C) by adding at the end the following new that part)’’ after ‘‘as calculated under sub- after ‘‘section 1813’’. subparagraph: section (c)’’; (b) EXPANSION OF MEDICAL ASSISTANCE.— ‘‘(J) in the case of prescription drugs cov- (B) by striking ‘‘that area, adjusted for Section 1902(a)(10)(E) of the Social Security ered under part D, which are not reasonable such risk factors’’ and inserting ‘‘that area. Act (42 U.S.C. 1396a(a)(10)(E)) is amended— and necessary to prevent or slow the deterio- In the case of payment for the benefits under (1) in clause (iii)— ration of, or improve or maintain, the health parts A and B, such payment shall be ad- (A) by striking ‘‘section 1905(p)(3)(A)(ii)’’ of eligible beneficiaries;’’. justed for such risk factors as’’; and and inserting ‘‘clauses (ii) and (iii) of section

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00092 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7059 1905(p)(3)(A) and for medicare cost-sharing relates to benefits provided under part D of to the benefit packages that were available described in section 1905(p)(3)(B) (but only title XVIII); to on the date of enactment of the Medicare insofar as it relates to benefits provided ‘‘(B) the aggregate amount of total pay- Outpatient Prescription Drug Act of 2002. under part D of title XVIII),’’; and ments made to such States and District for ‘‘(B) MANNER OF REVISION.—The benefit (B) by striking ‘‘and’’ at the end; the fiscal year under such title.’’. packages revised under this section shall be (2) by redesignating clause (iv) as clause (g) AMENDMENT TO BEST PRICE.—Section revised in the manner described in subpara- (vi); and 1927(c)(1)(C)(i) of the Social Security Act (42 graph (E) of subsection (p)(1), except that for (3) by inserting after clause (iii) the fol- U.S.C. 1396r–8(c)(1)(C)(i)) is amended— purposes of subparagraph (C) of such sub- lowing new clauses: (1) by striking ‘‘and’’ at the end of sub- section, the standards established under this ‘‘(iv) for making medical assistance avail- clause (III); subsection shall take effect not later than able for medicare cost-sharing described in (2) by striking the period at the end of sub- January 1, 2005. section 1905(p)(3)(A)(iii) and for medicare clause (IV) and inserting ‘‘; and’’; and ‘‘(2) CONSTRUCTION OF BENEFITS IN OTHER cost-sharing described in section 1905(p)(3)(B) (3) by adding at the end the following new MEDICARE SUPPLEMENTAL POLICIES.—Nothing (but only insofar as it relates to benefits pro- subclause: in the benefit packages classified as ‘A’ vided under part D of title XVIII) for individ- ‘‘(V) any prices charged which are nego- through ‘G’ under the standards established uals who would be qualified medicare bene- tiated under a plan under part D of title by subsection (p)(2) (including the benefit ficiaries described in section 1905(p)(1) but XVIII with respect to covered outpatient package classified as ‘F’ with a high deduct- for the fact that their income exceeds 120 drugs, under a Medicare+Choice plan under ible feature, as described in subsection percent but does not exceed 135 percent of part C of such title with respect to such (p)(11)) shall be construed as providing cov- such official poverty line for a family of the drugs, or by a qualified retiree prescription erage for benefits for which payment may be size involved; drug plan (as defined in section 1860J(e)(3)) made under part D. ‘‘(v) for making medical assistance avail- with respect to such drugs, on behalf of eligi- ‘‘(3) GUARANTEED ISSUANCE AND RENEWAL OF able for medicare cost-sharing described in ble beneficiaries (as defined in section REVISED POLICIES.—The provisions of sub- section 1905(p)(3)(A)(iii) on a linear sliding 1860(2).’’. sections (q) and (s), including provisions of scale based on the income of such individuals (h) CONFORMING AMENDMENTS.—Section subsection (s)(3) (relating to special enroll- for individuals who would be qualified medi- 1933 of the Social Security Act (42 U.S.C. ment periods in cases of termination or care beneficiaries described in section 1396u–3) is amended— disenrollment), shall apply to medicare sup- 1905(p)(1) but for the fact that their income (1) in subsection (a), by striking ‘‘section plemental policies revised under this sub- exceeds 135 percent but does not exceed 150 1902(a)(10)(E)(iv)’’ and inserting ‘‘section section in the same manner as such provi- percent of such official poverty line for a 1902(a)(10)(E)(vi)’’; sions apply to medicare supplemental poli- family of the size involved; and’’. (2) in subsection (c)(2)(A)— cies issued under the standards established under subsection (p). (c) NONAPPLICABILITY OF RESOURCE RE- (A) in clause (i), by striking ‘‘section ‘‘(4) OPPORTUNITY OF CURRENT POLICY- QUIREMENTS TO MEDICARE PART D COST-SHAR- 1902(a)(10)(E)(iv)(I)’’ and inserting ‘‘section HOLDERS TO PURCHASE REVISED POLICIES.— ING.—Section 1905(p)(1) of the Social Secu- 1902(a)(10)(E)(vi)(I)’’; and rity Act (42 U.S.C. 1396d(p)(1)) is amended by (B) in clause (ii), by striking ‘‘section ‘‘(A) IN GENERAL.—No medicare supple- mental policy of an issuer with a benefit adding at the end the following flush sen- 1902(a)(10)(E)(iv)(II)’’ and inserting ‘‘section package that is revised under paragraph (1) tence: 1902(a)(10)(E)(vi)(II)’’; shall be deemed to meet the standards in (3) in subsection (d), by striking ‘‘section ‘‘In determining if an individual is a quali- subsection (c) unless the issuer— 1902(a)(10)(E)(iv)’’ and inserting ‘‘section fied medicare beneficiary under this para- ‘‘(i) provides written notice during the 60- 1902(a)(10)(E)(vi)’’; and graph, subparagraph (C) shall not be applied day period immediately preceding the period (4) in subsection (e), by striking ‘‘section for purposes of providing the individual with established for the open enrollment period 1902(a)(10)(E)(iv)’’ and inserting ‘‘section medicare cost-sharing described in section established under section 1860B(b)(2)(A), to 1902(a)(10)(E)(vi)’’. 1905(p)(3)(A)(iii) or for medicare cost-sharing each individual who is a policyholder or cer- (i) EFFECTIVE DATE.—The amendments described in section 1905(p)(3)(B) (but only tificate holder of a medicare supplemental made by this section shall apply for medical insofar as it relates to benefits provided policy issued by that issuer (at the most re- under part D of title XVIII).’’. assistance provided under section cent available address of that individual) of (d) NONAPPLICABILITY OF PAYMENT DIF- 1902(a)(10)(E) of the Social Security Act (42 the offer described in clause (ii) and of the FERENTIAL REQUIREMENTS TO MEDICARE PART U.S.C. 1396a(a)(10)(E)) on and after January fact that such individual will no longer be D COST-SHARING.—Section 1902(n)(2) of the 1, 2005. covered under such policy as of January 1, Social Security Act (42 U.S.C. 1396a(n)(2)) is SEC. 205. MEDIGAP REVISIONS. 2005; and amended by adding at the end the following Section 1882 of the Social Security Act (42 ‘‘(ii) offers the policyholder or certificate new sentence: ‘‘The preceding sentence shall U.S.C. 1395ss) is amended by adding at the holder under the terms described in subpara- not apply to the cost-sharing described in end the following new subsection: graph (B), during at least the period estab- section 1860F(b).’’. ‘‘(v) MODERNIZED BENEFIT PACKAGES FOR lished under section 1860B(b)(2)(A), a medi- (e) 100 PERCENT FEDERAL MEDICAL ASSIST- MEDICARE SUPPLEMENTAL POLICIES.— care supplemental policy with the benefit ANCE PERCENTAGE.—The first sentence of sec- ‘‘(1) REVISION OF BENEFIT PACKAGES.— package that the Secretary determines is tion 1905(b) of the Social Security Act (42 ‘‘(A) IN GENERAL.—Notwithstanding sub- most comparable to the policy in which the U.S.C. 1396d(b)) is amended— section (p), the benefit packages classified as individual is enrolled with coverage effective (1) by striking ‘‘and’’ before ‘‘(4)’’; and ‘H’, ‘I’, and ‘J’ under the standards estab- as of the date on which the individual is first (2) by inserting before the period at the end lished by subsection (p)(2) (including the entitled to benefits under part D. the following: ‘‘, and (5) the Federal medical benefit package classified as ‘J’ with a high ‘‘(B) TERMS OF OFFER DESCRIBED.—The assistance percentage shall be 100 percent deductible feature, as described in subsection terms described in this subparagraph are with respect to medical assistance provided (p)(11)) shall be revised so that— terms which do not— under clauses (iv) and (v) of section ‘‘(i) the coverage of outpatient prescription ‘‘(i) deny or condition the issuance or effec- 1902(a)(10)(E)’’. drugs available under such benefit packages tiveness of a medicare supplemental policy (f) TREATMENT OF TERRITORIES.—Section is replaced with coverage of outpatient pre- described in subparagraph (A)(ii) that is of- 1108(g) of the Social Security Act (42 U.S.C. scription drugs that complements but does fered and is available for issuance to new en- 1308(g)) is amended by adding at the end the not duplicate the coverage of outpatient pre- rollees by such issuer; following new paragraph: scription drugs that is otherwise available ‘‘(ii) discriminate in the pricing of such ‘‘(3) Notwithstanding the preceding provi- under this title; policy because of health status, claims expe- sions of this subsection, with respect to fis- ‘‘(ii) the revised benefit packages provide a rience, receipt of health care, or medical cal year 2005 and any fiscal year thereafter, range of coverage options for outpatient pre- condition; or the amount otherwise determined under this scription drugs for beneficiaries, but do not ‘‘(iii) impose an exclusion of benefits based subsection (and subsection (f)) for the fiscal provide coverage for more than 90 percent of on a preexisting condition under such policy. year for a Commonwealth or territory shall the cost-sharing amount applicable to an in- ‘‘(5) ELIMINATION OF OBSOLETE POLICIES be increased by the ratio (as estimated by dividual under section 1860F(b); WITH NO GRANDFATHERING.—No person may the Secretary) of— ‘‘(iii) uniform language and definitions are sell, issue, or renew a medicare supplemental ‘‘(A) the aggregate amount of payments used with respect to such revised benefits; policy with a benefit package that is classi- made to the 50 States and the District of Co- ‘‘(iv) uniform format is used in the policy fied as ‘H’, ‘I’, or ‘J’ (or with a benefit pack- lumbia for the fiscal year under title XIX with respect to such revised benefits; age classified as ‘J’ with a high deductible that are attributable to making medical as- ‘‘(v) such revised standards meet any addi- feature) that has not been revised under this sistance available for individuals described tional requirements imposed by the amend- subsection on or after January 1, 2005. in clauses (i), (iii), (iv), and (v) of section ments made by the Medicare Outpatient Pre- ‘‘(6) PENALTIES.—Each penalty under this 1902(a)(10)(E) for payment of medicare cost- scription Drug Act of 2002; and section shall apply with respect to policies sharing described in section 1905(p)(3)(A)(iii) ‘‘(vi) except as revised under the preceding revised under this subsection as if such poli- and for medicare cost-sharing described in clauses or as provided under subsection cies were issued under the standards estab- section 1905(p)(3)(B) (but only insofar as it (p)(1)(E), the benefit packages are identical lished under subsection (p), including the

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penalties under subsections (a), (d), (p)(8), (A) IN GENERAL.—For purposes of stag- ‘‘Subpart 1—Establishment of Voluntary (p)(9), (q)(5), (r)(6)(A), (s)(4), and (t)(2)(D).’’. gering the initial terms of members of the Prescription Drug Delivery Program SEC. 206. COMPREHENSIVE IMMUNO- Medicare Payment Advisory Commission ‘‘Sec. 1860D–1. Establishment of vol- SUPPRESSIVE DRUG COVERAGE FOR under section 1805(c)(3) of the Social Secu- untary prescription drug deliv- TRANSPLANT PATIENTS UNDER rity Act (42 U.S.C. 1395b–6(c)(3)), the initial ery program. PART B. terms of the 2 additional members of the ‘‘Sec. 1860D–2. Enrollment under pro- (a) IN GENERAL.—Section 1861(s)(2)(J) of Commission provided for by the amendment gram. the Social Security Act (42 U.S.C. under paragraph (1)(A) are as follows: ‘‘Sec. 1860D–3. Election of a Medicare 1395x(s)(2)(J)), as amended by section 113(a) (i) One member shall be appointed for 1 Prescription Drug plan. of the Medicare, Medicaid, and SCHIP Bene- year. ‘‘Sec. 1860D–4. Providing information to fits Improvement and Protection Act of 2000 (ii) One member shall be appointed for 2 beneficiaries. (114 Stat. 2763A–473), as enacted into law by years. ‘‘Sec. 1860D–5. Beneficiary protections. section 1(a)(6) of Public Law 106–554, is (B) COMMENCEMENT OF TERMS.—Such terms ‘‘Sec. 1860D–6. Prescription drug bene- amended by striking ‘‘, to an individual who shall begin on January 1, 2004. fits. receives’’ and all that follows before the (b) EXPANSION OF DUTIES.—Section ‘‘Sec. 1860D–7. Requirements for entities semicolon at the end and inserting ‘‘to an in- offering Medicare Prescription dividual who has received an organ trans- 1805(b)(2) of the Social Security Act (42 U.S.C. 1395b–6(b)(2)) is amended by adding at Drug plans; establishment of plant’’. standards. (b) EFFECTIVE DATE.—The amendment the end the following new subparagraph: made by subsection (a) shall apply to drugs ‘‘(D) PRESCRIPTION MEDICINE BENEFIT PRO- ‘‘Subpart 2—Prescription Drug Delivery furnished on or after the date of enactment GRAM.—Specifically, the Commission shall System of this Act. review, with respect to the outpatient pre- ‘‘Sec. 1860D–10. Establishment of service SEC. 207. HHS STUDY AND REPORT ON UNIFORM scription drug benefit program under part D, areas. PHARMACY BENEFIT CARDS. the impact of such program on— ‘‘Sec. 1860D–11. Publication of risk ad- (a) STUDIES.—The Secretary of Health and ‘‘(i) the pharmaceutical market, including justers. Human Services shall conduct a study to de- costs and pricing of pharmaceuticals, bene- ‘‘Sec. 1860D–12. Submission of bids for termine the feasibility and advisability of ficiary access to such pharmaceuticals, and proposed Medicare Prescription establishing a uniform format for pharmacy trends in research and development; Drug plans. benefit cards provided to beneficiaries by eli- ‘‘(ii) franchise, independent, and rural ‘‘Sec. 1860D–13. Approval of proposed gible entities under the outpatient prescrip- pharmacies; and Medicare Prescription Drug tion drug benefit program under part D of ‘‘(iii) beneficiary access to outpatient pre- plans. title XVIII of the Social Security Act (as scription drugs, including an assessment of ‘‘Sec. 1860D–14. Computation of monthly added by section 202). out-of-pocket spending, generic and brand standard coverage premiums. (b) REPORT.—Not later than 2 years after name drug utilization, and pharmacists’ ‘‘Sec. 1860D–15. Computation of monthly the date of enactment of this Act, the Sec- services.’’. national average premium. retary of Health and Human Services shall ‘‘Sec. 1860D–16. Payments to eligible en- tities offering Medicare Pre- submit to Congress a report on the results of SA 4310. Mr. HATCH (for Mr. GRASS- the study conducted under subsection (a) to- scription Drug plans. LEY (for himself, Ms. SNOWE, Mr. JEF- gether with any recommendations for legis- ‘‘Sec. 1860D–17. Computation of bene- lation that the Secretary determines to be FORDS, Mr. BREAUX, Mr. HATCH, Ms. ficiary obligation. appropriate as a result of such study. COLLINS, Ms. LANDRIEU, Mr. HUTCH- ‘‘Sec. 1860D–18. Collection of beneficiary SEC. 208. GAO STUDY AND BIENNIAL REPORTS INSON, and Mr. DOMENICI)) proposed an obligation. ON COMPETITION AND SAVINGS. amendment to the bill S. 812, to amend ‘‘Sec. 1860D–19. Premium and cost-shar- (a) ONGOING STUDY.—The Comptroller Gen- the Federal Food, Drug, and Cosmetic ing subsidies for low-income in- eral of the United States shall conduct an dividuals. Act to provide greater access to afford- ‘‘Sec. 1860D–20. Reinsurance payments ongoing study and analysis of the outpatient able pharmaceuticals; as follows: prescription drug benefit program under part for qualified prescription drug D of title XVIII of the Social Security Act At the end, add the following: coverage. (as added by section 202), including an anal- DIVISION ll—21ST CENTURY MEDICARE ‘‘Subpart 3—Medicare Competitive Agency; ysis of— ACT Prescription Drug Account in the Federal (1) the extent to which the competitive Supplementary Medical Insurance Trust SEC. 1. SHORT TITLE; AMENDMENTS TO SOCIAL bidding process under such program fosters SECURITY ACT; REFERENCES TO Fund maximum competition and efficiency; and BIPA; TABLE OF CONTENTS. ‘‘Sec. 1860D–25. Establishment of Medi- (2) the savings to the medicare program re- (a) SHORT TITLE.—This Act may be cited as care Competitive Agency. sulting from such outpatient prescription the ‘‘21st Century Medicare Act’’. ‘‘Sec. 1860D–26. Prescription Drug Ac- drug benefit program, including the reduc- count in the Federal Supple- (b) AMENDMENTS TO SOCIAL SECURITY tion in the number or length of hospital vis- mentary Medical Insurance ACT.—Except as otherwise specifically pro- its. vided, whenever in this Act an amendment is Trust Fund.’’. (b) INITIAL REPORT ON COMPETITIVE BIDDING Sec. 102. Study and report on permitting expressed in terms of an amendment to or re- PROCESS.—Not later than 9 months after the part B only individuals to en- peal of a section or other provision, the ref- date of enactment of this Act, the Comp- roll in medicare voluntary pre- erence shall be considered to be made to that troller General of the United States shall scription drug delivery pro- section or other provision of the Social Secu- submit to Congress a report on the results of gram. rity Act. the portion of the study conducted pursuant Sec. 103. Additional requirements for annual to subsection (a)(1). (c) BIPA; SECRETARY.—In this Act: financial report and oversight (c) BIENNIAL REPORTS.—Not later than Jan- (1) BIPA.—The term ‘‘BIPA’’ means the on medicare program. uary 1, 2006, and biennially thereafter, the Medicare, Medicaid, and SCHIP Benefits Im- Sec. 104. Reference to medigap provisions. Comptroller General of the United States provement and Protection Act of 2000, as en- Sec. 105. Medicaid amendments. shall submit to Congress a report on the re- acted into law by section 1(a)(6) of Public Sec. 106. Expansion of membership and du- sults of the study conducted under sub- Law 106–554. ties of Medicare Payment Advi- section (a) together with such recommenda- (2) SECRETARY.—The term ‘‘Secretary’’ sory Commission (MedPAC). tions for legislation and administrative ac- means the Secretary of Health and Human Sec. 107. Miscellaneous administrative pro- tion as the Comptroller General determines Services. visions. appropriate. (d) TABLE OF CONTENTS.—The table of con- TITLE II—OPTION FOR ENHANCED SEC. 209. EXPANSION OF MEMBERSHIP AND DU- tents of this Act is as follows: MEDICARE BENEFITS TIES OF MEDICARE PAYMENT ADVI- Sec. 1. Short title; amendments to Social SORY COMMISSION (MEDPAC). Sec. 201. Option for enhanced medicare bene- Security Act; references to (a) EXPANSION OF MEMBERSHIP.— fits. BIPA; table of contents. (1) IN GENERAL.—Section 1805(c) of the So- ‘‘PART E—ENHANCED MEDICARE BENEFITS cial Security Act (42 U.S.C. 1395b–6(c)) is TITLE I—MEDICARE VOLUNTARY PRE- ‘‘Sec. 1860E–1. Entitlement to elect to amended— SCRIPTION DRUG DELIVERY PROGRAM receive enhanced medicare ben- (A) in paragraph (1), by striking ‘‘17’’ and Sec. 101. Medicare voluntary prescription efits. inserting ‘‘19’’; and drug delivery program. ‘‘Sec. 1860E–2. Scope of enhanced medi- (B) in paragraph (2)(B), by inserting ‘‘ex- care benefits. perts in the area of pharmacology and pre- ‘‘PART D—VOLUNTARY PRESCRIPTION DRUG ‘‘Sec. 1860E–3. Payment of benefits. scription drug benefit programs,’’ after DELIVERY PROGRAM ‘‘Sec. 1860E–4. Eligible beneficiaries; ‘‘other health professionals,’’. ‘‘Sec. 1860D. Definitions; treatment of ref- election of enhanced medicare (2) INITIAL TERMS OF ADDITIONAL MEM- erences to provisions in benefits; termination of elec- BERS.— Medicare+Choice program. tion.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00094 Fmt 4624 Sfmt 0655 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7061 ‘‘Sec. 1860E–5. Premium adjustments; (E) thereof (relating to smoking cessation ‘‘Subpart 1—Establishment of Voluntary late election penalty.’’. agents), or under section 1927(d)(3). Prescription Drug Delivery Program Sec. 202. Rules relating to medigap policies ‘‘(ii) AVOIDANCE OF DUPLICATE COVERAGE.— ‘‘ESTABLISHMENT OF VOLUNTARY PRESCRIPTION that provide prescription drug A drug prescribed for an individual that DRUG DELIVERY PROGRAM coverage; establishment of en- would otherwise be a covered drug under this ‘‘SEC. 1860D–1. (a) PROVISION OF BENEFIT.— hanced medicare fee-for-service part shall not be so considered if payment ‘‘(1) IN GENERAL.—The Administrator shall medigap policies. for such drug is available under part A or B provide for and administer a voluntary pre- TITLE III—MEDICARE+CHOICE (or under part E for an eligible beneficiary scription drug delivery program under which COMPETITION who elects to receive enhanced medicare each eligible beneficiary enrolled under this benefits under that part), but shall be so con- Sec. 301. Annual calculation of benchmark part shall be provided with access to quali- sidered if such payment is not available be- amounts based on floor rates fied prescription drug coverage as follows: cause benefits under part A or B (or part E, and local fee-for-service rates. ‘‘(A) MEDICARE+CHOICE PLAN.—An eligible as applicable) have been exhausted. Sec. 302. Application of comprehensive risk beneficiary who is enrolled under this part ‘‘(3) ELIGIBLE BENEFICIARY.—The term ‘eli- adjustment methodology. and enrolled in a Medicare+Choice plan of- gible beneficiary’ means an individual that Sec. 303. Annual announcement of bench- fered by a Medicare+Choice organization is entitled to benefits under part A and en- mark amounts and other pay- shall receive coverage of benefits under this rolled under part B. ment factors. part through such plan if such plan provides ‘‘(4) ELIGIBLE ENTITY.—The term ‘eligible Sec. 304. Submission of bids by qualified prescription drug coverage. entity’ means any risk-bearing entity that Medicare+Choice organizations. ‘‘(B) MEDICARE PRESCRIPTION DRUG PLAN.— the Administrator determines to be appro- Sec. 305. Adjustment of plan bids; compari- An eligible beneficiary who is enrolled under priate to provide eligible beneficiaries with son of adjusted bid to bench- this part but is not enrolled in a the benefits under a Medicare Prescription mark; payment amount. Medicare+Choice plan that provides qualified Drug plan, including— Sec. 306. Determination of premium reduc- prescription drug coverage shall receive cov- ‘‘(A) a pharmaceutical benefit manage- tions, reduced cost-sharing, ad- erage of benefits under this part through en- ment company; ditional benefits, and bene- rollment in a Medicare Prescription Drug ‘‘(B) a wholesale or retail pharmacist de- ficiary premiums. plan that is offered in the geographic area in livery system; Sec. 307. Eligibility, election, and enroll- which the beneficiary resides. ‘‘(C) an insurer (including an insurer that ment in competitive ‘‘(2) VOLUNTARY NATURE OF PROGRAM.— offers medicare supplemental policies under Medicare+Choice plans. Nothing in this part shall be construed as re- section 1882); Sec. 308. Benefits and beneficiary protec- quiring an eligible beneficiary to enroll in ‘‘(D) another entity; or tions under competitive the program under this part. ‘‘(E) any combination of the entities de- Medicare+Choice plans. ‘‘(3) SCOPE OF BENEFITS.—The program es- scribed in subparagraphs (A) through (D). Sec. 309. Payments to Medicare+Choice or- tablished under this part shall provide for ‘‘(5) INITIAL COVERAGE LIMIT.—The term ganizations for enhanced medi- coverage of all therapeutic classes of covered ‘initial coverage limit’ means the limit as care benefits under part E drugs. established under section 1860D–6(c)(3), or, in based on risk-adjusted bids. ‘‘(4) PROGRAM TO BEGIN IN 2005.—The Admin- the case of coverage that is not standard Sec. 310. Separate payments to istrator shall establish the program under coverage, the comparable limit (if any) es- Medicare+Choice organizations this part in a manner so that benefits are tablished under the coverage. for part D benefits. first provided for months beginning with ‘‘(6) MEDICARE+CHOICE ORGANIZATION; Sec. 311. Administration by the Medicare January 2005. MEDICARE+CHOICE PLAN.—The terms Competitive Agency. ‘‘(b) ACCESS TO ALTERNATIVE PRESCRIPTION ‘Medicare+Choice organization’ and Sec. 312. Continued calculation of annual DRUG COVERAGE.—In the case of an eligible ‘Medicare+Choice plan’ have the meanings Medicare+Choice capitation beneficiary who has creditable prescription given such terms in subsections (a)(1) and rates. drug coverage (as defined in section 1860D– (b)(1), respectively, of section 1859 (relating Sec. 313. Five-year extension of medicare 2(b)(1)(F)), such beneficiary— to definitions relating to Medicare+Choice cost contracts. ‘‘(1) may continue to receive such coverage Sec. 314. Effective date. organizations). and not enroll under this part; and ‘‘(7) MEDICARE PRESCRIPTION DRUG PLAN.— ‘‘(2) pursuant to section 1860D–2(b)(1)(C), is TITLE I—MEDICARE VOLUNTARY PRE- The term ‘Medicare Prescription Drug plan’ permitted to subsequently enroll under this SCRIPTION DRUG DELIVERY PROGRAM means prescription drug coverage that is of- part without any penalty and obtain access SEC. 101. MEDICARE VOLUNTARY PRESCRIPTION fered under a policy, contract, or plan— to qualified prescription drug coverage in DRUG DELIVERY PROGRAM. ‘‘(A) by an eligible entity pursuant to, and the manner described in subsection (a) if the (a) ESTABLISHMENT.—Title XVIII (42 U.S.C. in accordance with, a contract between the beneficiary involuntarily loses such cov- 1395 et seq.) is amended by redesignating Administrator and the entity under section erage. part D as part F and by inserting after part 1860D–7(b); and ‘‘(c) FINANCING.—The costs of providing C the following new part: ‘‘(B) that has been approved under section benefits under this part shall be payable ‘‘PART D—VOLUNTARY PRESCRIPTION DRUG 1860D–13. from the Prescription Drug Account. DELIVERY PROGRAM ‘‘(8) PRESCRIPTION DRUG ACCOUNT.—The ‘‘ENROLLMENT UNDER PROGRAM ‘‘DEFINITIONS; TREATMENT OF REFERENCES TO term ‘Prescription Drug Account’ means the ‘‘SEC. 1860D–2. (a) ESTABLISHMENT OF EN- PROVISIONS IN MEDICARE+CHOICE PROGRAM Prescription Drug Account (as established ROLLMENT PROCESS.— under section 1860D–26) in the Federal Sup- ROCESS SIMILAR TO PART B ENROLL ‘‘SEC. 1860D. (a) DEFINITIONS.—In this part: ‘‘(1) P - plementary Medical Insurance Trust Fund MENT.—The Administrator shall establish a ‘‘(1) ADMINISTRATOR.—The term ‘Adminis- under section 1841. trator’ means the Administrator of the Medi- process through which an eligible bene- ‘‘(9) QUALIFIED PRESCRIPTION DRUG COV- care Competitive Agency as established ficiary (including an eligible beneficiary en- ERAGE.—The term ‘qualified prescription under section 1860D–25. rolled in a Medicare+Choice plan offered by a drug coverage’ means the coverage described Medicare+Choice organization) may make an ‘‘(2) COVERED DRUG.— in section 1860D–6(a)(1). election to enroll under this part. Such proc- ‘‘(A) IN GENERAL.—Except as provided in ‘‘(10) STANDARD COVERAGE.—The term ess shall be similar to the process for enroll- subparagraph (B), the term ‘covered drug’ ‘standard coverage’ means the coverage de- ment in part B under section 1837, including means— scribed in section 1860D–6(c). the deeming provisions of such section. ‘‘(i) a drug that may be dispensed only ‘‘(b) APPLICATION OF MEDICARE+CHOICE ‘‘(2) CONDITION OF ENROLLMENT.—An eligi- upon a prescription and that is described in PROVISIONS UNDER THIS PART.—For purposes ble beneficiary must be enrolled under this clause (i) or (ii) of subparagraph (A) of sec- of applying provisions of part C under this part in order to be eligible to receive access tion 1927(k)(2); or part with respect to a Medicare Prescription to qualified prescription drug coverage. ‘‘(ii) a biological product or insulin de- Drug plan and an eligible entity, unless oth- ‘‘(b) SPECIAL ENROLLMENT PROCEDURES.— scribed in subparagraph (B) or (C) of such erwise provided in this part such provisions ‘‘(1) LATE ENROLLMENT PENALTY.— section; shall be applied as if— ‘‘(A) INCREASE IN PREMIUM.—Subject to the and such term includes a vaccine licensed ‘‘(1) any reference to a Medicare+Choice succeeding provisions of this paragraph, in under section 351 of the Public Health Serv- plan included a reference to a Medicare Pre- the case of an eligible beneficiary whose cov- ice Act and any use of a covered outpatient scription Drug plan; erage period under this part began pursuant drug for a medically accepted indication (as ‘‘(2) any reference to a provider-sponsored to an enrollment after the beneficiary’s ini- defined in section 1927(k)(6)). organization included a reference to an eligi- tial enrollment period under part B (deter- ‘‘(B) EXCLUSIONS.— ble entity; mined pursuant to section 1837(d)) and not ‘‘(i) IN GENERAL.—The term ‘covered drug’ ‘‘(3) any reference to a contract under sec- pursuant to the open enrollment period de- does not include drugs or classes of drugs, or tion 1857 included a reference to a contract scribed in paragraph (2), the Administrator their medical uses, which may be excluded under section 1860D–7(b); and shall establish procedures for increasing the from coverage or otherwise restricted under ‘‘(4) any reference to part C included a ref- amount of the monthly beneficiary obliga- section 1927(d)(2), other than subparagraph erence to this part. tion under section 1860D–17 applicable to

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such beneficiary by an amount that the Ad- be deemed not to have existed for purposes of ‘‘(A) ESTABLISHMENT.—The Administrator ministrator determines is actuarially sound subsequently applying this paragraph). shall establish a special open enrollment pe- for each full 12-month period (in the same ‘‘(F) CREDITABLE PRESCRIPTION DRUG COV- riod (as described in subparagraph (B)) for an continuous period of eligibility) in which the ERAGE DEFINED.—For purposes of this part, eligible beneficiary that loses creditable pre- eligible beneficiary could have been enrolled the term ‘creditable prescription drug cov- scription drug coverage. under this part but was not so enrolled. erage’ means any of the following: ‘‘(B) SPECIAL OPEN ENROLLMENT PERIOD.— ‘‘(B) PERIODS TAKEN INTO ACCOUNT.—For ‘‘(i) MEDICAID PRESCRIPTION DRUG COV- The special open enrollment period described purposes of calculating any 12-month period ERAGE.—Prescription drug coverage under a in this subparagraph is the 63-day period under subparagraph (A), there shall be taken medicaid plan under title XIX, including that begins— into account— through the Program of All-inclusive Care ‘‘(i) in the case of a beneficiary with cov- ‘‘(i) the months which elapsed between the for the Elderly (PACE) under section 1934, erage described in clause (ii) of paragraph close of the eligible beneficiary’s initial en- through a social health maintenance organi- (1)(F), the date on which the plan termi- rollment period and the close of the enroll- zation (referred to in section 4104(c) of the nates, ceases to provide, or substantially re- ment period in which the beneficiary en- Balanced Budget Act of 1997), and through a duces (as defined by the Administrator) the rolled; and Medicare+Choice project that demonstrates value of the prescription drug coverage ‘‘(ii) in the case of an eligible beneficiary the application of capitation payment rates under such plan; who reenrolls under this part, the months for frail elderly medicare beneficiaries ‘‘(ii) in the case of a beneficiary with cov- which elapsed between the date of termi- through the use of a interdisciplinary team erage described in clause (i), (iii), or (iv) of nation of a previous coverage period and the and through the provision of primary care paragraph (1)(F), the date on which the bene- close of the enrollment period in which the services to such beneficiaries by means of ficiary loses eligibility for such coverage; or beneficiary reenrolled. such a team at the nursing facility involved, ‘‘(iii) in the case of a beneficiary with cov- ‘‘(C) PERIODS NOT TAKEN INTO ACCOUNT.— but only if the coverage provides coverage of erage described in clause (v) of paragraph ‘‘(i) IN GENERAL.—For purposes of calcu- the cost of prescription drugs the actuarial (1)(F), the date on which the issuer of the lating any 12-month period under subpara- value of which (as defined by the Adminis- policy terminates coverage under the policy. graph (A), subject to clauses (ii) and (iii), trator) to the beneficiary equals or exceeds ‘‘(c) PERIOD OF COVERAGE.— there shall not be taken into account the actuarial value of standard coverage (as ‘‘(1) IN GENERAL.—Except as provided in months for which the eligible beneficiary determined under section 1860D–6(f)). paragraph (2) and subject to paragraph (3), can demonstrate that the beneficiary had ‘‘(ii) PRESCRIPTION DRUG COVERAGE UNDER A an eligible beneficiary’s coverage under the creditable prescription drug coverage (as de- GROUP HEALTH PLAN.—Any outpatient pre- program under this part shall be effective for fined in subparagraph (F)). scription drug coverage under a group health the period provided in section 1838, as if that ‘‘(ii) BENEFICIARY MUST INVOLUNTARILY plan, including a health benefits plan under section applied to the program under this LOSE COVERAGE.—Clause (i) shall only apply the Federal Employees Health Benefit Pro- part. with respect to coverage— gram under chapter 89 of title 5, United ‘‘(2) OPEN AND SPECIAL ENROLLMENT.— ‘‘(I) in the case of coverage described in States Code, and a qualified retiree prescrip- ‘‘(A) OPEN ENROLLMENT.—An eligible bene- clause (ii) of subparagraph (F), if the plan tion drug plan (as defined in section 1860D– ficiary who enrolls under the program under terminates, ceases to provide, or reduces the 20(f)(1)), but only if the coverage provides this part pursuant to subsection (b)(2) shall value of the prescription drug coverage coverage of the cost of prescription drugs the be entitled to the benefits under this part be- under such plan to below the actuarial value actuarial value of which (as defined by the ginning on January 1, 2005. of standard coverage (as determined under Administrator) to the beneficiary equals or ‘‘(B) SPECIAL ENROLLMENT.—Subject to section 1860D–6(f)); exceeds the actuarial value of standard cov- paragraph (3), an eligible beneficiary who en- ‘‘(II) in the case of coverage described in erage (as determined under section 1860D– rolls under the program under this part pur- clause (i), (iii), or (iv) of subparagraph (F), if 6(f)). suant to subsection (b)(3) shall be entitled to the beneficiary loses eligibility for such cov- ‘‘(iii) STATE PHARMACEUTICAL ASSISTANCE the benefits under this part beginning on the erage; or PROGRAM.—Coverage of prescription drugs first day of the month following the month ‘‘(III) in the case of a beneficiary with cov- under a State pharmaceutical assistance pro- in which such enrollment occurs. erage described in clause (v) of subparagraph gram, but only if the coverage provides cov- ‘‘(3) LIMITATION.—Coverage under this part (F), if the issuer of the policy terminates erage of the cost of prescription drugs the shall not begin prior to January 1, 2005. coverage under the policy. actuarial value of which (as defined by the ‘‘(d) TERMINATION.— ‘‘(iii) PARTIAL CREDIT FOR CERTAIN MEDIGAP Administrator) to the beneficiary equals or ‘‘(1) IN GENERAL.—The causes of termi- COVERAGE.—In the case of a beneficiary that exceeds the actuarial value of standard cov- nation specified in section 1838 shall apply to had creditable prescription drug coverage de- erage (as determined under section 1860D– this part in the same manner as such causes scribed in subparagraph (F)(v) that does not 6(f)). apply to part B. provide coverage of the cost of prescription ‘‘(iv) VETERANS’ COVERAGE OF PRESCRIPTION ‘‘(2) COVERAGE TERMINATED BY TERMINATION drugs the actuarial value of which (as de- DRUGS.—Coverage of prescription drugs for OF COVERAGE UNDER PARTS A OR B.— fined by the Administrator) to the bene- veterans, and survivors and dependents of ‘‘(A) IN GENERAL.—In addition to the ficiary equals or exceeds the actuarial value veterans, under chapter 17 of title 38, United causes of termination specified in paragraph of standard coverage (as determined under States Code, but only if the coverage pro- (1), the Administrator shall terminate an in- section 1860D–6(f)), the Administrator shall vides coverage of the cost of prescription dividual’s coverage under this part if the in- determine a percentage of the period in drugs the actuarial value of which (as de- dividual is no longer enrolled in both parts A which the beneficiary had such creditable fined by the Administrator) to the bene- and B. prescription drug coverage that will be taken ficiary equals or exceeds the actuarial value ‘‘(B) EFFECTIVE DATE.—The termination de- into account under subparagraph (B) (and of standard coverage (as determined under scribed in subparagraph (A) shall be effective not considered to be such creditable pre- section 1860D–6(f)). on the effective date of termination of cov- scription drug coverage under clause (i)). ‘‘(v) PRESCRIPTION DRUG COVERAGE UNDER erage under part A or (if earlier) under part ‘‘(D) PERIODS TREATED SEPARATELY.—Any MEDIGAP POLICIES.—Subject to subparagraph B. increase in an eligible beneficiary’s monthly (C)(iii), coverage under a medicare supple- ‘‘(3) PROCEDURES REGARDING TERMINATION beneficiary obligation under subparagraph mental policy under section 1882 that pro- OF A BENEFICIARY UNDER A PLAN.—The Ad- (A) with respect to a particular continuous vides benefits for prescription drugs (wheth- ministrator shall establish procedures for de- period of eligibility shall not be applicable er or not such coverage conforms to the termining the status of an eligible bene- with respect to any other continuous period standards for packages of benefits under sec- ficiary’s enrollment under this part if the of eligibility which the beneficiary may tion 1882(p)(1)). beneficiary’s enrollment in a Medicare Pre- have. ‘‘(2) OPEN ENROLLMENT PERIOD FOR CURRENT scription Drug plan offered by an eligible en- ‘‘(E) CONTINUOUS PERIOD OF ELIGIBILITY.— BENEFICIARIES IN WHICH LATE ENROLLMENT tity under this part is terminated by the en- ‘‘(i) IN GENERAL.—Subject to clause (ii), for PROCEDURES DO NOT APPLY.—In the case of an tity for cause (pursuant to procedures estab- purposes of this paragraph, an eligible bene- individual who is an eligible beneficiary as of lished by the Administrator under section ficiary’s ‘continuous period of eligibility’ is January 1, 2005, the Administrator shall es- 1860D–3(a)(1)). the period that begins with the first day on tablish procedures under which such bene- ‘‘ELECTION OF A MEDICARE PRESCRIPTION DRUG which the beneficiary is eligible to enroll ficiary may enroll under this part during the PLAN under section 1836 and ends with the bene- open enrollment period without the applica- ‘‘SEC. 1860D–3. (a) IN GENERAL.— ficiary’s death. tion of the late enrollment procedures estab- ‘‘(1) PROCESS.— ‘‘(ii) SEPARATE PERIOD.—Any period during lished under paragraph (1)(A). For purposes ‘‘(A) ELECTION.— all of which an eligible beneficiary satisfied of the preceding sentence, the open enroll- ‘‘(i) IN GENERAL.—The Administrator shall paragraph (1) of section 1836 and which ter- ment period shall be the 7-month period that establish a process through which an eligible minated in or before the month preceding begins on April 1, 2004, and ends on November beneficiary who is enrolled under this part the month in which the beneficiary attained 30, 2004. but not enrolled in a Medicare+Choice plan age 65 shall be a separate ‘continuous period ‘‘(3) SPECIAL ENROLLMENT PERIOD FOR BENE- offered by a Medicare+Choice organization of eligibility’ with respect to the beneficiary FICIARIES WHO INVOLUNTARILY LOSE CRED- that provides qualified prescription drug (and each such period which terminates shall ITABLE PRESCRIPTION DRUG COVERAGE.— coverage—

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‘‘(I) shall make an election to enroll in any ‘‘(2) COMPARATIVE INFORMATION.—The com- pense (other than by mail order) drugs di- Medicare Prescription Drug plan that is of- parative information described in paragraph rectly to patients to ensure convenient ac- fered by an eligible entity and that serves (1)(C) shall include a comparison of the fol- cess (as determined by the Administrator the geographic area in which the beneficiary lowing: and including adequate emergency access) resides; and ‘‘(A) BENEFITS.—The benefits provided for enrolled beneficiaries, in accordance with ‘‘(II) may make an annual election to under the plan and the formularies and ap- standards established under section 1860D– change the election under this clause. peals processes under the plan. 7(f) that ensure such convenient access. Such ‘‘(ii) CLARIFICATION REGARDING ENROLL- ‘‘(B) QUALITY AND PERFORMANCE.—To the standards shall take into account reasonable MENT.—The process established under clause extent available, the quality and perform- distances to pharmacy services in both urban (i) shall include, in the case of an eligible ance of the eligible entity offering the plan. and rural areas. beneficiary who is enrolled under this part ‘‘(C) BENEFICIARY COST-SHARING.—The cost- ‘‘(B) USE OF POINT-OF-SERVICE SYSTEM.—An but who has failed to make an election of a sharing required of eligible beneficiaries eligible entity offering a Medicare Prescrip- Medicare Prescription Drug plan in an area, under the plan. tion Drug plan shall establish an optional for the enrollment in the Medicare Prescrip- ‘‘(D) CONSUMER SATISFACTION SURVEYS.—To point-of-service method of operation under tion Drug plan with the lowest monthly pre- the extent available, the results of consumer which— mium that is available in the area. satisfaction surveys regarding the plan and ‘‘(i) the plan provides access to any or all ‘‘(B) REQUIREMENTS FOR PROCESS.—In es- the eligible entity offering such plan. pharmacies that are not participating phar- tablishing the process under subparagraph ‘‘(E) ADDITIONAL INFORMATION.—Such addi- macies in its network; and (A), the Administrator shall— tional information as the Administrator may ‘‘(ii) the plan may charge beneficiaries ‘‘(i) use rules similar to the rules for en- prescribe. through adjustments in copayments any ad- rollment, disenrollment, and termination of ‘‘BENEFICIARY PROTECTIONS ditional costs associated with the point-of- enrollment with a Medicare+Choice plan service option. under section 1851, including— ‘‘SEC. 1860D–5. (a) DISSEMINATION OF INFOR- The additional copayments so charged shall ‘‘(I) the establishment of special election MATION.— not count toward the application of section periods under subsection (e)(4) of such sec- ‘‘(1) GENERAL INFORMATION.—An eligible 1860D–6(c). tion; and entity offering a Medicare Prescription Drug ‘‘(II) the application of the guaranteed plan shall disclose, in a clear, accurate, and ‘‘(3) REQUIREMENTS ON DEVELOPMENT AND issue and renewal provisions of section standardized form to each enrollee at the APPLICATION OF FORMULARIES.—If an eligible 1851(g) (other than clause (i) and the second time of enrollment and at least annually entity offering a Medicare Prescription Drug sentence of clause (ii) of paragraph (3)(C), re- thereafter, the information described in sec- plan uses a formulary, the following require- lating to default enrollment); and tion 1852(c)(1) relating to such plan. Such in- ments must be met: ‘‘(ii) coordinate enrollments, formation includes the following: ‘‘(A) PHARMACY AND THERAPEUTIC (P&T) disenrollments, and terminations of enroll- ‘‘(A) Access to covered drugs, including ac- COMMITTEE.—The eligible entity must estab- ment under part C with enrollments, cess through pharmacy networks. lish a pharmacy and therapeutic committee disenrollments, and terminations of enroll- ‘‘(B) How any formulary used by the entity that develops and reviews the formulary. ment under this part. functions. Such committee shall include at least one ‘‘(2) FIRST ENROLLMENT PERIOD FOR PLAN ‘‘(C) Copayments, coinsurance, and deduct- practicing physician and at least one prac- ENROLLMENT.—The process developed under ible requirements. ticing pharmacist both with expertise in the paragraph (1) shall ensure that eligible bene- ‘‘(D) Grievance and appeals procedures. care of elderly or disabled persons and a ma- ficiaries who enroll under this part during ‘‘(2) DISCLOSURE UPON REQUEST OF GENERAL jority of its members shall consist of individ- the open enrollment period under section COVERAGE, UTILIZATION, AND GRIEVANCE IN- uals who are a practicing physician or a 1860D–2(b)(2) are permitted to elect an eligi- FORMATION.—Upon request of an individual practicing pharmacist (or both). ble entity prior to January 1, 2005, in order eligible to enroll in a Medicare Prescription ‘‘(B) FORMULARY DEVELOPMENT.—In devel- to ensure that coverage under this part is ef- Drug plan, the eligible entity offering such oping and reviewing the formulary, the com- fective as of such date. plan shall provide the information described mittee shall base clinical decisions on the ‘‘(b) ENROLLMENT IN A MEDICARE+CHOICE in section 1852(c)(2) to such individual. strength of scientific evidence and standards PLAN.— ‘‘(3) RESPONSE TO BENEFICIARY QUESTIONS.— of practice, including assessing peer-re- ‘‘(1) IN GENERAL.—An eligible beneficiary An eligible entity offering a Medicare Pre- viewed medical literature, such as random- who is enrolled under this part and enrolled scription Drug plan shall have a mechanism ized clinical trials, pharmacoeconomic stud- in a Medicare+Choice plan offered by a for providing specific information to enroll- ies, outcomes research data, and such other Medicare+Choice organization that provides ees upon request, including information on information as the committee determines to qualified prescription drug coverage shall re- the coverage of specific drugs and changes in be appropriate. ceive access to such coverage under this part its formulary on a timely basis. ‘‘(C) INCLUSION OF DRUGS IN ALL THERA- through such plan. ‘‘(4) CLAIMS INFORMATION.—An eligible en- PEUTIC CATEGORIES.—The formulary must in- ‘‘(2) RULES.—Enrollment in a tity offering a Medicare Prescription Drug clude drugs within each therapeutic category Medicare+Choice plan is subject to the rules plan must furnish to enrolled individuals in and class of covered outpatient drugs (al- for enrollment in such plan under section a form easily understandable to such individ- though not necessarily for all drugs within 1851. uals an explanation of benefits (in accord- such categories and classes). ‘‘PROVIDING INFORMATION TO BENEFICIARIES ance with section 1806(a) or in a comparable ‘‘(D) PROVIDER EDUCATION.—The committee ‘‘SEC. 1860D–4. (a) ACTIVITIES.— manner) and a notice of the benefits in rela- shall establish policies and procedures to ‘‘(1) IN GENERAL.—The Administrator shall tion to initial coverage limit and annual out- educate and inform health care providers conduct activities that are designed to of-pocket limit for the current year, when- concerning the formulary. broadly disseminate information to eligible ever prescription drug benefits are provided ‘‘(E) NOTICE BEFORE REMOVING DRUGS FROM beneficiaries (and prospective eligible bene- under this part (except that such notice need FORMULARY.—Any removal of a drug from a ficiaries) regarding the coverage provided not be provided more often than monthly). formulary shall take effect only after appro- under this part. ‘‘(5) APPROVAL OF MARKETING MATERIAL AND priate notice is made available to bene- ‘‘(2) SPECIAL RULE FOR FIRST ENROLLMENT APPLICATION FORMS.—The provisions of sec- ficiaries and physicians. UNDER THE PROGRAM.—The activities de- tion 1851(h) shall apply to marketing mate- ‘‘(F) APPEALS AND EXCEPTIONS TO APPLICA- scribed in paragraph (1) shall ensure that eli- rial and application forms under this part in TION.—The eligible entity must have, as part gible beneficiaries are provided with such in- the same manner as such provisions apply to of the appeals process under subsection formation at least 30 days prior to the first marketing material and application forms (e)(3), a process for timely appeals for denials enrollment period described in section 1860D– under part C. of coverage based on such application of the 3(a)(2). ‘‘(b) ACCESS TO COVERED DRUGS.— formulary. ‘‘(b) REQUIREMENTS.— ‘‘(1) ACCESS TO NEGOTIATED PRICES FOR PRE- ‘‘(c) COST AND UTILIZATION MANAGEMENT; ‘‘(1) IN GENERAL.—The activities described SCRIPTION DRUGS.—An eligible entity offering QUALITY ASSURANCE; MEDICATION THERAPY in subsection (a) shall— a Medicare Prescription Drug plan shall MANAGEMENT PROGRAM.— ‘‘(A) be similar to the activities performed issue such a card (or other technology) that ‘‘(1) IN GENERAL.—An eligible entity shall by the Administrator under section 1851(d); may be used by an enrolled beneficiary to as- have in place the following with respect to ‘‘(B) be coordinated with the activities per- sure access to negotiated prices under sec- covered drugs: formed by— tion 1860D–6(e) for the purchase of prescrip- ‘‘(A) A cost-effective drug utilization man- ‘‘(i) the Administrator under such section; tion drugs for which coverage is not other- agement program, including incentives to re- and wise provided under the Medicare Prescrip- duce costs when appropriate. ‘‘(ii) the Secretary under section 1804; and tion Drug plan. ‘‘(B) Quality assurance measures to reduce ‘‘(C) provide for the dissemination of infor- ‘‘(2) ASSURING PHARMACY ACCESS.— medical errors and adverse drug inter- mation comparing the plans offered by eligi- ‘‘(A) IN GENERAL.—An eligible entity offer- actions, which— ble entities under this part that are avail- ing a Medicare Prescription Drug plan shall ‘‘(i) shall include a medication therapy able to eligible beneficiaries residing in an secure the participation in its network of a management program described in paragraph area. sufficient number of pharmacies that dis- (2); and

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PROGRAM.— tion 1852(g), an eligible entity shall establish ‘‘(B) ROUNDING.—Any amount determined ‘‘(A) IN GENERAL.—A medication therapy a process for individuals to appeal formulary under subparagraph (A)(ii) that is not a mul- management program described in this para- determinations. tiple of $1 shall be rounded to the nearest graph is a program of drug therapy manage- ‘‘(B) FORMULARY DETERMINATIONS.—An in- multiple of $1. ment and medication administration that is dividual who is enrolled in a Medicare Pre- ‘‘(2) LIMITS ON COST-SHARING.—The cov- designed to assure, with respect to bene- scription Drug plan offered by an eligible en- erage has cost-sharing (for costs above the ficiaries with chronic diseases (such as dia- tity may appeal to obtain coverage for a cov- annual deductible specified in paragraph (1) betes, asthma, hypertension, and congestive ered drug that is not on a formulary of the and up to the initial coverage limit under heart failure) or multiple prescriptions, that eligible entity if the prescribing physician paragraph (3)) that is equal to 50 percent or covered outpatient drugs under the prescrip- determines that the formulary drug for that is actuarially consistent (using proc- tion drug plan are appropriately used to treatment of the same condition is not as ef- esses established under subsection (f)) with achieve therapeutic goals and reduce the fective for the individual or has adverse ef- an average expected payment of 50 percent of risk of adverse events, including adverse fects for the individual. such costs. drug interactions. ‘‘(f) CONFIDENTIALITY AND ACCURACY OF EN- ‘‘(3) INITIAL COVERAGE LIMIT.— ‘‘(B) ELEMENTS.—Such program may in- ROLLEE RECORDS.—An eligible entity shall ‘‘(A) IN GENERAL.—Subject to paragraph clude— meet the requirements of section 1852(h) (4), the coverage has an initial coverage ‘‘(i) enhanced beneficiary understanding of with respect to enrollees under this part in limit on the maximum costs that may be such appropriate use through beneficiary the same manner as such requirements apply recognized for payment purposes (above the education, counseling, and other appropriate to a Medicare+Choice organization with re- annual deductible)— means; spect to enrollees under part C. ‘‘(i) for 2005, that is equal to $3,450; or ‘‘(ii) increased beneficiary adherence with ‘‘(g) UNIFORM PREMIUM.—An eligible entity ‘‘(ii) for a subsequent year, that is equal to prescription medication regimens through shall ensure that the monthly premium for a the amount specified in this paragraph for medication refill reminders, special pack- Medicare Prescription Drug plan charged the previous year, increased by the annual aging, and other appropriate means; and under this part is the same for all eligible percentage increase described in paragraph ‘‘(iii) detection of patterns of overuse and beneficiaries enrolled in the plan. (5) for the year involved. underuse of prescription drugs. ‘‘(B) ROUNDING.—Any amount determined ‘‘PRESCRIPTION DRUG BENEFITS ‘‘(C) DEVELOPMENT OF PROGRAM IN COOPERA- under subparagraph (A)(ii) that is not a mul- TION WITH LICENSED PHARMACISTS.—The pro- ‘‘SEC. 1860D–6. (a) REQUIREMENTS.— tiple of $1 shall be rounded to the nearest gram shall be developed in cooperation with ‘‘(1) IN GENERAL.—For purposes of this part multiple of $1. licensed and practicing pharmacists and phy- and part C, the term ‘qualified prescription ‘‘(4) LIMITATION ON OUT-OF-POCKET EXPENDI- sicians. drug coverage’ means either of the following: TURES BY BENEFICIARY.— ‘‘(D) CONSIDERATIONS IN PHARMACY FEES.— ‘‘(A) STANDARD COVERAGE WITH ACCESS TO ‘‘(A) IN GENERAL.—Notwithstanding para- The eligible entity offering a Medicare Pre- NEGOTIATED PRICES.—Standard coverage (as graph (3), the coverage provides benefits with scription Drug plan shall take into account, defined in subsection (c)) and access to nego- cost-sharing that is equal to 10 percent after in establishing fees for pharmacists and oth- tiated prices under subsection (e). the individual has incurred costs (as de- ers providing services under the medication ‘‘(B) ACTUARIALLY EQUIVALENT COVERAGE scribed in subparagraph (C)) for covered therapy management program, the resources WITH ACCESS TO NEGOTIATED PRICES.—Cov- drugs in a year equal to the annual out-of- and time used in implementing the program. erage of covered drugs which meets the al- pocket limit specified in subparagraph (B). ‘‘(3) PUBLIC DISCLOSURE OF PHARMACEUTICAL ternative coverage requirements of sub- ‘‘(B) ANNUAL OUT-OF-POCKET LIMIT.— PRICES FOR EQUIVALENT DRUGS.—The eligible section (d) and access to negotiated prices ‘‘(i) IN GENERAL.—For purposes of this part, entity offering a Medicare Prescription Drug under subsection (e), but only if it is ap- the ‘annual out-of-pocket limit’ specified in plan shall provide that each pharmacy or proved by the Administrator, as provided this subparagraph— other dispenser that arranges for the dis- under subsection (d). ‘‘(I) for 2005, is equal to $3,700; or pensing of a covered drug shall inform the ‘‘(2) PERMITTING ADDITIONAL PRESCRIPTION ‘‘(II) for a subsequent year, is equal to the beneficiary at the time of purchase of the DRUG COVERAGE.— amount specified in the subparagraph for the drug of any differential between the price of ‘‘(A) IN GENERAL.—Subject to subparagraph previous year, increased by the annual per- the prescribed drug to the enrollee and the (B) and section 1860D–13(c)(2), nothing in this centage increase described in paragraph (5) price of the lowest cost generic drug covered part shall be construed as preventing quali- for the year involved. under the plan that is therapeutically equiv- fied prescription drug coverage from includ- ‘‘(ii) ROUNDING.—Any amount determined alent and bioequivalent. ing coverage of covered drugs that exceeds under clause (i)(II) that is not a multiple of ‘‘(d) GRIEVANCE MECHANISM.—An eligible the coverage required under paragraph (1). $1 shall be rounded to the nearest multiple of entity shall provide meaningful procedures ‘‘(B) REQUIREMENT.—An eligible entity $1. for hearing and resolving grievances between may not offer a Medicare Prescription Drug ‘‘(C) APPLICATION.—In applying subpara- the eligible entity (including any entity or plan that provides additional benefits pursu- graph (A)— individual through which the eligible entity ant to subparagraph (A) in an area unless the ‘‘(i) incurred costs shall only include costs provides covered benefits) and enrollees in a eligible entity offering such plan also offers incurred for the annual deductible (described Medicare Prescription Drug plan offered by a Medicare Prescription Drug plan in the in paragraph (1)), cost-sharing (described in the eligible entity in accordance with sec- area that only provides the coverage of pre- paragraph (2)), and amounts for which bene- tion 1852(f). scription drugs that is required under sub- fits are not provided because of the applica- ‘‘(e) COVERAGE DETERMINATIONS, RECONSID- section (a)(1). tion of the initial coverage limit described in ERATIONS, AND APPEALS.— ‘‘(3) COST CONTROL MECHANISMS.—In pro- paragraph (3); and ‘‘(1) IN GENERAL.—An eligible entity shall viding qualified prescription drug coverage, ‘‘(ii) such costs shall be treated as incurred meet the requirements of section 1852(g) with the entity offering the Medicare Prescription only if they are paid by the individual (or by respect to covered benefits under the Medi- Drug plan or the Medicare+Choice plan may another individual, such as a family member, care Prescription Drug plan it offers under use cost control mechanisms that are cus- on behalf of the individual), under section this part in the same manner as such re- tomarily used in employer-sponsored health 1860D–19, or under title XIX and the indi- quirements apply to a Medicare+Choice or- care plans that offer coverage for prescrip- vidual (or other individual) is not reimbursed ganization with respect to benefits it offers tion drugs, including the use of formularies, through insurance or otherwise, a group under a Medicare+Choice plan under part C. tiered copayments, selective contracting health plan, or other third-party payment ‘‘(2) REQUEST FOR REVIEW OF TIERED FOR- with providers of prescription drugs, and arrangement for such costs. MULARY DETERMINATIONS.—In the case of a mail order pharmacies. ‘‘(5) ANNUAL PERCENTAGE INCREASE.—For Medicare Prescription Drug plan offered by ‘‘(b) APPLICATION OF SECONDARY PAYOR purposes of this part, the annual percentage an eligible entity that provides for tiered PROVISIONS.—The provisions of section increase specified in this paragraph for a cost-sharing for covered drugs included with- 1852(a)(4) shall apply under this part in the year is equal to the annual percentage in- in a formulary and provides lower cost-shar- same manner as they apply under part C. crease in average per capita aggregate ex- ing for preferred drugs included within the ‘‘(c) STANDARD COVERAGE.—For purposes of penditures for covered drugs in the United formulary, an individual who is enrolled in this part and part C, the term ‘standard cov- States for beneficiaries under this title, as the plan may request coverage of a nonpre- erage’ means coverage of covered drugs that determined by the Administrator for the 12- ferred drug under the terms applicable for meets the following requirements: month period ending in July of the previous preferred drugs if the prescribing physician ‘‘(1) DEDUCTIBLE.— year. determines that the preferred drug for treat- ‘‘(A) IN GENERAL.—The coverage has an an- ‘‘(d) ALTERNATIVE COVERAGE REQUIRE- ment of the same condition is not as effec- nual deductible— MENTS.—A Medicare Prescription Drug plan

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or Medicare+Choice plan may provide a dif- ‘‘(1) PROCESSES.—For purposes of this sec- grounds for approval described in subpara- ferent prescription drug benefit design from tion, the Administrator shall establish proc- graphs (B), (C), and (D) of section 1855(a)(2), the standard coverage described in sub- esses and methods— and also include the application by a State section (c) so long as the Administrator de- ‘‘(A) for determining the actuarial valu- of any grounds other than those required termines (based on an actuarial analysis by ation of prescription drug coverage, includ- under Federal law. the Administrator) that the following re- ing— ‘‘(3) APPLICATION OF WAIVER PROCEDURES.— quirements are met and the plan applies for, ‘‘(i) an actuarial valuation of standard cov- With respect to an application for a waiver and receives, the approval of the Adminis- erage and of the reinsurance payments under (or a waiver granted) under this subsection, trator for such benefit design: section 1860D–20; the provisions of subparagraphs (E), (F), and ‘‘(1) ASSURING AT LEAST ACTUARIALLY ‘‘(ii) the use of generally accepted actu- (G) of section 1855(a)(2) shall apply. EQUIVALENT COVERAGE.— arial principles and methodologies; and ‘‘(4) REFERENCES TO CERTAIN PROVISIONS.— ‘‘(A) ASSURING EQUIVALENT VALUE OF TOTAL ‘‘(iii) applying the same methodology for For purposes of this subsection, in applying COVERAGE.—The actuarial value of the total determinations of alternative coverage the provisions of section 1855(a)(2) under this coverage (as determined under subsection (f)) under subsection (d) as is used with respect subsection to Medicare Prescription Drug is at least equal to the actuarial value (as so to determinations of standard coverage plans and eligible entities— determined) of standard coverage. under subsection (c); and ‘‘(A) any reference to a waiver application ‘‘(B) ASSURING EQUIVALENT UNSUBSIDIZED ‘‘(B) for determining annual percentage in- under section 1855 shall be treated as a ref- VALUE OF COVERAGE.—The unsubsidized value creases described in subsection (c)(5). erence to a waiver application under para- of the coverage is at least equal to the un- ‘‘(2) USE OF OUTSIDE ACTUARIES.—Under the graph (1); and subsidized value of standard coverage. For processes under paragraph (1)(A), eligible en- ‘‘(B) any reference to solvency standards purposes of this subparagraph, the unsub- tities and Medicare+Choice organizations were treated as a reference to solvency sidized value of coverage is the amount by may use actuarial opinions certified by inde- standards established under subsection (d). which the actuarial value of the coverage (as pendent, qualified actuaries to establish ac- ‘‘(d) SOLVENCY STANDARDS FOR NON-LI- determined under subsection (f)) exceeds the tuarial values, but the Administrator shall CENSED ENTITIES.— actuarial value of the amounts associated determine whether such actuarial values ‘‘(1) ESTABLISHMENT AND PUBLICATION.—The with the application of section 1860D–17(c) meet the requirements under subsection Administrator, in consultation with the Na- and reinsurance payments under section (c)(1). tional Association of Insurance Commis- 1860D–20 with respect to such coverage. ‘‘REQUIREMENTS FOR ENTITIES OFFERING MEDI- sioners, shall establish and publish, by not ‘‘(C) ASSURING STANDARD PAYMENT FOR CARE PRESCRIPTION DRUG PLANS; ESTABLISH- later than January 1, 2004, financial solvency COSTS AT INITIAL COVERAGE LIMIT.—The cov- MENT OF STANDARDS and capital adequacy standards for entities erage is designed, based upon an actuarially ‘‘SEC. 1860D–7. (a) GENERAL REQUIRE- described in paragraph (2). representative pattern of utilization (as de- MENTS.—An eligible entity offering a Medi- ‘‘(2) COMPLIANCE WITH STANDARDS.—An eli- termined under subsection (f)), to provide for care Prescription Drug plan shall meet the gible entity that is not licensed by a State the payment, with respect to costs incurred following requirements: under subsection (a)(1) and for which a waiv- that are equal to the sum of the deductible ‘‘(1) LICENSURE.—Subject to subsection (c), er application has been approved under sub- under subsection (c)(1) and the initial cov- the entity is organized and licensed under section (c) shall meet solvency and capital erage limit under subsection (c)(3), of an State law as a risk-bearing entity eligible to adequacy standards established under para- amount equal to at least such initial cov- offer health insurance or health benefits cov- graph (1). The Administrator shall establish erage limit multiplied by the percentage erage in each State in which it offers a Medi- certification procedures for such eligible en- specified in subsection (c)(2). care Prescription Drug plan. tities with respect to such solvency stand- Benefits other than qualified prescription ‘‘(2) ASSUMPTION OF FINANCIAL RISK.— ards in the manner described in section drug coverage shall not be taken into ac- ‘‘(A) IN GENERAL.—Subject to subparagraph 1855(c)(2). count for purposes of this paragraph. (B) and section 1860D–20, the entity assumes ‘‘(e) LICENSURE DOES NOT SUBSTITUTE FOR financial risk on a prospective basis for the ‘‘(2) LIMITATION ON OUT-OF-POCKET EXPENDI- OR CONSTITUTE CERTIFICATION.—The fact that benefits that it offers under a Medicare Pre- TURES BY BENEFICIARIES.—The coverage pro- an entity is licensed in accordance with sub- vides the limitation on out-of-pocket ex- scription Drug plan and that is not covered section (a)(1) or has a waiver application ap- penditures by beneficiaries described in sub- under such section or section 1860D–16. proved under subsection (c) does not deem section (c)(4). ‘‘(B) REINSURANCE PERMITTED.—The entity the eligible entity to meet other require- may obtain insurance or make other ar- ‘‘(e) ACCESS TO NEGOTIATED PRICES.— ments imposed under this part for an eligible rangements for the cost of coverage provided ‘‘(1) ACCESS.— entity. to any enrolled member under this part. ‘‘(A) IN GENERAL.—Under qualified pre- ‘‘(f) OTHER STANDARDS.—The Adminis- scription drug coverage offered by an eligible ‘‘(3) SOLVENCY FOR UNLICENSED ENTITIES.— trator shall establish by regulation other entity or a Medicare+Choice organization, In the case of an eligible entity that is not standards (not described in subsection (d)) the entity or organization shall provide described in paragraph (1) and for which a for eligible entities and Medicare Prescrip- beneficiaries with access to negotiated prices waiver has been approved under subsection tion Drug plans consistent with, and to carry (including applicable discounts) used for pay- (c), such entity shall meet solvency stand- out, this part. The Administrator shall pub- ment for covered drugs, regardless of the fact ards established by the Administrator under lish such regulations by January 1, 2004. subsection (d). that no benefits may be payable under the ‘‘(g) PERIODIC REVIEW AND REVISION OF ‘‘(b) CONTRACT REQUIREMENTS.—The Ad- coverage with respect to such drugs because STANDARDS.—The Administrator shall peri- ministrator shall not permit an eligible ben- of the application of the deductible, any odically review the standards established eficiary to elect a Medicare Prescription under this section and, based on such review, cost-sharing, or an initial coverage limit (de- Drug plan offered by an eligible entity under may revise such standards if the Adminis- scribed in subsection (c)(3)). this part, and the entity shall not be eligible ‘‘(B) MEDICAID RELATED PROVISIONS.—Inso- for payments under section 1860D–16 or trator determines such revision to be appro- far as a State elects to provide medical as- 1860D–20, unless the Administrator has en- priate. sistance under title XIX for a drug based on tered into a contract under this subsection ‘‘(h) RELATION TO STATE LAWS.— the prices negotiated under a Medicare Pre- with the entity with respect to the offering ‘‘(1) IN GENERAL.—The standards estab- scription Drug plan under this part, the re- of such plan. Such a contract with an entity lished under this part shall supersede any quirements of section 1927 shall not apply to may cover more than 1 Medicare Prescrip- State law or regulation (including standards such drugs. The prices negotiated under a tion Drug plan. Such contract shall provide described in paragraph (2)) with respect to Medicare Prescription Drug plan with re- that the entity agrees to comply with the Medicare Prescription Drug plans which are spect to covered drugs, under a applicable requirements and standards of offered by eligible entities under this part— Medicare+Choice plan with respect to such this part and the terms and conditions of ‘‘(A) to the extent such law or regulation is drugs, or under a qualified retiree prescrip- payment as provided for in this part. inconsistent with such standards; and tion drug plan (as defined in section 1860D– ‘‘(c) WAIVER OF CERTAIN REQUIREMENTS IN ‘‘(B) in the same manner as such laws and 20(f)(1)) with respect to such drugs, on behalf ORDER TO ENSURE BENEFICIARY CHOICE.— regulations are superseded under section of eligible beneficiaries, shall (notwith- ‘‘(1) IN GENERAL.—In the case of an eligible 1856(b)(3). standing any other provision of law) not be entity that seeks to offer a Medicare Pre- ‘‘(2) STANDARDS SPECIFICALLY SUPER- taken into account for the purposes of estab- scription Drug plan in a State, the Adminis- SEDED.—State standards relating to the fol- lishing the best price under section trator shall waive the requirement of sub- lowing are superseded under this section: 1927(c)(1)(C). section (a)(1) that the entity be licensed in ‘‘(A) Benefit requirements. ‘‘(2) CARDS OR OTHER TECHNOLOGY.—In pro- that State if the Administrator determines, ‘‘(B) Requirements relating to inclusion or viding the access under paragraph (1), the el- based on the application and other evidence treatment of providers. igible entity or Medicare+Choice organiza- presented to the Administrator, that any of ‘‘(C) Coverage determinations (including tion shall issue a card or use other tech- the grounds for approval of the application related appeals and grievance processes). nology pursuant to section 1860D–5(b)(1). described in paragraph (2) have been met. ‘‘(3) PROHIBITION OF STATE IMPOSITION OF ‘‘(f) ACTUARIAL VALUATION; DETERMINATION ‘‘(2) GROUNDS FOR APPROVAL.—The grounds PREMIUM TAXES.—No State may impose a OF ANNUAL PERCENTAGE INCREASES.— for approval under this paragraph are the premium tax or similar tax with respect to—

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00099 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7066 CONGRESSIONAL RECORD — SENATE July 18, 2002 ‘‘(A) premiums paid to the Administrator ‘‘(A) the actuarial basis for such premium; with respect to the offering of a nationwide for Medicare Prescription Drug plans under and prescription drug plan; and this part; or ‘‘(B) the portion of such premium attrib- ‘‘(C) shall seek to maximize the assump- ‘‘(B) any payments made by the Adminis- utable to benefits in excess of standard cov- tion of financial risk by an eligible entity. trator under this part to an eligible entity erage; and ‘‘(4) REPORTS.—The Administrator shall, in offering such a plan. ‘‘(C) the reduction in such bid and pre- each annual report to Congress under section ‘‘Subpart 2—Prescription Drug Delivery mium resulting from the payments associ- 1860D–25(c)(1)(D), include information on the System ated with section 1860D–16(c) and payments exercise of authority under this subsection. ‘‘ESTABLISHMENT OF SERVICE AREAS provided under section 1860D–20. The Administrator also shall include such ‘‘(4) The service area for the plan. recommendations as may be appropriate to ‘‘SEC. 1860D–10. (a) ESTABLISHMENT.— ‘‘(1) INITIAL ESTABLISHMENT.—Not later ‘‘(5) Such other information as the Admin- limit the exercise of such authority, includ- than April 15, 2004, the Administrator shall istrator may require to carry out this part. ing minimizing the assumption of financial establish and publish the service areas in ‘‘(c) OPTIONS REGARDING SERVICE AREAS.— risk. which Medicare Prescription Drug plans may ‘‘(1) IN GENERAL.—The service area of a ‘‘(e) ANNUAL CONTRACTS.—A contract ap- proved under this part shall be for a 1-year offer benefits under this part. Medicare Prescription Drug plan shall be ei- period. ‘‘(2) PERIODIC REVIEW AND REVISION OF ther— SERVICE AREAS.—The Administrator shall pe- ‘‘(A) the entire area of 1 of the service ‘‘COMPUTATION OF MONTHLY STANDARD riodically review the service areas applicable areas established by the Administrator COVERAGE PREMIUMS under this section and, based on such review, under section 1860D–10; or ‘‘SEC. 1860D–14. (a) IN GENERAL.—For each may revise such service areas if the Adminis- ‘‘(B) the entire area covered by the medi- year (beginning with 2005), the Adminis- trator determines such revision to be appro- care program. trator shall compute a monthly standard priate. ‘‘(2) RULE OF CONSTRUCTION.—Nothing in coverage premium for each Medicare Pre- ‘‘(b) REQUIREMENTS FOR ESTABLISHMENT OF this part shall be construed as prohibiting an scription Drug plan approved under section SERVICE AREAS.— eligible entity from submitting separate bids 1860D–13. ‘‘(1) IN GENERAL.—The Administrator shall in multiple service areas as long as each bid ‘‘(b) REQUIREMENTS.—The monthly stand- establish the service areas under subsection is for a single service area. ard coverage premium for a Medicare Pre- (a) in a manner that— ‘‘APPROVAL OF PROPOSED MEDICARE scription Drug plan for a year shall be equal ‘‘(A) maximizes the availability of Medi- PRESCRIPTION DRUG PLANS to— ‘‘(1) in the case of a plan offered by an eli- care Prescription Drug plans to eligible ‘‘SEC. 1860D–13. (a) IN GENERAL.—The Ad- beneficiaries; and ministrator shall review the information gible entity that provides standard coverage ‘‘(B) minimizes the ability of eligible enti- filed under section 1860D–12 and shall ap- or an actuarially equivalent coverage and ties offering such plans to favorably select prove or disapprove the Medicare Prescrip- does not provide additional prescription drug eligible beneficiaries. tion Drug plan. The Administrator may not coverage pursuant to section 1860D–6(a)(2), ‘‘(2) SERVICE AREA MAY NOT BE SMALLER approve a plan if— the monthly premium approved for the plan THAN A STATE.—A service area established ‘‘(1) the plan and the entity offering the under section 1860D–13 for the year; and under subsection (a) may not be smaller than plan comply with the requirements under ‘‘(2) in the case of a plan offered by an eli- a State. this part; and gible entity that provides additional pre- scription drug coverage pursuant to section ‘‘PUBLICATION OF RISK ADJUSTERS ‘‘(2) the premium accurately reflects both 1860D–6(a)(2)— ‘‘SEC. 1860D–11. (a) PUBLICATION.—Not later (A) the actuarial value of the benefits pro- ‘‘(A) an amount that reflects only the ac- than April 15 of each year (beginning in 2004), vided, and (B) the payments associated with tuarial value of the standard coverage of- the Administrator shall publish the risk ad- the application of 186D–16(c) and the pay- fered under the plan; or justers established under subsection (b) to be ments under section 1860D–20 for the stand- used in computing— ard benefit. ‘‘(B) if determined appropriate by the Ad- ministrator, the monthly premium approved ‘‘(1) under section 1860D–16(a) the amount ‘‘(b) NEGOTIATION.—In exercising the au- of payment to Medicare Prescription Drug thority under subsection (a), the Adminis- under section 1860D–13 for the year for the plans in the subsequent year; and trator shall have the same authority to ne- Medicare Prescription Drug plan that (as re- ‘‘(2) under section 1853(k)(2) the amount of gotiate the terms and conditions of the pre- quired under subparagraph (B) of such sec- payment to Medicare+Choice organizations miums submitted and other terms and condi- tion)— that offer qualified prescription drug cov- tions of proposed plans as the Director of the ‘‘(i) is offered by such entity in the same erage in the subsequent year. Office of Personnel Management has with re- area as the plan; and ‘‘(b) ESTABLISHMENT OF RISK ADJUSTERS.— spect to health benefits plans under chapter ‘‘(ii) does not provide additional prescrip- ‘‘(1) IN GENERAL.—Subject to paragraph (2), 89 of title 5, United States Code. tion drug coverage pursuant to such section. the Administrator shall establish an appro- ‘‘(c) SPECIAL RULES FOR APPROVAL.—The ‘‘COMPUTATION OF MONTHLY NATIONAL priate methodology for adjusting the amount Administrator may approve a Medicare Pre- AVERAGE PREMIUM of payment to Medicare Prescription Drug scription Drug plan submitted under section ‘‘SEC. 1860D–15. (a) COMPUTATION.— plans computed under section 1860D–16(a) to 1860D–12 only if the benefits under such ‘‘(1) IN GENERAL.—For each year (beginning take into account, in a budget neutral man- plan— with 2005) the Administrator shall compute a ner, variation in costs based on the dif- ‘‘(1) include the required benefits under monthly national average premium equal to ferences in actuarial risk of different enroll- section 1860D–6(a)(1); and the average of the monthly standard cov- ees being served. ‘‘(2) are not designed in such a manner that erage premium for each Medicare Prescrip- ‘‘(2) CONSIDERATIONS.—In establishing the the Administrator finds is likely to result in tion Drug plan (as computed under section methodology under paragraph (1), the Ad- favorable selection of eligible beneficiaries. 1860D–14). ministrator may take into account the simi- ‘‘(d) ASSURING ACCESS.— ‘‘(2) WEIGHTED AVERAGE.—The monthly na- lar methodologies used under section ‘‘(1) NUMBER OF CONTRACTS.—The Adminis- tional average premium computed under 1853(a)(3) to adjust payments to trator shall, consistent with the require- paragraph (1) shall be a weighted average, Medicare+Choice organizations (with respect ments of this part and the goal of containing with the weight for each plan being equal to to enhanced medicare benefits under part E). costs under this title, approve at least 2 con- the average number of beneficiaries enrolled ‘‘SUBMISSION OF BIDS FOR PROPOSED MEDICARE tracts to offer a Medicare Prescription Drug under such plan in the previous year. PRESCRIPTION DRUG PLANS plan in an area. ‘‘(b) SPECIAL RULE FOR 2005.—For purposes of applying this section for 2005, the Admin- ‘‘SEC. 1860D–12. (a) IN GENERAL.—Each eli- ‘‘(2) GUARANTEEING ACCESS TO COVERAGE.— gible entity that intends to offer a Medicare In order to assure access under paragraph (1) istrator shall establish procedures for deter- Prescription Drug plan in a year (beginning in an area and consistent with paragraph (3), mining the weighted average under sub- with 2005) shall submit to the Administrator, the Administrator may provide financial in- section (a)(2) for 2004. at such time and in such manner as the Ad- centives (including partial underwriting of ‘‘PAYMENTS TO ELIGIBLE ENTITIES OFFERING ministrator may specify, such information risk) for an eligible entity to offer a Medi- MEDICARE PRESCRIPTION DRUG PLANS as the Administrator may require, including care Prescription Drug plan in that area, but ‘‘SEC. 1860D–16. (a) PAYMENT OF PRE- the information described in subsection (b). only so long as (and to the extent) necessary MIUMS.—For each year (beginning with 2005), ‘‘(b) INFORMATION DESCRIBED.—The infor- to assure the access guaranteed under para- the Administrator shall pay to each entity mation described in this subsection includes graph (1) in that area. offering a Medicare Prescription Drug plan information on each of the following: ‘‘(3) LIMITATION ON AUTHORITY.—In exer- in which an eligible beneficiary is enrolled ‘‘(1) A description of the benefits under the cising authority under this subsection, the an amount equal to the full amount of the plan (as required under section 1860D–6). Administrator— monthly premium approved for the plan ‘‘(2) Information on the actuarial value of ‘‘(A) shall not provide for the full under- under section 1860D–13 on behalf of each eli- the qualified prescription drug coverage. writing of financial risk for any eligible enti- gible beneficiary enrolled in such plan for ‘‘(3) Information on the monthly premium ty; the year, as adjusted using the risk adjusters to be charged for all benefits, including an ‘‘(B) shall not provide for any underwriting that apply to the standard coverage pub- actuarial certification of— of financial risk for a public eligible entity lished under section 1860D–11.

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‘‘(b) PAYMENT TERMS.—Payment under this ‘‘COLLECTION OF BENEFICIARY OBLIGATION income that exceeds 135 percent, but is less section to an entity offering a Medicare Pre- ‘‘SEC. 1860D–18. (a) COLLECTION OF AMOUNT than 150 percent, of the Federal poverty scription Drug plan shall be made in a man- IN SAME MANNER AS PART B PREMIUM.—The line— ner determined by the Administrator and amount of the monthly beneficiary obliga- ‘‘(i) section 1860D–17 shall be applied— based upon the manner in which payments tion (determined under section 1860D–17) ap- ‘‘(I) in subsection (c), by substituting ‘sub- are made under section 1853(a) (relating to plicable to an eligible beneficiary under this sidy percent’ for ‘55 percent’; and payments to Medicare+Choice organiza- part (after application of any increase under ‘‘(II) in subparagraphs (A) and (B) of sub- tions). section 1860D–2(b)(1)(A)) shall be collected section (a)(3), by substituting ‘‘the amount ‘‘(c) PAYMENTS TO MEDICARE+CHOICE and credited to the Prescription Drug Ac- of the premium for the Medicare Prescrip- PLANS.—For provisions related to payments count in the same manner as the monthly tion Drug plan with the lowest monthly pre- to Medicare+Choice organizations offering premium determined under section 1839 is mium in the area that the beneficiary re- Medicare+Choice plans that provide qualified collected and credited to the Federal Supple- sides’’ for ‘‘the amount of the monthly na- prescription drug coverage, see section mentary Medical Insurance Trust Fund tional average premium’’, but only if there is 1853(k)(2). under section 1840. no Medicare Prescription Drug plan offered ‘‘(b) INFORMATION NECESSARY FOR COLLEC- in the area in which the individual resides ‘‘(d) SECONDARY PAYER PROVISIONS.—The TION.—In order to carry out subsection (a), provisions of section 1862(b) shall apply to that has a monthly premium for the year the Administrator shall transmit to the that is equal to or less than the monthly na- the benefits provided under this part. Commissioner of Social Security— tional average premium (as computed under ‘‘COMPUTATION OF BENEFICIARY OBLIGATION ‘‘(1) at the beginning of each year, the section 1860D–15) for the year; and ‘‘SEC. 1860D–17. (a) BENEFICIARIES EN- name, social security account number, and ‘‘(ii) such individual shall be responsible ROLLED IN A MEDICARE PRESCRIPTION DRUG annual beneficiary obligation owed by each for cost-sharing for the cost of any covered individual enrolled in a Medicare Prescrip- PLAN.—In the case of an eligible beneficiary drug provided in the year (after the indi- enrolled under this part and in a Medicare tion Drug plan for each month during the vidual has reached such initial coverage Prescription Drug plan, the monthly bene- year; and limit and before the individual has reached ficiary obligation for enrollment in such ‘‘(2) periodically throughout the year, in- the limitation under section 1860D– plan in a year shall be determined as follows: formation to update the information pre- 6(c)(4)(A)), that is equal to 50 percent. viously transmitted under this paragraph for ‘‘(1) MEDICARE PRESCRIPTION DRUG PLAN In no case may the application of clause (i) the year. PREMIUMS EQUAL TO THE MONTHLY NATIONAL result in a monthly beneficiary obligation ‘‘(c) COLLECTION FOR BENEFICIARIES RECEIV- AVERAGE.—If the amount of the monthly pre- that is below zero. ING QUALIFIED PRESCRIPTION DRUG COVERAGE mium approved by the Administrator under ‘‘(B) SUBSIDY PERCENT DEFINED.—For pur- UNDER A MEDICARE+CHOICE PLAN.—For provi- section 1860D–13 for a Medicare Prescription poses of subparagraph (A)(i), the term ‘sub- sions related to the collection of the month- sidy percent’ means a percent determined on Drug plan for the year is equal to the month- ly beneficiary obligation for qualified pre- ly national average premium (as computed a linear sliding scale ranging from 0 percent scription drug coverage under a for individuals with incomes at 135 percent of under section 1860D–15) for the year, the Medicare+Choice plan, see section 1853(k)(4). monthly obligation of the eligible bene- such level to 55 percent for individuals with ‘‘PREMIUM AND COST-SHARING SUBSIDIES FOR incomes at 150 percent of such level. ficiary in that year shall be an amount equal LOW-INCOME INDIVIDUALS ‘‘(3) DETERMINATION OF ELIGIBILITY.— to the applicable percent (as defined in sub- ‘‘(A) SUBSIDY-ELIGIBLE INDIVIDUAL DE- section (c)) of the amount of the monthly na- ‘‘SEC. 1860D–19. (a) IN GENERAL.— FINED.—For purposes of this section, subject tional average premium. ‘‘(1) FULL PREMIUM SUBSIDY AND REDUCTION OF COST-SHARING FOR INDIVIDUALS WITH IN- to subparagraph (D), the term ‘subsidy-eligi- ‘‘(2) MEDICARE PRESCRIPTION DRUG PLAN COME BELOW 135 PERCENT OF FEDERAL POVERTY ble individual’ means an individual who— PREMIUMS THAT ARE LESS THAN THE MONTHLY LINE.—In the case of a subsidy-eligible indi- ‘‘(i) is enrolled under this part, including NATIONAL AVERAGE.—If the amount of the vidual (as defined in paragraph (3)) who is de- an individual receiving qualified prescription monthly premium approved by the Adminis- termined to have income that does not ex- drug coverage under a Medicare+Choice plan; trator under section 1860D–13 for the Medi- ceed 135 percent of the Federal poverty line— ‘‘(ii) has income that is less that 150 per- care Prescription Drug plan for the year is ‘‘(A) section 1860D–17 shall be applied— cent of the Federal poverty line; and less than the monthly national average pre- ‘‘(i) in subsection (c), by substituting ‘0 ‘‘(iii) meets the resources requirement de- mium (as computed under section 1860D–15) percent’ for ‘55 percent’; and scribed in section 1905(p)(1)(C). for the year, the monthly obligation of the ‘‘(ii) in subparagraphs (A) and (B) of sub- ‘‘(B) DETERMINATIONS.—The determination eligible beneficiary in that year shall be an section (a)(3), by substituting ‘‘the amount of whether an individual residing in a State amount equal to— of the premium for the Medicare Prescrip- is a subsidy-eligible individual and the ‘‘(A) the applicable percent of the amount tion Drug plan with the lowest monthly pre- amount of such individual’s income shall be of the monthly national average premium; mium in the area that the beneficiary re- determined under the State medicaid plan minus sides’’ for ‘‘the amount of the monthly na- for the State under section 1935(a). In the ‘‘(B) the amount by which the monthly na- tional average premium’’, but only if there is case of a State that does not operate such a tional average premium exceeds the amount no Medicare Prescription Drug plan offered medicaid plan (either under title XIX or of the premium approved by the Adminis- in the area in which the individual resides under a statewide waiver granted under sec- trator for the plan. that has a monthly premium for the year tion 1115), such determination shall be made ‘‘(3) MEDICARE PRESCRIPTION DRUG PLAN that is equal to or less than the monthly na- under arrangements made by the Adminis- PREMIUMS THAT ARE GREATER THAN THE tional average premium (as computed under trator. MONTHLY NATIONAL AVERAGE.—If the amount section 1860D–15) for the year; ‘‘(C) INCOME DETERMINATIONS.—For pur- of the monthly premium approved by the Ad- ‘‘(B) the annual deductible applicable poses of applying this section— ministrator under section 1860D–13 for a under section 1860D–6(c)(1) in a year shall be ‘‘(i) income shall be determined in the Medicare Prescription Drug plan for the year reduced to an amount equal to 5 percent of manner described in section 1905(p)(1)(B); and exceeds the monthly national average pre- the annual deductible otherwise applicable ‘‘(ii) the term ‘Federal poverty line’ means mium (as computed under section 1860D–15) under such section for that year; the official poverty line (as defined by the for the year, the monthly obligation of the ‘‘(C) section 1860D–6(c)(2) shall be applied Office of Management and Budget, and re- eligible beneficiary in that year shall be an by substituting ‘2.5 percent’ for ‘50 percent’ vised annually in accordance with section amount equal to the sum of— each place it appears; 673(2) of the Omnibus Budget Reconciliation ‘‘(A) the applicable percent of the amount ‘‘(D) such individual shall be responsible Act of 1981) applicable to a family of the size of the monthly national average premium; for cost-sharing for the cost of any covered involved. plus drug provided in the year (after the indi- ‘‘(D) TREATMENT OF TERRITORIAL RESI- ‘‘(B) the amount by which the premium ap- vidual has reached such initial coverage DENTS.—In the case of an individual who is proved by the Administrator for the plan ex- limit and before the individual has reached not a resident of the 50 States or the District ceeds the amount of the monthly national the limitation under section 1860D– of Columbia, the individual is not eligible to average premium. 6(c)(4)(A)), that is equal to 50 percent; and be a subsidy-eligible individual but may be ‘‘(b) BENEFICIARIES ENROLLED IN A ‘‘(E) section 1860D–6(c)(4)(A) shall be ap- eligible for financial assistance with pre- MEDICARE+CHOICE PLAN.—In the case of an plied by substituting ‘0 percent’ for ‘10 per- scription drug expenses under section 1935(e). eligible beneficiary that is receiving quali- cent’. ‘‘(b) RULES IN APPLYING COST-SHARING SUB- fied prescription drug coverage under a In no case may the application of subpara- SIDIES.— Medicare+Choice plan, the monthly obliga- graph (A) result in a monthly beneficiary ob- ‘‘(1) ADDITIONAL BENEFITS.—In applying tion for such coverage shall be determined ligation that is below zero. subparagraphs (B) and (C) of subsection (a)(1) pursuant to section 1853(k)(3). ‘‘(2) SLIDING SCALE PREMIUM SUBSIDY AND and clauses (ii) and (iii) of subsection ‘‘(c) APPLICABLE PERCENT DEFINED.—For REDUCTION OF COST-SHARING FOR INDIVIDUALS (a)(2)(A), nothing in this part shall be con- purposes of this section, except as provided WITH INCOME BETWEEN 135 AND 150 PERCENT OF strued as preventing an eligible entity offer- in section 1860D–19 (relating to premium sub- FEDERAL POVERTY LINE.— ing a Medicare Prescription Drug plan or a sidies for low-income individuals), the term ‘‘(A) IN GENERAL.—In the case of a subsidy- Medicare+Choice organization offering a ‘applicable percent’ means 55 percent. eligible individual who is determined to have Medicare+Choice plan in which qualified

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00101 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7068 CONGRESSIONAL RECORD — SENATE July 18, 2002 drug coverage is provided from waiving or re- ‘‘(2) A Medicare+Choice organization that this section are made during a year based on ducing the amount of the deductible or other provides qualified prescription drug coverage the Administrator’s best estimate of cost-sharing otherwise applicable pursuant under a Medicare+Choice plan under part C. amounts that will be payable after obtaining to section 1860D–6(a)(2). ‘‘(3) The sponsor of a qualified retiree pre- all of the information. ‘‘(2) LIMITATION ON CHARGES.—In the case of scription drug plan (as defined in subsection ‘‘(2) SOURCE OF PAYMENTS.—Payments an individual receiving cost-sharing sub- (f)). under this section shall be made from the sidies under subparagraphs (B) and (C) of ‘‘(c) REINSURANCE PAYMENT AMOUNT.— Prescription Drug Account. subsection (a)(1) or under clauses (ii) and (iii) ‘‘(1) IN GENERAL.—Subject to subsection ‘‘(f) QUALIFIED RETIREE PRESCRIPTION DRUG of subsection (a)(2)(A), the eligible entity of- (d)(2), the reinsurance payment amount PLAN DEFINED.— fering a Medicare Prescription Drug plan or under this subsection for a qualifying cov- ‘‘(1) IN GENERAL.—For purposes of this sec- the Medicare+Choice organization offering a ered individual for a coverage year (as de- tion, the term ‘qualified retiree prescription Medicare+Choice plan in which qualified fined in subsection (g)(2)) is equal to the sum drug plan’ means employment-based retiree drug coverage is provided may not charge of the following: health coverage (as defined in paragraph more than the deductible or other cost-shar- ‘‘(A) For the portion of the individual’s (3)(A)) if, with respect to a qualifying cov- ing required pursuant to such subsection. gross covered drug costs (as defined in para- ered individual who is covered under the graph (3)) for the year that exceeds the ‘‘(c) ADMINISTRATION OF SUBSIDY PRO- plan, the following requirements are met: amount specified in paragraph (2), but does GRAM.—The Administrator shall provide a ‘‘(A) ASSURANCE.—The sponsor of the plan process whereby, in the case of an individual not exceed the initial coverage limit, an shall annually attest, and provide such as- eligible for a cost-sharing under subpara- amount equal to 50 percent of the allowable surances as the Administrator may require, costs (as defined in paragraph (3)) attrib- graphs (B) and (C) of subsection (a)(1) or that the coverage meets or exceeds the re- utable to such gross covered drug costs. under clauses (ii) and (iii) of subsection quirements for qualified prescription drug ‘‘(B) For the portion of the individual’s (a)(2)(A) and who is enrolled in a Medicare coverage. gross covered drug costs for the year that ex- Prescription Drug plan or is enrolled in a ‘‘(B) AUDITS.—The sponsor (and the plan) ceeds the annual out-of-pocket threshold Medicare+Choice plan under which qualified shall maintain, and afford the Administrator specified in section 1860D–6(c)(4)(B), an prescription drug coverage is provided— access to, such records as the Administrator amount equal to 80 percent of the allowable ‘‘(1) the Administrator provides for a noti- may require for purposes of audits and other costs attributable to such gross covered drug fication of the eligible entity or oversight activities necessary to ensure the costs. Medicare+Choice organization involved that adequacy of prescription drug coverage, and ‘‘(2) AMOUNT SPECIFIED.—The amount speci- the accuracy of payments made. the individual is eligible for a cost-sharing fied under this paragraph— subsidy and the amount of the subsidy under ‘‘(2) LIMITATION ON BENEFIT ELIGIBILITY.— ‘‘(A) for 2005, is equal to $2,000; and No payment shall be provided under this sec- such subsection; ‘‘(B) for a subsequent year, is equal to the ‘‘(2) the entity or organization involved re- tion with respect to an individual who is en- amount specified in this paragraph for the rolled under a qualified retiree prescription duces the cost-sharing otherwise imposed by previous year, increased by the annual per- the amount of the applicable subsidy and drug plan unless the individual— centage increase described in section 1860D– ‘‘(A) is covered under the plan; and submits to the Administrator information on 6(c)(5). the amount of such reduction; and ‘‘(B) was eligible for, but was not enrolled ‘‘(3) ALLOWABLE COSTS.—For purposes of in, the program under this part. ‘‘(3) the Administrator periodically and on this section, the term ‘allowable costs’ ‘‘(3) DEFINITIONS.—As used in this section: a timely basis reimburses the entity or orga- means, with respect to gross covered drug ‘‘(A) EMPLOYMENT-BASED RETIREE HEALTH nization for the amount of such reductions. costs (as defined in paragraph (4)) under a COVERAGE.—The term ‘employment-based re- The reimbursement under paragraph (3) may plan described in subsection (b) offered by a be computed on a capitated basis, taking tiree health coverage’ means health insur- qualifying entity, the part of such costs that ance or other coverage of health care costs into account the actuarial value of the sub- are actually paid (net of average percentage sidies and with appropriate adjustments to for individuals (or for such individuals and rebates) under the plan, but in no case more their spouses and dependents) based on their reflect differences in the risks actually in- than the part of such costs that would have volved. status as former employees or labor union been paid under the plan if the prescription members. ‘‘(d) RELATION TO MEDICAID PROGRAM.— drug coverage under the plan were standard ‘‘(B) SPONSOR.—The term ‘sponsor’ means a ‘‘(1) IN GENERAL.—For provisions providing coverage. plan sponsor, as defined in section 3(16)(B) of for eligibility determinations, and additional ‘‘(4) GROSS COVERED DRUG COSTS.—For pur- the Employee Retirement Income Security financing, under the medicaid program, see poses of this section, the term ‘gross covered Act of 1974. section 1935. drug costs’ means, with respect to an en- ‘‘(g) GENERAL DEFINITIONS.—For purposes ‘‘(2) MEDICAID PROVIDING WRAP AROUND BEN- rollee with a qualifying entity under a plan of this section: EFITS.—The coverage provided under this described in subsection (b) during a coverage ‘‘(1) QUALIFYING COVERED INDIVIDUAL.—The part is primary payor to benefits for pre- year, the costs incurred under the plan (in- term ‘qualifying covered individual’ means scribed drugs provided under the medicaid cluding costs attributable to administrative an individual who— program under title XIX. costs) for covered drugs dispensed during the ‘‘(A) is enrolled in this part and in a Medi- ‘‘REINSURANCE PAYMENTS FOR QUALIFIED year, including costs relating to the deduct- care Prescription Drug plan; PRESCRIPTION DRUG COVERAGE ible, whether paid by the enrollee or under ‘‘(B) is enrolled in this part and in a the plan, regardless of whether the coverage Medicare+Choice plan that provides qualified ‘‘SEC. 1860D–20. (a) REINSURANCE PAY- under the plan exceeds standard coverage MENTS.— prescription drug coverage; or and regardless of when the payment for such ‘‘(C) is eligible for, but not enrolled in, the ‘‘(1) IN GENERAL.—The Administrator shall drugs is made. provide in accordance with this section for program under this part, and is covered ‘‘(d) ADJUSTMENT OF REINSURANCE PAY- under a qualified retiree prescription drug payment to a qualifying entity (as defined in MENTS TO ASSURE 30 PERCENT LEVEL OF PAY- plan. subsection (b)) of the reinsurance payment MENT.— ‘‘(2) COVERAGE YEAR.—The term ‘coverage amount (as defined in subsection (c)), which ‘‘(1) ESTIMATION OF PAYMENTS.—The Ad- year’ means a calendar year in which cov- in the aggregate is 30 percent of the total ministrator shall estimate— ered drugs are dispensed if a claim for pay- payments made by a qualifying entity for ‘‘(A) the total payments to be made (with- ment is made under the plan for such drugs, standard coverage under the respective plan, out regard to this subsection) during a year regardless of when the claim is paid. for excess costs incurred in providing quali- under subsections (a) and (c); and fied prescription drug coverage for quali- ‘‘(B) the total payments to be made by ‘‘Subpart 3—Medicare Competitive Agency; fying covered individuals (as defined in sub- qualifying entities for standard coverage Prescription Drug Account in the Federal section (g)(1)). under plans described in subsection (b) dur- Supplementary Medical Insurance Trust ‘‘(2) BUDGET AUTHORITY.—This section con- ing the year. Fund stitutes budget authority in advance of ap- ‘‘(2) ADJUSTMENT.—The Administrator ‘‘ESTABLISHMENT OF MEDICARE COMPETITIVE propriations Acts and represents the obliga- shall proportionally adjust the payments AGENCY tion of the Administrator to provide for the made under subsections (a) and (c) for a cov- ‘‘SEC. 1860D–25. (a) ESTABLISHMENT.—By payment of amounts provided under this sec- erage year in such manner so that the total not later than March 1, 2003, the Secretary tion. of the payments made under such sub- shall establish within the Department of ‘‘(b) QUALIFYING ENTITY DEFINED.—For pur- sections for the year is equal to 30 percent of Health and Human Services an agency to be poses of this section, the term ‘qualifying en- the total payments described in subpara- known as the Medicare Competitive Agency. tity’ means any of the following that has en- graph (A)(ii). ‘‘(b) ADMINISTRATOR AND DEPUTY ADMINIS- tered into an agreement with the Adminis- ‘‘(e) PAYMENT METHODS.— TRATOR.— trator to provide the Administrator with ‘‘(1) IN GENERAL.—Payments under this sec- ‘‘(1) ADMINISTRATOR.— such information as may be required to tion shall be based on such a method as the ‘‘(A) IN GENERAL.—The Medicare Competi- carry out this section: Administrator determines. The Adminis- tive Agency shall be headed by an Adminis- ‘‘(1) An eligible entity offering a Medicare trator may establish a payment method by trator (in this section referred to as the ‘Ad- Prescription Drug plan under this part. which interim payments of amounts under ministrator’) who shall be appointed by the

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00102 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7069 President, by and with the advice and con- ensure appropriate coordination between the employ under this paragraph a number of sent of the Senate. The Administrator shall Administrator and the Administrator of the full-time equivalent employees, to carry out report directly to the Secretary. Centers for Medicare & Medicaid Services in functions that were previously conducted by ‘‘(B) COMPENSATION.—The Administrator carrying out the programs under this title. the Centers for Medicare & Medicaid Serv- shall be paid at the rate of basic pay payable ‘‘(c) DUTIES; ADMINISTRATIVE PROVISIONS.— ices and that are conducted by the Adminis- for level III of the Executive Schedule under ‘‘(1) DUTIES.— trator by reason of this section, that exceeds section 5314 of title 5, United States Code. ‘‘(A) GENERAL DUTIES.—The Administrator the number of such full-time equivalent em- ‘‘(C) TERM OF OFFICE.—The Administrator shall carry out parts C and D, including— ployees authorized to be employed by the shall be appointed for a term of 5 years. In ‘‘(i) negotiating, entering into, and enforc- Centers for Medicare & Medicaid Services to any case in which a successor does not take ing, contracts with plans for the offering of conduct such functions as of the date of en- office at the end of an Administrator’s term Medicare+Choice plans under part C, includ- actment of this Act. of office, that Administrator may continue ing the offering of qualified prescription ‘‘(3) REDELEGATION OF CERTAIN FUNCTIONS in office until the entry upon office of such drug coverage under such plans; and OF THE CENTERS FOR MEDICARE AND MEDICAID a successor. An Administrator appointed to a ‘‘(ii) negotiating, entering into, and enforc- SERVICES.— term of office after the commencement of ing, contracts with eligible entities for the ‘‘(A) IN GENERAL.—The Secretary, the Ad- such term may serve under such appoint- offering of Medicare Prescription Drug plans ministrator, and the Administrator of the ment only for the remainder of such term. under part D. Centers for Medicare & Medicaid Services ‘‘(D) GENERAL AUTHORITY.—The Adminis- ‘‘(B) OTHER DUTIES.—The Administrator shall establish an appropriate transition of trator shall be responsible for the exercise of shall carry out any duty provided for under responsibility in order to redelegate the ad- all powers and the discharge of all duties of part C or D, including demonstration ministration of part C from the Secretary the Administration, and shall have authority projects carried out in part or in whole under and the Administrator of the Centers for and control over all personnel and activities such parts, the programs of all-inclusive care Medicare & Medicaid Services to the Admin- thereof. for the elderly (PACE program) under sec- istrator as is appropriate to carry out the ‘‘(E) RULEMAKING AUTHORITY.—The Admin- tion 1894, the social health maintenance or- purposes of this section. ganization (SHMO) demonstration projects istrator may prescribe such rules and regula- ‘‘(B) TRANSFER OF DATA AND INFORMA- (referred to in section 4104(c) of the Balanced tions as the Administrator determines nec- TION.—The Secretary shall ensure that the essary or appropriate to carry out the func- Budget Act of 1997), and through a Administrator of the Centers for Medicare & tions of the Administration. The regulations Medicare+Choice project that demonstrates Medicaid Services transfers to the Adminis- prescribed by the Administrator shall be sub- the application of capitation payment rates trator such information and data in the pos- for frail elderly medicare beneficiaries ject to the rulemaking procedures estab- session of the Administrator of the Centers through the use of an interdisciplinary team lished under section 553 of title 5, United for Medicare & Medicaid Services as the Ad- and through the provision of primary care States Code. ministrator requires to carry out the duties services to such beneficiaries by means of ‘‘(F) AUTHORITY TO ESTABLISH ORGANIZA- described in paragraph (1). TIONAL UNITS.—The Administrator may es- such a team at the nursing facility involved. ‘‘(C) CONSTRUCTION.—Insofar as a responsi- ‘‘(C) NONINTERFERENCE.—In carrying out tablish, alter, consolidate, or discontinue bility of the Secretary or the Administrator such organizational units or components its duties with respect to the provision of of the Centers for Medicare & Medicaid Serv- within the Administration as the Adminis- qualified prescription drug coverage to bene- ices is redelegated to the Administrator trator considers necessary or appropriate, ficiaries under this title, the Administrator under this section, any reference to the Sec- except that this subparagraph shall not may not— retary or the Administrator of the Centers apply with respect to any unit, component, ‘‘(i) require a particular formulary or insti- for Medicare & Medicaid Services in this or provision provided for by this section. tute a price structure for the reimbursement title or title XI with respect to such respon- ‘‘(G) AUTHORITY TO DELEGATE.—The Admin- of covered drugs; sibility is deemed to be a reference to the istrator may assign duties, and delegate, or ‘‘(ii) interfere in any way with negotia- Administrator. authorize successive redelegations of, au- tions between eligible entities and ‘‘(d) OFFICE OF BENEFICIARY ASSISTANCE.— thority to act and to render decisions, to Medicare+Choice organizations and drug ‘‘(1) ESTABLISHMENT.—The Secretary shall such officers and employees of the Adminis- manufacturers, wholesalers, or other sup- tration as the Administrator may find nec- pliers of covered drugs; and establish within the Medicare Competitive essary. Within the limitations of such dele- ‘‘(iii) otherwise interfere with the competi- Agency an Office of Beneficiary Assistance gations, redelegations, or assignments, all tive nature of providing such qualified pre- to carry out functions relating to medicare official acts and decisions of such officers scription drug coverage through such enti- beneficiaries under this title, including mak- and employees shall have the same force and ties and organizations. ing determinations of eligibility of individ- effect as though performed or rendered by ‘‘(D) ANNUAL REPORTS.—Not later than uals for benefits under this title, providing the Administrator. March 31 of each year, the Administrator for enrollment of medicare beneficiaries ‘‘(2) DEPUTY ADMINISTRATOR.— shall submit to Congress and the President a under this title, and the functions described ‘‘(A) IN GENERAL.—There shall be a Deputy report on the administration of the vol- in paragraph (2). The Office shall be a sepa- Administrator of the Medicare Competitive untary prescription drug delivery program rate operating division within the Adminis- Agency who shall be appointed by the Presi- under this part during the previous fiscal tration. dent, by and with the advice and consent of year. ‘‘(2) DISSEMINATION OF INFORMATION ON BEN- the Senate. ‘‘(2) STAFF.— EFITS AND APPEALS RIGHTS.— ‘‘(B) COMPENSATION.—The Deputy Adminis- ‘‘(A) IN GENERAL.—The Administrator, with ‘‘(A) DISSEMINATION OF BENEFITS INFORMA- trator shall be paid at the rate of basic pay the approval of the Secretary, may employ, TION.—The Office of Beneficiary Assistance payable for level IV of the Executive Sched- without regard to chapter 31 of title 5, shall disseminate to medicare beneficiaries, ule under section 5315 of title 5, United United States Code, other than sections 3110 by mail, by posting on the Internet site of States Code. and 3112, such officers and employees as are the Medicare Competitive Agency, and ‘‘(C) TERM OF OFFICE.—The Deputy Admin- necessary to administer the activities to be through the toll-free telephone number pro- istrator shall be appointed for a term of 5 carried out through the Medicare Competi- vided for under section 1804(b), information years. In any case in which a successor does tive Agency. The Administrator shall em- with respect to the following: not take office at the end of a Deputy Ad- ploy staff with appropriate and necessary ex- ‘‘(i) Benefits, and limitations on payment ministrator’s term of office, such Deputy Ad- pertise in negotiating contracts in the pri- (including cost-sharing, stop-loss provisions, ministrator may continue in office until the vate sector. and formulary restrictions) under parts C entry upon office of such a successor. A Dep- ‘‘(B) FLEXIBILITY WITH RESPECT TO COM- and D. uty Administrator appointed to a term of of- PENSATION.— ‘‘(ii) Benefits, and limitations on payment fice after the commencement of such term ‘‘(i) IN GENERAL.—The staff of the Medicare under parts A, B, and E, including informa- may serve under such appointment only for Competitive Agency shall, subject to clause tion on medicare supplemental policies the remainder of such term. (ii), be paid without regard to the provisions under section 1882. ‘‘(D) DUTIES.—The Deputy Administrator of chapter 51 (other than section 5101) and Such information shall be presented in a shall perform such duties and exercise such chapter 53 (other than section 5301) of such manner so that medicare beneficiaries may powers as the Administrator shall from time title (relating to classification and schedule compare benefits under parts A, B, D, and E, to time assign or delegate. The Deputy Ad- pay rates). and medicare supplemental policies with ministrator shall be Acting Administrator of ‘‘(ii) MAXIMUM RATE.—In no case may the benefits under Medicare+Choice plans under the Administration during the absence or rate of compensation determined under part C. disability of the Administrator and, unless clause (i) exceed the rate of basic pay pay- ‘‘(B) DISSEMINATION OF APPEALS RIGHTS IN- the President designates another officer of able for level IV of the Executive Schedule FORMATION.—The Office of Beneficiary As- the Government as Acting Administrator, in under section 5315 of title 5, United States sistance shall disseminate to medicare bene- the event of a vacancy in the office of the Code. ficiaries in the manner provided under sub- Administrator. ‘‘(C) LIMITATION ON FULL-TIME EQUIVALENT paragraph (A) a description of procedural ‘‘(3) SECRETARIAL COORDINATION OF PRO- STAFFING FOR CURRENT CMS FUNCTIONS BEING rights (including grievance and appeals pro- GRAM ADMINISTRATION.—The Secretary shall TRANSFERRED.—The Administrator may not cedures) of beneficiaries under the original

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00103 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7070 CONGRESSIONAL RECORD — SENATE July 18, 2002 medicare fee-for-service program under parts mation and education on the program under member’s term until a successor has taken A and B (including beneficiaries who elect to this title, and specifically parts C and D, and office. A vacancy in the Board shall be filled receive enhanced medicare benefits under the program for enrollment under the title. in the manner in which the original appoint- part E), the Medicare+Choice program under ‘‘(iii) QUALITY.—Recommendations on ways ment was made. part C, and the voluntary prescription drug to improve the quality of benefits provided ‘‘(7) CHAIR.—The Chair of the Board shall delivery program under part D. under plans under parts C and D. be elected by the members. The term of of- ‘‘(3) MEDICARE OMBUDSMAN.— ‘‘(iv) DISEASE MANAGEMENT PROGRAMS.— fice of the Chair shall be 3 years. ‘‘(A) IN GENERAL.—Within the Office of Recommendations on the incorporation of ‘‘(8) MEETINGS.—The Board shall meet at Beneficiary Assistance, there shall be a disease management programs under parts C the call of the Chair, but in no event less Medicare Ombudsman, appointed by the Sec- and D. than 3 times during each fiscal year. retary from among individuals with exper- ‘‘(v) RURAL ACCESS.—Recommendations to ‘‘(9) DIRECTOR AND STAFF.— tise and experience in the fields of health improve competition and access to plans ‘‘(A) APPOINTMENT OF DIRECTOR.—The care and advocacy, to carry out the duties under parts C and D in rural areas. Board shall have a Director who shall be ap- described in subparagraph (B). ‘‘(C) MAINTAINING INDEPENDENCE OF pointed by the Chair. ‘‘(B) DUTIES.—The Medicare Ombudsman BOARD.—The Board shall directly submit to ‘‘(B) IN GENERAL.—With the approval of the shall— Congress reports required under subpara- Board, the Director may appoint, without re- ‘‘(i) receive complaints, grievances, and re- graph (A). No officer or agency of the United gard to chapter 31 of title 5, United States quests for information submitted by a medi- States may require the Board to submit to Code, such additional personnel as the Direc- care beneficiary, with respect to any aspect any officer or agency of the United States tor considers appropriate. of the medicare program; for approval, comments, or review, prior to ‘‘(C) FLEXIBILITY WITH RESPECT TO COM- ‘‘(ii) provide assistance with respect to the submission to Congress of such reports. PENSATION.— complaints, grievances, and requests referred ‘‘(3) DUTY OF ADMINISTRATOR.—With respect ‘‘(i) IN GENERAL.—The Director and staff of to in clause (i), including— to any report submitted by the Board under the Board shall, subject to clause (ii), be paid ‘‘(I) assistance in collecting relevant infor- paragraph (2)(A), not later than 90 days after without regard to the provisions of chapter mation for such beneficiaries, to seek an ap- the report is submitted, the Administrator 51 and chapter 53 of such title (relating to peal of a decision or determination made by shall submit to Congress and the President classification and schedule pay rates). a fiscal intermediary, carrier, an analysis of recommendations made by the ‘‘(ii) MAXIMUM RATE.—In no case may the Medicare+Choice organization, an eligible Board in such report. Each such analysis rate of compensation determined under entity under part D, or the Secretary; and shall be published in the Federal Register. clause (i) exceed the rate of basic pay pay- ‘‘(II) assistance to such beneficiaries with ‘‘(4) MEMBERSHIP.— able for level IV of the Executive Schedule any problems arising from disenrollment ‘‘(A) APPOINTMENT.—Subject to the suc- under section 5315 of title 5, United States from a Medicare+Choice plan under part C or ceeding provisions of this paragraph, the Code. a prescription drug plan under part D; and Board shall consist of 7 members to be ap- ‘‘(D) ASSISTANCE FROM THE ADMINIS- ‘‘(iii) submit annual reports to Congress, pointed as follows: TRATOR.—The Administrator shall make the Secretary, and the Medicare Competitive ‘‘(i) Three members shall be appointed by available to the Board such information and Policy Advisory Board describing the activi- the President. other assistance as it may require to carry ties of the Office, and including such rec- ‘‘(ii) Two members shall be appointed by out its functions. ommendations for improvement in the ad- the Speaker of the House of Representatives, ‘‘(10) CONTRACT AUTHORITY.—The Board ministration of this title as the Ombudsman with the advice of the chairman and the may contract with and compensate govern- determines appropriate. ranking minority member of the Committees ment and private agencies or persons to ‘‘(C) COORDINATION WITH STATE OMBUDSMAN on Ways and Means and on Energy and Com- carry out its duties under this subsection, PROGRAMS AND CONSUMER ORGANIZATIONS.— merce of the House of Representatives. without regard to section 3709 of the Revised The Medicare Ombudsman shall, to the ex- ‘‘(iii) Two members shall be appointed by Statutes (41 U.S.C. 5). tent appropriate, coordinate with State med- the President pro tempore of the Senate with ‘‘(f) FUNDING.—There is authorized to be ical Ombudsman programs, and with State- the advice of the chairman and the ranking appropriated, in appropriate part from the and community-based consumer organiza- minority member of the Committee on Fi- Federal Hospital Insurance Trust Fund and tions, to— nance of the Senate. from the Federal Supplementary Medical In- ‘‘(i) provide information about the medi- ‘‘(B) QUALIFICATIONS.—The members shall surance Trust Fund (including the Prescrip- care program; and be chosen on the basis of their integrity, im- tion Drug Account), such sums as are nec- ‘‘(ii) conduct outreach to educate medicare partiality, and good judgment, and shall be essary to carry out this section. beneficiaries with respect to manners in individuals who are, by reason of their edu- which problems under the medicare program cation and experience in health care benefits ‘‘PRESCRIPTION DRUG ACCOUNT IN THE FEDERAL may be resolved or avoided. management, exceptionally qualified to per- SUPPLEMENTARY MEDICAL INSURANCE TRUST ‘‘(e) MEDICARE COMPETITIVE POLICY ADVI- form the duties of members of the Board. FUND SORY BOARD.— ‘‘(C) PROHIBITION ON INCLUSION OF FEDERAL ‘‘SEC. 1860D–26. (a) ESTABLISHMENT.— ‘‘(1) ESTABLISHMENT.—There is established EMPLOYEES.—No officer or employee of the ‘‘(1) IN GENERAL.—There is created within within the Medicare Competitive Agency the United States may serve as a member of the the Federal Supplementary Medical Insur- Medicare Competitive Policy Advisory Board Board. ance Trust Fund established by section 1841 (in this section referred to as the ‘Board’). ‘‘(5) COMPENSATION.—Members of the Board an account to be known as the ‘Prescription The Board shall advise, consult with, and shall receive, for each day (including travel Drug Account’ (in this section referred to as make recommendations to the Adminis- time) they are engaged in the performance of the ‘Account’). trator with respect to the administration of the functions of the Board, compensation at ‘‘(2) FUNDS.—The Account shall consist of parts C and D, including the review of pay- rates not to exceed the daily equivalent to such gifts and bequests as may be made as ment policies under such parts. the annual rate in effect for level IV of the provided in section 201(i)(1), and such ‘‘(2) REPORTS.— Executive Schedule under section 5315 of amounts as may be deposited in, or appro- ‘‘(A) IN GENERAL.—With respect to matters title 5, United States Code. priated to, the Account as provided in this of the administration of parts C and D, the ‘‘(6) TERMS OF OFFICE.— part. Board shall submit to Congress and to the ‘‘(A) IN GENERAL.—The term of office of ‘‘(3) SEPARATE FROM REST OF TRUST FUND.— Administrator such reports as the Board de- members of the Board shall be 3 years. Funds provided under this part to the Ac- termines appropriate. Each such report may ‘‘(B) TERMS OF INITIAL APPOINTEES.—As count shall be kept separate from all other contain such recommendations as the Board designated by the President at the time of funds within the Federal Supplementary determines appropriate for legislative or ad- appointment, of the members first ap- Medical Insurance Trust Fund. ministrative changes to improve the admin- pointed— ‘‘(b) PAYMENTS FROM ACCOUNT.— istration of such parts, including the sta- ‘‘(i) one shall be appointed for a term of 1 ‘‘(1) IN GENERAL.—The Managing Trustee bility and solvency of the programs under year; shall pay from time to time from the Ac- such parts and the topics described in sub- ‘‘(ii) three shall be appointed for terms of count such amounts as the Secretary cer- paragraph (B). Each such report shall be pub- 2 years; and tifies are necessary to make payments to op- lished in the Federal Register. ‘‘(iii) three shall be appointed for terms of erate the program under this part, including ‘‘(B) TOPICS DESCRIBED.—Reports required 3 years. payments to eligible entities under section under subparagraph (A) may include the fol- ‘‘(C) REAPPOINTMENTS.—Any person ap- 1860D–16, payments under 1860D–19 for low-in- lowing topics: pointed as a member of the Board may not come subsidy payments for cost-sharing, re- ‘‘(i) FOSTERING COMPETITION.—Rec- serve for more than 8 years. insurance payments under section 1860D–20, ommendations or proposals to increase com- ‘‘(D) VACANCY.—Any member appointed to and payments with respect to administrative petition under parts C and D for services fur- fill a vacancy occurring before the expira- expenses under this part in accordance with nished to medicare beneficiaries. tion of the term for which the member’s section 201(g). ‘‘(ii) EDUCATION AND ENROLLMENT.—Rec- predecessor was appointed shall be appointed ‘‘(2) TRANSFER TO PARTS A AND B TRUST ommendations for the improvement of ef- only for the remainder of that term. A mem- FUNDS FOR MEDICARE+CHOICE PAYMENTS.—The forts to provide medicare beneficiaries infor- ber may serve after the expiration of that Managing Trustee shall establish procedures

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00104 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7071 for the transfer of funds from the Account, under part B of title XVIII of the Social Se- spect to fiscal years beginning on or after in an amount determined appropriate by the curity Act but are not entitled to benefits the date of enactment of this Act. Secretary, to the Federal Hospital Insurance under part A of such title to buy into the (c) CONGRESSIONAL HEARINGS.—It is the Trust Fund and the Federal Supplementary medicare voluntary prescription drug deliv- sense of Congress that the committees of ju- Medical Insurance Trust Fund in order to re- ery program under part D of such title (as so risdiction of Congress shall hold hearings on imburse such trust funds for payments to added). the reports submitted under section 1817(l) of Medicare+Choice organizations for the provi- (b) REPORT.—Not later than January 1, the Social Security Act (as added by sub- sion of qualified prescription drug coverage 2004, the Administrator of the Medicare Com- section (a)). pursuant to section 1853(k). petitive Agency shall submit a report to SEC. 104. REFERENCE TO MEDIGAP PROVISIONS. ‘‘(3) TRANSFERS TO MEDICAID ACCOUNT FOR Congress on the study conducted under sub- For provisions related to medicare supple- INCREASED ADMINISTRATIVE COSTS.—The Man- section (a), together with any recommenda- mental policies under section 1882 of the So- aging Trustee shall transfer from time to tions for legislation that the Administrator cial Security Act (42 U.S.C. 1395ss), see sec- time from the Account to the Grants to determines to be appropriate as a result of tion 202. such study. States for Medicaid account amounts the SEC. 105. MEDICAID AMENDMENTS. Secretary certifies are attributable to in- SEC. 103. ADDITIONAL REQUIREMENTS FOR AN- (a) DETERMINATIONS OF ELIGIBILITY FOR NUAL FINANCIAL REPORT AND creases in payment resulting from the appli- OVERSIGHT ON MEDICARE PRO- LOW-INCOME SUBSIDIES.— cation of a higher Federal matching percent- GRAM. (1) REQUIREMENT.—Section 1902 (42 U.S.C. age under section 1935(b). (a) IN GENERAL.—Section 1817 (42 U.S.C. 1396a) is amended— ‘‘(4) TREATMENT IN RELATION TO PART B PRE- 1395i) is amended by adding at the end the (A) in subsection (a)— MIUM.—Amounts payable from the Account following new subsection: (i) by striking ‘‘and’’ at the end of para- shall not be taken into account in computing ‘‘(l) COMBINED REPORT ON OPERATION AND graph (64); actuarial rates or premium amounts under STATUS OF THE TRUST FUND AND THE FED- (ii) by striking the period at the end of section 1839. ERAL SUPPLEMENTARY MEDICAL INSURANCE paragraph (65) and inserting ‘‘; and’’; and ‘‘(c) DEPOSITS INTO ACCOUNT.— TRUST FUND (INCLUDING THE PRESCRIPTION (iii) by inserting after paragraph (65) the ‘‘(1) MEDICAID TRANSFER.—There is hereby DRUG ACCOUNT).—In addition to the duty of following new paragraph: transferred to the Account, from amounts the Board of Trustees to report to Congress ‘‘(66) provide for making eligibility deter- appropriated for Grants to States for Med- under subsection (b), on the date the Board minations under section 1935(a).’’. icaid, amounts equivalent to the aggregate submits the report required under subsection (2) NEW SECTION.—Title XIX (42 U.S.C. 1396 amount of the reductions in payments under (b)(2), the Board shall submit to Congress a et seq.) is amended— section 1903(a)(1) attributable to the applica- report on the operation and status of the (A) by redesignating section 1935 as section tion of section 1935(c). Trust Fund and the Federal Supplementary 1936; and ‘‘(2) APPROPRIATIONS TO COVER BENEFITS Medical Insurance Trust Fund established (B) by inserting after section 1934 the fol- AND ADMINISTRATIVE COSTS.—There are ap- under section 1841, including the Prescrip- lowing new section: tion Drug Account within such Trust Fund, propriated to the Account in a fiscal year, ‘‘SPECIAL PROVISIONS RELATING TO MEDICARE (in this subsection referred to as the ‘Trust out of any moneys in the Treasury not other- PRESCRIPTION DRUG BENEFIT wise appropriated, an amount equal to the Funds’). Such report shall include the fol- ‘‘SEC. 1935. (a) REQUIREMENT FOR MAKING amount by which— lowing information: ELIGIBILITY DETERMINATIONS FOR LOW-IN- ‘‘(A) the payments and transfers made ‘‘(1) OVERALL SPENDING FROM THE GENERAL COME SUBSIDIES.—As a condition of its State from the Account under subsection (b) in the FUND OF THE TREASURY.—A statement of total amounts obligated during the pre- plan under this title under section 1902(a)(66) year; exceed and receipt of any Federal financial assist- ‘‘(B) the premiums collected under section ceding fiscal year from the General Revenues of the Treasury to the Trust Funds, sepa- ance under section 1903(a), a State shall— 1860D–18 and 1853(k)(4) (for beneficiaries re- ‘‘(1) make determinations of eligibility for ceiving qualified prescription drug coverage rately stated in terms of the total amount and in terms of the percentage such amount premium and cost-sharing subsidies under under a Medicare+Choice plan).’’. (and in accordance with) section 1860D–19; (b) CONFORMING AMENDMENTS TO FEDERAL bears to all other amounts obligated from ‘‘(2) inform the Administrator of the Medi- SUPPLEMENTARY MEDICAL INSURANCE TRUST such General Revenues during such fiscal care Competitive Agency of such determina- FUND.—Section 1841 (42 U.S.C. 1395t) is year, for each of the following amounts: tions in cases in which such eligibility is es- amended— ‘‘(A) MEDICARE BENEFITS.—The amount ex- tablished; and (1) in the last sentence of subsection (a)— pended for payment of benefits covered ‘‘(3) otherwise provide such Administrator (A) by striking ‘‘and’’ before ‘‘such under this title. with such information as may be required to amounts’’; and ‘‘(B) ADMINISTRATIVE AND OTHER EX- carry out part D of title XVIII (including (B) by inserting before the period the fol- PENSES.—The amount expended for payments section 1860D–19). lowing: ‘‘, and such amounts as may be de- not related to the benefits described in sub- ‘‘(b) PAYMENTS FOR ADDITIONAL ADMINIS- posited in, or appropriated to, the Prescrip- paragraph (A). TRATIVE COSTS.— tion Drug Account established by section ‘‘(2) HISTORICAL OVERVIEW OF SPENDING.— ‘‘(1) IN GENERAL.—The amounts expended 1860D–26’’; From the date of the inception of the pro- by a State in carrying out subsection (a) are, (2) in subsection (g), by inserting after ‘‘by gram of insurance under this title through subject to paragraph (2), expenditures reim- this part,’’ the following: ‘‘the payments pro- the fiscal year involved, a statement of the bursable under the appropriate paragraph of vided for under part D (in which case the total amounts referred to in paragraph (1), section 1903(a); except that, notwithstanding payments shall be made from the Prescrip- separately stated for the amounts described any other provision of such section, the ap- tion Drug Account in the Trust Fund),’’; in subparagraphs (A) and (B) of such para- plicable Federal matching rates with respect (3) in subsection (h), by inserting after graph. to such expenditures under such section ‘‘1840(d)’’ the following: ‘‘and section 1860D– ‘‘(3) 10-YEAR AND 50-YEAR PROJECTIONS.—An shall be increased as follows: 18 (in which case the payments shall be made estimate of total amounts referred to in ‘‘(A) For expenditures attributable to costs from the Prescription Drug Account in the paragraph (1), separately stated for the incurred during 2005, the otherwise applica- Trust Fund)’’; and amounts described in subparagraphs (A) and ble Federal matching rate shall be increased (4) in subsection (i), by inserting after (B) of such paragraph, required to be obli- by 20 percent of the percentage otherwise ‘‘section 1840(b)(1)’’ the following: ‘‘, section gated for payment for benefits covered under payable (but for this subsection) by the 1860D–18 (in which case the payments shall this title for each of the 10 fiscal years suc- State. be made from the Prescription Drug Account ceeding the fiscal year involved and for the ‘‘(B) For expenditures attributable to costs in the Trust Fund),’’. 50-year period beginning with the succeeding incurred during 2006, the otherwise applica- (c) CONFORMING REFERENCES TO PREVIOUS fiscal year. ble Federal matching rate shall be increased PART D.—Any reference in law (in effect be- ‘‘(4) RELATION TO OTHER MEASURES OF by 40 percent of the percentage otherwise fore the date of enactment of this Act) to GROWTH.—A comparison of the rate of growth payable (but for this subsection) by the part D of title XVIII of the Social Security of the total amounts referred to in paragraph State. Act is deemed a reference to part F of such (1), separately stated for the amounts de- ‘‘(C) For expenditures attributable to costs title (as in effect after such date). scribed in subparagraphs (A) and (B) of such incurred during 2007, the otherwise applica- SEC. 102. STUDY AND REPORT ON PERMITTING paragraph, to the rate of growth for the same PART B ONLY INDIVIDUALS TO EN- period in— ble Federal matching rate shall be increased ROLL IN MEDICARE VOLUNTARY ‘‘(A) the gross domestic product; by 60 percent of the percentage otherwise PRESCRIPTION DRUG DELIVERY ‘‘(B) health insurance costs in the private payable (but for this subsection) by the PROGRAM. sector; State. (a) STUDY.—The Administrator of the ‘‘(C) employment-based health insurance ‘‘(D) For expenditures attributable to costs Medicare Competitive Agency (as established costs in the public and private sectors; and incurred during 2008, the otherwise applica- under section 1860D–25 of the Social Security ‘‘(D) other areas as determined appropriate ble Federal matching rate shall be increased Act (as added by section 301(a))) shall con- by the Board of Trustees.’’. by 80 percent of the percentage otherwise duct a study on the need for rules relating to (b) EFFECTIVE DATE.—The amendment payable (but for this subsection) by the permitting individuals who are enrolled made by subsection (a) shall apply with re- State.

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‘‘(E) For expenditures attributable to costs (1) IN GENERAL.—Section 1935, as added by (A) in paragraph (1), by striking ‘‘17’’ and incurred after 2008, the otherwise applicable subsection (a)(2) and amended by subsections inserting ‘‘19’’; and Federal matching rate shall be increased to (b)(2) and (c), is amended— (B) in paragraph (2)(B), by inserting ‘‘ex- 100 percent. (A) in subsection (a) in the matter pre- perts in the area of pharmacology and pre- ‘‘(2) COORDINATION.—The State shall pro- ceding paragraph (1), by inserting ‘‘subject scription drug benefit programs,’’ after vide the Secretary with such information as to subsection (e)’’ after ‘‘section 1903(a)’’; ‘‘other health professionals,’’. may be necessary to properly allocate ad- (B) in subsection (c)(1), by inserting ‘‘sub- (2) INITIAL TERMS OF ADDITIONAL MEM- ministrative expenditures described in para- ject to subsection (e)’’ after ‘‘1903(a)(1)’’; and BERS.— graph (1) that may otherwise be made for (C) by adding at the end the following new (A) IN GENERAL.—For purposes of stag- similar eligibility determinations.’’. subsection: gering the initial terms of members of the (b) PHASED-IN FEDERAL ASSUMPTION OF ‘‘(e) TREATMENT OF TERRITORIES.— Medicare Payment Advisory Commission MEDICAID RESPONSIBILITY FOR PREMIUM AND ‘‘(1) IN GENERAL.—In the case of a State, under section 1805(c)(3) of the Social Secu- COST-SHARING SUBSIDIES FOR DUALLY ELIGI- other than the 50 States and the District of rity Act (42 U.S.C. 1395b–6(c)(3)), the initial BLE INDIVIDUALS.— Columbia— terms of the 2 additional members of the (1) IN GENERAL.—Section 1903(a)(1) (42 ‘‘(A) the previous provisions of this section Commission provided for by the amendment U.S.C. 1396b(a)(1)) is amended by inserting shall not apply to residents of such State; under paragraph (1)(A) are as follows: before the semicolon the following: ‘‘, re- and (i) One member shall be appointed for 1 duced by the amount computed under sec- ‘‘(B) if the State establishes a plan de- year. tion 1935(c)(1) for the State and the quarter’’. scribed in paragraph (2) (for providing med- (ii) One member shall be appointed for 2 (2) AMOUNT DESCRIBED.—Section 1935, as ical assistance with respect to the provision years. added by subsection (a)(2), is amended by of prescription drugs to medicare bene- (B) COMMENCEMENT OF TERMS.—Such terms adding at the end the following new sub- ficiaries), the amount otherwise determined shall begin on January 1, 2004. section: under section 1108(f) (as increased under sec- (b) EXPANSION OF DUTIES.—Section ‘‘(c) FEDERAL ASSUMPTION OF MEDICAID tion 1108(g)) for the State shall be increased 1805(b)(2) (42 U.S.C. 1395b–6(b)(2)) is amended PRESCRIPTION DRUG COSTS FOR DUALLY-ELI- by the amount specified in paragraph (3). by adding at the end the following new sub- GIBLE BENEFICIARIES.— ‘‘(2) PLAN.—The plan described in this paragraph: ‘‘(1) IN GENERAL.—For purposes of section paragraph is a plan that— ‘‘(D) VOLUNTARY PRESCRIPTION DRUG DELIV- 1903(a)(1), for a State for a calendar quarter ‘‘(A) provides medical assistance with re- ERY PROGRAM.—Specifically, the Commission in a year (beginning with 2005) the amount spect to the provision of covered drugs (as shall review, with respect to the voluntary computed under this subsection is equal to defined in section 1860D(a)(2)) to low-income prescription drug delivery program under the product of the following: medicare beneficiaries; and part D, competition among eligible entities ‘‘(A) STANDARD PRESCRIPTION DRUG COV- ‘‘(B) assures that additional amounts re- offering Medicare Prescription Drug plans ERAGE UNDER MEDICARE.—With respect to in- ceived by the State that are attributable to and beneficiary access to such plans and cov- dividuals who are residents of the State and the operation of this subsection are used ered drugs, particularly in rural areas.’’. are entitled to benefits with respect to pre- only for such assistance. SEC. 107. MISCELLANEOUS ADMINISTRATIVE scribed drugs under the State plan under this ‘‘(3) INCREASED AMOUNT.— PROVISIONS. title (including such a plan operating under ‘‘(A) IN GENERAL.—The amount specified in (a) ADMINISTRATOR AS MEMBER OF THE a waiver under section 1115)— this paragraph for a State for a year is equal BOARD OF TRUSTEES OF THE MEDICARE TRUST ‘‘(i) the total amount of payments made to the product of— FUNDS.—Sections 1817(b) and 1841(b) (42 (or not collected from the individuals) in the ‘‘(i) the aggregate amount specified in sub- U.S.C. 1395i(b), 1395t(b)) are each amended by quarter under section 1860D–19 (relating to paragraph (B); and striking ‘‘and the Secretary of Health and premium and cost-sharing prescription drug ‘‘(ii) the amount specified in section Human Services, all ex officio,’’ and insert- subsidies for low-income medicare bene- 1108(g)(1) for that State, divided by the sum ing ‘‘the Secretary of Health and Human ficiaries) that are attributable to such indi- of the amounts specified in such section for Services, and the Administrator of the Medi- viduals; and all such States. care Competitive Agency, all ex officio,’’. ‘‘(ii) the actuarial value of standard cov- ‘‘(B) AGGREGATE AMOUNT.—The aggregate (b) INCREASE IN GRADE TO EXECUTIVE LEVEL erage (as determined under section 1860D– amount specified in this subparagraph for— III FOR THE ADMINISTRATOR OF THE CENTERS 6(f)) provided for all such individuals. ‘‘(i) 2005, is equal to $20,000,000; or FOR MEDICARE & MEDICAID SERVICES.— ‘‘(B) STATE MATCHING RATE.—A proportion ‘‘(ii) a subsequent year, is equal to the ag- (1) IN GENERAL.—Section 5314 of title 5, computed by subtracting from 100 percent gregate amount specified in this subpara- United States Code, is amended by adding at the Federal medical assistance percentage graph for the previous year increased by the the end the following: (as defined in section 1905(b)) applicable to annual percentage increase specified in sec- ‘‘Administrator of the Centers for Medi- the State and the quarter. tion 1860D–6(c)(5) for the year involved. care & Medicaid Services.’’. ‘‘(C) PHASE-OUT PROPORTION.—The phase- ‘‘(4) REPORT.—The Secretary shall submit (2) CONFORMING AMENDMENT.—Section 5315 out proportion (as defined in paragraph (2)) to Congress a report on the application of of such title is amended by striking ‘‘Admin- for the quarter. this subsection and may include in the re- istrator of the Health Care Financing Ad- ‘‘(2) PHASE-OUT PROPORTION.—For purposes port such recommendations as the Secretary ministration.’’. of paragraph (1)(C), the ‘phase-out propor- deems appropriate.’’. (3) EFFECTIVE DATE.—The amendments tion’ for a calendar quarter in— (2) CONFORMING AMENDMENT.—Section made by this subsection take effect on ‘‘(A) 2005 is 90 percent; 1108(f) (42 U.S.C. 1308(f)) is amended by in- March 1, 2003. ‘‘(B) 2006 is 80 percent; serting ‘‘and section 1935(e)(1)(B)’’ after TITLE II—OPTION FOR ENHANCED ‘‘(C) 2007 is 70 percent; ‘‘Subject to subsection (g)’’. MEDICARE BENEFITS ‘‘(D) 2008 is 60 percent; or (e) AMENDMENT TO BEST PRICE.—Section SEC. 201. OPTION FOR ENHANCED MEDICARE ‘‘(E) a year after 2008 is 50 percent.’’. 1927(c)(1)(C)(i) (42 U.S.C. 1396r–8(c)(1)(C)(i)) is BENEFITS. (c) MEDICAID PROVIDING WRAP-AROUND amended— (a) ESTABLISHMENT.—Title XVIII (42 U.S.C. BENEFITS.—Section 1935, as added by sub- (1) by striking ‘‘and’’ at the end of sub- 1395 et seq.), as amended by section 101, is section (a)(2) and amended by subsection clause (III); amended by inserting after part D the fol- (b)(2), is amended by adding at the end the (2) by striking the period at the end of sub- lowing new part: following new subsection: clause (IV) and inserting ‘‘; and’’; and ‘‘PART E—ENHANCED MEDICARE BENEFITS ‘‘(d) ADDITIONAL PROVISIONS.— (3) by adding at the end the following new ‘‘(1) MEDICAID AS SECONDARY PAYOR.—In the subclause: ‘‘ENTITLEMENT TO ELECT TO RECEIVE case of an individual who is enrolled under ‘‘(V) any prices charged which are nego- ENHANCED MEDICARE BENEFITS part D of title XVIII and entitled to medical tiated under a Medicare Prescription Drug ‘‘SEC. 1860E–1. (a) IN GENERAL.—The Sec- assistance for prescribed drugs under this plan under part D of title XVIII with respect retary shall establish procedures under title, medical assistance shall continue to be to covered drugs, under a Medicare+Choice which each eligible beneficiary shall be enti- provided under this title for prescribed drugs plan under part C of such title with respect tled to elect to receive enhanced medicare to the extent payment is not made under the to such drugs, or under a qualified retiree benefits under this part instead of the bene- Medicare Prescription Drug plan or the prescription drug plan (as defined in section fits under parts A and B. Medicare+Choice plan selected by the indi- 1860D–20(f)(1)) with respect to such drugs, on ‘‘(b) ENHANCED MEDICARE BENEFITS TO BE vidual to receive part D benefits. behalf of eligible beneficiaries (as defined in AVAILABLE IN 2005.—The Secretary shall es- ‘‘(2) CONDITION.—A State may require, as a section 1860D(a)(3).’’. tablish the procedures under subsection (a) condition for the receipt of medical assist- SEC. 106. EXPANSION OF MEMBERSHIP AND DU- in a manner such that enhanced medicare ance under this title with respect to pre- TIES OF MEDICARE PAYMENT ADVI- benefits are first provided for months begin- scription drug benefits for an individual eli- SORY COMMISSION (MEDPAC). ning with January 2005. gible to enroll in part D, that the individual (a) EXPANSION OF MEMBERSHIP.— ‘‘(c) PRESERVATION OF ORIGINAL MEDICARE elect to enroll under such part.’’. (1) IN GENERAL.—Section 1805(c) (42 U.S.C. FEE-FOR-SERVICE BENEFITS.—Nothing in this (d) TREATMENT OF TERRITORIES.— 1395b–6(c)) is amended— part shall be construed to limit the right of

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an individual who is entitled to benefits ‘‘(A) IN GENERAL.—The amount of the seri- ‘‘(e) ELIMINATION OF COST-SHARING FOR under part A or enrolled under part B to re- ous illness protection threshold under this PREVENTIVE HEALTH CARE ITEMS AND SERV- ceive benefits under such part if an election subsection shall be— ICES.— to receive enhanced medicare benefits under ‘‘(i) for 2005, $6,000; or ‘‘(1) IN GENERAL.—In the case of an eligible this part is not in effect with respect to such ‘‘(ii) for a subsequent year, the amount beneficiary who has elected to receive en- individual. specified in this subparagraph for the pre- hanced medicare benefits under this part, ceding year increased by the percentage in- the unified deductible under subsection (b) ‘‘SCOPE OF ENHANCED MEDICARE BENEFITS crease in the per capita actuarial value of and deductibles and the coinsurance other- ‘‘SEC. 1860E–2. (a) IN GENERAL.—Except for benefits under parts A and B for such subse- wise applicable under subsections (a) and (b) the modifications described in the suc- quent year. of section 1833 shall not be applied with re- ceeding provisions of this section, enhanced ‘‘(B) ROUNDING.—If any amount determined spect to expenses incurred for any preventive medicare benefits shall be identical to the under subparagraph (A) is not a multiple of health care items and services (and no benefits that are available under parts A and $1, such amount shall be rounded to the near- charges may be imposed under section B. est multiple of $1. 1866(a)(2) where such deductibles and coin- ‘‘(b) UNIFIED DEDUCTIBLE.— ‘‘(3) OUT-OF-POCKET COST-SHARING DE- surance are not imposed). ‘‘(1) IN GENERAL.—In the case of an eligible FINED.—In this subsection, the term ‘out-of- ‘‘(2) PREVENTIVE HEALTH CARE ITEMS AND beneficiary who has elected to receive en- pocket cost-sharing’ means, with respect to SERVICES DEFINED.—In this subsection, the hanced medicare benefits under this part— an eligible beneficiary, the amount of costs term ‘preventive health care items and serv- ‘‘(A) the amount otherwise payable under incurred by the beneficiary that are attrib- ices’ means any of the following health care part A and the total amount of expenses in- utable to deductibles, coinsurance, and co- items and services: curred by an eligible beneficiary during a payments imposed under part A or B (as ‘‘(A) Screening mammography under sec- year which would (except for this section) modified by this part), without regard to tion 1861(s)(13). constitute incurred expenses from which whether the beneficiary or another person, ‘‘(B) Screening pap smear and screening benefits payable under section 1833(a) are de- including a State program or other third- pelvic examinations under section 1861(s)(14). terminable, shall be reduced under sections party coverage, has paid for such costs. ‘‘(C) Bone mass measurement under sec- 1813(b) and 1833(b) by the amount of the uni- ‘‘(d) ENHANCED HOSPITAL BENEFITS.— tion 1861(s)(15). fied deductible under paragraph (2); and ‘‘(1) ELIMINATION OF DURATIONAL LIMITS ON ‘‘(D) Prostate cancer screening tests under ‘‘(B) the eligible beneficiary shall be re- INPATIENT HOSPITAL SERVICES.—In the case of section 1861(s)(2)(P). sponsible for the payment of such amount. an eligible beneficiary who has elected to re- ‘‘(E) Colorectal cancer screening under sec- ‘‘(2) AMOUNT OF UNIFIED DEDUCTIBLE.— ceive enhanced medicare benefits under this tion 1861(s)(2)(R). ‘‘(A) IN GENERAL.—The amount of the uni- part— ‘‘(F) Blood testing strips, lancets, and fied deductible under this subsection shall ‘‘(A) there shall be no spell of illness limit blood glucose monitors for individuals with be— or lifetime limit on inpatient hospital serv- diabetes under section 1861(n). ‘‘(i) for 2005, $300; or ices under subsections (a)(1) and (b)(1) of sec- ‘‘(G) Diabetes outpatient self-management ‘‘(ii) for a subsequent year, the amount tion 1812 during the period in which the elec- training services under section 1861(s)(2)(S). specified in this subparagraph for the pre- tion of the beneficiary to receive enhanced ‘‘(H) Pneumococcal, influenza, and hepa- ceding year increased by the percentage in- medicare benefits under this part is in effect; titis B vaccines and administration under crease in the per capita actuarial value of and section 1861(s)(10). benefits under parts A and B for such subse- ‘‘(B) section 1812(c) shall not be applied ‘‘(I) Screening for glaucoma under section quent year. during such period. 1861(s)(2)(U). ‘‘(B) ROUNDING.—If any amount determined ‘‘(2) REVISION OF INPATIENT HOSPITAL COIN- ‘‘(J) Medical nutrition therapy services under subparagraph (A) is not a multiple of SURANCE.— under section 1861(s)(2)(V). $1, such amount shall be rounded to the near- ‘‘(A) IN GENERAL.—In the case of an eligible ‘‘(f) SIMPLIFICATION OF COST-SHARING.—In est multiple of $1. beneficiary who has elected to receive en- the case of an eligible beneficiary who has ‘‘(3) APPLICATION.—The unified deductible hanced medicare benefits under this part, elected to receive enhanced medicare bene- under this subsection for a year shall be ap- after the application of the unified deduct- fits under this part, the following cost-shar- plied— ible under subsection (b), instead of imposing ing rules shall apply: ‘‘(A) with respect to benefits under part A, any coinsurance under the second sentence ‘‘(1) MODIFICATION OF SKILLED NURSING FA- on the basis of the amount that is payable of section 1813(a)(1), the amount payable CILITY COST-SHARING.—Instead of the coinsur- for such benefits without regard to any other under part A for inpatient hospital services ance established under section 1813(b) for ex- copayments or coinsurance and before the or inpatient critical access hospital services tended care services, under section 1888(e)— application of any such copayments or coin- furnished to the eligible beneficiary during ‘‘(A) the payment amount under paragraph surance; any year, shall be reduced by the amount of (1)(B) of such section shall be equal to the ‘‘(B) with respect to benefits under part B, the inpatient hospital copayment specified amount otherwise provided minus the on the basis of the total amount of the ex- in subparagraph (B) for each period of hos- amount described in subparagraph (B); and penses incurred by an eligible beneficiary pitalization and the beneficiary shall be re- ‘‘(B) the eligible beneficiary shall be re- during a year which would, except for the ap- sponsible for payment of such amount for sponsible for a copayment amount for each plication of the deductible, constitute in- each such period. of the 100 days of care for which payment is curred expenses from which benefits payable ‘‘(B) AMOUNT OF INPATIENT HOSPITAL COPAY- made on behalf of an eligible beneficiary under section 1833(a) are determinable, with- MENT.— under that section equal to— out regard to any other copayments or coin- ‘‘(i) IN GENERAL.—The amount of the inpa- ‘‘(i) for 2005, $60; and surance and before the application of any tient hospital copayment under this para- ‘‘(ii) for a subsequent year, the amount such copayments or coinsurance; and graph shall be— specified in this subparagraph for the pre- ‘‘(C) instead of the deductibles described in ‘‘(I) for 2005, $400; or ceding year increased by the percentage in- sections 1813(b) and 1833(b). ‘‘(II) for a subsequent year, the amount crease in the per capita actuarial value of ‘‘(c) SERIOUS ILLNESS PROTECTION.— specified in this clause for the preceding benefits under parts A and B for such subse- ‘‘(1) IN GENERAL.—In the case of an eligible year increased by the percentage increase in quent year. beneficiary who has elected to receive en- the per capita actuarial value of benefits If any amount determined under this sub- hanced medicare benefits under this part, if under parts A and B for such subsequent paragraph is not a multiple of $1, such the amount of the out-of-pocket cost-sharing year. amount shall be rounded to the nearest mul- of such beneficiary for a calendar year equals ‘‘(ii) ROUNDING.—If any amount determined tiple of $1. or exceeds the serious illness protection under clause (i) is not a multiple of $1, such ‘‘(2) APPLICATION OF HOME HEALTH SERVICE threshold for that year— amount shall be rounded to the nearest mul- COINSURANCE.— ‘‘(A) the beneficiary shall not be respon- tiple of $1. ‘‘(A) IN GENERAL.—The amount of the pay- sible for additional out-of-pocket cost-shar- ‘‘(C) PERIOD OF HOSPITALIZATION DEFINED.— ment otherwise made under section 1895 for ing incurred during that year; and In this subsection, the term ‘period of hos- home health services (other than such serv- ‘‘(B) the Secretary shall establish proce- pitalization’ means the period that begins on ices for which payment is made under sec- dures under which the Secretary shall pay on the date that the eligible beneficiary is ad- tion 1834(a)) shall be reduced by the amount behalf of the beneficiary the amount of the mitted to the hospital and ends on the date described in clause (ii). additional out-of-pocket cost-sharing de- on which the beneficiary has not been hos- ‘‘(B) COPAYMENT AMOUNT.— scribed in subparagraph (A) from the Federal pitalized for a 72-hour period. ‘‘(i) IN GENERAL.—Subject to clause (ii), the Hospital Insurance Trust Fund and the Fed- ‘‘(D) COLLECTION OF COPAYMENTS.—For pur- eligible beneficiary shall be responsible for a eral Supplementary Medical Insurance Trust poses of section 1866(a)(2)(A), hospitals shall copayment amount for each of the first 5 vis- Fund, in such proportion as the Secretary substitute the imposition of the inpatient its during an episode of care for which pay- determines appropriate. hospital copayment under this paragraph for ment is made on behalf of an eligible bene- ‘‘(2) SERIOUS ILLNESS PROTECTION THRESH- the hospital coinsurance described in the ficiary under section 1895 equal to— OLD.— second sentence of section 1813(a)(1). ‘‘(I) for 2005, $10; and

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‘‘(II) for a subsequent year, the amount ‘‘(2) SPECIAL ELECTION PERIODS.—The Sec- Secretary determines is actuarially sound specified in this clause for the preceding retary shall establish special election peri- (based on the financial impact on the pro- year increased by the percentage increase in ods for individuals under this part who have gram under this part of the late election of the per capita actuarial value of benefits elected not to make an election (or to be the beneficiary or of the reinstatement of an under parts A and B for such subsequent deemed to have made such an election) under election of the beneficiary) for each full 12- year. this part that are similar to the special en- month period (in the same continuous period If any amount determined under this clause rollment periods under section 1837(i) for in- of eligibility) in which the eligible bene- is not a multiple of $1, such amount shall be dividuals described in such section. ficiary could have elected to receive en- rounded to the nearest multiple of $1. ‘‘(3) TRANSITIONAL ELECTION FOR INDIVID- hanced medicare benefits under this part but ‘‘(ii) ANNUAL LIMIT.—For each year in UALS WHO BECOME ELIGIBLE BENEFICIARIES ON did not elect to receive such benefits. which an election to receive enhanced medi- OR BEFORE JANUARY 1, 2005.— ‘‘(2) PROCEDURES.—In applying the late care benefits under this part is in effect, the ‘‘(A) IN GENERAL.—In the case of an indi- election penalty under paragraph (1), the eligible beneficiary shall not be responsible vidual who is an eligible beneficiary as of Secretary shall establish procedures for ap- for the payment of any copayment amount January 1, 2005, the Secretary shall establish plying the penalty under this subsection under this subparagraph after the date on procedures under which such beneficiary that are similar to the procedures for apply- which the amount of payments made as a re- may affirmatively elect to receive enhanced ing the late enrollment penalty under sec- sult of the application of this paragraph medicare benefits under this part during the tion 1839(b). equals $300. 7-month period that begins on April 1, 2004, ‘‘(c) LATE REVERSAL OF ELECTION PEN- ALTY.— ‘‘(3) BLOOD DEDUCTIBLE.—The Secretary and ends on November 30, 2004, for such elec- ‘‘(1) IN GENERAL.—In the case of an eligible shall not apply the deductible under sections tion to take effect on January 1, 2005. beneficiary who has elected to receive en- 1813(a)(2) and 1833(b) for blood or blood cells ‘‘(B) EFFECT OF MEDICARE+CHOICE ENROLL- hanced medicare benefits under this part and furnished to an eligible beneficiary during MENT.—If an eligible beneficiary enrolls in a terminates such election under the proce- the period in which an election of the bene- Medicare+Choice plan under part C during dures established under section 1860E–4(b)(5) ficiary to receive enhanced medicare benefits November 2004, such individual shall be on a date that is more than 1 year after the under this part is in effect. deemed to have elected to receive enhanced date on which such beneficiary first elected ‘‘PAYMENT OF BENEFITS medicare benefits under subparagraph (A). ‘‘(4) CHANGES IN ELECTION.— to receive enhanced medicare benefits under ‘‘SEC. 1860E–3. Payment for enhanced medi- ‘‘(A) IN GENERAL.—An individual who has this part, the premium otherwise imposed care benefits on behalf of an eligible bene- under part B (taking into account any late ficiary who has elected to receive such bene- elected (or is deemed to have elected) to re- ceive enhanced medicare benefits under this enrollment penalty under section 1839(b)) fits under this part shall be made in the shall be increased during the period in which same manner as payment for such benefits part under paragraph (1), (2), or (3) may change such election during an annual, co- such individual is enrolled under such part would have been made under parts A and B, by an amount that the Secretary determines subject to the modifications described in sec- ordinated election period and such election shall take effect on January 1 of the subse- is actuarially sound based on the financial tion 1860E–2, from the Federal Hospital In- impact on the program under this part of the surance Trust Fund and the Federal Supple- quent year. In no case shall such a change of reversal of the election of the beneficiary. mentary Medical Insurance Trust Fund, in election take effect on a date other than on ‘‘(2) PROCEDURES.—In applying the late re- such proportion as the Secretary determines January 1 of a year (unless the election is versal of election penalty under paragraph appropriate. automatic pursuant to a termination result- (1), the Secretary shall establish procedures ‘‘ELIGIBLE BENEFICIARIES; ELECTION OF EN- ing from a loss or termination of coverage under part A or part B). for applying the penalty under this sub- HANCED MEDICARE BENEFITS; TERMINATION section that are similar to the procedures for OF ELECTION ‘‘(B) ANNUAL, COORDINATED ELECTION PE- RIOD.—For purposes of this section, the term applying the late enrollment penalty under ‘‘SEC. 1860E–4. (a) ELIGIBLE BENEFICIARY ‘annual, coordinated election period’ means, section 1839(b).’’. DEFINED.—For purposes of this part, the with respect to a calendar year (beginning (b) PROVIDING INFORMATION TO BENE- term ‘eligible beneficiary’ has the meaning FICIARIES.—During 2004, the Secretary shall with 2005), the month of November preceding given that term in section 1860D(a)(3). provide for an extensive, national edu- such year. ‘‘(b) ELECTION OF ENHANCED MEDICARE BEN- cational and publicity campaign to inform ‘‘(5) PROCEDURES.—The Secretary shall es- EFITS.— eligible beneficiaries (and prospective eligi- tablish procedures for the termination and ‘‘(1) ELECTION BY INDIVIDUALS WHO BECOME ble beneficiaries) regarding the enhanced ELIGIBLE BENEFICIARIES AFTER JANUARY 1, reinstatement of an election under this sec- medicare benefits to be made available under 2005.— tion. part E of title XVIII of the Social Security ‘‘(c) COVERAGE TERMINATED BY TERMI- ‘‘(A) INITIAL ELECTION.—Any individual Act (as added by subsection (a)). whose initial election period begins after NATION OF COVERAGE UNDER PART A OR B.— (c) CONFORMING ADJUSTMENTS TO PART A September 30, 2004, shall be deemed to have ‘‘(1) IN GENERAL.—The Secretary shall ter- AND B PREMIUMS.— elected to receive enhanced medicare bene- minate an individual’s coverage under this (1) EFFECT OF PART E ON PART A PREMIUM.— fits under this part as of the date on which part if the individual is no longer enrolled in Section 1818(d)(1) (42 U.S.C. 1395i–2(d)(1)) is such individual first becomes entitled to both parts A and B. amended by adding at the end the following benefits under part A or eligible to enroll for ‘‘(2) EFFECTIVE DATE.—The termination de- new sentence: ‘‘In making the estimate benefits under part B, whichever is later, un- scribed in subparagraph (A) shall be effective under the previous sentence, the Secretary less that individual affirmatively elects (in on the effective date of termination of cov- shall take into account the effect of elec- such form and manner as the Secretary may erage under part A or (if earlier) under part tions to receive enhanced medicare benefits specify) to receive benefits under parts A and B. under part E on the amounts paid from such B. ‘‘PREMIUM ADJUSTMENTS; LATE ELECTION Trust Fund.’’. ‘‘(B) INITIAL ELECTION PERIOD.—For pur- PENALTY (2) EFFECT OF PART E ON PART B PREMIUM.— poses of this paragraph, the term ‘initial ‘‘SEC. 1860E–5. (a) GENERAL RULE OF NO Section 1839(a) (42 U.S.C. 1395r(a)) is amend- election period’ means, with respect to an in- CHANGE IN AMOUNT OF PREMIUMS.—Except as ed— dividual, the period that begins on the first provided in this section, an election to re- (A) in paragraph (1)— day of the third month before the month in ceive enhanced medicare benefits under this (i) by inserting ‘‘(including eligible bene- which such individual first becomes entitled part shall not affect the amount of any pre- ficiaries who elect to receive enhanced medi- to benefits under part A or eligible to enroll mium charged under part A or B. care benefits under part E)’’ after ‘‘age 65 for benefits under part B, whichever is later, ‘‘(b) LATE ELECTION PENALTY.— and over’’; and and ends 7 months later. ‘‘(1) IN GENERAL.—In the case of an eligible (ii) by inserting ‘‘(including eligible bene- ‘‘(C) EFFECT OF ELECTION.—If an individual beneficiary who does not elect to receive en- ficiaries who elect to receive enhanced medi- makes an election under subparagraph (A) hanced medicare benefits under this part care benefits under part E)’’ after ‘‘age 65 and such individual is not entitled to bene- during an election period described in para- and older’’; fits under part A or enrolled for benefits graph (1), (2), or (3) of section 1860E–4(b) of (B) in paragraph (2), by inserting ‘‘, as ad- under part B at the time of such election, that beneficiary, reinstates such an election justed under section 1860E–5’’ before the pe- such individual shall be deemed— under the procedures established under para- riod at the end; ‘‘(i) to have elected to enroll for benefits graph (5) of such section, or otherwise does (C) in paragraph (3)— under such part under section 1818 or 1837 (as not have such an election continuously in ef- (i) by inserting ‘‘(including eligible bene- appropriate) if such individual is eligible to fect from the first date on which such elec- ficiaries who elect to receive enhanced medi- enroll for benefits under such section, as of tion could be in effect, the premium other- care benefits under part E)’’ after ‘‘age 65 the date of such election; or wise imposed under part B (taking into ac- and over’’; and ‘‘(ii) if such individual is not eligible to en- count any late enrollment penalty under sec- (ii) by inserting ‘‘(including eligible bene- roll for benefits under section 1818 or 1837, to tion 1839(b)) shall be increased during the pe- ficiaries who elect to receive enhanced medi- have elected to enroll under part B as of the riod in which such individual has an election care benefits under part E)’’ after ‘‘age 65 first date on which the individual is eligible to receive enhanced medicare benefits under and older’’; and to enroll under such part. this part in effect by an amount that the (D) in paragraph (4)—

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(i) in the first sentence, by inserting ‘‘(in- ‘‘(C) ENFORCEMENT.—The provisions of sub- ‘‘(II) AVAILABILITY LIMITED TO BENE- cluding eligible beneficiaries who elect to re- paragraph (A) shall be enforced as though FICIARIES THAT ENROLLED IN PART E DURING ceive enhanced medicare benefits under part they were included in subsection (s). CERTAIN PERIODS.—The benefit package that E)’’ after ‘‘under age 65’’; and ‘‘(3) NOTICE REQUIRED TO BE PROVIDED TO includes the coverage described in subclause (ii) in the second sentence, by striking CURRENT POLICYHOLDERS WITH PRESCRIPTION (II) shall only be made available to bene- ‘‘under age 65 which’’ and inserting ‘‘under DRUG COVERAGE.— ficiaries who elect to receive enhanced medi- age 65 (including eligible beneficiaries who ‘‘(A) IN GENERAL.—No medicare supple- care benefits under part E during the bene- elect to receive enhanced medicare benefits mental policy of an issuer shall be deemed to ficiary’s initial election period (as defined in under part E)’’. meet the standards in subsection (c) unless paragraph (1)(B) of section 1860D–4(b)), dur- (d) CLARIFICATION OF APPLICATION OF EX- the issuer provides written notice during the ing a special election period described in CLUSIONS FROM COVERAGE TO PART E.—Sec- 60-day period immediately preceding the pe- paragraph (2) of such section, or during the tion 1862(a) (42 U.S.C. 1395y(a)) is amended in riod established for the open enrollment pe- transitional election period under paragraph the matter preceding paragraph (1) by insert- riod established under section 1860D–2(b)(2), (3) of such section. ing ‘‘(including for enhanced medicare bene- to each individual who is a policyholder or ‘‘(B) MANNER OF ESTABLISHMENT.—The ben- fits under part E)’’ after ‘‘for items or serv- certificate holder of a medicare supple- efit packages established under this section ices’’. mental policy issued by that issuer that pro- shall be established in the manner described SEC. 202. RULES RELATING TO MEDIGAP POLI- vides some coverage of expenses for prescrip- in subparagraph (E) of subsection (p)(1), ex- CIES THAT PROVIDE PRESCRIPTION tion drugs (at the most recent available ad- cept that for purposes of subparagraph (C) of DRUG COVERAGE; ESTABLISHMENT dress of that individual) of— such subsection, the standards established OF ENHANCED MEDICARE FEE-FOR- under this subsection shall take effect not SERVICE MEDIGAP POLICIES. ‘‘(i) the ability to enroll in a new medicare later than January 1, 2005. (a) RULES RELATING TO MEDIGAP POLICIES supplemental policy pursuant to paragraph ‘‘(2) CONSTRUCTION OF BENEFITS IN OTHER THAT PROVIDE PRESCRIPTION DRUG COV- (2); and MEDICARE SUPPLEMENTAL POLICIES.—Nothing ERAGE.—Section 1882 (42 U.S.C. 1395ss) is ‘‘(ii) the fact that, so long as such indi- in this subsection shall be construed to af- amended by adding at the end the following vidual retains coverage under such policy, fect the benefit packages classified as ‘A’ new subsection: the individual shall be ineligible for coverage ‘‘(v) RULES RELATING TO MEDIGAP POLICIES of prescription drugs under part D and ineli- through ‘J’ under the standards established THAT PROVIDE PRESCRIPTION DRUG COV- gible to elect to receive enhanced medicare by subsection (p)(2) (including the benefit ERAGE.— benefits under part E. packages classified as ‘F’ and ‘J’ with a high ‘‘(1) PROHIBITION ON SALE, ISSUANCE, AND ‘‘(B) COORDINATION.—The notice provided deductible feature, as described in subsection RENEWAL OF POLICIES THAT PROVIDE PRESCRIP- under subparagraph (A) shall be coordinated (p)(11)). ‘‘(3) GUARANTEED ISSUANCE AND RENEWAL OF TION DRUG COVERAGE TO PART D ENROLLEES.— with the notice required under subsection ENHANCED MEDICARE FEE-FOR-SERVICE SUPPLE- ‘‘(A) IN GENERAL.—Notwithstanding any (v)(4)(A)(i). MENTAL POLICIES.—The provisions of sub- other provision of law, on or after January 1, ‘‘(4) CLARIFICATION REGARDING ONE-TIME sections (q) and (s), including provisions of 2005, no medicare supplemental policy that AVAILABILITY OF A GUARANTEED ISSUE POLICY subsection (s)(3) (relating to special enroll- provides coverage of expenses for prescrip- FOR BENEFICIARIES WHO LOSE COVERAGE UNDER ment periods in cases of termination or tion drugs may be sold, issued, or renewed A MEDICARE+CHOICE PLAN OF JANUARY 1, 2005, disenrollment), shall apply to medicare sup- under this section to an individual who is en- BECAUSE THEY ELECT NOT TO RECEIVE EN- plemental policies established under this rolled under part D. HANCED PART E BENEFITS.—In the case of a subsection in a similar manner as such pro- ‘‘(B) PENALTIES.—The penalties described beneficiary who is enrolled in a visions apply to medicare supplemental poli- in subsection (d)(3)(A)(ii) shall apply with re- Medicare+Choice plan as of December 31, cies issued under the standards established spect to a violation of subparagraph (A). 2004, will not be eligible to be enrolled under under subsection (p). ‘‘(2) ISSUANCE OF SUBSTITUTE POLICIES IF such plan as of January 1, 2005, because the ‘‘(4) OPPORTUNITY OF CURRENT POLICY- THE POLICYHOLDER OBTAINS PRESCRIPTION beneficiary has elected not to receive en- HOLDERS TO PURCHASE ENHANCED MEDICARE DRUG COVERAGE UNDER PART D.— hanced medicare benefits under part E— FEE-FOR-SERVICE SUPPLEMENTAL POLICIES.— ‘‘(A) IN GENERAL.—The issuer of a medicare ‘‘(A) such beneficiary shall be deemed to be ‘‘(A) REQUIREMENTS FOR ISSUERS OF POLI- supplemental policy— described in subsection (s)(3)(B)(ii); and CIES WITH RESPECT TO CURRENT POLICY- ‘‘(i) may not deny or condition the ‘‘(B) for purposes of (s)(3)(E)(ii), the date of HOLDERS.—No medicare supplemental policy issuance or effectiveness of a medicare sup- the termination of coverage shall be January of an issuer with a benefit package that is plemental policy that has a benefit package 1, 2005.’’. established under paragraph (1) shall be classified as ‘A’, ‘B’, ‘C’, ‘D’, ‘E’, ‘F’ (includ- (b) ESTABLISHMENT OF ENHANCED MEDICARE deemed to meet the standards in subsection ing the benefit package classified as ‘F’ with FEE-FOR-SERVICE MEDIGAP POLICIES.—Sec- (c) unless the issuer does all of the following: a high deductible feature, as described in tion 1882 (42 U.S.C. 1395ss), as amended by ‘‘(i) NOTICE TO CURRENT POLICYHOLDERS.— subsection (p)(11)), or ‘G’ (under the stand- subsection (a), is amended by adding at the Provide written notice during the 60-day pe- ards established under subsection (p)(2)) and end the following new subsection: riod immediately preceding the period estab- that is offered and is available for issuance ‘‘(w) ENHANCED MEDICARE FEE-FOR-SERVICE lished under section 1860E–4(b)(1), to each in- to new enrollees by such issuer; SUPPLEMENTAL POLICIES.— dividual who is a policyholder or certificate ‘‘(ii) may not discriminate in the pricing of ‘‘(1) ADDITIONAL BENEFIT PACKAGES.— holder of a medicare supplemental policy such policy, because of health status, claims ‘‘(A) ESTABLISHMENT.— issued by that issuer (at the most recent experience, receipt of health care, or medical ‘‘(i) IN GENERAL.—In addition to the benefit available address of that individual) of the condition; and packages classified under the standards es- offer described in clause (ii) and of the fact ‘‘(iii) may not impose an exclusion of bene- tablished by subsection (p)(2), there shall be that, so long as such individual retains cov- fits based on a pre-existing condition under established benefit packages that may only erage under such policy, the individual shall such policy, be purchased by beneficiaries who have be ineligible to elect enhanced medicare ben- in the case of an individual described in sub- elected to receive enhanced medicare bene- efits under part E. paragraph (B) who seeks to enroll under the fits under part E that— ‘‘(ii) OFFER FOR CURRENT POLICYHOLDERS.— policy during the open enrollment period es- ‘‘(I) complement but do not duplicate en- Offer the policyholder or certificate holder tablished under section 1860D–2(b)(2) and who hanced medicare benefits described in sec- under the terms described in subparagraph submits evidence that they meet the require- tion 1860E–2; (C), during at least the period established ments under subparagraph (B) along with the ‘‘(II) do not provide for coverage of the uni- under section 1860E–4(b)(1), a medicare sup- application for such medicare supplemental fied deductible under section 1860E–2(b); plemental policy established under para- policy. ‘‘(III) subject to clause (ii), do not provide graph (1) with the benefit package that the ‘‘(B) INDIVIDUAL DESCRIBED.—An individual coverage for more than 50 percent of the Secretary determines is most comparable to described in this subparagraph is an indi- amount of coinsurance and copayments ap- the policy in which the individual is enrolled vidual who— plicable under section 1860E–2; with coverage effective as of the effective ‘‘(i) enrolls in the medicare prescription ‘‘(IV) do not provide for coverage of ex- date of the election of the individual under drug delivery program under part D; and penses for prescription drugs; part E. ‘‘(ii) at the time of such enrollment was ‘‘(V) provide a range of coverage options ‘‘(iii) OFFER FOR INDIVIDUALS COVERED enrolled and terminates enrollment in a for beneficiaries; and UNDER POLICIES ISSUED BY OTHER ISSUERS IF medicare supplemental policy which has a ‘‘(VI) use uniform language, definitions, THAT ISSUER IS NOT GOING TO OFFER ENHANCED benefit package classified as ‘H’, ‘I’, or ‘J’ and format with respect to the coverage pro- MEDICARE FEE-FOR-SERVICE SUPPLEMENTAL (including the benefit package classified as vided under a policy. POLICIES.—Offer an individual described in ‘J’ with a high deductible feature, as de- ‘‘(ii) ONE PACKAGE REQUIRED TO COVER ALL subparagraph (B), under the terms described scribed in section 1882(p)(11)) under the COST-SHARING.— in subparagraph (C), and during at least the standards referred to in subparagraph (A)(i) ‘‘(I) IN GENERAL.—One of the benefit pack- period established under section 1860E– or terminates enrollment in a policy to ages established under clause (i) shall in- 4(b)(1), a medicare supplemental policy es- which such standards do not apply but which clude coverage of all coinsurance and copay- tablished under paragraph (1) with the ben- provides benefits for prescription drugs. ments applicable under section 1860E–2. efit package that the Secretary determines

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is most comparable to the policy in which ‘‘(A) MINIMUM AMOUNT.—1⁄12 of the annual clause (iv)) for the preceding year increased the individual is enrolled with coverage ef- Medicare+Choice capitation rate determined by the percentage increase in the Consumer fective as of the effective date of the election under subsection (c)(1)(B) for the payment Price Index for all urban consumers (U.S. of the individual under part E. area for the year; or urban average) for the 12-month period end- The notice provided under clause (i) shall be ‘‘(B) LOCAL FEE-FOR-SERVICE RATE.—The ing with June of the previous year.’’. coordinated with the notice required under local fee-for-service rate for such area for (d) FURNISHING OF CLAIMS DATA BY VA AND subsection (v)(3)(A). the year (as calculated under paragraph DOD.—Upon the request of the Secretary of ‘‘(B) INDIVIDUAL DESCRIBED.—An individual (5)).’’. Health and Human Services, the Secretary of described in this subparagraph is an indi- (b) ANNUAL CALCULATION OF LOCAL FEE- Veterans Affairs and the Secretary of De- vidual who is a policyholder or certificate FOR-SERVICE RATES.—Section 1853(a) (42 fense shall provide such claims data as the holder of a medicare supplemental policy U.S.C. 1395w–23(a)), as amended by sub- Secretary of Health and Human Services issued by an issuer who is not going to offer section (a), is amended by adding at the end may require to determine the amount that a policy with a benefit package established the following new paragraph: would have been paid under the medicare under paragraph (1). ‘‘(5) ANNUAL CALCULATION OF LOCAL FEE- program under title XVIII of the Social Se- FOR-SERVICE RATES.— curity Act if individuals entitled to benefits ‘‘(C) TERMS OF OFFER DESCRIBED.—The terms described in this subparagraph are ‘‘(A) IN GENERAL.—Subject to subpara- under such program had not received serv- terms which do not— graphs (B) and (C), the term ‘local fee-for- ices from facilities of the Department of Vet- ‘‘(i) deny or condition the issuance or effec- service rate’ means the amount of payment erans Affairs or the Department of Defense tiveness of a medicare supplemental policy for a month in a Medicare+Choice payment for purposes calculating the amounts under described in subparagraph (A)(ii) that is of- area for benefits under this title and associ- section 1853(a)(5) of such Act (as added by fered and is available for issuance to new en- ated claims processing costs for an indi- subsection (b)) and section 1853(c)(8) of such rollees by such issuer; vidual who has elected to receive enhanced Act (as added by section 312(b)). ‘‘(ii) discriminate in the pricing of such medicare benefits under part E (but, if the SEC. 302. APPLICATION OF COMPREHENSIVE policy because of health status, claims expe- Medicare+Choice plan offers prescription RISK ADJUSTMENT METHODOLOGY. Section 1853(a)(3) is amended to read as fol- rience, receipt of health care, or medical drug coverage, excluding any costs associ- lows: condition; or ated with part D), and not enrolled in a ‘‘(iii) impose an exclusion of benefits based Medicare+Choice plan under this part. The ‘‘(3) COMPREHENSIVE RISK ADJUSTMENT on a preexisting condition under such policy. Secretary shall annually calculate such METHODOLOGY.— amount in a manner similar to the manner ‘‘(A) APPLICATION OF METHODOLOGY.—The ‘‘(5) PROHIBITION OF SALE OF ENHANCED in which the Secretary calculated the ad- Secretary shall apply the comprehensive POLICIES TO ORIGINAL MEDICARE FEE-FOR- justed average per capita cost under section risk adjustment methodology described in SERVICE ENROLLEES; PROHIBITION OF SALE OF 1876, except that such calculation shall in- ORIGINAL POLICIES TO ENHANCED MEDICARE subparagraph (B) to 100 percent of the clude in such amount, to the extent prac- FEE-FOR-SERVICE ENROLLEES.— amount of the plan bids under section ticable, any amounts that would have been ‘‘(A) PROHIBITION.—No person may sell, 1853(d)(1) and the weighted service area issue, or renew a medicare supplemental pol- paid under this title if individuals entitled to benchmark amounts calculated under sec- icy with— benefits under this title had not received tion 1853(d)(3). ‘‘(i) a benefit package established under services from facilities of the Department of ‘‘(B) COMPREHENSIVE RISK ADJUSTMENT this subsection to an individual who has not Veterans Affairs or the Department of De- METHODOLOGY DESCRIBED.—The comprehen- elected to receive enhanced medicare bene- fense. sive risk adjustment methodology described fits under part E; or ‘‘(B) REMOVAL OF MEDICAL EDUCATION COSTS in this subparagraph is the risk adjustment ‘‘(ii) a benefit package classified as ‘A’ FROM CALCULATION OF LOCAL FEE-FOR-SERVICE methodology that would apply with respect through ‘J’ under the standards established RATE.— to Medicare+Choice plans offered by by subsection (p)(2) (including the benefit ‘‘(i) IN GENERAL.—In calculating the local Medicare+Choice organizations in 2004, ex- packages classified as ‘F’ and ‘J’ with a high fee-for-service rate under subparagraph (A) cept that if such methodology does not apply deductible feature, as described in subsection for a year, the amount of payment described to groups of beneficiaries who are aged or (p)(11)) to an individual who has elected to in such subparagraph shall be adjusted to ex- disabled and groups of beneficiaries who receive enhanced medicare benefits under clude from such payment the payment ad- have end-stage renal disease, the Secretary part E. justments described in clause (ii). shall revise such methodology to apply to ‘‘(B) PENALTY.—Any person who violates ‘‘(ii) PAYMENT ADJUSTMENTS DESCRIBED.— such groups. the provisions of subparagraph (A) shall be ‘‘(I) IN GENERAL.—Subject to subclause (II), ‘‘(C) UNIFORM APPLICATION TO ALL TYPES OF subject to a civil money penalty in an the payment adjustments described in this PLANS.—Subject to section 1859(e)(4), the amount that does not exceed $25,000 (or subparagraph are payment adjustments that comprehensive risk adjustment methodology $15,000 in the case of a seller who is not an the Secretary estimates were payable during established under this paragraph shall be ap- issuer of a policy) for each such violation. each month for direct graduate medical edu- plied uniformly without regard to the type of The provisions of section 1128A (other than cation costs under section 1886(h). plan. the first sentence of subsection (a) and other ‘‘(II) TREATMENT OF PAYMENTS COVERED ‘‘(D) DATA COLLECTION.—In order to carry than subsection (b)) shall apply to a civil UNDER STATE HOSPITAL REIMBURSEMENT SYS- out this paragraph, the Secretary shall re- money penalty under the previous sentence TEM.—To the extent that the Secretary esti- quire Medicare+Choice organizations to sub- in the same manner as such provisions apply mates that the amount of the local fee-for- mit such data and other information as the to a penalty or proceeding under section service rates reflects payments to hospitals Secretary deems necessary. 1128A(a). reimbursed under section 1814(b)(3), the Sec- ‘‘(E) IMPROVEMENT OF PAYMENT ACCU- ‘‘(6) OTHER PROHIBITIONS AND PENALTIES.— retary shall estimate a payment adjustment RACY.—Notwithstanding any other provision Each penalty under this section shall apply that is comparable to the payment adjust- of this paragraph, the Secretary may revise with respect to policies established under ment that would have been made under the comprehensive risk adjustment method- this subsection as if such policies were issued clause (i) if the hospitals had not been reim- ology described in subparagraph (B) from under the standards established under sub- bursed under such section. time to time to improve payment accu- section (p), including the penalties under ‘‘(C) SPECIAL RULE FOR RURAL AREAS.— racy.’’. subsections (a), (d), (p)(8), (p)(9), (q)(5), ‘‘(i) IN GENERAL.—Subject to clause (ii), in SEC. 303. ANNUAL ANNOUNCEMENT OF BENCH- (r)(6)(A), (s)(4), and (t)(2)(D).’’. calculating the local fee-for-service rates MARK AMOUNTS AND OTHER PAY- TITLE III—MEDICARE+CHOICE under subparagraph (A) for a year, the Sec- MENT FACTORS. COMPETITION retary shall calculate such costs for rural Section 1853(b) (42 U.S.C. 1395w–23(b)), as amended by section 532(d)(1) of the Public SEC. 301. ANNUAL CALCULATION OF BENCHMARK areas (as defined in section 1886(d)(2)(D)) of a AMOUNTS BASED ON FLOOR RATES State as if each rural area were part of a sin- Health Security and Bioterrorism Prepared- AND LOCAL FEE-FOR-SERVICE gle Medicare+Choice payment area. ness and Response Act of 2002 (Public Law RATES. ‘‘(ii) LIMITATION.—Payment amounts deter- 107–188; 116 Stat. 696), is amended— (a) ANNUAL CALCULATION OF BENCHMARK mined under subparagraph (A) may not be (1) in the heading, by striking ‘‘PAYMENT AMOUNTS BASED ON FLOOR RATES AND LOCAL less than the amounts that would have been RATES’’ and inserting ‘‘PAYMENT FACTORS’’; FEE-FOR-SERVICE RATES.—Section 1853(a) (42 paid if clause (i) did not apply.’’. (2) by striking paragraph (1) and inserting U.S.C. 1395w–23(a)) is amended by adding at (c) CPI INCREASES IN FLOOR PAYMENT the following: the end the following new paragraph: RATES.—Section 1853(c)(1)(B) (42 U.S.C. ‘‘(1) ANNUAL ANNOUNCEMENT.—Beginning in ‘‘(4) ANNUAL CALCULATION OF BENCHMARK 1395w–23(c)(1)(B)) is amended— 2004, at the same time as the Secretary pub- AMOUNTS.—For each year, the Secretary (1) in clause (iv), by striking ‘‘and each lishes the risk adjusters under section 1860D– shall calculate a benchmark amount for each succeeding year,’’ and inserting ‘‘, 2003, and 11, the Secretary shall annually announce (in Medicare+Choice payment area for each 2004,’’; and a manner intended to provide notice to inter- month for such year with respect to coverage (2) by adding at the end the following new ested parties) the following payment factors: of enhanced medicare benefits under part E clause: ‘‘(A) The benchmark amount for each equal to the greatest of the following ‘‘(v) For 2005 and each succeeding year, the Medicare+Choice payment area (as cal- amounts: minimum amount specified in this clause (or culated under subsection (a)(4)) for the year.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00110 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7077

‘‘(B) The factors to be used for adjusting mitted by an eligible entity under section ‘‘(5) DETERMINATION OF PAYMENT AMOUNT.— payments under the comprehensive risk ad- 1860D–12, including the monthly premiums The Secretary shall determine the payment justment methodology described in sub- for standard coverage and any other quali- amount for plans as follows: section (a)(3)(B) with respect to each fied prescription drug coverage available to ‘‘(A) BIDS THAT EQUAL OR EXCEED THE Medicare+Choice payment area for the individuals enrolled under part D. BENCHMARK.—The amount of each monthly year.’’; ‘‘(3) REQUIREMENTS FOR MSA PLANS.—For an payment to a Medicare+Choice organization (3) in paragraph (3), by striking ‘‘monthly MSA plan described in section 1851(a)(2)(B), with respect to each individual enrolled in a adjusted’’ and all that follows before the pe- the information described in this paragraph plan shall be the plan benchmark amount. riod at the end and inserting ‘‘each payment is the information that such a plan would ‘‘(B) BIDS BELOW THE BENCHMARK.—The factor described in paragraph (1)’’; and have been required to submit under this part amount of each monthly payment to a (4) by striking paragraph (4). if the 21st Century Medicare Act had not Medicare+Choice organization with respect SEC. 304. SUBMISSION OF BIDS BY been enacted. to each individual enrolled in a plan shall be MEDICARE+CHOICE ORGANIZA- ‘‘(4) REVIEW.— the plan benchmark amount reduced by 25 TIONS. ‘‘(A) IN GENERAL.—Subject to subparagraph percent of the difference between the bid and Section 1854(a) (42 U.S.C. 1395w–24(a)), as (B), the Secretary shall review the adjusted the benchmark amount and further reduced amended by section 532(b)(1) of the Public community rates (as defined in section by the amount of any premium reduction Health Security and Bioterrorism Prepared- 1854(g)(3)), the amounts of the elected by the plan under section ness and Response Act of 2002 (Public Law Medicare+Choice monthly basic and supple- 1854(d)(1)(A)(i). 107–188; 116 Stat. 696), is amended to read as mental beneficiary premiums filed under ‘‘(6) FACTORS USED IN ADJUSTING BIDS AND follows: this subsection and shall approve or dis- BENCHMARKS FOR MEDICARE+CHOICE ORGANIZA- ‘‘(a) SUBMISSION OF BIDS BY approve such rates and amounts so sub- TIONS AND IN DETERMINING ENROLLEE PRE- MEDICARE+CHOICE ORGANIZATIONS.— mitted. The Chief Actuary of the Medicare MIUMS.—Subject to paragraph (7), the Sec- ‘‘(1) IN GENERAL.—Not later than the sec- retary shall use, for purposes of adjusting ond Monday in September (or July 1 of each Competitive Agency shall review the actu- year before 2002) and except as provided in arial assumptions and data used by the plan bids and calculating plan benchmarks paragraph (3), each Medicare+Choice organi- Medicare+Choice organization with respect under this subsection— zation shall submit to the Secretary, in such to such rates and amounts so submitted to ‘‘(A) with respect to benefits under part form and manner as the Secretary may determine the appropriateness of such as- E— specify, for each Medicare+Choice plan that sumptions and data. ‘‘(i) the benchmark amount for the the organization intends to offer in a service ‘‘(B) EXCEPTION.—The Secretary shall not Medicare+Choice payment area announced area in the following year— review, approve, or disapprove the amounts under section 1854(a)(1)(A); and ‘‘(A) notice of such intent and information submitted under paragraph (3).’’. ‘‘(ii) the health status and other demo- on the service area of the plan; SEC. 305. ADJUSTMENT OF PLAN BIDS; COMPARI- graphic adjustment factors for the ‘‘(B) the plan type for each plan; SON OF ADJUSTED BID TO BENCH- Medicare+Choice payment area announced ‘‘(C) if the Medicare+Choice plan is a co- MARK; PAYMENT AMOUNT. under section 1854(a)(1)(B); and ordinated care plan (as described in section (a) IN GENERAL.—Section 1853 (42 U.S.C. ‘‘(B) if the Medicare+Choice organization 1851(a)(2)(A)) or a private fee-for-service plan 1395w–23) is amended— elects to offer prescription drug coverage, (as described in section 1851(a)(2)(C)), the in- (1) by redesignating subsections (d) the risk adjusters published under section formation described in paragraph (2) with re- through (i) as subsections (e) through (j), re- 1860D–11 applicable with respect to such cov- spect to each payment area; spectively; and erage. ‘‘(D) the enrollment capacity (if any) in re- (2) by inserting after subsection (c) the fol- ‘‘(7) ADJUSTMENT FOR NATIONAL COVERAGE lation to the plan and each payment area; lowing new subsection: DETERMINATIONS AND LEGISLATIVE CHANGES IN ‘‘(E) the expected mix, by health status, of ‘‘(d) SECRETARY’S DETERMINATION OF PAY- BENEFITS.—If the Secretary makes a deter- enrolled individuals; and MENT AMOUNT FOR ENHANCED MEDICARE BEN- mination with respect to coverage under this ‘‘(F) such other information as the Sec- EFITS.— title or there is a change in benefits required retary may specify. ‘‘(1) ADJUSTMENT OF PLAN BIDS.—The Sec- to be provided under this part that the Sec- ‘‘(2) INFORMATION REQUIRED FOR COORDI- retary shall adjust each plan bid submitted retary projects will result in a significant in- NATED CARE PLANS AND PRIVATE FEE-FOR- under section 1854(a) for the coverage of ben- crease in the costs to Medicare+Choice orga- SERVICE PLANS.—For a Medicare+Choice plan efits under part E using the comprehensive nizations of providing benefits under con- that is a coordinated care plan (as described risk adjustment methodology applicable tracts under this part (for periods after any in section 1851(a)(2)(A)) or a private fee-for- under subsection (a)(3) based on the assump- period described in section 1852(a)(5)), the service plan (as described in section tions described in section 1854(a)(2)(A)(iii) Secretary shall appropriately adjust the 1851(a)(2)(C)), the information described in that the plan used with respect to numbers benchmark amounts or payment amounts (as this paragraph is as follows: of enrolled individuals. determined by the Secretary). Such projec- ‘‘(A) INFORMATION REQUIRED WITH RESPECT ‘‘(2) DETERMINATION OF WEIGHTED SERVICE tion and adjustment shall be based on an TO BENEFITS UNDER PART E.—Information re- AREA BENCHMARK AMOUNTS.—The Secretary analysis by the Chief Actuary of the Com- lating to the coverage of benefits under part shall calculate a weighted service area petitive Medicare Agency of the actuarial E as follows: benchmark amount for enhanced medicare costs associated with the new benefits.’’. ‘‘(i) The plan bid, which shall consist of a benefits under part E for each plan equal to (b) CONFORMING AMENDMENT.—Section 1853(c)(7) (42 U.S.C. 1395w–23(c)(7)) is re- dollar amount that represents the total the weighted average of the benchmark pealed. amount that the plan is willing to accept amounts for enhanced medicare benefits (after the application of the comprehensive under such part for the payment areas in- SEC. 306. DETERMINATION OF PREMIUM REDUC- TIONS, REDUCED COST-SHARING, risk adjustment methodology under section cluded in the service area of the plan using ADDITIONAL BENEFITS, AND BENE- 1853(a)(3)) for providing coverage of the bene- the assumptions described in section FICIARY PREMIUMS. fits under part E to an individual enrolled in 1854(a)(2)(A)(iii) that the plan used with re- (a) CALCULATION OF BENEFICIARY PRE- the plan that resides in the service area of spect to numbers of enrolled individuals. MIUMS.—Section 1854 (42 U.S.C. 1395–24) is the plan for a month. ‘‘(3) DETERMINATION OF PLAN BENCHMARK.— amended by— ‘‘(ii) For the supplemental benefits pack- The Secretary shall calculate the plan (1) redesignating subsections (d) through age offered (if any)— benchmark amount by adjusting the weight- (h) as subsections (e) through (i), respec- ‘‘(I) the adjusted community rate (as de- ed service area benchmark amount deter- tively; and fined in subsection (g)(3)) of the package; mined under paragraph (1) using— (2) inserting after subsection (c) the fol- ‘‘(II) the Medicare+Choice monthly supple- ‘‘(A) the comprehensive risk adjustment lowing new subsection: mental beneficiary premium (as defined in methodology applicable under subsection ‘‘(d) DETERMINATION OF PREMIUM REDUC- subsection (b)(2)(C)); (a)(3); and TIONS, REDUCED COST-SHARING, ADDITIONAL ‘‘(III) a description of any cost-sharing; ‘‘(B) the assumptions contained in the plan BENEFITS, AND BENEFICIARY PREMIUMS.— and bid that the plan used with respect to num- ‘‘(1) BIDS BELOW THE BENCHMARK.— ‘‘(IV) such other information as the Sec- bers of enrolled individuals. ‘‘(A) IN GENERAL.—If the Secretary deter- retary considers necessary. ‘‘(4) COMPARISON TO BENCHMARK.—The Sec- mines under section 1853(d)(4) that the plan ‘‘(iii) The assumptions that the retary shall determine the difference be- benchmark amount exceeds the plan bid, the Medicare+Choice organization used in pre- tween each plan bid (as adjusted under para- Secretary shall require the plan to return 75 paring the plan bid with respect to numbers, graph (1)) and the plan benchmark amount percent of such excess to the enrollee in the in each payment area, of enrolled individuals (as determined under paragraph (3)) for pur- form of, at the option of the organization of- and the mix, by health status, of such indi- poses of determining— fering the plan— viduals. ‘‘(A) the payment amount under paragraph ‘‘(i) subject to subparagraph (B), a monthly ‘‘(B) INFORMATION REQUIRED WITH RESPECT (5); and medicare premium reduction for individuals TO PART D.—If the Medicare+Choice organiza- ‘‘(B) the part E premium reductions and enrolled in the plan; tion elects to offer prescription drug cov- Medicare+Choice monthly basic beneficiary ‘‘(ii) a reduction in the actuarial value of erage, the information required to be sub- premiums. plan cost-sharing for plan enrollees;

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00111 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7078 CONGRESSIONAL RECORD — SENATE July 18, 2002 ‘‘(iii) subject to subparagraph (C), such ad- scribed in subsection (a)(2)(A)(iii) for a year; Medicare+Choice monthly obligation for ditional benefits as the organization may must equal qualified prescription drug coverage’’ after specify; or ‘‘(B) the actuarial value of the deductibles, ‘‘Medicare+Choice monthly basic and supple- ‘‘(iv) any combination of the reductions coinsurance, and copayments that would be mental beneficiary premiums’’. and benefits described in clauses (i) through applicable on average to individuals who (2) Section 1851(g)(3)(B)(i) (42 U.S.C. 1395w– (iii). have elected to receive enhanced medicare 21(g)(3)(B)(i)) is amended by striking ‘‘any ‘‘(B) LIMITATION ON PREMIUM REDUCTIONS.— benefits under part E if they were not mem- Medicare+Choice monthly basic and supple- The amount of the reduction under subpara- bers of a Medicare+Choice organization for mental beneficiary premiums’’ and inserting graph (A)(i) with respect to any enrollee in a the year (adjusted as determined appropriate ‘‘any Medicare+Choice monthly basic bene- Medicare+Choice plan— by the Secretary to account for geographic ficiary premium, Medicare+Choice monthly ‘‘(i) may not exceed the premium described differences and for plan cost and utilization obligation for qualified prescription drug in section 1839(a)(3), as adjusted under sec- differences).’’. coverage, Medicare+Choice monthly supple- tion 1860E–5; and (2) FOR SUPPLEMENTAL BENEFITS.—Section mental beneficiary premium,’’. ‘‘(ii) shall apply uniformly to each enrollee 1854(f)(2) (as so redesignated) is amended to (3) Section 1852(c)(1)(F) (42 U.S.C. 1395w– of the Medicare+Choice plan to which such read as follows: 22(c)(1)(F)) is amended to read as follows: reduction applies. ‘‘(2) FOR SUPPLEMENTAL BENEFITS.—If the ‘‘(F) SUPPLEMENTAL BENEFITS.—Supple- ‘‘(C) REQUIREMENT OF ENROLLMENT IN PART Medicare+Choice organization provides to its mental benefits available from the organiza- D TO RECEIVE PRESCRIPTION DRUG BENEFITS.— members enrolled under this part in a tion offering the plan, including the supple- An organization may not specify any addi- Medicare+Choice plan described in subpara- mental benefits covered and the tional benefit that provides for the coverage graph (A) or (C) of section 1851(a)(2) with re- Medicare+Choice monthly supplemental ben- of any prescription drug (other than that re- spect to supplemental benefits relating to eficiary premium for such benefits.’’. quired under part E). benefits under part E described in section (4) Section 1853(f)(1) (as redesignated by ‘‘(2) BIDS ABOVE THE BENCHMARK.—If the 1852(a)(3)(A), the sum of the Medicare+Choice section 305(1)) is amended by striking ‘‘(as Secretary determines under section 1853(d)(4) monthly supplemental beneficiary premium defined in section 1854(b)(2)(C))’’ and insert- that the plan bid (as adjusted under section (multiplied by 12) charged and the actuarial ing ‘‘(as defined in section 1854(b)(2)(D))’’. 1853(d)(1)) exceeds the plan benchmark value of its deductibles, coinsurance, and co- (5) Section 1854(c) (42 U.S.C. 1395w–24(c)) is amount (determined under section payments charged with respect to such bene- amended by striking ‘‘The Medicare+Choice 1853(d)(3)), the amount of such excess shall be fits for a year must equal the adjusted com- monthly basic and supplemental beneficiary the Medicare+Choice monthly basic bene- munity rate (as defined in subsection (g)(3)) premium’’ and inserting ‘‘The ficiary premium (as defined in section for such benefits for the year.’’. Medicare+Choice monthly basic beneficiary (e) PREMIUMS CHARGED; PREMIUM TERMI- 1854(b)(2)(A)).’’. premium, the Medicare+Choice monthly ob- NOLOGY.—Section 1854(b) (42 U.S.C. 1395w–24) ligation for qualified prescription drug cov- (b) CONFORMING PART E PREMIUM REDUC- is amended to read as follows: erage, or the Medicare+Choice monthly sup- TION AMENDMENTS.— ‘‘(b) MONTHLY PREMIUMS CHARGED.— plemental beneficiary premium’’. (1) ADJUSTMENT AND PAYMENT OF PART E ‘‘(1) IN GENERAL.— PREMIUMS.—Section 1860E–5 (as added by sec- ‘‘(A) COORDINATED CARE AND PRIVATE FEE- (6) Section 1854(e) (as redesignated by sub- tion 201) is amended— FOR-SERVICE PLANS.—The monthly amount of section (a)(1)) is amended by inserting ‘‘and (A) in subsection (a), by inserting ‘‘, except the premium charged to an individual en- the Medicare+Choice monthly obligation for as reduced by the amount of any reduction rolled in a Medicare+Choice plan (other than qualified prescription drug coverage’’ after elected under section 1854(d)(1)(A)(i)’’ before an MSA plan) offered by a Medicare+Choice ‘‘Medicare+Choice monthly basic and supple- the period at the end; and organization shall be equal to the sum of the mental beneficiary premiums’’. (B) by adding at the end the following new following: (7) Section 1859(c)(4) (42 U.S.C. 1395w– subsection: ‘‘(i) The Medicare+Choice monthly basic 28(c)(4)) is amended to read as follows: ‘‘(c) MEDICARE+CHOICE PREMIUM REDUC- beneficiary premium (if any). ‘‘(4) MEDICARE+CHOICE MONTHLY BASIC BEN- TIONS.—In the case of an individual enrolled ‘‘(ii) The Medicare+Choice monthly supple- EFICIARY PREMIUM; MEDICARE+CHOICE MONTH- in a Medicare+Choice plan, the Secretary mental beneficiary premium (if any). LY OBLIGATION FOR QUALIFIED PRESCRIPTION shall reduce (but not below zero) the amount ‘‘(iii) The Medicare+Choice monthly obli- DRUG COVERAGE; MEDICARE+CHOICE MONTHLY of the monthly beneficiary premium to re- gation for qualified prescription drug cov- SUPPLEMENTAL BENEFICIARY PREMIUM.—The flect any reduction elected under section erage (if any). terms ‘Medicare+Choice monthly basic bene- 1854(d)(1)(A)(i). Such premium adjustment ‘‘(B) MSA PLANS.—The rules under this ficiary premium’, ‘Medicare+Choice monthly may be provided in such manner as the Sec- section that would have applied with respect obligation for qualified prescription drug retary may specify.’’. to an MSA plan if the 21st Century Medicare coverage’, and ‘Medicare+Choice monthly (2) TREATMENT OF REDUCTION FOR PURPOSES Act had not been enacted shall continue to supplemental beneficiary premium’ are de- OF DETERMINING GOVERNMENT CONTRIBUTION apply to MSA plans after the date of enact- fined in section 1854(b)(2).’’. UNDER PART E.—Section 1844(c) (42 U.S.C. ment of such Act. SEC. 307. ELIGIBILITY, ELECTION, AND ENROLL- 1395w) is amended by striking ‘‘section ‘‘(2) PREMIUM TERMINOLOGY.—For purposes MENT IN COMPETITIVE 1854(f)(1)(E)’’ and inserting ‘‘section of this part: MEDICARE+CHOICE PLANS. 1854(d)(1)(A)(i)’’. ‘‘(A) MEDICARE+CHOICE MONTHLY BASIC BEN- (a) ELIGIBILITY.—Section 1851(a)(3) is (c) SUNSET OF SPECIFIC REQUIREMENTS FOR EFICIARY PREMIUM.—The term amended to read as follows: ADDITIONAL BENEFITS.—Section 1854(g) (as ‘Medicare+Choice monthly basic beneficiary ‘‘(3) MEDICARE+CHOICE ELIGIBLE INDI- redesignated by subsection (a)(1)) is amend- premium’ means, with respect to a VIDUAL.—In this title, the term ed— Medicare+Choice plan, the amount required ‘Medicare+Choice eligible individual’ means (1) in paragraph (1)(A), by striking ‘‘Each to be charged under subsection (d)(2) for the an individual who— Medicare+Choice organization’’ and insert- plan. ‘‘(A) is entitled to benefits under part A ing ‘‘For years before 2005, each ‘‘(B) MEDICARE+CHOICE MONTHLY OBLIGA- and enrolled under part B; and Medicare+Choice organization’’; and TION FOR QUALIFIED PRESCRIPTION DRUG COV- ‘‘(B) has elected to receive enhanced medi- (2) in paragraph (2), by striking ‘‘A ERAGE.—The term ‘Medicare+Choice month- care benefits under part E.’’. Medicare+Choice organization’’ and insert- ly obligation for qualified prescription drug ing ‘‘For years before 2005, a coverage’ means, with respect to a (b) ELECTIONS.— Medicare+Choice organization’’. Medicare+Choice plan, the amount deter- (1) IN GENERAL.—Section 1851(a)(1)(A) is (d) LIMITATION ON ENROLLEE LIABILITY.— mined under section 1853(k)(3). amended by inserting ‘‘(including through (1) FOR BENEFITS UNDER PART E.—Section ‘‘(C) MEDICARE+CHOICE MONTHLY SUPPLE- the election of enhanced medicare benefits 1854(f)(1) (as redesignated by subsection MENTAL BENEFICIARY PREMIUM.—The term under part E) and, if elected by the bene- (a)(1)) is amended to read as follows: ‘Medicare+Choice monthly supplemental ficiary and offered by the Medicare+Choice ‘‘(1) FOR ENHANCED MEDICARE BENEFITS.— beneficiary premium’ means, with respect to plan, through the voluntary prescription The sum of— a Medicare+Choice plan, the amount re- drug delivery program under part D’’ after ‘‘(A) the Medicare+Choice monthly basic quired to be charged under subsection (f)(2) ‘‘parts A and B’’. beneficiary premium (multiplied by 12) and for the plan, or, in the case of an MSA plan, (2) DEFAULT ELECTION.—Section 1851(c)(3) the actuarial value of the deductibles, coin- the amount filed under subsection (a)(3). (42 U.S.C. 1395w–21(c)(3)) is amended by in- surance, and copayments (taking into ac- ‘‘(D) MEDICARE+CHOICE MONTHLY MSA PRE- serting ‘‘to receive enhanced medicare bene- count any reductions in cost-sharing de- MIUM.—The term ‘Medicare+Choice monthly fits under part E of the’’ after ‘‘deemed to scribed in subsection (d)(1)(A)(ii)) applicable MSA premium’ means, with respect to a have chosen’’. on average to individuals enrolled under this Medicare+Choice plan, the amount of such (3) COVERAGE ELECTION PERIODS.—Section part with a Medicare+Choice plan described premium filed under subsection (a)(3) for the 1851(e)(1) (42 U.S.C. 1395w–21(e)(1)) is amended in subparagraph (A) or (C) of section plan.’’. by striking ‘‘entitled to benefits under part 1851(a)(2) of an organization with respect to (f) CONFORMING AMENDMENTS.— A and enrolled under part B’’ and inserting required benefits described in section (1) Section 1851(d)(2)(D) (42 U.S.C. 1395w– ‘‘eligible to elect to receive enhanced medi- 1852(a)(1)(A) and any additional benefits de- 21(d)(2)(D)) is amended by inserting ‘‘and care benefits under part E’’.

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(4) GUARANTEED ISSUANCE AND RENEWAL.— (B) by redesignating subparagraph (B) as benefits under part D in accordance with Section 1851(g)(3)(C) (42 U.S.C. 1395w– subparagraph (C); subsection (k) for individuals enrolled under 21(g)(3)(C)) is amended— (C) by inserting after subparagraph (A) the that part.’’. (A) in clause (i), by inserting ‘‘elected to following new subparagraph: (b) CONFORMING AMENDMENT.—Section receive enhanced medicare benefits under ‘‘(B) if the Medicare+Choice organization 1853(g)(1)(A) (42 U.S.C. 1395w–23(g)(1)(A)) is part E of the’’ after ‘‘deemed to have’’; and elects to offer prescription drug coverage, amended by inserting ‘‘as part of the en- (B) in clause (ii), by striking ‘‘deemed to prescription drug coverage under part D to hanced medicare benefits elected under part have chosen to change coverage to’’ and in- individuals who are enrolled under that part E of’’ before ‘‘the original medicare fee-for- serting ‘‘deemed to have elected to receive and who reside in the area served by the service program option’’. enhanced medicare benefits under part E plan; and’’; and SEC. 310. SEPARATE PAYMENTS TO through the’’. (D) in subparagraph (C) (as redesignated by MEDICARE+CHOICE ORGANIZATIONS (5) EFFECT OF ELECTION OF paragraph (2)), by striking ‘‘1854(f)(1)(A)’’ and FOR PART D BENEFITS. (a) IN GENERAL.—Section 1853 (42 U.S.C. MEDICARE+CHOICE PLAN OPTION.—Section inserting ‘‘1854(d)(1)’’; 1395w–27) is amended by adding at the end 1851(i) (42 U.S.C. 1395w–21(i)) is amended— (2) in paragraph (2), by striking ‘‘parts A the following new subsection: (A) in paragraph (1)— and B (including any balance billing per- VAILABILITY OF PRESCRIPTION DRUG (i) by striking ‘‘1853(g), 1853(h)’’ and insert- ‘‘(k) A mitted under such parts’’ and inserting ‘‘part BENEFITS.— ing ‘‘1853(h), 1853(i)’’; and E (including any balance billing permitted ‘‘(1) SCOPE OF PRESCRIPTION DRUG BENE- (ii) by inserting ‘‘(as modified under part under such part’’; FITS.— E)’’ after ‘‘parts A and B’’; and (3) in paragraph (3), by adding at the end ‘‘(A) AVAILABILITY OF STANDARD COV- (B) in paragraph (2), by striking ‘‘1853(e), the following new subparagraph: ERAGE.—If a Medicare+Choice organization 1853(g), 1853(h)’’ and inserting ‘‘1853(f), ‘‘(D) REQUIREMENT OF ENROLLMENT IN PART elects to offer prescription drug coverage 1853(h), 1853(i)’’. D TO RECEIVE PRESCRIPTION DRUG BENEFITS.— under a Medicare+Choice plan, such organi- (c) PROVIDING INFORMATION TO PROMOTE IN- Notwithstanding the preceding provisions of FORMED CHOICE.— zation shall make such coverage (other than this paragraph, the Secretary may not ap- that required under part E) available to each (1) GENERAL INFORMATION ON BENEFITS.— prove any supplemental health care benefit Section 1851(d)(3) (42 U.S.C. 1395w–21(d)(3)) is enrollee under that plan who is also enrolled that provides for the coverage of any pre- under part D that includes only standard amended— scription drug (other than that required (A) by striking subparagraph (A) and in- coverage and that meets the requirements of under part E).’’; and serting the following: this subsection. (4) in paragraph (5), by striking ‘‘Health ‘‘(A) BENEFITS UNDER ENHANCED MEDICARE ‘‘(B) ADDITIONAL QUALIFIED PRESCRIPTION Care Financing Administration’’ and insert- FEE-FOR-SERVICE PROGRAM OPTION.—A general DRUG COVERAGE.—In addition to the standard ing ‘‘Medicare Competitive Agency’’ in the description of the enhanced medicare bene- coverage option made available to each en- flush matter following subparagraph (B). fits covered under the original medicare fee- rollee under paragraph (1), a (b) ESRD ANTIDISCRIMINATION.—Section for-service program under parts A and B for Medicare+Choice plan may make available 1852(b)(1) (42 U.S.C. 1395w–22(b)(1)) is amended to each enrollee that is also enrolled under individuals who have elected to receive such to read as follows: benefits under part E, including— part D, other qualified prescription drug cov- ‘‘(1) BENEFICIARIES.—A Medicare+Choice ‘‘(i) covered items and services; erage (other than that required under part E) organization may not deny, limit, or condi- that meets the requirements of this sub- ‘‘(ii) beneficiary cost-sharing, such as tion the coverage or provision of benefits deductibles, coinsurance, and copayment section under a Medicare+Choice plan of- under this part, for individuals permitted to fered under this part. amounts; and be enrolled with the organization under this ‘‘(C) REQUIREMENT OF ENROLLMENT IN PART ‘‘(iii) any beneficiary liability for balance part, based on any health status-related fac- D TO RECEIVE PRESCRIPTION DRUG BENEFITS.— billing.’’; tor described in section 2702(a)(1) of the Pub- (B) by redesignating subparagraphs (B) A Medicare+Choice organization may not lic Health Service Act.’’. provide for the coverage of any prescription through (E) as subparagraphs (C) through (c) DISCLOSURE REQUIREMENTS.—Section drugs (other than that required under part E) (F), respectively; 1852(c)(1)(B) (42 U.S.C. 1395w–22(c)(1)(B)) is to an enrollee unless that enrollee is also en- (C) by inserting after subparagraph (A) the amended by striking ‘‘section 1851(d)(3)(A)’’ rolled under part D. following new subparagraph: and inserting ‘‘subparagraphs (A) and (B) of ‘‘(2) PAYMENT OF FULL AMOUNT OF PREMIUM ‘‘(B) OUTPATIENT PRESCRIPTION DRUG COV- section 1851(d)(3)’’. TO ORGANIZATIONS FOR QUALIFIED PRESCRIP- ERAGE BENEFITS.—For Medicare+Choice eligi- (d) ASSURING ACCESS TO SERVICES IN TION DRUG COVERAGE.—For each year (begin- ble individuals who are enrolled under part MEDICARE+CHOICE PRIVATE FEE-FOR-SERVICE ning with 2005), the Secretary shall pay to D, the information required under section PLANS.—Section 1852(d)(4)(A) is amended by 1860D–4 if the Medicare+Choice organization striking ‘‘part A, part B, or both, for such each Medicare+Choice organization offering elects to offer prescription drug coverage.’’; services, or’’ and inserting ‘‘part E for such a Medicare+Choice plan that provides quali- and services (and, if the Medicare+Choice organi- fied prescription drug coverage in which a (D) in subparagraph (D) (as redesignated by zation elects to offer prescription drug cov- Medicare+Choice eligible individual is en- subparagraph (B)), by inserting ‘‘(with the erage, that are not less than the payment rolled, an amount equal to the full amount enhanced medicare benefits under part E)’’ rates provided under part D for such services of the monthly premium submitted under after ‘‘the original medicare fee-for-service for Medicare+Choice eligible individuals en- section 1854(a)(2)(B) on behalf of each such program’’. rolled under that part); or’’. individual enrolled in such plan for the year, (2) INFORMATION COMPARING PLAN OP- (e) INFORMATION ON BENEFICIARY LIABILITY as adjusted using the risk adjusters that TIONS.—Section 1851(d)(4) (42 U.S.C. 1395w– FOR MEDICARE+CHOICE PRIVATE FEE-FOR- apply to the standard coverage under section 21(d)(4)) is amended— SERVICE PLANS.—Section 1852(k)(2)(C)(i) (42 1853(b)(4)(B). (A) in subparagraph (A), by adding at the U.S.C. 1395w–22(k)(2)(C)(i)) is amended by ‘‘(3) AMOUNT OF MEDICARE+CHOICE MONTHLY end the following new clause: striking ‘‘parts A and B’’ and inserting ‘‘part OBLIGATION FOR QUALIFIED PRESCRIPTION DRUG ‘‘(ix) For Medicare+Choice eligible individ- E, under part D for individuals enrolled COVERAGE.—In the case of a Medicare+Choice uals who are enrolled under part D, the com- under that part (if the Medicare+Choice or- eligible individual receiving qualified pre- parative information described in section ganization elects to offer prescription drug scription drug coverage under a 1860D–4(b)(2) if the Medicare+Choice organi- coverage),’’. Medicare+Choice plan, the obligation for zation elects to offer prescription drug cov- SEC. 309. PAYMENTS TO MEDICARE+CHOICE OR- qualified prescription drug coverage of such erage.’’; and GANIZATIONS FOR ENHANCED MEDI- individual in a year shall be determined as (B) in subparagraph (D), by inserting ‘‘with CARE BENEFITS UNDER PART E follows: respect to eligible beneficiaries who elect to BASED ON RISK-ADJUSTED BIDS. ‘‘(A) PREMIUMS EQUAL TO THE MONTHLY NA- receive enhanced medicare benefits under (a) IN GENERAL.—Section 1853(a)(1)(A) (42 TIONAL AVERAGE.—If the amount of the part E’’ after ‘‘under parts A and B’’. U.S.C. 1395w–23(a)(1)(A)) is amended to read monthly premium for qualified prescription SEC. 308. BENEFITS AND BENEFICIARY PROTEC- as follows: drug coverage submitted under section TIONS UNDER COMPETITIVE ‘‘(1) MONTHLY PAYMENTS.—Under a con- 1854(a)(2)(B) for the plan for the year is equal MEDICARE+CHOICE PLANS. tract under section 1857 and subject to sub- to the monthly national average premium (a) BASIC BENEFITS.—Section 1852(a) (42 sections (f), (h), and (j) and section 1859(e)(4), (as computed under section 1860D–15) for the U.S.C. 1395w–22(a)(1)(A)) is amended— the Secretary shall make, to each year, the monthly obligation of the indi- (1) in paragraph (1)— Medicare+Choice organization, with respect vidual in that year shall be an amount equal (A) by striking subparagraph (A) and in- to coverage of an individual for a month to the applicable percent (as defined in sec- serting the following new subparagraph: under this part in a Medicare+Choice pay- tion 1860D–17(c)) of the amount of the month- ‘‘(A) those items and services (other than ment area, separate monthly payments with ly national average premium. hospice care) for which benefits are available respect to— ‘‘(B) PREMIUMS THAT ARE LESS THAN THE under parts A and B to individuals residing ‘‘(A) enhanced medicare benefits under MONTHLY NATIONAL AVERAGE.—If the amount in the area served by the plan and who have part E in accordance with subsection (d); and of the monthly premium for qualified pre- elected to receive enhanced medicare bene- ‘‘(B) if the Medicare+Choice organization scription drug coverage submitted under sec- fits under part E;’’; elects to offer prescription drug coverage, tion 1854(a)(2)(B) for the plan for the year is

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less than the monthly national average pre- (b) SANCTIONS FOR IMPROPER PRESCRIPTION the extent practicable, the Secretary’s esti- mium (as computed under section 1860D–15) DRUG COVERAGE.—Section 1857(g)(1) (42 mate, on a per capita basis, of the amount of for the year, the monthly obligation of the U.S.C. 1395w–27(g)(1)) is amended— additional payments that would have been individual in that year shall be an amount (1) in subparagraph (F), by striking ‘‘or’’ made in the area involved under this title if equal to— after the semicolon at the end; individuals entitled to benefits under this ‘‘(i) the applicable percent (as defined in (2) in subparagraph (G), by adding ‘‘or’’ title had not received services from facilities section 1860D–17(c)) of the amount of the after the semicolon at the end; and of the Department of Veterans Affairs or the monthly national average premium; minus (3) by adding at the end the following new Department of Defense.’’. ‘‘(ii) the amount by which the monthly na- subparagraph: SEC. 313. FIVE-YEAR EXTENSION OF MEDICARE tional average premium exceeds the amount ‘‘(H) charges any individual an amount in COST CONTRACTS. of the premium submitted under section excess of the Medicare+Choice monthly obli- (a) IN GENERAL.—Section 1876(h)(5)(C) (42 1854(a)(2)(B). gation for qualified prescription drug cov- U.S.C. 1395mm(h)(5)(C)), as redesignated by ‘‘(C) PREMIUMS THAT ARE GREATER THAN erage under section 1853(k)(3), provides cov- section 634(1) of BIPA (114 Stat. 2763A–568), is THE MONTHLY NATIONAL AVERAGE.—If the erage for prescription drugs that is not amended by striking ‘‘2004’’ and inserting amount of the monthly premium for quali- qualified prescription drug coverage (as de- ‘‘2009’’. fied prescription drug coverage submitted fined in section 1853(k)(7)), offers prescrip- (b) EFFECTIVE DATE.—The amendment under section 1854(a)(2)(B) for the plan for tion drug coverage, but does not make stand- made by subsection (a) shall take effect on the year exceeds the monthly national aver- ard prescription drug coverage available (as the date of enactment of this Act. age premium (as computed under section defined in such section), or provides coverage SEC. 314. EFFECTIVE DATE. 1860D–15) for the year, the monthly obliga- for prescription drugs (other than those cov- (a) IN GENERAL.—Except as provided in sec- tion of the individual in that year shall be an ered under part E) to an individual who is tion 306(b)(1)(B), section 313(b), and sub- amount equal to the sum of— not enrolled under part D;’’. section (b), the amendments made by this ‘‘(i) the applicable percent (as defined in SEC. 311. ADMINISTRATION BY THE MEDICARE title shall apply to plan years beginning on section 1860D–17(c)) of the amount of the COMPETITIVE AGENCY. and after January 1, 2005. monthly national average premium; plus On and after January 1, 2005, the (b) MEDICARE+CHOICE MSA PLANS.—Not- ‘‘(ii) the amount by which the premium Medicare+Choice program under part C of withstanding any provision of this title, the submitted under section 1854(a)(2)(B) exceeds title XVIII of the Social Security Act shall Secretary shall apply the payment and other the amount of the monthly national average be administered by the Medicare Competi- rules that apply with respect to an MSA plan premium. tive Agency in accordance with subpart 3 of described in section 1851(a)(2)(B) of the So- ‘‘(4) COLLECTION OF MEDICARE+CHOICE part D of such title (as added by section 101), cial Security Act (42 U.S.C. 1395w–21(a)(2)(B)) MONTHLY OBLIGATION FOR QUALIFIED PRE- and, in accordance with section 1860D– as if this title had not been enacted. SCRIPTION DRUG COVERAGE.—The provisions of 25(c)(3)(C) of such Act (as added by section section 1860D–18, including subsection (b) of 101), each reference to the Secretary made in SA 4311. Mr. REID (for Mr. WYDEN such section, shall apply to the amount of this title, or the amendments made by this (for himself and Mr. ALLEN) proposed the monthly premium required to be paid by title, shall be deemed to be a reference to the an amendment to the bill S. 2037, to a Medicare+Choice eligible individual receiv- Administrator of the Medicare Competitive mobilize technology and science ex- ing qualified prescription drug coverage Agency. perts to respond quickly to the threats under a Medicare+Choice plan (as deter- SEC. 312. CONTINUED CALCULATION OF ANNUAL mined under paragraph (3)) in the same man- MEDICARE+CHOICE CAPITATION posed by terrorist attacks and other ner as such provisions apply to the monthly RATES. emergencies, by providing for the es- beneficiary obligation required to be paid by (a) CONTINUED CALCULATION.— tablishment of a national emergency an eligible beneficiary enrolled in a Medicare (1) IN GENERAL.—Section 1853(c) (as amend- technology guard, a technology reli- Prescription Drug plan. ed by subsection (b)) is amended by adding at ability advisory board, and a center for ‘‘(5) COMPLIANCE WITH ADDITIONAL BENE- the end the following new paragraph: evaluating antiterrorism and disaster FICIARY PROTECTIONS.—With respect to the ‘‘(7) TRANSITION TO MEDICARE+CHOICE COM- response technology within the Na- offering of qualified prescription drug cov- PETITION.— erage by a Medicare+Choice organization ‘‘(A) IN GENERAL.—For each year (begin- tional Institute of Standards and Tech- under a Medicare+Choice plan, the organiza- ning with 2005) payments to nology; as follows: tion and plan shall meet the requirements of Medicare+Choice plans shall not be com- On page 26, line 19, after the period, insert section 1860D–5, including requirements re- puted under this subsection, but instead ‘‘In completing the report, representatives of lating to information dissemination and shall be based on the payment amount deter- the commercial wireless industry shall be grievance and appeals, in the same manner mined under subsection (d). consulted, particularly to the extent that as they apply to an eligible entity and a ‘‘(B) CONTINUED CALCULATION OF CAPITATION the report addresses commercial wireless Medicare Prescription Drug plan under part RATES.—For each year (beginning with 2004) systems.’’. D. The Secretary shall waive such require- the Secretary shall calculate and publish the On page 26, strike lines 22 and 23, and in- ments to the extent the Secretary deter- annual Medicare+Choice capitation rates sert the following: (1) developing a system of priority access mines that such requirements duplicate re- under this subsection and shall use the an- for certain governmental officials to existing quirements otherwise applicable to the orga- nual Medicare+Choice capitation rate deter- commercial wireless systems, and the im- nization or plan under this part. mined under subsection (c)(1)(B) for purposes pact such a priority access system would ‘‘(6) COVERAGE OF PRESCRIPTION DRUGS FOR of determining the benchmark amount under have on both emergency communications ca- ENROLLEES IN PLANS THAT DO NOT OFFER PRE- subsection (a)(4).’’. pability and consumer access to commercial SCRIPTION DRUG COVERAGE.—If an individual (2) CONFORMING AMENDMENT.—Section wireless services; who is enrolled under part D is enrolled in a 1853(c)(1) (42 U.S.C. 1395w–23(c)(1)) is amended Medicare+Choice plan that does not offer by striking ‘‘For purposes of this part, sub- f prescription drug coverage, such individual ject to paragraphs (6)(C) and (7),’’ and insert- AUTHORITY FOR COMMITTEES TO shall be permitted to enroll for prescription ing ‘‘For purposes of making payments under MEET drug coverage under such part in the same this part for years before 2004 and for pur- manner as if such individual was not en- poses of calculating the annual COMMITTEE ON AGRICULTURE, NUTRITION, AND rolled in a Medicare+Choice plan. Medicare+Choice capitation rates under FORESTRY ‘‘(7) AVAILABILITY OF PREMIUM SUBSIDY AND paragraph (7) beginning with such year, sub- Ms. STABENOW. Mr. President, I ask COST-SHARING REDUCTIONS FOR LOW-INCOME ject to paragraph (6)(C),’’ in the matter pre- unanimous consent that the Com- ENROLLEES.—For provisions— ceding subparagraph (A). mittee on Agriculture, Nutrition, and ‘‘(A) providing premium subsidies and cost- (b) INCLUSION OF COSTS OF VA AND DOD Forestry Subcommittee on Production sharing reductions for low-income individ- MILITARY FACILITY SERVICES IN CONTINUED uals receiving qualified prescription drug CALCULATION.—Section 1853(c) (42 U.S.C. and Price Competitiveness be author- coverage through a Medicare+Choice plan, 1395w–23(c)), as amended by subsection (a)(1), ized to conduct a hearing on July 18, see section 1860D–19; and is amended by adding at the end the fol- 2002 in SR–3328A at 2:00 p.m. The pur- ‘‘(B) providing a Medicare+Choice organi- lowing new paragraph: pose of this hearing will be to discuss zation with insurance subsidy payments for ‘‘(8) INCLUSION OF COSTS OF VA AND DOD S. 532, the Pesticide Harmonization providing qualified prescription drug cov- MILITARY FACILITY SERVICES TO MEDICARE-ELI- Act. erage through a Medicare+Choice plan, see GIBLE BENEFICIARIES.—For purposes of deter- THE PRESIDING OFFICER. Without section 1860D–20. mining the blended capitation rate under objection, it is so ordered. ‘‘(8) QUALIFIED PRESCRIPTION DRUG COV- subparagraph (A) of paragraph (1) and the COMMITTEE ON COMMERCE, SCIENCE, AND ERAGE; STANDARD COVERAGE.—For purposes minimum percentage increase under sub- of this part, the terms ‘qualified prescription paragraph (C) of such paragraph for a year, TRANSPORTATION drug coverage’ and ‘standard coverage’ have the annual per capita rate of payment for Ms. STABENOW. Mr. President, I ask the meanings given such terms in paragraphs 1997 determined under section 1876(a)(1)(C) unanimous consent that the Com- (9) and (10), respectively, of section 1860D.’’. shall be adjusted to include in such rate, to mittee on Commerce, Science, and

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00114 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7081 Transportation be authorized to meet COMMITTEE ON INDIAN AFFAIRS Committee on Commerce, Science, and on Thursday, July 18, 2002, at 11 a.m. Ms. STABENOW. Mr. President, I ask Transportation be authorized to meet on examining Enron: Enron Energy unanimous consent that the Com- on Thursday, July 18, 2002, at 9:30 a.m., Services and its role in the western mittee on Indian Affairs be authorized on perspective on improving corporate state electricity crisis. to meet on Thursday, July 18, 2002, at responsibility. THE PRESIDING OFFICER. Without 10:00 a.m. in Room 485 of the Russell The PRESIDING OFFICER. Without objection, it is so ordered. Senate Office Building to conduct a objection, it is so ordered. COMMITTEE ON COMMERCE, SCIENCE, AND hearing on a bill to approve the settle- f TRANSPORTATION ment of water rights claims of the Zuni Ms. STABENOW. Mr. President, I ask Indian Tribe in Apache County, Ari- PRIVILEGES OF THE FLOOR unanimous consent that the Com- zona, and for other purposes. Mrs. CLINTON. Madam President, I mittee on Commerce, Science, and I also ask unanimous consent that ask unanimous consent that Suzanne Transportation be authorized to meet the Committee on Indian Affairs be au- Johnson, a legislative fellow in my of- on Thursday, July 18, 2002, at 2:30 p.m. thorized to meet on Thursday, July 18, fice, be permitted on the Senate floor on the nomination of Frederick Greg- 2002, at 2:00 p.m. in Room 485 of the throughout the debate on S. 812, and ory to be Deputy Administrator of Russell Senate Office Building to con- other prescription drug issues. NASA, Kathie Olsen and Richard Rus- duct a hearing on S. 2065, a bill to Rat- The PRESIDING OFFICER. Without sell to be Associate Directors of OSTP. ify an Agreement to Regulate Air Qual- objection, it is so ordered. THE PRESIDING OFFICER. Without ity on the Southern Ute Indian Res- Mr. GRAHAM. Madam President, I objection, it is so ordered. ervation. ask unanimous consent that Dr. How- COMMITTEE ON ENERGY AND NATURAL The PRESIDING OFFICER. Without ard Forman, from my office, be granted RESOURCES objection, it is so ordered. floor privileges for the duration of de- Ms. STABENOW. Mr. President, I ask COMMITTEE ON THE JUDICIARY bate on this legislation. unanimous consent that the Com- Ms. STABENOW. Mr. President, I ask The PRESIDING OFFICER. Without mittee on Energy and Natural Re- objection, it is so ordered. sources be authorized to hold a Hearing unanimous consent that the Com- during the session of the Senate on mittee on the Judiciary be authorized f Thursday, July 18, 2002, at 2:30 p.m. in to meet to conduct a markup on Thurs- day, July 18, 2002 at 10:00 a.m., in SD– SCIENCE AND TECHNOLOGY SD–366. The purpose of this hearing is EMERGENCY MOBILIZATION ACT to receive testimony on the following 226. bills: TENTATIVE AGENDA Mr. REID. Mr. President, I ask unan- S. 1865, to authorize the Secretary of I. Bills.—S. 486, Innocence Protection imous consent that the Senate proceed the Interior to study the suitability Act [Leahy/Smith]; H.R. 3375, Embassy to the immediate consideration of Cal- and feasibility of establishing the Employee Compensation Act [Blunt]; endar No. 459, S. 2037. Lower Los Angeles River and San Ga- S. 862, State Criminal Alien Assistance The PRESIDING OFFICER. The bill briel River watersheds in the State of Program Reauthorization Act of 2001 will be stated by title. California as a unit of the National [Feinstein/Kyl/Durbin/Cantwell]; S. The assistant legislative clerk read Park System, and for other purposes; 2395, Anticounterfeiting Amendments as follows: S. 1943, to expand the boundary of the of 2002 [Biden/Hatch/Leahy/Feinstein/ A bill (S. 2037) to mobilize technology and George Washington Birthplace Na- DeWine]; S. 2513, DNA Sexual Assault science experts to respond quickly to the tional Monument, and for other pur- Justice Act of 2002 [Biden/Cantwell/ threats posed by terrorist attacks and other poses; Specter/Clinton/Carper]. emergencies, by providing for the establish- S. 2571, to direct the Secretary of the II. Resolutions.—S. Res. 293, A reso- ment of a national emergency technology Interior to conduct a special resources guard, a technology reliability advisory lution designating the week of Novem- board, and a center for evaluating study to evaluate the suitability and ber 10 through November 16, 2002, as antiterrorism and disaster response tech- feasibility of establishing the Rim of ‘‘National Veterans Awareness Week’’ nology within the National Institute of the Valley Corridor as a unit of the to emphasize the need to develop edu- Standards and Technology. Santa Monica Mountains National cational programs regarding the con- There being no objection, the Senate Recreation Area; tributions of veterans to the country. proceeded to consider the bill which S. 2595, to authorize the expenditure [Biden/Kohl]. had been reported from the Committee of funds on private lands and facilities The PRESIDING OFFICER. Without on Commerce, Science, and Transpor- at Mesa Verde National Park, in the objection, it is so ordered. tation, with an amendment to strike State of Colorado, and for other pur- SPECIAL COMMITTEE ON AGING all after the enacting clause and insert- poses; and Ms. STABENOW. Mr. President, I ask H.R. 1925, to direct the Secretary of ing in lieu thereof the following: unanimous consent that the Special the Interior to study the suitability [Strike the part in black brackets Committee on Aging be authorized to and feasibility of designating the Waco and insert the part printed in italic] meet on Thursday, July 18, 2002 from Mammoth Site Area in Waco, Texas, as S. 2037 9:30 a.m.–12:00 p.m. in Dirksen 628 for a unit of the National Park System, Be it enacted by the Senate and House of Rep- the purpose of conducting a hearing. and for other purposes. resentatives of the United States of America in THE PRESIDING OFFICER. Without THE PRESIDING OFFICER. Without Congress assembled, objection, it is so ordered. objection, it is so ordered. SECTION 1. SHORT TITLE. SELECT COMMITTEE ON INTELLIGENCE This Act may be cited as the ‘‘Science and COMMITTEE ON ENVIRONMENT AND PUBLIC Technology Emergency Mobilization Act’’. WORKS Ms. STABENOW. Mr. President, I ask Ms. STABENOW. Mr. President, I ask unanimous consent that the Select SEC. 2. CONGRESSIONAL FINDINGS AND PUR- POSE. unanimous consent that the Com- Committee on Intelligence be author- ized to meet during the session of the (a) FINDINGS.—The Congress finds the fol- mittee on Environment and Public lowing: Works be authorized to meet on Thurs- Senate on Thursday, July 18, 2002 at (1) In the aftermath of the terrorist attacks of day, July 18, 2002, at 10:00 a.m. to con- 10:00 a.m. and 2:30 p.m. to hold a closed September 11, 2001, many private-sector tech- duct a hearing to hear from the fol- hearing on the Joint Inquiry into the nology and science experts provided valuable as- lowing nominees: John S. Bresland to events of September 11, 2001. sistance to rescue and recovery efforts by donat- be a Member of the Chemical Safety THE PRESIDING OFFICER. Without ing their time and expertise. However, many and Hazard Investigation Board, and objection, it is so ordered. who wished to help had significant difficulty determining how they could be most useful. SUBCOMMITTEE ON CONSUMER AFFAIRS, Carolyn W. Merritt to be a Member and They were hampered by the lack of any organi- FOREIGN COMMERCE AND TOURISM Chair of the Chemical Safety and Haz- zational structure to harness their abilities and ard Investigation Board. Ms. STABENOW. Mr. President, I ask coordinate their efforts. The hearing will be held in SD–406. unanimous consent that the Sub- (2) A prompt and well-coordinated volunteer The PRESIDING OFFICER. Without committee on Consumer Affairs, For- base of technology and science expertise could objection, it is so ordered. eign Commerce and Tourism of the help save lives, aid rescue efforts, and rebuild

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00115 Fmt 4624 Sfmt 6333 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7082 CONGRESSIONAL RECORD — SENATE July 18, 2002 critical technology infrastructures in the event (A) the types of expertise, capabilities, and search and development of technologies for com- of a future major terrorist attack, natural dis- equipment required; and bating terrorism. aster, or other emergency. Technology and (B) minimum training and practice require- (d) INTERNET ACCESS.— science expertise also could help minimize the ments, including participation in not less than 2 (1) IN GENERAL.—The President shall create vulnerability of critical infrastructure to future emergency drills each year. an online portal accessible through the FirstGov attacks or natural disasters. (4) CERTIFICATION AND CREDENTIALS.—The de- Internet website (www.firstgov.gov), or any suc- (3) Police, fire personnel, and other local partment, agency, or office designated under cessor to such website, to provide individuals emergency responders frequently could benefit paragraph (1) shall— and companies with innovative technologies a from timely technological assistance, and efforts (A) certify any group of individuals request- single point of access to the Center and a single to organize a system to assist in locating the de- ing certification as a NET Guard disaster re- point of contact at each Federal agency partici- sired help should be expedited. sponse team that complies with the procedures pating in the Center. (4) Efforts to develop and deploy innovative established under paragraph (1) and meets the (2) FUNCTIONS.—The Center portal shall— new technologies for use by government emer- criteria established under paragraph (3); (A) provide individuals and companies with gency prevention and response agencies would (B) issue credentials and forms of identifica- an online opportunity to obtain information be improved by the designation of a clear con- tion as appropriate identifying each such team about various open solicitations relevant to tact point within the federal government for in- and its members; and homeland security and points of contact for sub- take and evaluation of technology ideas. (C) suspend, withdraw, or terminate certifi- mission of solicited and unsolicited proposals; (5) The creation of compatible communications cation of and recover credentials and forms of and systems would strengthen emergency response identification from any NET Guard disaster re- (B) include safeguards to ensure that business efforts of police, fire, and other emergency re- sponse team, or any member thereof, when the proprietary information is protected and that no sponse personnel to communicate effectively head of the entity designated deems it appro- personally identifiable information is accessible with each other and with their counterparts priate. to unauthorized persons. from nearby jurisdictions. Some programs, such (5) COMPENSATION; PER DIEM, TRAVEL, AND (e) PROCUREMENT NOT CONDITIONED ON SUB- as the Capital Wireless Integrated Network TRANSPORTATION EXPENSES.—The department, MISSION.—Nothing in this section requires a (CapWIN), have made significant progress in agency, or office designated under paragraph technology to be submitted to, or evaluated by, addressing the issue of interoperable commu- (1) may authorize the payment to a member of the Center in order to be eligible for procure- nications between emergency service providers a NET Guard disaster response team, for the pe- ment by Federal agencies. in particular urban areas and the Federal gov- riod that member is engaged in performing du- SEC. 5. COMMUNICATIONS INTEROPERABILITY ernment has sought to address the issue through ties as such member at the request of the United PILOT PROJECTS. the Public Safety Wireless Networks program. States— (a) IN GENERAL.—The President shall estab- Relatively few States and localities, however, (A) compensation as employees for temporary lish within an appropriate department, agency, have achieved a sufficient level of communica- or intermittent services as experts or consultants or office a pilot program for planning or imple- tions interoperability. under section 3109 of title 5, United States Code; mentation of interoperable communications sys- (b) PURPOSE.—The purpose of this Act is to re- and tems for appropriate emergency response agen- inforce, focus, and expedite ongoing efforts to (B) travel or transportation expenses, includ- cies. mobilize America’s extensive capability in tech- ing per diem in lieu of subsistence, as provided (b) GRANTS.—The head of the department, nology and science in responding to the threats by section 5703 of title 5. agency, or office in which the program is estab- posed by terrorist attacks, natural disasters, (c) ADDITIONAL AUTHORITIES.—The head of lished under subsection (a) shall make grants of and other major emergencies, by creating— the department, agency, or office designated $5,000,000 each to 7 different States for pilot (1) a national emergency technology guard or under paragraph (1) may— projects under the program. ‘‘NET Guard’’ that includes— (1) activate NET Guard disaster response (c) CRITERIA; ADMINISTRATIVE PROVISIONS.— (A) rapid response teams of volunteers with teams in an emergency (as defined in section The head of the department, agency, or office in technology and science expertise, organized at 102(1) of the Robert T. Stafford Disaster Relief which the program is established under sub- the local level; and and Emergency Assistance Act (42 U.S.C. section (a), in consultation with other appro- (B) opportunities for NET Guard volunteers to 5122(1)) or a major disaster (as defined in sec- priate agencies, shall prescribe such criteria for assist with non-emergency tasks related to local tion 102(2) of that Act); eligibility for projects and for grantees, includ- preparedness and prevention, including reduc- (2) provide for access by team members to ing applications, fund use assurance and ac- ing the vulnerability of government information emergency sites; and counting, and reporting requirements as the technology systems; (3) assign, on a voluntary basis, NET Guard head of the entity deems appropriate. In pre- (2) a national clearinghouse for innovative ci- volunteers to work, on a temporary basis on— scribing such criteria, the head of the depart- vilian technologies relating to emergency pre- (A) the development and maintenance of the ment, agency, or office shall consult with the vention and response; and database described in subsection (a) and the administrators of existing projects designed to (3) a pilot program to assist state efforts to procedures for access to the database; and facilitate public safety communications inter- achieve the interoperability of communications (B) such other technology related projects to operability concerning the best practices and systems used by fire, law enforcement, and improve emergency preparedness and prevention lessons learned from such projects. emergency preparedness and response agencies. as may be appropriate. SEC. 6. REPORTS. SEC. 3. ESTABLISHMENT OF NATIONAL EMER- SEC. 4. CENTER FOR CIVILIAN HOMELAND SECU- (a) WIRELESS COMMUNICATIONS CAPABILITIES GENCY TECHNOLOGY GUARD. RITY TECHNOLOGY EVALUATION. FOR FIRST RESPONDERS.—Within 1 year after (a) IN GENERAL.—Not later than 1 year after (a) IN GENERAL.—The President shall estab- the date of enactment of this Act, the President the date of enactment of this Act, the President lish a Center for Civilian Homeland Security shall designate an appropriate department, shall designate an appropriate department, Technology Evaluation within the Executive agency, or office to submit a report to the Com- agency, or office to compile and maintain a re- Branch to evaluate innovative technologies re- mittee on Commerce, Science, and Transpor- pository database of nongovernmental tech- lating to security and emergency preparedness tation of the Senate and the Committee on nology and science experts who have offered, and response and to serve as a national clear- Science of the House of Representatives setting and who can be mobilized, to help Federal agen- inghouse for such technologies. forth policy options for ensuring that emergency cies counter terrorism. (b) FUNCTION.—The Center shall— officials and first responders have access to ef- (b) NET GUARD DISASTER RESPONSE TEAMS.— (1) serve as a principal, national contact point fective and reliable wireless communications ca- (1) CERTIFICATION PROCEDURES.—The Presi- for the intake of innovative technologies relat- pabilities. The report shall include an examina- dent shall also designate an appropriate depart- ing to security and emergency preparedness and tion of the possibility of— ment, agency, or office (which may be the de- response; (1) developing a system of priority access to partment, agency, or office designated under (2) evaluate promising new technologies relat- existing commercial wireless systems; subsection (a)) to develop a procedure to encour- ing to security and emergency preparedness and (2) designating national emergency spectrum age groups of volunteers with technological or response; to be held in reserve for public safety and emer- scientific expertise to team with individuals from (3) assure persons and companies that have gency purposes; and State and local governments, local emergency submitted a technology receive a timely response (3) creating a specialized public safety commu- response agencies, and nongovernmental emer- to inquiries; nications network or networks for use with gency aid, assistance, and relief organizations. (4) upon request by Federal agencies consult wireless devices customized for public safety use. (2) TEAM FORMATION.—The department, agen- with and advise Federal agencies about the de- (b) IN-KIND DONATIONS.—Within 1 year after cy, or office designated under paragraph (1) velopment, modification, acquisition, and de- the date of enactment of this Act, the Federal may develop and implement a system for facili- ployment of technology relating to security and Emergency Management Agency, in consulta- tating the formation of local teams of such vol- emergency preparedness and response; and tion with other appropriate Federal agencies, unteers by helping individuals that wish to par- (5) provide individuals and companies that shall submit to the Committee on Commerce, ticipate in such teams to locate and contact one have submitted information about a technology Science, and Transportation of the Senate and another. the ability to track, to the extent practicable, the Committee on Science of the House of Rep- (3) CRITERIA FOR CERTIFICATION.—The depart- the current status of their submission online. resentatives a report on the barriers to accept- ment, agency, or office designated under para- (c) MODEL.—The Center may be modeled on ance by Federal agencies of in-kind donations graph (1) shall establish criteria for the certifi- the Technical Support Working Group that pro- of technology and services during emergency sit- cation of such teams, including— vides an interagency forum to coordinate re- uations.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00116 Fmt 4624 Sfmt 6333 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7083 SEC. 7. AUTHORIZATION OF APPROPRIATIONS. ation of National Emergency Tech- aspect of our lives, the level of vulner- (a) NATIONAL EMERGENCY TECHNOLOGY nology Guard, NET Guard, teams of ability to technological disruptions GUARD.—There are authorized to be appro- volunteers with technology and science rises accordingly. We all saw with the priated $5,000,000 for each of fiscal years 2003 expertise, organized in advance and problems following the attacks of Sep- and 2004 to carry out section 3. available to be mobilized on short no- (b) PILOT PROGRAMS.—There are authorized tember 11, the promptness and quality to be appropriated to the department, agency, or tice, similar to existing urban search of the technological response to ter- office in which the program is established under and rescue teams. rorist attacks or natural disasters section 5(a) $35,000,000 for fiscal year 2003 to It also calls for the creation of a Cen- could mean the difference between life carry out section 5 of this Act, such sums to re- ter for Civilian Homeland Security and death. main available until expended. Technology Evaluation, modeled on S. 2037, the Net Guard bill, will play (c) REPORT.—There are authorized to be ap- the existing Technical Support Work- a major role in preventing many of the propriated to the department, agency, or office ing Group, to serve as a single point of problems that occurred during the at- designated in section 6(a) $500,000 for fiscal year contact and clearinghouse for innova- 2003 to carry out section 6(a) of this Act. tacks against New York and the Pen- tive technologies relating to emer- tagon. September 11 taught us two SEC. 8. EMERGENCY RESPONSE AGENCIES. gency prevention and response. The things: (1) how much technological im- In this Act, the term ‘‘emergency response center will have an online portal, so provements are needed for State, local, agency’’ includes agencies providing any of the that the numerous small businesses following services: and Federal services, and (2) the depth that have been struggling to negotiate (1) Law Enforcement services. of the reservoir of American goodwill the maze of bureaucracy will finally (2) Fire services. to provide solutions. have a way to get their bright tech- (3) Emergency Medical services. S. 2037 will call upon the ideas of the (4) Public Safety Communications. nology ideas into the right hands. In (5) Emergency Preparedness. addition, the legislation provides for best and the brightest minds in the Mr. WYDEN. Mr. President, as Amer- pilot projects to improve the interoper- American technology workforce to act ica mobilizes to protect itself from ter- ability of communications systems as an all-volunteer force to help restore rorism, a key weapon in its defensive used by fire, law enforcement, and communications and infrastructure op- arsenal is its great technological prow- emergency preparedness and response erations after a major national dis- ess. From high-tech ‘‘cyber attacks’’ to agencies. aster. Like all Americans, I was heart- more conventional threats, many of The legislation does not create a ened by the volunteer efforts of compa- the solutions for reducing America’s large bureaucracy, nor does it seek to nies, like Verizon, Intel, IBM, vulnerabilities at home will be rooted micromanage; instead, it gives the Accenture, and Cingular Wireless, that in technology. And much of the coun- President flexibility to decide where volunteered both staff and equipment try’s science and technology expertise within the executive branch the dif- to restore communications in New resides outside the government in the ferent functions set forth in the bill York and the Washington, DC area. dynamic arena of private sector entre- should be placed. This is particularly This bill will simply add structure to preneurship. important in light of the pending pro- private sector efforts and encourages Therefore, it is essential to ensure posals for reorganizing the Federal the participation of the Nation’s that America’s antiterrorism efforts Government’s homeland security func- science and technology experts to re- tap the tremendous science and tech- tions. This bill is flexible enough to fit spond to national emergencies. Addi- nology talents of the private sector. To comfortably within whatever structure tionally, this bill creates a ‘‘virtual that end, the Science and Technology is ultimately adopted. technology reserve’’ consisting of a Emergency Mobilization Act will help I express my appreciation to Senator database of private-sector expertise forge strong partnerships between the ALLEN for his efforts on the bill; to the and equipment that can be called upon, government and private sector science distinguished chairman of the Com- at any moment, by emergency officials and technology experts, in order to merce Committee, Senator HOLLINGS, during a crisis situation. provide the best protection and re- for his help and support as the bill was I believe the all-volunteer teams of sponse for the American people. considered by the committee; and to science and technology personnel in The legislation the Senate is approv- Mitch Daniels, Director of the Office of conjunction with the virtual tech- ing today has been in the works since Management and Budget, for mobi- nology reserve that are created by this shortly after September 11. The Sub- lizing his staff to work with us on the legislation will help many Americans fine points of the legislation. I also committee on Science and Technology by restoring vital services in times of thank all the private sector organiza- held a series of hearings in 2001–2002 on need. tions and individuals who provided im- the best way to mobilize science and There are many enterprises and com- portant advice throughout the process, technology experts, drawing on first- mercial applications that can be adapt- and in particular those who have ex- hand accounts of those who sought to ed to meet the Government’s needs, pressed formal support for the legisla- offer help in the aftermath of the ter- however currently there is no central tion, including Intel, Microsoft, Amer- rorist attacks. The subcommittee’s location for evaluation or mechanism ica Online, Oracle, the National Asso- ranking Republican, Senator ALLEN, for recommendation within the Gov- ciation of Manufacturers, and the Bio- joined me as a cosponsor and helped to ernment. I, along with other Senators, technology Industry Organization. receive volumes of information from draft the bill. House Science Com- Mr. ALLEN. Mr. President, today I mittee Chairman BOEHLERT partici- rise to thank my colleagues for their numerous companies on their different pated as well, making this a bipartisan unanimous support of S. 2037, the products and ideas regarding the de- and bicameral effort. The bill also Science and Technology Emergency fense of our homeland. As public serv- bears the imprint of various executive Mobilization Act. I also thank Senator ants we want to be sure the Govern- ment has the necessary structure and branch agencies: we worked very close- WYDEN for his leadership and continued ly with the Office of Management and tenacious work on pushing this impor- process in place to test and apply new Budget, the Office of Science and Tech- tant measure through the Senate. technologies to meet our homeland se- nology Policy, the Commerce Depart- S. 2037 highlights the vital role tech- curity needs. ment’s Technology Administration, nology and innovation play in our Na- S. 2037 establishes of a Center for Ci- FEMA, and NIST to shape the original tion’s war to protect our homeland vilian Homeland Security Technology legislation into a finely-turned and tar- from terrorism. As this body has high- Evaluation and an online, Internet por- geted bill. On May 17, it was approved lighted time and time again, new tech- tal within the Executive Branch. This by the Commerce Committee without nologies are being developed every day Center will perform the important task dissent. that can help save lives and improve of matching the inventions of the pri- The legislation provides for the cre- the ability of our firefighters, police, vate sector to the needs of our Nation’s ation of a database of private sector and first responders to react quickly homeland defense. Additionally, the science and technology experts whom and effectively to a catastrophic event. Internet portal will provide individuals government officials may call upon in As our Nation becomes more depend- and companies with a single point to emergencies. It provides for the cre- ent upon technology in nearly every access the center and a single point of

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00117 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7084 CONGRESSIONAL RECORD — SENATE July 18, 2002 contact at each federal agency partici- The PRESIDING OFFICER. Without ordered Paderewski’s remains returned to pating in the Center for Civilian Home- objection, it is so ordered. his native Poland; land Security. The bill (H.R. 2175) was read the third Whereas June 26, 1992, the remains of Pade- Mr. President, I am glad to see the time and passed. rewski were removed from the Mast of the Maine at Arlington National Cemetery, and Senate come together and pass this im- f were returned to Poland on June 29, 1992; portant legislation and again thank my RECOGNIZING THE ACCOMPLISH- Whereas on July 5, 1992, Paderewski’s re- colleague from Oregon for his leader- MENTS OF IGNACY JAN PADE- mains were interned in a crypt at the St. ship. I have truly enjoyed working with John Cathedral in Warsaw, Poland; and REWSKI him for the successful passage of this Whereas Paderewski wished his heart to be positive, constructive utilization of the Mr. REID. Mr. President, I ask unan- forever enshrined in America, where his life- advances in technology to improve the imous consent that the Foreign Rela- long struggle for democracy and freedom had security of Americans. tions Committee be discharged from its roots and was cultivated, and now his further consideration of S. Res. 296 and heart remains at the Shrine of the Czesto- Mr. REID. Mr. President, Senators chowa in Doylestown, Pennsylvania: Now, WYDEN and ALLEN have an amendment the Senate proceed to its consider- therefore, be it at the desk, and I ask unanimous con- ation. Resolved, That the Senate— sent that the amendment be considered The PRESIDING OFFICER. Without (1) recognizes the accomplishments of and agreed to, the motion to reconsider objection, it is so ordered. The resolu- Ignacy Jan Paderewski as a musician, com- be laid upon the table, the committee tion will be stated by title. poser, statesman, and philanthropist; and substitute amendment, as amended, be The assistant legislative clerk read (2) acknowledges the invaluable efforts of as follows: Ignacy Jan Paderewski in forging close Pol- agreed to, the bill, as amended, be read ish-American ties, on the 10th Anniversary the third time and passed, and the mo- A resolution (S. Res. 296) recognizing the of the return of Paderewski’s remains to Po- tion to reconsider be laid upon the accomplishments of Ignacy Jan Paderewski land. table, and that any statements relating as a musician, composer, statesman, and phi- lanthropist and recognizing the 10th anniver- f thereto be printed in the RECORD as if sary of the return of his remains to Poland. read, with no intervening action or de- APPOINTMENT bate. There being no objection, the Senate The PRESIDING OFFICER. The The PRESIDING OFFICER. Without proceeded to consider the resolution. Chair, on behalf of the President pro objection, it is so ordered. Mr. REID. Mr. President, I ask unan- tempore and upon the recommendation The amendment (No. 4311) was agreed imous consent that the resolution and of the Republican Leader, pursuant to to, as follows: preamble be agreed to en bloc, the mo- Public Law 98–183, as amended by Pub- tion to reconsider be laid upon the (Purpose: To ensure that private sector input lic Law 103–419, reappoints Russell G. is considered in the wireless communica- table, and that any statements relating Redenbaugh of Pennsylvania to the tions capabilities policy options report re- thereto be placed in the RECORD as if United States Commission on Civil quired by section 6) read at the appropriate place. Rights. On page 26, line 19, after the period, insert The PRESIDING OFFICER. Without f ‘‘In completing the report, representatives of objection, it is so ordered. ORDERS FOR FRIDAY, JULY 19, 2002 the commercial wireless industry shall be The resolution (S. Res. 296) was consulted, particularly to the extent that agreed to. Mr. REID. Mr. President, I ask unan- the report addresses commercial wireless The preamble was agreed to. imous consent that when the Senate systems.’’. The resolution, with its preamble, completes its business today, it ad- On page 26, strike lines 22 and 23, and in- reads as follows: journ until 9:30 a.m., Friday, July 19; sert the following: that following the prayer and the S. RES. 296 (1) developing a system of priority access pledge, the morning hour be deemed for certain governmental officials to existing Whereas Ignacy Jan Paderewski, born in commercial wireless systems, and the im- Poland in 1860, was a brilliant and popular expired, the Journal of proceedings be pact such a priority access system would pianist who performed hundreds of concerts approved to date, the time for the two have on both emergency communications ca- in Europe and the United States during the leaders be reserved for their use later pability and consumer access to commercial late 19th and early 20th centuries; in the day, and there be a period for wireless services; Whereas Paderewski often donated the pro- morning business until 11:30 a.m., with The committee amendment in the ceeds of his concerts to charitable causes; Senators permitted to speak therein nature of a substitute, as amended, was Whereas, during World War I, Paderewski for up to 10 minutes each, with the agreed to. worked for the independence of Poland and time equally divided between the two The bill (S. 2307), as amended, was served as the first Premier of Poland; leaders or their designees; further, that Whereas in December 1919, Paderewski re- the cloture vote scheduled for 10:30 read the third time and passed, as fol- signed as Premier of Poland, and in 1921 he lows: left politics to return to his music; a.m. on Tuesday, July 23, occur at 10:45 (The bill will be printed in a future editing Whereas the German invasion of Poland in a.m. of the RECORD.) 1939 spurred Paderewski to return to polit- The PRESIDING OFFICER. Without objection, it is so ordered. f ical life; Whereas Paderewski fought against the f BORN-ALIVE INFANTS Nazi dictatorship in World War II by joining PROGRAM PROTECTION ACT OF 2001 the exiled Polish Government to mobilize the Polish forces and to urge the United Mr. REID. Mr. President, tomorrow Mr. REID. Mr. President, I ask unan- States to join the Allied Forces; there is as much time as Senators may imous consent that the Senate proceed Whereas Paderewski died in exile in Amer- want to talk about the pending amend- to the consideration of Calendar No. ica on June 29, 1941, while war and occupa- ments or any topic related to this bill. 323, H.R. 2175. tion imperiled all of Europe; The leader has said we will convene in The PRESIDING OFFICER. The bill Whereas by the direction of United States the afternoon on Monday. There are no will be stated by title. President Franklin D. Roosevelt, Paderewski’s remains were placed along side votes on Monday. If Senators want to The assistant legislative clerk read talk about the pending amendments or as follows: America’s honored dead in Arlington Na- tional Cemetery, where President Roosevelt the bill tomorrow, there will be avail- A bill (H.R. 2175) to protect infants who are said, ‘‘He may lie there until Poland is able as many hours as Senators wish to born alive. free.’’; speak, and then all day Monday. These There being no objection, the Senate Whereas in 1963, United States President are two very important amendments, proceeded to consider the bill. John F. Kennedy honored Paderewski by and people should feel inclined to talk Mr. REID. Mr. President, I ask unan- placing a plaque marking Paderewski’s re- about them if they desire. We cannot imous consent that the bill be read the mains at the Mast of the Maine at Arlington National Cemetery; have anyone carping and saying: I did third time and passed, the motion to Whereas in 1992, United States President not have time to talk. Senators have reconsider be laid upon the table, and George H.W. Bush, at the request of Lech all the time that can possibly be need- that any statements relating to the Walesa, the first democratically elected ed to talk about these two important bill be printed in the RECORD. President of Poland following World War II, amendments.

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00118 Fmt 4624 Sfmt 0634 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 18, 2002 CONGRESSIONAL RECORD — SENATE S7085 There will be no rollcall votes tomor- KEVIN M. *FRANKE, 0000 DAVID T. *ALLEN, 0000 DAVID V. *GILL, 0000 THADDEUS P. ALLEN, 0000 row or Monday. As I indicated in the MATTHEW A. *GRINSTAFF, 0000 WALTER C. ALLEN II, 0000 request the Chair has granted, we will CHARLES A. *GROH, 0000 NATHAN A. ALLERHEILIGEN, 0000 SEAN A. *HOLLOWAY, 0000 MATTHEW W. ALLINSON, 0000 vote at 10:45 a.m. on Tuesday. JAMES M. *HUGHES, 0000 CHARLES R. ALMQUIST, 0000 KARL D. *HUTH, 0000 CLIFFORD G. *ALTIZER, 0000 f GENE C. *KRAFT, 0000 RAYMOND ALVES II, 0000 BARNA C. *LAMBERT, 0000 KELLY JAY *AMEDEE, 0000 ADJOURNMENT UNTIL 9:30 A.M. DWIGHT E. *LISLE, 0000 CHRISTOPHER C. *AMENTA, 0000 CHRISTOPHER P. MARCUS, 0000 STEVEN C. AMMONS, 0000 TOMORROW RODNEY K. *MCCURDY, 0000 DAVID J. *ANASON, 0000 RICK A. *MOORE, 0000 KEVIN P. *ANCHOR, 0000 Mr. REID. Mr. President, if there is STEPHEN M. MOUNTS, 0000 CORNELIUS T. *ANDERSON, 0000 no further business to come before the ERICH P. *MURRELL, 0000 DAGVIN R. M. ANDERSON, 0000 CHRISTOPHER A. *PHILLIPS, 0000 DOUGLAS C. *ANDERSON, 0000 Senate, I ask unanimous consent that STEPHEN D. *SPEECE, 0000 LEIGHTON T. ANDERSON JR., 0000 the Senate stand in adjournment under MICHAEL C. *SUMNER, 0000 MICHAEL A. *ANDERSON, 0000 CATHERINE A. *TARABINI, 0000 MONTE D. ANDERSON, 0000 the previous order. STEVEN P. *VANDEWALLE, 0000 ROBERT E. *ANDERSON JR., 0000 There being no objection, the Senate, CHRISTOPHER L. *VROOMAN, 0000 STEVEN E. ANDERSON, 0000 EDWIN W. *WRIGHT, 0000 THEODORE J. ANDERSON, 0000 at 8:03 p.m., adjourned until Friday, TIMOTHY W. ANDERSON, 0000 July 19, 2002, at 9:30 a.m. THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT JOSE ZL *ANDIN, 0000 TO THE GRADE INDICATED IN THE UNITED STATES AIR MICHAEL S. *ANGLE, 0000 f FORCE AND FOR REGULAR APPOINTMENT (IDENTIFIED STEVEN E. *ANKERSTAR, 0000 BY AN ASTERISK (*)) UNDER TITLE 10, U.S.C., SECTIONS CHRISTOPHER T. ANTHONY, 0000 NOMINATIONS 624 AND 531: WILLIAM B. *APODACA, 0000 To be major JOHN E. *ARD, 0000 Executive nominations received by JASON R. ARMAGOST, 0000 SARA K. *ACHINGER, 0000 JOHN H. *ARMSTRONG JR., 0000 the Senate July 18, 2002: MARK E. *ALLEN, 0000 JONATHAN D. ARNETT, 0000 BRUCE A. *BARNARD, 0000 CHARLES F. *ARNOLD JR., 0000 DEPARTMENT OF TRANSPORTATION TERESA H. *BARNES, 0000 JOSEPH E. *ARTHUR, 0000 REGINALD E. G. *ASH III, 0000 ROGER P. NOBER, OF MARYLAND, TO BE A MEMBER OF GREGORY A. *BAXLEY, 0000 JOEL E. ATKINSON, 0000 THE SURFACE TRANSPORTATION BOARD FOR A TERM NOAH J. *BLEDSTEIN, 0000 ROBERT F. *BOOTH, 0000 TAFT O. AUJERO, 0000 EXPIRING DECEMBER 31, 2005, VICE WILLIAM CLYBURN, SCOTT J. BABBITT, 0000 JR., TERM EXPIRED. JEFFREY *BRANSTETTER, 0000 ROBIN L. *BRODRICK, 0000 LESLIE P. BABICH, 0000 DEPARTMENT OF THE TREASURY LEONARD L. *BURRIDGE, 0000 JEREMY O. BAENEN, 0000 ROBERT C. *BURTON, 0000 MARK E. *BAER, 0000 PAMELA F. OLSON, OF VIRGINIA, TO BE AN ASSISTANT CYNTHIA *BUXTON, 0000 FRED P. *BAIER, 0000 SECRETARY OF THE TREASURY, VICE MARK A. WEIN- CHRISTOPHER L. COLCLASURE, 0000 ROBERT D. *BAIER, 0000 BERGER, RESIGNED. CHRISTA S. *COTHREL, 0000 CHARLES P. *BAILEY JR., 0000 DARRIN E. *BAILEY, 0000 THE JUDICIARY MICHELLE S. *CRAMER, 0000 RONALD S. *CRAMER, 0000 JAMES B. *BAILEY JR., 0000 S. JAMES OTERO, OF CALIFORNIA, TO BE UNITED DAVID M. *CUNNINGHAM, 0000 RICHARD J. BAILEY JR., 0000 STATES DISTRICT JUDGE FOR THE CENTRAL DISTRICT GORDON P. *DAVIS, 0000 BRANDON E. BAKER, 0000 OF CALIFORNIA, VICE RICHARD A. PAEZ, ELEVATED. KIM M. *DIPPOLITO, 0000 CRAIG R. BAKER, 0000 ROBERT G. KLAUSNER, OF CALIFORNIA, TO BE UNITED BRETT W. *DOWNEY, 0000 GILBERT W. BAKER, 0000 STATES DISTRICT JUDGE FOR THE CENTRAL DISTRICT JEFFREY A. *FERGUSON, 0000 JESSICA *BAKER, 0000 OF CALIFORNIA, VICE WILLIAM D. KELLER, RETIRED. DAVID J. R. *FRAKT, 0000 JOHN P. *BAKER, 0000 ROBERT A. JUNELL, OF TEXAS, TO BE UNITED STATES PETER *GALINDEZ JR., 0000 RICHARD W. *BAKER, 0000 DISTRICT JUDGE FOR THE WESTERN DISTRICT OF FRANK T. *GIAMBATTISTA, 0000 JONATHAN P. *BAKONYI, 0000 TEXAS, VICE HIPOLITO FRANK GARCIA, DECEASED. MICHAEL W. *GOLDMAN, 0000 RUSSELL L. *BALL, 0000 JAMES E. KINKEADE, OF TEXAS, TO BE UNITED STATES SHANNON R. *HANSCOM, 0000 MICKEY L. BALLARD, 0000 DISTRICT JUDGE FOR THE NORTHERN DISTRICT OF KRISTINE R. *HOFFMAN, 0000 THOMAS C. *BALLARD, 0000 TEXAS, VICE JOE KENDALL, RESIGNED. DARREN C. *HUSKISSON, 0000 DAVID BALLEW, 0000 WILLIAM E. SMITH, OF RHODE ISLAND, TO BE UNITED KYLE R. *JACOBSON, 0000 KEITH W. BALTS, 0000 STATES DISTRICT JUDGE FOR THE DISTRICT OF RHODE DIANA L. *JOHNSON, 0000 ANTHONY E. BAMSEY, 0000 ISLAND, VICE RONALD R. LAGUEUX, RETIRED. JOSHUA E. *KASTENBERG, 0000 MARTIN J. *BANGERT, 0000 MARCI A. *LAWSON, 0000 DAVID D. BANHOLZER, 0000 IN THE COAST GUARD MICHAEL A. *LEWIS, 0000 ERIC J. BARELA, 0000 ALEXANDER J. *BARELKA, 0000 THE FOLLOWING NAMED INDIVIDUALS FOR APPOINT- TRACEY Y. *MADSEN, 0000 BRYAN T. MARTIN, 0000 MICHAEL D. BARG, 0000 MENT AS PERMANENT COMMISSIONED REGULAR OFFI- MATTHEW A. BARKER, 0000 CERS IN THE UNITED STATES COAST GUARD IN THE TODD E. MCDOWELL, 0000 MARTIN T. *MITCHELL, 0000 GARY A. *BARLET, 0000 GRADE INDICATED UNDER SECTION 211, TITLE 14, U.S. GEOFFREY C. *BARNES, 0000 CODE: KYLE W. *NOLTE, 0000 RICHARD S. *PAKOLA, 0000 DANIEL J. *BARONE, 0000 To be commander IRA *PERKINS, 0000 MARK A. BARONI, 0000 CHARLES L. *PLUMMER, 0000 FRANKLIN D. *BARROW, 0000 GEORGE H. TEUTON, 0000 TERESA L. *REED, 0000 STEPHEN P. BARROWS, 0000 To be lieutenant NATALIE D. *RICHARDSON, 0000 DEREK S. BARTHOLOMEW, 0000 TAMAIRA *RIVERA, 0000 ROBERT A. *BASKETTE, 0000 BLAKE L. NOVAK, 0000 THOMAS A. *ROGERS JR., 0000 SAMUEL D. *BASS, 0000 DEREK S. *SHERRILL, 0000 ANDREW J. BATES, 0000 IN THE AIR FORCE JOHN D. SMITH, 0000 TIMOTHY D. *BATSON, 0000 LOREN E. *BATTELS JR., 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT HUGH A. *SPIRES JR., 0000 MICHAEL A. *SUMNER, 0000 ROBERT G. *BATTEMA, 0000 IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- JOSEPH T. *BATTLE JR., 0000 CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE ERIK A. *TROFF, 0000 RACHEL E. VANLANDINGHAM, 0000 KURT P. *BAUER II, 0000 AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION JONATHAN M. BAUGHMAN, 0000 601: REBECCA R. *VERNON, 0000 STACIE A. *VEST, 0000 STEPHEN J. BAUMGARTE, 0000 To be general MATTHEW S. *WARD, 0000 STEPHEN C. *BAXTER, 0000 PATRICK J. *WELLS, 0000 JOSEPH G. *BEAHM JR., 0000 LT. GEN. CHARLES F. WALD, 0000 ERIC J. *WERNER, 0000 DONALD C. *BEAL, 0000 LYNNE A. *WHITTLER, 0000 CATHY *BEASLEY, 0000 THE FOLLOWING NAMED INDIVIDUAL FOR APPOINT- DAVID L. BEAVER, 0000 MENT TO THE GRADE INDICATED IN THE RESERVE OF JONATHAN P. *WIDMANN, 0000 CHARLES E. *WIEDIE JR., 0000 MATTHEW R. BECKLEY, 0000 THE AIR FORCE UNDER TITLE 10, U.S.C., SECTION 12203. ANDREA D. BEGEL, 0000 To be colonel THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT ANDREW J. *BELANGER, 0000 TO THE GRADE INDICATED IN THE UNITED STATES AIR DEAN C. *BELLAMY, 0000 FREDERIC A. MARKS, 0000 FORCE AND FOR REGULAR APPOINTMENT (IDENTIFIED KELLY S. *BELLAMY, 0000 BY AN ASTERISK (*)) UNDER TITLE 10, U.S.C., SECTIONS ALFRED P. *BELLO III, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT 624 AND 531: KYLE G. *BELLUE, 0000 TO THE GRADE INDICATED IN THE UNITED STATES AIR To be major CHRISTOPHER *BEMBENICK, 0000 FORCE AND FOR REGULAR APPOINTMENT (IDENTIFIED ROBERT J. *BEMENT, 0000 BY AN ASTERISK (*)) UNDER TITLE 10, U.S.C., SECTIONS CHRISTOPHER R. *ABRAMSON, 0000 MICHAEL R. *BENHAM, 0000 624 AND 531: ORLANDO A. ACOSTA, 0000 VERONICA P. *BENNET, 0000 To be major BRIAN E. *ADAMCIK, 0000 JAMES S. *BENOIT, 0000 ANDREW J. ADAMS, 0000 LYNN *BENTLEY III, 0000 MEREDITH L. *ADAMS, 0000 DAVID E. *ADAMS, 0000 RICHARD F. *BENZ, 0000 JAMES W. BARBER, 0000 DENNIS P. *ADAMS, 0000 DANIELLE E. BERNARD, 0000 CRAIG T. *BARD, 0000 SHAWN J. *ADKINS, 0000 JESSICA ANNE BERTINI, 0000 PAUL O. *BEGNOCHE, 0000 MICHAEL P. AERSTIN, 0000 GREG D. BIGLEY, 0000 MARY ANN BEHAN, 0000 THANOON J. *AGHA, 0000 PETER M. BILODEAU, 0000 DANNY L. *BLAKE, 0000 LATHEEF N. *AHMED, 0000 CHRISTOPHER D. *BIRKHEAD, 0000 DUANE M. *BRAGG, 0000 MARK J. *AHRENS, 0000 JERRY W. *BISHOP JR., 0000 MICHAEL S. BURKE, 0000 RICKY L. *AINSWORTH, 0000 FREDERICK C. *BIVETTO, 0000 RICHARD E. CUTTS, 0000 SUSAN M. *AIROLA, 0000 SHAWN L. BLACK, 0000 JOHN H. *DANIELS, 0000 ANTHONY J. AJELLO JR., 0000 DOUGLAS F. BLACKLEDGE, 0000 GREGORY B. *DEWOLF, 0000 MICHAEL J. *AKOS, 0000 BARRY A. BLANCHARD, 0000 ANNETTE I. *DORRIS, 0000 KRISTINA M. *ALBERTWYMS, 0000 CHRISTOPHER J. *BLANEY, 0000 BRENT A. *EPLING, 0000 CHARLYNN M. *ALDERMAN, 0000 THOMAS R. *BLAZEK, 0000 MATTHEW B. *ESCHER, 0000 PATRICK L. *ALDERMAN, 0000 JENNIFER A. BLOCK, 0000 CHARLES B. *FARLEY, 0000 JOSE M. *ALEMAN, 0000 JAMES A. BLOIR, 0000 LOUIS A. *FERRUCCI JR., 0000 LEWIS E. ALFORD III, 0000 THEODORE B. BLOOMER, 0000

VerDate Mar 15 2010 20:42 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00119 Fmt 4624 Sfmt 9801 E:\2002SENATE\S18JY2.REC S18JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7086 CONGRESSIONAL RECORD — SENATE July 18, 2002

STEPHEN J. *BLOSE, 0000 ELIZABETH A. CASSTEVENS, 0000 DEAN M. *DANAS, 0000 GREGORY D. *BLOUNT, 0000 DEAN J. CATALANO, 0000 JANINE L. *DARBY, 0000 TRACY A. *BOBO, 0000 GREGORY T. *CATARRA, 0000 RENE W. *DARBY, 0000 JAMES E. *BODDY JR., 0000 JOHN M. *CATES, 0000 ARTHUR D. *DAVIS, 0000 RON W. *BODINE, 0000 JOSEPH R. CDEBACA, 0000 DEREK C. *DAVIS, 0000 DEAN G. BOERRIGTER, 0000 BRYAN K. CESSNA, 0000 DONALD J. DAVIS, 0000 EDMUND J. BOHN, 0000 MICHAEL W. *CEULE, 0000 ERIC S. *DAVIS, 0000 ERIC J. *BOLLINGER, 0000 TIMOTHY P. *CHAMERNIK, 0000 GEOFFREY V. *DAVIS II, 0000 PETER J. *BOLLINGER, 0000 JACK G. *CHARLESWORTH, 0000 LEVERTIS *DAVIS JR., 0000 ROBERT P. *BONGIOVI, 0000 HASTINGS M. CHASE, 0000 PATRICK W. *DAVIS, 0000 NICOLE A. BONTRAGER, 0000 ROBERT M. *CHAVEZ, 0000 THOMAS E. DAVIS, 0000 BRENT M. *BOOKER, 0000 SAMUEL J. CHESNUT IV, 0000 MICHAEL J. DEAN, 0000 EUGENE A. BOOTH JR., 0000 JASON J. E. *CHILDS, 0000 ERIC F. *DELAGE, 0000 RALPH W. *BOOTH, 0000 VINCENT J. CHIOMA, 0000 BRIAN J. DELAMATER, 0000 DONALD J. *BORCHELT, 0000 DAVID B. CHISENHALL JR., 0000 DOUGLAS C. DELAMATER, 0000 JAMES B. *BORDERS, 0000 DAVID P. *CHRISMAN, 0000 CHARLES J. DELAPP II, 0000 BRETT J. *BORGHETTI, 0000 KENT A. *CHRISTEN, 0000 JAMES W. *DELOACH, 0000 OLEG BORUKHIN, 0000 TERRY L. CHRISTIANSEN, 0000 JAMES M. *DELONG, 0000 WILLIAM K. BOSCH, 0000 ROWENA *CHRISTIE, 0000 SCOTT A. *DELORENZI, 0000 SCOTT L. BOUSHELL, 0000 CHAD L. *CHRISTOPHERSON, 0000 CHRISTOPHER *DELOSSANTOS, 0000 PAUL S. BOVANKOVICH, 0000 MATTHEW C. CICCARELLO, 0000 ELIZABETH A. DEMMONS, 0000 SCOTT R. *BOWEN, 0000 JEFFREY S. *CIESLA, 0000 RICHARD W. *DEMOUY, 0000 CORY W. BOWER, 0000 ROBERT O. *CIOPPA, 0000 THOMAS E. DEMPSEY III, 0000 ANDREW S. *BOYD, 0000 ANNE L. CLARK, 0000 JEFFREY G. *DEMUTH, 0000 MARK H. BOYD, 0000 MICHAEL J. CLARK, 0000 GARY D. *DENNEY, 0000 CHERRYL A. *BOYETTE, 0000 JONATHAN B. CLAUNCH, 0000 CHAD P. *DERANGER, 0000 ROOSEVELT F. BOYLAND JR., 0000 CHRISTINA M. CLAUSNITZER, 0000 MARK M. DERESKY, 0000 ANDREW J. BRACKEN, 0000 JOSEPH R. *CLAWSON JR., 0000 ABNER *DEVALLON, 0000 ERIC D. *BRADSHAW, 0000 HERBERT L. CLAYTON, 0000 JEFFREY W. DEVORE, 0000 DANIEL M. *BRANAN, 0000 JOHN D. *CLAYTON, 0000 LARUE R. DEWALD III, 0000 DANIEL E. *BRANT, 0000 JAMES *CLEGERN, 0000 JAMES C. *DEWEY, 0000 TROY A. J. BRASHEAR, 0000 JASON E. CLEMENTS, 0000 JOHN H. DEYARMON, 0000 JAMES A. *BRAUNSCHNEIDER, 0000 PHILIP A. CLINTON, 0000 BRIAN C. *DICKINSON, 0000 FREDERICK C. BRAVO, 0000 MELISSA A. COBURN, 0000 MICHAEL A. *DICKINSON, 0000 PAUL D. *BRAWLEY JR., 0000 NILES M. COCANOUR, 0000 DAVID W. *DIEHL, 0000 PATRICK R. *BREAUX, 0000 STEPHEN B. *COCKS, 0000 TOR F. *DIETRICHS, 0000 STEVEN J. BREEZE, 0000 SHAWN M. *COCO, 0000 BEBE D. *DIGGINS, 0000 JASON M. *BRENNEMAN, 0000 JED S. *COHEN, 0000 LINDA M. DINNDORF, 0000 JOSEPH D. BREWER, 0000 PETER J. COHEN, 0000 STEVE A. DINZART, 0000 JOHN A. *BREWSTER, 0000 DEIRDRE A. *COKER, 0000 ROBERT J. DITTMAN, 0000 ALEXANDER W. BRID, 0000 CHRISTOPHER R. COLBERT, 0000 JAMES E. DITTUS, 0000 YUSEF D. BRIDGES, 0000 OMAR S. *COLBERT, 0000 BRANDON K. DOAN, 0000 LARA C. *BRINSON, 0000 MICHAEL D. *COLBURN, 0000 THOMAS W. DOBBS, 0000 RICHARD S. *BRISCOE, 0000 BARRY W. COLE, 0000 CASEY P. *DODDS, 0000 KERRY D. *BRITT, 0000 DARREN R. COLE, 0000 MICHAEL A. DODSON, 0000 EDWARD S. BRODERICK JR., 0000 HERMAN A. COLE III, 0000 MICHAEL R. *DOMBROWSKI, 0000 KEVIN W. *BROOKS, 0000 STAN G. COLE, 0000 THOMAS R. *DORL, 0000 ERIC D. *BROWN, 0000 JAMES E. COLEBANK, 0000 JOHN L. *DORRIAN, 0000 HAL D. BROWN, 0000 ANTHONY E. COLEMAN, 0000 PETER W. DOTY, 0000 NICOLE R. *BROWN, 0000 BRIAN D. COLLINS, 0000 ANNA M. *DOUGLAS, 0000 ROBERT G. *BROWN, 0000 TODD A. *COLLINS, 0000 CHARLES W. *DOUGLASS, 0000 SCOTT M. *BROWN, 0000 MARK W. P. *COLLISON, 0000 ROBERT A. DOWNEY, 0000 DAVID F. *BROWNING, 0000 KEITH A. COMPTON JR., 0000 JAMES F. *DOWNS, 0000 KENNETH W. *BROWNING, 0000 MICHAEL J. *COMTOIS, 0000 JEFFREY T. *DOYLE, 0000 DENISE M. BRUCE, 0000 VERNON W. CONAWAY IV, 0000 NORMAN A. DOZIER, 0000 BRIAN R. *BRUCKBAUER, 0000 CHAD L. *CONERLY, 0000 TODD A. DOZIER, 0000 NEAL W. *BRUEGGER, 0000 KURT E. *CONKLIN, 0000 ERIK A. *DRAKE, 0000 MARY J. *BRUNE, 0000 WILLIAM J. CONLEY, 0000 GREGORY A. *DRAKE, 0000 MICHAEL A. BRUZZINI, 0000 JOHN P. CONMY, 0000 KERRY A. *DRAKE, 0000 JOHN N. *BRYAN, 0000 SIDNEY S. CONNER, 0000 THOMAS G. DRAPE, 0000 ALBERT D. BRYSON, 0000 MICHAEL A. CONNOLLY, 0000 JENNIFER A. *DRAPER, 0000 BRIAN G. *BUCK, 0000 DEREK T. *CONTRERAS, 0000 JAMES D. DRYJANSKI, 0000 JOHN S. *BULLDIS, 0000 JOEL O. *COOK, 0000 ANTHONY W. DUBOSE, 0000 RICHARD K. *BULLOCK, 0000 MICHAEL R. *COOK JR., 0000 BRIAN A. DUDAS, 0000 LANCE R. BUNCH, 0000 WANDA D. *COOK, 0000 PETER A. *DUGAS, 0000 DONALD D. *BUOL, 0000 BERT *COOL, 0000 MICHAEL T. *DUMOND, 0000 JEFFREY S. BURDETT, 0000 BRYAN S. COON, 0000 PERCY E. DUNAGIN III, 0000 CHRISTOPHER W. *BURELLI, 0000 CHARLES J. COOPER, 0000 WALTER E. *DUNBAR III, 0000 JOSHUA C. BURGESS, 0000 JAMES A. COPHER, 0000 JAMES W. DUNN, 0000 MICHAEL D. *BURK, 0000 THOMAS *COPPERSMITH, 0000 DAVID L. DURBIN, 0000 STEVEN J. BURNS, 0000 CHRISTINE E. *CORBETTCOLE, 0000 CHARLES A. DURFEE, 0000 BRIAN J. *BURNSIDE, 0000 DAVID A. CORBY, 0000 DAVID E. *DUTCHER, 0000 ALVIN F. *BURSE, 0000 CHARLES S. CORCORAN, 0000 DAVID W. *DYE, 0000 DEANNA M. BURT, 0000 GREGORY B. *CORKERN, 0000 DIANNE C. *DZIALO, 0000 ANGELA J. *BURTH, 0000 SIMON D. *CORLEY, 0000 CHRISTOPHER A. *EAGAN, 0000 THOMAS F. BURTSCHI, 0000 DYLAN R. CORNWELL, 0000 DARREN A. EASTON, 0000 FREDERICK E. *BUSH III, 0000 MATTHEW M. P. *COSTA, 0000 DEREK W. *EBDON, 0000 VIVIAN *BUSH, 0000 MICHAEL L. *COTE, 0000 ANARGYROS E. *ECONOMOU, 0000 BRENT B. BUSS, 0000 SHERMAN L. COTTRELL, 0000 GILBERT B. *EDDY, 0000 RICHARD D. *BUTLER, 0000 JON E. COUNSELL, 0000 BRIAN J. *EDE, 0000 WADE C. BUXTON, 0000 MICHAEL S. COURINGTON, 0000 JOHN A. *EDMONDS, 0000 STEVEN M. *BUZON, 0000 WILLIAM R. *COVERT, 0000 EDIE L. EDMONDSON, 0000 CHRISTINE M. *BYERS, 0000 CHRISTOPHER C. *COX, 0000 MICHELE C. *EDMONDSON, 0000 CHRISTOPHER L. BYROM, 0000 STEVEN M. COX, 0000 CAREY D. *EFFERSON, 0000 DENNIS O. *BYTHEWOOD, 0000 ROBERT D. *COXWELL, 0000 EDWARD J. *EFSIC III, 0000 STEVEN R. CABOSKY, 0000 ANGERNETTE E. *COY, 0000 GREGORY J. EHLERS, 0000 WILLIAM M. *CAHILL, 0000 MICHELLE L. *COZORT, 0000 LEO J. *EISBACH, 0000 JOHN D. *CAIN, 0000 CHRISTOPHER P. COZZI, 0000 CHRISTOPHER B. ELAM, 0000 PAUL D. CAIRNEY, 0000 ADRIANE B. *CRAIG, 0000 RICHARD D. *ELMORE, 0000 LLENA C. *CALDWELL, 0000 TODD A. CRAIGIE, 0000 JOHN J. *ELSHAW, 0000 PHILIP M. *CALI, 0000 JAMES W. CREESE, 0000 MICHAEL B. *ELTZ, 0000 KENNETH D. CALLAHAN, 0000 BRENT R. *CRIDER, 0000 MARK R. ELY, 0000 JAMES H. CAMARENA, 0000 BRADLEY M. *CRITES, 0000 TODD M. EMMONS, 0000 JEFFREY B. *CAMPBELL, 0000 IRIS I. *CRITTEN, 0000 BYRL R. ENGEL, 0000 JEFFREY S. CAMPBELL, 0000 BARRY L. *CROOK, 0000 JAMES N. ENGLE, 0000 MICHAEL G. *CANCELLIER, 0000 BEN D. *CRUNK, 0000 W. CHADBURN *ENGMAN, 0000 JIMMY R. *CANLAS, 0000 ALBERTO E. CRUZ, 0000 STEPHANIE F. *EPPLER, 0000 MONTE R. CANNON, 0000 BERNARD A. *CRUZ, 0000 JOHN W. *ERICKSON, 0000 TODD D. *CANTERBURY, 0000 ENRIQUE A. CRUZ, 0000 JOHN B. *ESCH, 0000 CHRISTOPHER E. *CANTRELL, 0000 KEVIN P. CULLEN, 0000 ERIC A. ESPINO, 0000 ANTHONY B. CAPOBIANCO II, 0000 WILLIAM C. CULVER, 0000 EDWARD E. *ESTERON, 0000 CHRISTOPHER P. CAPUTO, 0000 MICHAEL W. CUMMINGS, 0000 SHAWN D. *EURE, 0000 MICHAEL R. CARDOZA, 0000 FRANKLIN E. *CUNNINGHAM JR., 0000 DAVID F. EVANS JR., 0000 SCOTT H. CARDOZO, 0000 SEAN T. CURRAN, 0000 MARCIA D. *EVANS, 0000 JOEL L. CAREY, 0000 KENT S. CURRIE, 0000 JAMES A. EVERITT, 0000 LANCE A. *CARMACK, 0000 JACKSON BENITA F. *CURRY, 0000 DAVID W. *EVERITTE, 0000 STEVEN C. *CARMICAL, 0000 LAVERN E. *CURRY JR., 0000 DARREN E. *EWING, 0000 DENNIS F. *CARON, 0000 ELIZABETH D. *CURTIS, 0000 JOHN K. *EWING, 0000 BRIAN L. CARR, 0000 RUSSELL V. *CUSTER, 0000 STACY P. *EXUM, 0000 KELVIN B. *CARR, 0000 TIMOTHY S. CUTLER, 0000 JOHN M. FAIR, 0000 ERIN Y. *CARRAHER, 0000 ROGER C. *CUTSHAW, 0000 JEFFREY K. *FALLESEN, 0000 STEPHEN T. CARSON, 0000 ALEXANDER J. *CZERNECKI III, 0000 BLAKE C. *FARLEY, 0000 BRENDA P. *CARTIER, 0000 PATRICK W. DABROWSKI, 0000 RICHARD S. FARNSWORTH II, 0000 ALAN M. *CARVER, 0000 MICHAEL P. *DAHLSTROM, 0000 SCOTT A. FAUSCH, 0000 KENNETH R. CARYER, 0000 SCOTT C. *DAIGLE, 0000 ROBERT A. *FAUTEUX, 0000 DONALD *CASNE, 0000 DANIEL F. DAILEY, 0000 MATTHEW O. *FEASTER, 0000 EUGENE G. CASSINGHAM, 0000 GEORGE C. *DALTON II, 0000 ERIK S. *FEGENBUSH, 0000

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MICHAEL A. FELICE, 0000 DANIEL F. *GOTTRICH, 0000 MICHAEL F. HERNANDEZ, 0000 ROSS O. *FELKER, 0000 GEORGE V. *GOVAN, 0000 ROBERT E. HERNDON JR., 0000 THOMAS E. FENNELL, 0000 STEPHEN P. *GRAHAM, 0000 STEPHEN J. *HERRMANN, 0000 JOHN L. *FENTON, 0000 JAMES B. *GRANGER, 0000 MARK A. HERSANT, 0000 KAREN M. FERGUSON, 0000 JARED W. *GRANSTROM, 0000 MARCUS W. HERVEY, 0000 CRISTOPHER P. FERRIS, 0000 JAMES E. *GRAY, 0000 ROBERT A. HETLAND, 0000 RICHARD A. FICKEN, 0000 RODNEY *GRAY, 0000 WILLIAM K. *HIBBARD, 0000 DANIEL J. *FIEDLER, 0000 RONALD M. GRAY, 0000 SHAUN R. *HICK, 0000 CAROL M. FIELDS, 0000 TREVOR E. GRAY II, 0000 JAMES P. *HICKMAN, 0000 EDMUND E. FIGUEROA, 0000 LADONNA K. *GRAZIANO, 0000 LAWRENCE C. *HICKS, 0000 CHRISTOPHER E. FINERTY, 0000 ADAM S. *GREEN, 0000 JUSTIN T. HIESTER, 0000 MATTHEW C. *FINNEGAN, 0000 CHRISTY R. GREEN, 0000 TAMARA L. *HIGGINS, 0000 THOMAS J. FINNERAN, 0000 GREGORY S. GREEN, 0000 RANDALL W. *HIGHFILL, 0000 PAUL R. *FIORENZA, 0000 JASON D. GREEN, 0000 TRENTEN H. *HILL, 0000 JON R. FISHER, 0000 JUSTIN W. *GREEN, 0000 SCOTT M. HINES, 0000 SCOTT C. FISHER, 0000 KERRY D. *GREEN, 0000 SAMUEL C. HINOTE, 0000 ARMANDO E. FITERRE, 0000 MICHELE A. GREEN, 0000 MICHAEL S. *HINSON, 0000 THOMAS A. *FITZWATER, 0000 JAMES C. *GREENE, 0000 DWIGHT H. *HINTZ JR., 0000 RICHARD R. FLAKE, 0000 KEVIN D. *GREENE, 0000 DEAN T. HITCHCOCK, 0000 JERRY J. FLANNERY, 0000 PAUL D. GREENLEE, 0000 TOMMY J. *HOARD JR., 0000 ROBERT L. FLETCHER, 0000 MICHAEL A. *GREINER, 0000 ERIC P. *HOBSON, 0000 FRANK A. FLORES, 0000 MICHAEL G. *GRESHAM, 0000 GEORGE K. HOBSON, 0000 MICHAEL R. FLORIO, 0000 MANUEL G. *GRIEGO, 0000 STEPHEN G. *HOFFMAN, 0000 AUDREY M. FLOYD, 0000 BRENT M. GRIFFIN, 0000 JAY D. *HOFMANN, 0000 TODD A. *FOGLE, 0000 BRIAN D. *GRIFFITH, 0000 GREGORY T. *HOHN, 0000 MATTHEW J. FOLEY, 0000 ROBERT L. *GRIFFITH, 0000 JEFFREY A. *HOKETT, 0000 CHARLES L. FORD JR., 0000 MICHELLE C. GRIGGS, 0000 MICHELLE A. *HOLLAND, 0000 BRYAN W. *FOREMAN, 0000 BRIAN D. *GRILL, 0000 THOMAS A. HOLLER II, 0000 SCOTT A. *FOREMAN, 0000 MELVIN D. *GRILLS, 0000 CHRISTOPHER D. *HOLMES, 0000 MARK A. *FORMICA, 0000 MICHAEL W. GRISMER JR., 0000 RONALD P. *HOLST JR., 0000 KYLE C. *FORRER, 0000 MICHAEL A. *GROGAN, 0000 KEVIN L. HOLT, 0000 ERIC N. FORSYTH, 0000 DONALD B. GROVE, 0000 MARK A. *HOMOLKA, 0000 BRIAN L. *FOSTER, 0000 MICHAEL C. GRUB, 0000 MICHAEL K. HONMA, 0000 EDWIN J. *FOX, 0000 KYLE E. *GRUNDEN, 0000 DONALD S. *HOOVER, 0000 SCOTT A. *FOY, 0000 LUIS M. *GRUNEIRO, 0000 MICHAEL S. HOPKINS, 0000 DEREK C. FRANCE, 0000 MARK A. GUERRERO, 0000 MARK D. *HORONY, 0000 ALEXIS V. FRANCO, 0000 RYAN E. GUIBERSON, 0000 MICHAEL S. *HOUGH, 0000 JOHN C. *FRANKLIN, 0000 SCOTT D. GUNDLACH, 0000 BRET L. HOUK, 0000 RONALD K. *FRANTZ, 0000 JOHN B. GURRIERI, 0000 PAMELA M. *HOWARDWHITEHURST, 0000 ANTHONY L. FRANZ, 0000 ENRIQUE J. GWIN, 0000 JAMES J. HOWELL, 0000 DANIEL W. *FRANZEN, 0000 ARLIE V. HADDIX, 0000 WESTON J. *HOWLAND, 0000 JOHN H. *FRASER, 0000 MICHAEL D. *HADDOCK, 0000 SEAN M. *HOYER, 0000 BRADLEY D. FRAZIER, 0000 KEVIN R. HAFF, 0000 GINETTE L. *HUBBARD, 0000 ANDREW B. FREEBORN, 0000 THOMAS M. HAGAN, 0000 KEVIN R. *HUBBARD, 0000 CHRISTOPHER A. FREEMAN, 0000 DIANA L. *HAJEK, 0000 JEFFREY F. *HUBER, 0000 MICHAEL E. FREIMUTH, 0000 ALEXANDER G. HALDOPOULOS, 0000 THOMAS C. HUDNALL, 0000 KARL L. FRERKING, 0000 CHARLES T. *HALEY III, 0000 ANDREW D. *HUGG, 0000 ERIC W. FRIESEL, 0000 JOSEPH E. HALL, 0000 DAVID R. *HUGHES, 0000 CHARLES B. *FROEMKE JR., 0000 TIMOTHY J. *HALL, 0000 JIMMY C. HUMPHREY, 0000 JASON S. FROMM, 0000 WILLIAM D. *HALL, 0000 JEFFREY W. HUMPHRIES, 0000 JENNIFER M. *FULLMER, 0000 BRIAN K. *HALLER, 0000 ROMAN L. *HUND, 0000 DAVID H. *FULTON, 0000 ERIC K. *HALVERSON, 0000 RHYS W. *HUNT, 0000 RICHARD M. FULTON, 0000 LAWRIE A. HAMACHER, 0000 JAMES R. HUNTER, 0000 SCOTT A. GAAB, 0000 VINCENT L. HAMACHER, 0000 DERON L. HURST, 0000 GARY A. *GABRIEL JR., 0000 ANDREW K. HAMANN, 0000 BARRY A. *HUTCHISON, 0000 JUAN C. GACHARNA, 0000 SHANE P. HAMILTON, 0000 GARY G. *HUTFLES, 0000 SHAWN D. *GAHRING, 0000 STEPHEN F. *HAMLIN, 0000 JOHN P. HUTTON, 0000 ALEXANDER G. *GAINES, 0000 TODD E. HAMMONDS, 0000 RONALD E. *HUZZARD, 0000 JOHN J. GALIK, 0000 DEBORAH G. *HAMRICK, 0000 DAVID W. HYNES, 0000 RAYMOND L. *GALIK, 0000 JENNIFER L. *HANCOCK, 0000 KARL D. *INGEMAN, 0000 BRETT M. GALLAGHER, 0000 JEFFREY M. HANDY, 0000 COLLIN T. IRETON, 0000 JAMES GALLAGHER JR., 0000 GREGORY R. *HANKINS, 0000 GEORGE W. *IRVING IV, 0000 RICHARD P. *GALLEY, 0000 ALAN W. *HANKS, 0000 LYNN MARIE *IRWIN, 0000 MICHELANGELO *GALLUCCI, 0000 TODD L. *HANNING, 0000 JEAN K. IWAI, 0000 ROBERT A. *GALLUP, 0000 JASON L. HANOVER, 0000 SIMON A. *IZAGUIRRE JR., 0000 DANIEL D. GARBER, 0000 CRAIG A. *HANSEN, 0000 JAY P. *JACKSON, 0000 DAVID A. GARCIA, 0000 DAVID S. HANSON, 0000 JOEL D. JACKSON, 0000 EDWARD L. *GARCIA, 0000 WILLIAM B. *HARE III, 0000 JOHN W. *JACKSON, 0000 MIGUEL E. *GARCIA, 0000 SHAWN L. HARING, 0000 MICHAEL L. JACKSON JR., 0000 PATRICK M. *GARCIA, 0000 JOHN D. *HARLAN, 0000 RICHARD S. *JACOBS, 0000 SCOTT K. GARDNER, 0000 FREDERICK G. *HARMON, 0000 THOMAS R. JACOBS JR., 0000 WILLIAM C. *GARRE III, 0000 STEPHEN R. *HARMON, 0000 GLENN G. *JACQUOT, 0000 JEFFREY B. GARTMAN, 0000 MONTE S. HARNER, 0000 J. MICHAEL W. JAGGERS, 0000 JOHN M. GARVER, 0000 MATTHEW W. HARPER, 0000 RODNEY L. *JAMES, 0000 NATHAN G. *GARY, 0000 MICHAEL S. HARPER, 0000 ALAN R. *JAMIESON, 0000 KARL S. GASHLER, 0000 SEAN A. *HARRINGTON, 0000 EFREN J. JAMIR JR., 0000 BRYAN T. *GATES, 0000 BRADLEY N. *HARRIS, 0000 MICHAEL S. JANSEN, 0000 JEFFRY E. *GATES, 0000 CHARLES W. *HARRIS III, 0000 MICHAEL JASON, 0000 JOSEPH J. *GAWELKO, 0000 RODNEY C. HARRIS, 0000 DAVID S. *JEFFERY, 0000 MICHAEL J. GAYER JR., 0000 SUSANNA L. *HARRIS, 0000 EDWARD L. JENKINS, 0000 MICHAEL A. *GEER, 0000 THOMAS M. *HARRIS, 0000 GARY D. JENKINS II, 0000 HOWARD A. GENTRY, 0000 CRAIG R. HARRISON, 0000 PETER J. *JENNESS, 0000 ANGELINE P. GEOGHAN, 0000 TROY R. *HARROD, 0000 KEITH W. *JENSE, 0000 ARTHUR L. GEPNER JR., 0000 TRAVIS C. *HARSHA, 0000 LARS D. JENSEN, 0000 DAVID P. GERHARDT, 0000 ALAN T. *HART, 0000 WALTER A. *JIMENEZ, 0000 KEVIN A. *GIBBONS, 0000 CARL R. *HARTSFIELD, 0000 MICHAEL W. *JIRU JR., 0000 JAMES N. *GIBBS III, 0000 STEVEN C. M. HASSTEDT, 0000 JEFFREY R. JOERS, 0000 KEITH P. GIBSON, 0000 JARROD H. *HATFIELD, 0000 CLARENCE A. JOHNSON JR., 0000 TODD G. *GIEFER, 0000 JANET J. *HAUG, 0000 CRAIG P. JOHNSON, 0000 JAMES M. *GIFFORD JR., 0000 HANS P. *HAUSSLER, 0000 DANETA J. *JOHNSON, 0000 JOHN W. GILES JR., 0000 JEAN E. *HAVENS, 0000 DELBERT L. *JOHNSON, 0000 ROBERT J. *GILL, 0000 JAMES A. *HAWKINS JR., 0000 DERRICK W. *JOHNSON, 0000 BRENT M. *GILLESPIE, 0000 JAMES M. *HAYES, 0000 DIRK J. *JOHNSON, 0000 DAVID J. *GINGERICH, 0000 RUSSELL A. *HAYES, 0000 DONALD A. JOHNSON, 0000 CARMELO J. GIOVENCO JR., 0000 STEPHEN P. *HAYES, 0000 DONALD A. *JOHNSON, 0000 TIMOTHY F. *GIRAS, 0000 LEONARD W. HAYNES III, 0000 GEORGE C. *JOHNSON, 0000 ANTHONY H. *GIVOGUE, 0000 JAMES M. *HAYNIE, 0000 GREGORY G. *JOHNSON, 0000 JOHN C. GLASS, 0000 CHRISTOPHER J. HAYS, 0000 JESSE L. JOHNSON JR., 0000 FRANK D. *GLEBAVICIUS, 0000 ARTHUR J. *HEAPHY III, 0000 LAURA M. *JOHNSON, 0000 STEVEN F. GLENDENNING, 0000 DAVID *HEDGER, 0000 LEE R. *JOHNSON II, 0000 RICHARD *GLENN, 0000 HELMUT K. HEIDEMANN, 0000 MONTE A. JOHNSON, 0000 JOHN W. GLOYSTEIN III, 0000 WALTER J. HEIDMANN JR., 0000 PAUL M. *JOHNSON, 0000 ANDREW T. *GOBER, 0000 JOSEPH W. HEILHECKER, 0000 STEPHEN W. *JOHNSON, 0000 MATTHEW W. *GODDARD, 0000 BARRY T. *HEILING, 0000 CARL M. *JONES, 0000 KABRENA E. GOERINGER, 0000 MICHAEL D. *HEIRONIMUS JR., 0000 JAY P. *JONES JR., 0000 EDWARD R. *GOETZ, 0000 TIMREK C. HEISLER, 0000 JOEL A. *JONES, 0000 CHRISTOPHER A. *GOLDEN, 0000 DARWIN L. *HEMEYER, 0000 MARK R. JONES, 0000 DAVID A. *GOLDSTEIN, 0000 CHARLES R. HENDERSON, 0000 RAY A. *JONES, 0000 JOSEPH M. *GOLOVACH JR., 0000 LANDON L. *HENDERSON, 0000 SCOTT H. JONES, 0000 ALEJANDRO *GOMEZ JR., 0000 PAUL E. *HENDERSON, 0000 STEPHEN P. *JONES, 0000 JAIME *GOMEZ JR., 0000 RICHARD D. *HENDERSON, 0000 WILLIAM R. *JONES, 0000 HECTOR L. *GONZALEZ, 0000 JEFFEREY T. *HENNES, 0000 THOMAS B. JOSLYN, 0000 LONGINOS GONZALEZ JR., 0000 JOHN S. *HENRY, 0000 ELLIOTT G. *JOURDAN, 0000 PEDRO I. GONZALEZ, 0000 DONALD M. HENSLEY JR., 0000 ROSE M. JOURDAN, 0000 ROBERT A. *GONZALEZ, 0000 THOMAS K. HENSLEY, 0000 ERIK W. *JOY, 0000 ANDREW C. *GOODNITE, 0000 BRENT A. *HEPNER, 0000 MATTHEW M. *JOY, 0000 GLEN L. *GOSS, 0000 BRETT T. *HERMAN, 0000 DEAN R. *JUDGE, 0000

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TIMOTHY P. JUNG, 0000 EDWARD J. LENGEL, 0000 SEAN R. *MCELHANEY, 0000 JAY L. *JUNKINS, 0000 BROOK J. LEONARD, 0000 GAYLORD E. *MCFALLS, 0000 DAVID M. *JURK, 0000 JOHN G. *LEONARD, 0000 BRIAN P. MCGILL, 0000 DAVID ALAN *KACMARYNSKI, 0000 SEAN P. *LEROY, 0000 STEPHEN F. MCGRATH, 0000 JEFFREY P. *KACZMARCZYK, 0000 RYAN G. *LESTER, 0000 SEAN M. *MCGRAW, 0000 ROBERT S. KAFKA, 0000 JONATHAN M. LETSINGER, 0000 WILLIAM A. MCGUFFEY, 0000 MICHAEL A. *KANEMOTO, 0000 CHRISTOPHER P. LEVY, 0000 ROBERT H. *MCINTYRE, 0000 PAUL A. KANNING, 0000 ERIC J. *LEWAN, 0000 SEAN S. *MCKENNA, 0000 MACE R. KANT, 0000 TARA A. *LEWELING, 0000 RICHARD J. *MCMULLAN, 0000 RICHARD M. *KAPLAN, 0000 ANDREW J. *LEWIN, 0000 DANIEL W. MCNEILL, 0000 PATRICK J. *KARG, 0000 GREGORY J. *LEWIS, 0000 TIMOTHY T. *MCNICHOLS, 0000 CHRISTINE A. KARPEL, 0000 JEFFREY S. LEWIS, 0000 THOMAS C. M. MCNURLIN, 0000 MICHAEL A. KASIC, 0000 ROBERT H. *LILKE, 0000 CURTIS A. *MCVAY, 0000 AMANDA G. KATO, 0000 PHILIP D. LIMBACHER, 0000 MIGUEL A. *MEDRANO, 0000 NICHOLAS B. *KAVOURAS, 0000 THOMAS L. *LIMBAUGH, 0000 ROBERT T. MEEKS III, 0000 TONNEY T. *KAWUH, 0000 ROBERT A. *LINDBLOM, 0000 JAMES P. MEGER, 0000 REGAN T. KEENER, 0000 DAVID C. LINDSAY, 0000 JAMES S. MEHTA, 0000 SAMUEL C. *KEENER, 0000 DOUGLAS R. LINDSAY, 0000 JOHN J. MENOZZI, 0000 CHRISTOPHER J. *KEETON, 0000 RICHARD J. LINEHAN III, 0000 KELLY K. MENOZZI, 0000 WERNER W. KEIDEL II, 0000 MICHAEL J. LINGOR, 0000 JAMES S. *MERCHANT, 0000 MATTHEW D. *KEIHL, 0000 MICHAEL D. *LINK, 0000 LANCE R. MEREDITH, 0000 JOHN J. *KELCHEN JR., 0000 LINDA K. *LINSK, 0000 BRADY V. *MERRILL, 0000 BRIAN L. KELLER, 0000 GRAY J. *LIVINGSTON, 0000 JEFFERY S. MERRITT, 0000 MICHAEL S. KELLY, 0000 CHRISTINE A. *LOCKE, 0000 WILLIAM V. MESHACK JR., 0000 TODD C. *KELLY, 0000 DARRELL LOCKHART, 0000 JACK W. *MESSER, 0000 CHRISTOPHER N. *KENNEDY, 0000 RANDY S. *LOEB, 0000 KIRSTEN R. MESSER, 0000 DEBORAH L. *KENT, 0000 DANIEL J. LOGAR, 0000 DAVID O. *METEYER, 0000 GREG A. *KENT, 0000 KEITH M. *LOGEMAN, 0000 KAREN J. MEURY, 0000 JAY W. *KENT, 0000 CHARLES E. *LOMINAC II, 0000 MARK H. *MEYER, 0000 KARL A. *KENT, 0000 SEAN F. LONDRIGAN, 0000 MICHAEL J. *MEYER, 0000 MICHAEL J. *KENVILLE, 0000 JILL A. *LONG, 0000 MICHELE L. MEYER, 0000 CRISTIE M. *KEPHART, 0000 PERRY M. LONG III, 0000 KRISTINA M. MEYLE, 0000 JOE D. *KERR, 0000 TODD E. *LONG, 0000 ALBERTO *MEZARINA, 0000 AZAD Y. *KEVAL, 0000 JONNA D. LOPRESTI, 0000 CHRISTY L. *MEZGER, 0000 ROBERT E. KIEBLER, 0000 THOMAS M. *LOPRESTI, 0000 DONALD *MICELI, 0000 CHRISTOPHER T. KIENINGER, 0000 JAMES A. *LOUTHAIN, 0000 KARLA K. *MIKA, 0000 KELLY C. KIMSEY, 0000 BYRON K. LOVE, 0000 SHANNON J. MIKUS, 0000 DAVID N. KINCAID JR., 0000 STEPHEN A. *LOVE, 0000 ZEBBY *MILES, 0000 LEIF S. *KING, 0000 WALTER F. *LOVINGS, 0000 ALBERT G. MILLER, 0000 MICHAEL O. *KINSLOW, 0000 JAMES C. LOWE, 0000 DARREN J. *MILLER, 0000 KELLY M. KIRBY, 0000 KRISTEN D. LOWNEY, 0000 DOUGLAS P. *MILLER, 0000 LEA T. *KIRKWOOD, 0000 THOMAS J. *LUCKRITZ, 0000 JACOB J. MILLER, 0000 MICHAEL R. KITCHING, 0000 CLARENCE W. LUKES JR., 0000 KATHERINE K. *MILLER, 0000 ROGER W. *KLAFFKA, 0000 LOUISE J. *LYLE, 0000 MATTHEW P. MILLER, 0000 DONALD A. KLECKNER, 0000 MARC A. *LYNCH, 0000 MICHAEL T. MILLER, 0000 JEFFREY S. KLEIN, 0000 JOHN W. LYONS, 0000 REX H. MILLER, 0000 DOUGLAS W. *KLINE, 0000 JOSEPH E. *MACCAFFREY, 0000 RONALD M. *MILLER JR., 0000 ROBIN L. *KLINGE, 0000 ROBERT S. MACKENZIE, 0000 SHAUN C. *MILLER, 0000 PATRICK L. *KLINGLER, 0000 CHARLES T. *MACKIN, 0000 TODD A. *MILLER, 0000 MARTIN KLUBECK, 0000 WILLIAM J. *MACLEAN, 0000 WESLEY PRESTON *MILLER IV, 0000 PAUL E. KNAPP, 0000 WILLIAM M. MACMILLAN IV, 0000 WILLIAM PAUL MILLER JR., 0000 SCOTT A. KNIEP, 0000 MARK W. *MADAUS, 0000 JERRY W. *MILLIGAN JR., 0000 KEVIN W. KNOX, 0000 TRACI R. *MADISON, 0000 STEVEN J. *MINKIN, 0000 THOMAS E. *KOCHENDOERFER, 0000 STEPHEN W. MAGNAN, 0000 DARRYL L. *MITCHELL, 0000 JAMES S. KOCKLER, 0000 MATTHEW T. *MAGNESS, 0000 MICHAEL R. *MITCHELL, 0000 JOHN F. *KOENINGER, 0000 DOUGLAS L. *MAGOFFIN, 0000 MICHAEL J. *MLYNARCZYK, 0000 EDWARD J. KOHARIK III, 0000 MICHAEL R. MAGUIRE, 0000 TIMOTHY S. *MOLNAR, 0000 SCOTT J. *KOLAR, 0000 JEFFREY R. *MAILLEY, 0000 ERIC N. *MOLTZAU, 0000 ROBERT W. *KOLB, 0000 ANTHONY MAISONET, 0000 JACQUELINE M. MONGEON, 0000 RICHARD P. KOLBERG, 0000 NATHANIEL E. *MAJEAN, 0000 SEAN P. *MONOGUE, 0000 THOMAS A. *KONICKI, 0000 JOHN A. MAJEWSKI JR., 0000 DOUGLAS C. *MONROE, 0000 KURT D. KONOPATZKE, 0000 PAUL G. *MALACHOWSKI, 0000 SCOTT D. MOON, 0000 SCOTT K. *KOOPMAN, 0000 TIMOTHY J. *MANGAN, 0000 CASEY K. MOORE, 0000 KEN W. *KOPP, 0000 RACHEL E. *MANN, 0000 ERIC Y. MOORE, 0000 MICHAEL G. KOSCHESKI, 0000 GREGORY MANORA, 0000 FREDERICK D. MOORE, 0000 JAMES K. *KOSSLER, 0000 JASON MANTARO, 0000 RICHARD G. MOORE JR., 0000 DANIEL J. *KOSTECKA, 0000 RYAN D. MANTZ, 0000 SCOTT P. MOORE, 0000 VAN A. *KRAILO, 0000 JOSEPH P. *MARCHESINI, 0000 STEVEN W. *MOORE, 0000 DANIEL J. *KRALL, 0000 MARIA C. MARION, 0000 THOMAS A. MOOSE, 0000 MARK T. KRAMIS, 0000 STEVEN P. MARKOWSKY, 0000 JOHN E. *MORAN, 0000 DERIC V. *KRAXBERGER, 0000 PAUL K. *MARKS, 0000 NATHAN J. *MORGAN, 0000 DAVID T. *KREMPASKY, 0000 DAVID W. *MARSH, 0000 RICHARD S. *MORGAN, 0000 JASON R. KRINSKY, 0000 ADAM S. *MARSHALL, 0000 ERIC J. MORITZ, 0000 MOHAN S. KRISHNA, 0000 CLAYTON R. *MARSHALL, 0000 W. MATTHEW MORLEY, 0000 KENNETH M. *KROLL, 0000 JASON L. MARSHALL, 0000 ANDREW I. *MORRIS, 0000 JOHN C. KUBINEC, 0000 DANIEL N. MARTICELLO JR., 0000 PERRY D. *MORRISON, 0000 DOUGLAS O. *KUGLER, 0000 BRIAN A. *MARTIN, 0000 ANA M. *MORRONGIELLO, 0000 CHARLES D. KUHL, 0000 DEVIN W. *MARTIN, 0000 JOHN W. *MORTLAND III, 0000 DAVID J. KUMASHIRO, 0000 JOHN D. *MARTIN, 0000 BENTLEY H. *MOSER, 0000 JERRY J. KUNG, 0000 MICHAEL L. *MARTIN, 0000 WILLIAM B. MOSLE, 0000 JOSEPH W. *KURTZ, 0000 SHANNON YVETTE *MARTIN, 0000 KENNETH E. MOSS, 0000 JOSHUA M. KUTRIEB, 0000 STEVEN L. MARTINEZ, 0000 MICHAEL D. MOTE, 0000 TERRE J. *KYLE, 0000 DAVID J. *MARTINSON, 0000 HENRY L. *MOTON, 0000 JONATHAN *LAAHS, 0000 SCOTT P. *MASKERY, 0000 DAVID R. MOTT, 0000 TIMOTHY H. *LACEY, 0000 ROBIN L. *MASON, 0000 MARK A. MOUNT, 0000 GARRET ALAN *LACY, 0000 DONALD E. MATHEWS III, 0000 RICK G. MOXLEY, 0000 DAVID P. LAMBERT, 0000 KENDRA S. MATHEWS, 0000 STEPHEN R. MOYES, 0000 JOHN D. LAMONTAGNE, 0000 RICHARD S. MATHEWS, 0000 JAMES F. MUELLER, 0000 JOHN A. LANCE, 0000 GARY E. *MATHIS, 0000 WADE A. *MUELLER, 0000 PAUL J. *LANDER, 0000 SCOTT B. *MATTHEWS, 0000 BRUCE D. *MULLER, 0000 BENNY A. *LANDFAIR II, 0000 MARK F. MATTICOLA, 0000 PAUL H. MULLIS, 0000 JOHN F. *LANDOLT III, 0000 JOHN W. *MATUS, 0000 EDWIN L. *MUNDT, 0000 LANCE K. LANDRUM, 0000 DARRIN L. *MAXWELL, 0000 KARL N. *MUNO, 0000 GRANT E. *LANG, 0000 ROBERT W. *MAXWELL, 0000 TODD A. MURPHEY, 0000 JARA N. LANG, 0000 MARK A. MAY, 0000 HASPARD R. MURPHY JR., 0000 ANDREW D. *LANGFELD, 0000 ROBERT H. MAY III, 0000 SEAN M. MURPHY, 0000 DONALD L. *LANGLEY II, 0000 VERNON S. MAY, 0000 THOMAS E. MURPHY, 0000 ALLEN L. *LARKINS, 0000 CHRISTOPHER B. *MAYER, 0000 THOMAS R. *MURPHY JR., 0000 THOMAS G. *LARKINS, 0000 GARY R. *MAYER, 0000 DANIEL P. MURRAY, 0000 THEODORE L. *LARSON JR., 0000 WARREN K. *MAYES, 0000 JOHN R. *MURRAY, 0000 JEFFRY P. *LAUTH, 0000 ROBERT A. *MAZANY, 0000 JOSEPH W. MURRIETTA, 0000 CHARLES J. *LAW, 0000 CHARLES A. *MAZZARELLA, 0000 LEILANI L. *MUTH, 0000 KELLY M. *LAW, 0000 RONALD L. *MCAFEE, 0000 AMANDA S. *MYERS, 0000 WILLIAM M. LAW JR., 0000 THOMAS P. MCATEE, 0000 LARRY A. *MYERS, 0000 SEAN M. LAWLER, 0000 ROBERT A. *MCBRIDE, 0000 NICHOLAS W. *MYERS, 0000 ROBERT N. *LAWRENCE, 0000 EUGENE C. *MCCABE, 0000 PETER P. *MYKYTYN III, 0000 BILLY J. LAWSON JR., 0000 EDWIN D. *MCCAIN, 0000 JOHN P. *NAGLE, 0000 ERICK J. *LAWSON, 0000 ROBERT A. *MCCARTER, 0000 GEORGE R. *NAGY, 0000 MICHAEL D. LAY, 0000 DAVID L. *MCCLANAHAN, 0000 BRYAN J. *NALLEY, 0000 MARK D. *LEDBETTER, 0000 RICHARD W. *MCCLEARY, 0000 ARNOLD W. *NASH III, 0000 DOUGLAS J. *LEE, 0000 PAUL B. *MCCOMBS, 0000 ANTHONY J. *NATALE, 0000 JEFFREY A. *LEE, 0000 CHRISTOPHER R. *MCCORMICK, 0000 BRIAN D. NEAL, 0000 RICHARD E. *LEE, 0000 ANDREW S. MCCOY, 0000 STEVEN K. NEAVILLE, 0000 JEFFREY P. *LEEDER, 0000 PATRICK S. MCCULLOUGH, 0000 JEFFREY P. *NEELY, 0000 SAINTNET Z. LEHTINEN, 0000 THOMAS M. MCCURLEY, 0000 DANIEL A. NEFF, 0000 JEFFREY A. *LEISCHNER, 0000 BRIAN V. *MCDANIEL, 0000 CHRISTOPHER J. NELSON, 0000 CHAD E. *LEMAIRE, 0000 KENNETH R. *MCDONALD, 0000 ERIC R. *NELSON, 0000

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JOHN P. *NELSON, 0000 JEFFREY D. POMEROY, 0000 LEERNEST M. B. *RUFFIN, 0000 RANDALL J. NELSON, 0000 JAMES S. *POMPANO, 0000 JAMES R. RUFFING, 0000 DAVID W. NERY, 0000 JOSEPH G. *PORRAZZO, 0000 FRANK G. *RUGGERI, 0000 KARA K J *NEUSE, 0000 BRIAN H. PORTER, 0000 BRYAN T. RUNKLE, 0000 ARTHUR J. NEWSOME, 0000 GLORIA L. *PORTER, 0000 CHAD W. *RUSSELL, 0000 HIEN T. NGUYEN, 0000 JAMES A. *POTZAUF, 0000 JOHN H. RUSSELL, 0000 ANTHONY P. *NICHOLS, 0000 CHRISTOPHER S. *POVAK, 0000 MARK A. *RUSSO, 0000 BRADLEY W. *NICHOLS, 0000 DAVID M. *POWELL, 0000 ALLEN C. RUTH, 0000 DANIEL C. *NICHOLS, 0000 DANIEL T. *POWERS, 0000 ANDREW J. RYAN, 0000 JOHN J. NICHOLS, 0000 MELANIE Y. PREISSER, 0000 DANIEL B. *RYAN, 0000 DAVID M. *NICHOLSON, 0000 CHRISTOPHER T. PREJEAN, 0000 ERIK D. RYDBERG, 0000 THOMAS W. NICHOLSON, 0000 SKIP C. J. PRIBYL, 0000 PATRICK S. *RYDER, 0000 BRANT D. *NICKELL, 0000 GREGORY W. *PRICE, 0000 JOHN D. RYE, 0000 ALLAN ANDREW *NILLES, 0000 MICHAEL J. PRICE, 0000 MATTHEW B. RYTTING, 0000 RENE L. *NOEL, 0000 ARTHUR W. PRIMAS JR., 0000 MANUEL F. SAENZ, 0000 ALAN R. NOLAN, 0000 DENNIS L. *PRIMOLI II, 0000 KURT M. *SAFFER, 0000 ROBERT T. NOONAN, 0000 JONATHAN M. *PRINDLE, 0000 JAMES R. *SAGE, 0000 KENNETH D. *NORGARD, 0000 MATTHEW S. PRUITT, 0000 ROBERT D. SAGRAVES, 0000 KENNETH J. NOTARI, 0000 JOHN G. *PUGH, 0000 DANIEL E. *SALGADO, 0000 KEVIN L. *NOTHSTINE, 0000 SHAWN C. PURVIS, 0000 CARLOS V. *SALINAS, 0000 JEREMY J. *NOVAK, 0000 TIMOTHY K. *PYEATT, 0000 BENNETT T. SAMUELS, 0000 ROBERT G. NOVOTNY, 0000 RICHARD D. QUARBERG, 0000 FRANK D. *SAMUELSON, 0000 SCOTT R. NOWLIN, 0000 DANIEL R. *QUEEN, 0000 TROY L. SANDERS, 0000 ADRIAN C. *NUNES, 0000 ROBERT J. *QUIGG IV, 0000 BRIAN S. *SANDLIN, 0000 NEIL P. *OAKDEN, 0000 MARK D. *QUIGLEY, 0000 DORAL E. SANDLIN, 0000 EDWARD M. *OCHOA, 0000 PAUL J. QUIGLEY, 0000 CLIFFORD S. *SANDS JR., 0000 RUSSELL G. *OCHS, 0000 AARON S. QUINICHETT, 0000 TIMOTHY A. *SANDS, 0000 JOHN P. *OCONNOR, 0000 JAMES A. *QUINN, 0000 BRIAN P. SANFORD, 0000 MICHAEL A. OCONNOR, 0000 MICHAEL R. QUINTINI JR., 0000 MATTHEW D. *SANFORD, 0000 BRIAN D. *OELRICH, 0000 JOHN F. RADCLIFFE, 0000 MICHAEL G. *SANJUME, 0000 MARGARET M. *OHARA, 0000 DAVID L. RADEMACHER, 0000 GREGORY P. SARAKATSANNIS, 0000 DONNA L. *OHARREN, 0000 DONNA M. *RAINEY, 0000 REX E. SAUKKONEN, 0000 KENNETH W. OHLSON, 0000 KEVIN L. RAINEY, 0000 TODD A. *SAULS, 0000 PETER P. OHOTNICKY, 0000 JAVIER T. RAMOS, 0000 MICHAEL W. *SAUTER, 0000 RALPH T. *OKUBO JR., 0000 JEFFERY A. *RAMSEY, 0000 WILLIAM R. *SAVAGE, 0000 JON M. OLEKSZYK, 0000 JOHN E. *RAMSEY, 0000 DOMINIC R. *SAYMO, 0000 DEREK M. OLIVER, 0000 CHRISTIAN E. *RANDELL, 0000 DAVID R. *SCANLON, 0000 JOHN M. OLSON, 0000 BLANE J. RASCH, 0000 JERRY B. *SCARBOROUGH, 0000 MARK V. *ONEILL, 0000 CLINT L. *RASIC, 0000 JEFFREY S. *SCARBROUGH, 0000 PHILLIP STEVEN *OPELA, 0000 BRUCE J. *RASK, 0000 BRADLEY J. *SCHAEFER, 0000 RONNI M. *OREZZOLI, 0000 CHRISTOPHER R. RATE, 0000 TIMOTHY J. *SCHALICK, 0000 DEAN P. ORFIELD, 0000 DAVID W. *RAWLINS, 0000 JEAN A. *SCHARA, 0000 CHARLES D. *ORMSBY, 0000 MICHAEL T. *RAWLS, 0000 DAVID C. *SCHARF, 0000 AARON M. *ORR, 0000 BRIAN J. *RAY, 0000 JAY F. *SCHATZ, 0000 JAMES D. *OSTERHOUT, 0000 THOMAS P. REARDON, 0000 JEFFREY A. *SCHAVLAND, 0000 MITCHEL T. *OSTROW, 0000 HOWARD T. REDD, 0000 WILLIAM J. *SCHELLENBERGER, 0000 BRIAN A. *PAETH, 0000 KEITH W. REEVES, 0000 ANTHONY W. SCHENK, 0000 AMMON H. *PALMER, 0000 BRAXTON D. *REHM, 0000 SCOTT J. SCHENO, 0000 DONALD D. *PALMER, 0000 RHONDA K. REICHEL, 0000 DONALD W. SCHIBER, 0000 KIM L. *PARKER, 0000 JAMES R. *REID JR., 0000 DOUGLAS A. *SCHIESS, 0000 JEFFERY M. *PARKS, 0000 JOSEPH T. REIDY, 0000 KEVIN E. *SCHILLER, 0000 TAMARA L. *PARSONS, 0000 CHRISTOPHER S. *REIFEL, 0000 CHARLENE E. *SCHILLING, 0000 TODD J. *PARSONT, 0000 WILLIAM C. *REIGELSPERGER, 0000 HERMAN D. *SCHIRG, 0000 JOHN D. *PASSMORE, 0000 MARK P. *REIMANN, 0000 MICHAEL *SCHLOTTERBACK, 0000 REGAN J. *PATRICK, 0000 MICHAEL C. *REINERS, 0000 THOMAS L. *SCHMIDT, 0000 TIMMOTHY L. PATTERSON, 0000 SCOTT W. REINHARD, 0000 STANTON P. *SCHNEIDER, 0000 CHAD A. *PATTON, 0000 GREGORY S. *REINHARDT, 0000 THOMAS E. *SCHOCK, 0000 TRACY G. *PATTON, 0000 RICHARD D. *RENEAU, 0000 JOHN P. SCHOEPPNER III, 0000 DEREK J. PAULK, 0000 ROBERT A. *RENNER, 0000 BRIAN K. *SCHOOLEY, 0000 LUDWIG K. *PAULSEN, 0000 STEPHEN L. RENNER, 0000 FRANK D. SCHORZMAN, 0000 DAVID A. *PAVILAITIS, 0000 MICHAEL A. RESCHKE, 0000 STACIE M. SCHORZMAN, 0000 JEFFREY P. *PEARSON, 0000 OMAR REYESLATTOUF, 0000 BRYAN J. *SCHRASS, 0000 MARK E. *PEARSON, 0000 DAVID A. *REYNOLDS, 0000 SCOTT M. *SCHROFF, 0000 TROY D. *PEARSON, 0000 GEORGE M. REYNOLDS, 0000 JAY H. SCHUELER, 0000 DAVID L. *PEELER JR., 0000 RODERICK E. RICARD, 0000 ADRIAN C. SCHUETTKE, 0000 STEVEN A. PEEPLES, 0000 JUSTIN M. RICE, 0000 THERESE A. *SCHULER, 0000 KENNETH V. PEIFER, 0000 JOSEPH P. RICHARDS, 0000 TIMOTHY M. *SCHULTEIS, 0000 LYNN P. *PEITZ, 0000 CHRIS A. *RICHARDSON, 0000 SARAH J. *SCHULTZ, 0000 DANA C. *PELLETIER, 0000 THOMAS E. *RICHARDSON, 0000 TAMARA BARBARA *SCHWARTZ, 0000 KEITH A. PELOQUIN, 0000 DAVID A. *RICHESON, 0000 DEREK M. *SCOTT, 0000 TOMAS A. *PENA, 0000 MICHAEL G. RICKARD, 0000 PAUL J. SCOTT, 0000 RYAN R. *PENDLETON, 0000 ROBERT A. RICKER, 0000 DAVID A. SEARLE, 0000 DOUGLAS W. *PENTECOST, 0000 GREGORY A. *RIECK, 0000 PATRICIA K. *SEINWILL, 0000 LINDA N. PEPIN, 0000 GEORGE J. *RIEDEL, 0000 DAVID A. SEITZ, 0000 PAUL E. PEREIRA, 0000 ROBERT T. *RIEDELL, 0000 DAVID J. *SELNICK, 0000 CHARLES D. *PERHAM, 0000 SHELLEY A. RIPPLE, 0000 KATHRYN H. *SEVERSON, 0000 KEITH A. *PERKINS, 0000 WILLIAM *RITTERSHAUS, 0000 TRISHA M. *SEXTON, 0000 SCOTT E. PERKINS, 0000 RICARDO L. *RIVERA, 0000 DAVID A. *SHAFER, 0000 KRISTOPHER E. PERRY, 0000 JOSEPH M. RIZZUTO, 0000 GREGORY T. SHAFFER, 0000 MARSHALL C. *PERRY, 0000 DARREN S. *ROACH, 0000 THOMAS B. *SHANK, 0000 MICHAELA A. *PETER, 0000 GARY R. *ROACH, 0000 RONALD B. *SHANKLAND JR., 0000 BRIAN C. *PETERS, 0000 ROBERT L. ROANE, 0000 CHRISTOPHER M. *SHEARER, 0000 CHRISTOPHER R. PETERSEN, 0000 BILLY G. *ROBERSON, 0000 ROBERT K. *SHEEHAN, 0000 SCOTT T. *PETERSEN, 0000 CHRISTIAN D. ROBERT, 0000 JAMES R. SHELL II, 0000 MARC A. *PETERSON, 0000 ALLEN R. ROBERTS, 0000 SCOTT A. *SHEPARD, 0000 TY W. *PETERSON, 0000 GARREN B. *ROBERTS, 0000 RYAN C. *SHERWOOD, 0000 MICHAEL S. *PETROCCO, 0000 GLEN A. *ROBERTS, 0000 JAMES S. SHIGEKANE, 0000 MICHAEL R. *PETTIT, 0000 TODD S. *ROBERTS, 0000 SCOTT S. *SHIGETA, 0000 GEORGE E. PETTY, 0000 TOMMY A. ROBERTS, 0000 MICHAEL D. *SHILLING, 0000 STEPHEN C. *PETZOLD, 0000 GREGORY M. ROBERTSON, 0000 DONNA D. SHIPTON, 0000 CHRISTOPHER L. *PEWTERBAUGH, 0000 AMY R. ROBINSON, 0000 JOHN W. *SHIRLEY, 0000 LEO R. *PFEIFER, 0000 RANDY M. *ROBINSON, 0000 LISA C. *SHOEMAKER, 0000 GORDON G. *PFEIL, 0000 DWAYNE M. *ROBISON, 0000 KENNETH A. SHUGART JR., 0000 THOMAS E. *PHILIPP, 0000 MICHELLE R. ROCCO, 0000 DAVID A. *SHULTZ, 0000 ROBERT L. *PHILLIPS, 0000 SCOTTLAND L. RODDY, 0000 VINCENT J. *SIERRA, 0000 TIMOTHY M. PHILLIPS, 0000 ANTHONY L. ROE, 0000 DAVID K. *SIEVE, 0000 RICHARD J. PIAZZA, 0000 ROBERT L. K. ROE, 0000 GUILLERMO E. *SILVA, 0000 JAMES W. *PIEL, 0000 BRANDI SHANE ROGERS, 0000 FRANCISCO O. *SIMAS, 0000 SAMMY T. *PIERCE, 0000 CHRISTOPHER J. *ROGERS, 0000 CHARLES T. SIMMONS, 0000 RONALD L. PIERI, 0000 CHRISTOPHER T. *ROGERS, 0000 ERIK L. SIMONSEN, 0000 DONNA M G *PIKE, 0000 RICHARD D. *ROGERS, 0000 ANTHONY G. SIMPSON, 0000 LEONARD C. *PILHOFER, 0000 CHRISTOPHER S. ROGOWSKI JR., 0000 DANIEL L. SIMPSON, 0000 SUNCHLAR MARLEE RUST PILKEY, 0000 MICHAEL K. ROKAW, 0000 RAY L. *SIMPSON, 0000 MARSHA D. PILLER, 0000 RICHARD B. ROLLER, 0000 RODNEY *SINGLETON, 0000 JOSE A. PINEDO, 0000 JENNIFER C. *ROMAN, 0000 DOUGLAS S. SIRK, 0000 BRIAN S. *PITCHER, 0000 ROBERT T. *ROMER, 0000 TERRY C. *SISSON, 0000 CHAD E. A. PITOG, 0000 LARRY D. *ROOF, 0000 JAMES B. SKIPWORTH, 0000 ROBERT N. PITTMAN, 0000 RICHARD M. ROSA, 0000 ANGELA K. SLAGEL, 0000 GARY T. PLASTER, 0000 DOUGLAS W. *ROTH, 0000 JOSEPH *SLAVINSKY, 0000 RAYMOND M. PLATT, 0000 KRISTINA L. *ROTH, 0000 BEVERLY S. *SLOAN, 0000 WILLIAM C. PLEASANTS, 0000 JAMES P. *ROUGHNEEN, 0000 JEREMY T. SLOANE, 0000 STEVEN PLUMHOFF, 0000 CATHERINE J. *ROURKE, 0000 CHARLES L. SMITH III, 0000 WILLIAM H. *POE, 0000 DONOVAN L. *ROUTSIS, 0000 CHRISTOPHER M. SMITH, 0000 ANTONY J. *POHL, 0000 TARA K. *ROUTSIS, 0000 DAVID C. *SMITH, 0000 WILLIAM J. *POIRIER, 0000 DEREK B. *ROUTT, 0000 DAVID W. SMITH, 0000 MARK E. POLOMSKY, 0000 ROBERT J. *ROWELL, 0000 JASON A. SMITH, 0000 STEPHEN A. *POLOMSKY, 0000 WILLIAM J. *ROWELL, 0000 JEFFREY T. *SMITH, 0000

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KENNETH A. *SMITH, 0000 ROBERT M. TOBLER, 0000 JOHN T. WILCOX II, 0000 KEVIN D. *SMITH, 0000 JOHN T. *TODD, 0000 DAVID P. *WILDER, 0000 LESLIE T. SMITH JR., 0000 PAUL A. *TOMBARGE, 0000 VICTOR D. *WILEY, 0000 MARK D. SMITH, 0000 DAVID R. *TONI, 0000 RICHARD *WILGOS, 0000 MATTHEW D. SMITH, 0000 STEPHON J. TONKO, 0000 SHANE C. *WILKERSON, 0000 MATTHEW T. *SMITH, 0000 THOMAS D. TORKELSON, 0000 BRETT D. *WILKINSON, 0000 MICHAEL R. *SMITH, 0000 STEPHEN B. *TORRES, 0000 JON C. *WILKINSON, 0000 RANDALL E. *SMITH, 0000 KELVIN J. *TOWNSEND, 0000 CHRISTOPHER S. WILKOWSKI, 0000 RICHARD L. *SMITH, 0000 TIMOTHY J. TOWNSEND II, 0000 BENJAMIN G. WILLIAMS, 0000 ROBERT E. SMITH II, 0000 BRIAN M. TOY, 0000 CHARLES L. *WILLIAMS, 0000 STEPHEN F. SMITH JR., 0000 MICHAEL J. TRAVIS, 0000 DARRELL L. *WILLIAMS, 0000 WILLIAM G. SMITH, 0000 EDWARD D. V. *TREANOR, 0000 KENT A. *WILLIAMS, 0000 DAVID B. *SMUCK, 0000 JOSEPH M. *TRECHTER, 0000 PAUL N. WILLIAMS, 0000 DAVID W. *SNODDY, 0000 STERLING E. TREE, 0000 RASHEAD J. WILLIAMS, 0000 ROBERT D. *SNODGRASS, 0000 BRIAN H. *TRENHOLM, 0000 STEVEN D. WILLIAMS, 0000 LISA M. *SNOW, 0000 ROBERT B. *TREPTON, 0000 MARK L. WILLIAMSON, 0000 MATTHEW O. SNYDER, 0000 ROBERT W. *TRIPLETT, 0000 DARRYL M. *WILLIS, 0000 JULIE M. *SOLBERGSHAFFORD, 0000 GEORGE E. *TROMBA, 0000 DANIEL L. *WILSON, 0000 FREDRICK L. *SONNEFELD, 0000 DAVID C. *TRUCKSA, 0000 JACQUE J. WILSON, 0000 PANUK P. *SOOMSAWASDI, 0000 PETER A. *TSCHOHL, 0000 JACQUELINE R. *WILSON, 0000 STEPHEN T. *SORENSEN, 0000 CLAUDE K. *TUDOR JR., 0000 JOEL B. *WILSON, 0000 JEFFREY A. *SORRELL, 0000 DANIEL H. *TULLEY, 0000 JOHN H. WILSON, 0000 GREGORY J. SOUKUP, 0000 DAVID P. TUPAJ, 0000 KEVIN A. WILSON, 0000 WILLIAM A. SPANGENTHAL, 0000 MICHAEL E. *TURBYFILL, 0000 WILLIAM V. WINANS, 0000 JEFFERY B. *SPANN, 0000 ERIC S. *TURNER, 0000 RANDOLPH L. *WINGE, 0000 ALAN N. *SPARKS, 0000 JEFFERSON E. *TURNER, 0000 JENNIFER L. *WINSLOW, 0000 KENNETH S. SPEIDEL, 0000 CHRISTAN L. *TUTTLE, 0000 LYNN H. WINWARD, 0000 KIMBERLY C. ST JOHN KEYS, 0000 JAMES R. TWIFORD, 0000 GARY L. WITOVER, 0000 MATTHEW I. *STAHL, 0000 ROBERT T. *TYNAN, 0000 MARK D. WITZEL, 0000 TREVOR D. STAIGER, 0000 MICHAEL D. TYYNISMAA, 0000 JASON D. WOLF, 0000 JEFFREY W. STAMP, 0000 ERIC A. UJFALUSY, 0000 PATRICK F. WOLFE, 0000 JASON T. STANLEY, 0000 AARON L. *ULLMAN, 0000 TIMOTHY A. *WOLIVER, 0000 BILLY L. B. STARKEY, 0000 JOHN R. *UNDERHILL, 0000 STUART L. *WOLTHUIS, 0000 MICHAEL B. B. STARR, 0000 SHAWN C. *UNDERWOOD, 0000 ANN *WONGJIRU, 0000 KENNETH W. *STAUFFER, 0000 SAMUEL B. *URSO III, 0000 WILLIAM N. STEELE III, 0000 DAVID A. *VALENTINE, 0000 ZUN YING *WOO, 0000 MITCHELL J. *STEFANISH, 0000 ANTHONY E. VALERIO, 0000 BRIAN S. *WOOD, 0000 AARON W. STEFFENS, 0000 JAMES P. *VALLEY, 0000 CAROLYN L. WOOD, 0000 CONRAD R. STEGEMAN, 0000 WENDY R. *VAN EYK, 0000 MARK A. *WOODARD, 0000 MARK A. STEGER, 0000 TODD C. *VANDYKE, 0000 BOBBY C. *WOODS JR., 0000 CINDY D. STEIN, 0000 JEFFREY *VANSANFORD, 0000 JAMES J. *WOODS JR., 0000 ANDREW J. STELMACK, 0000 DEREK D. VARBLE, 0000 RANDAL W. *WORKMAN, 0000 RONALD D. STENGER, 0000 RUBEN C. *VARGAS, 0000 CHRISTOPHER A. WORLEY, 0000 RODNEY A. STEPHAN, 0000 CARLOS A. *VECINO, 0000 DALE W. *WRIGHT, 0000 MARK A. STEPHENS, 0000 PETER C. VEHLOW, 0000 DONALD L. *WRIGHT JR., 0000 MICHAEL D. *STEPHENS, 0000 ROBERT J. *VERCHER, 0000 JENNIFER L. WRYNN, 0000 MICHAEL J. *STETINA, 0000 JAMES K. *VICKERS, 0000 TINA M. *WYANT, 0000 LAWRENCE J. *STETZ, 0000 JESSE E. VICKERS, 0000 MARK A. *WYATT, 0000 TODD A. *STEVENS, 0000 ROBERT A. VICKERS, 0000 HERBERT D. *WYMS, 0000 LISA Y. STEVENSON, 0000 ORLANDO E. *VILCHES, 0000 DIANA J. *WYRTKI, 0000 MICHAEL S. STEVENSON, 0000 JEFFREY A. VISH, 0000 SCOTT D. YANCY, 0000 PHILLIP A. *STEWART, 0000 CHRISTOPHER L. *VOEHL, 0000 DAVID J. *YAO, 0000 STEVEN A. STOLLY, 0000 SCOTT J. *VOLK, 0000 CULLA L. YARBOROUGH, 0000 EARL W. *STOLZ II, 0000 JOHN C. VOORHEES, 0000 ROBERT L. YARBROUGH JR., 0000 DAVID A. *STONE, 0000 WILLIAM E. *WADE JR., 0000 WALTER K. *YAZZIE, 0000 TIMOTHY M. STONG, 0000 MICHAEL V. WAGGLE, 0000 MATTHEW H. YETISHEFSKY, 0000 STEVEN J. *STORCH, 0000 SAMUEL D. *WAGNER, 0000 DAVID T. YOUNG, 0000 WILLIAM M. *STOWE III, 0000 RALPH J. WAITE IV, 0000 THOMAS R. *YOUNG, 0000 DANIEL M. STRACENER, 0000 TODD S. WALDVOGEL, 0000 THEODORE T. *YUN, 0000 MARK E. *STRATTON, 0000 JEFFREY R. *WALES, 0000 KENNETH J. *YUNEVICH, 0000 PHILLIP G. *STRATTON, 0000 ALEXANDER W. *WALFORD, 0000 ROBERT L. ZABEL JR., 0000 WILLIAM J. STRAUS III, 0000 BRIAN P. WALKER, 0000 TIMOTHY A. ZACHARIAS, 0000 SUZANNE M. STREETER, 0000 MARK M. *WALLACE, 0000 DENNIS K. ZAHN, 0000 KRISTIN M. STREUKENS, 0000 MATTHEW V. *WALLACE, 0000 JAMES C. *ZEGEL, 0000 SCOTT L. *STROHECKER, 0000 JENNIFER L. WALLER, 0000 MATTHEW S. *ZICKAFOOSE, 0000 BERNARD J. STROUTH, 0000 KARL C. *WALLI, 0000 DAVID Q. *ZIEGLER, 0000 GENA R. STUCHBERY, 0000 JOERG D. *WALTER, 0000 SEAN E. ZORTMAN, 0000 STEVE S. SUGIYAMA, 0000 MARK D. *WALTERS, 0000 MATTHEW E. ZUBER, 0000 CHRISTOPHER P. *SULLIVAN, 0000 EDWINA M. WALTON, 0000 PAUL M. *ZULUAGA, 0000 JIMMIE E. *SULLIVAN JR., 0000 ROBERT W. *WANNER, 0000 ANNAMARIE *ZURLINDEN, 0000 SHANE T. *SULLIVAN, 0000 DAVID J. *WAPELHORST, 0000 IN THE ARMY TROY L. SULLIVAN III, 0000 BRADLEY J. WARD, 0000 WILLIAM S. *SULLIVAN, 0000 DONNA M. WARD, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT BRIAN A. *SUNDERMEYER, 0000 SCOTT C. WARD, 0000 TO THE GRADE INDICATED IN THE RESERVE OF THE TIMOTHY J. SUNDVALL, 0000 SCOTT L. *WARD, 0000 ARMY UNDER TITLE 10, U.S.C., SECTION 12203: JONATHAN A. *SUTHERLAND, 0000 JEFFREY S. WARDELL, 0000 To be colonel DAVID K. SUTTON, 0000 JAMES E. H. WARMA, 0000 RICHARD C. *SUTTON, 0000 JEFFREY E. WARMKA, 0000 WILLIAM A. BENNETT, 0000 THOMAS T. *SWAIM, 0000 RONALD B. WARREN, 0000 RUTH M. HARRIS, 0000 JENNIFER E. SWAIN, 0000 MICHAEL P. *WATERS, 0000 MURTY SAVITALA, 0000 DAVID J. SWANKE, 0000 MARY MELISSA N. *WATKINS, 0000 CHARLES B. TEMPLETON, 0000 SCOTT R. SWANSON, 0000 AARON C. WATSON, 0000 THE FOLLOWING NAMED ARMY NATIONAL GUARD OF TIMOTHY J. *SWEENEY, 0000 ERIK D. *WEAVER, 0000 THE UNITED STATES OFFICERS FOR APPOINTMENT TO ZACHARY S. *SWEENEY, 0000 GAIL M. *WEAVER, 0000 THE GRADE INDICATED IN THE RESERVE OF THE ARMY DOUGLAS H. *SWIFT, 0000 TERI J. *WEAVER, 0000 UNDER TITLE 10, U.S.C., SECTIONS 12203 AND 12211: CARRIE R. *SYCK, 0000 ANDREW G. *WEBSTER, 0000 DAVID H. *TABOR, 0000 RICKY A. *WEDDLE, 0000 To be colonel RANDALL A. *TABOR, 0000 SCOTT D. *WEENUM, 0000 JAMES W. TANIS, 0000 CHRISTOPHER M. *WEGNER, 0000 JOHN W. BAILEY, 0000 DAVID A. *TAYLOR, 0000 THEODORE G. WEIBEL, 0000 VINCENT J. DEMAGGIO, 0000 FRED D. TAYLOR, 0000 TROY B. *WEINGART, 0000 REYNOLD N. HOOVER, 0000 JAMES M. *TAYLOR, 0000 MICHAEL T. WEISS, 0000 THEODORE D. JOHNSON, 0000 JOHN D. TAYLOR, 0000 MICHAEL R. *WELBORN, 0000 ANTHONY P. LIBRI JR., 0000 ROBERT M. TAYLOR II, 0000 KEITH A. *WELCH, 0000 DANIEL N. RODECK, 0000 CHRISTINE A. TEDROW, 0000 JULIE L. *WENDE, 0000 MARVIN R. SCHLATTER, 0000 MARK A. *TEDROW, 0000 BRADLEY R. WENSEL, 0000 JAMES R. SMITH II, 0000 RAYMUND MICHAEL *TEMBREULL, 0000 EDWARD J. WERNER, 0000 JOYCE L. STEVENS, 0000 MICHAEL E. TENNEY, 0000 KEVIN G. WESTBURG, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT RONALD J. TEWKSBURY II, 0000 DANIEL J. *WHANNELL, 0000 TO THE GRADE INDICATED IN THE UNITED STATES ARMY CRAIG G. THEISEN, 0000 MICHAEL D. WHEELER, 0000 UNDER TITLE 10, U.S.C., SECTION 624: ALLAN P. *THILMANY, 0000 TERENCE D. *WHEELER, 0000 To be lieutenant colonel ANTHONY L. *THOMAS, 0000 VICTOR B. *WHEELER, 0000 GREGORY D. THOMAS, 0000 WESLEY L. *WHITAKER, 0000 ALONZO C. CUTLER, 0000 JOHN J. *THOMAS, 0000 CHAD H. WHITE, 0000 JOHN N. *THOMAS, 0000 CRYSTAL A. *WHITE, 0000 THE FOLLOWING NAMED ARMY NATIONAL GUARD OF SPENCER S. *THOMAS, 0000 GARY L. *WHITE, 0000 THE UNITED STATES OFFICERS FOR APPOINTMENT TO IAN O. THOMPSON, 0000 JASON D. WHITE, 0000 THE GRADE INDICATED IN THE RESERVE OF THE ARMY NEAL R. THOMPSON, 0000 SAMUEL G. WHITE III, 0000 UNDER TITLE 10, U.S.C., SECTIONS 12203 AND 12211: PHILLIP J. THOMPSON, 0000 STEVEN D. *WHITE, 0000 To be colonel SCOTT T. THOMPSON, 0000 TED N. *WHITE, 0000 DANIEL M. THORN, 0000 TODD A. *WHITE, 0000 DOMINIC D. ARCHIBALD, 0000 DENNIS R. *THORNE, 0000 EVAN L. *WHITEHOUSE, 0000 DAVID N. BLACKORBY, 0000 BRIAN C. *TICHENOR, 0000 BRENT R. *WHITNEY, 0000 JAMES T. KEEFNER, 0000 SEAN P. *TIERNAN, 0000 JAMES T. *WICKTOM, 0000 PAUL J. PENA, 0000 KENT J. *TIFFANY, 0000 SCOTT D. WIERZBANOWSKI, 0000 EDWARD J. ROUGEMONT, 0000 DARREN W. *TILLMAN, 0000 MARA C. *WIGHT, 0000 MICHAEL A. SAINZ, 0000 JASON A. *TIMM, 0000 LANCE R. WIKOFF, 0000 RICHARD L. THOMAS, 0000

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THE FOLLOWING NAMED ARMY NATIONAL GUARD OF THE FOLLOWING NAMED ARMY NATIONAL GUARD OF THOMAS F. STEPHENSON, 0000 THE UNITED STATES OFFICERS FOR APPOINTMENT TO THE UNITED STATES OFFICERS FOR APPOINTMENT TO THE GRADE INDICATED IN THE RESERVE OF THE ARMY THE GRADE INDICATED IN THE RESERVE OF THE ARMY UNDER TITLE 10, U.S.C., SECTIONS 12203 AND 12211: UNDER TITLE 10, U.S.C., SECTIONS 12203 AND 12211: f To be colonel To be colonel CONFIRMATION RICKY W. BRANSCUM, 0000 CURTIS W. ANDREWS, 0000 MICHAEL T. HAMIL, 0000 RUFINO I BETANCOURT, 0000 Executive nomination confirmed by RAYMOND L. HULINGS, 0000 JAMES E. GRAYSON JR., 0000 JEFFERY D. KINARD, 0000 WILLIAM J. HORAM, 0000 the Senate July 18, 2002: KENNETH D. LEE, 0000 TERRY A. JOHNSON, 0000 THE JUDICIARY RICHARD N. MEADOWS, 0000 MARTIN E. KIDNER, 0000 JERRY E. REEVES, 0000 DAVID F. SCHMIDT, 0000 RICHARD R. CLIFTON, OF HAWAII, TO BE UNITED FREDERICK O. STEPAT, 0000 DANNY K. SPEIGNER, 0000 STATES CIRCUIT JUDGE FOR THE NINTH CIRCUIT.

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IN SUPPORT OF PEACE ON THE opment and betterment of her community. Mr. Speaker, the ICC is likely to consume 28TH BLACK ANNIVERSARY OF After a long battle with cancer, she passed vast resources on similar baseless cases and THE TURKISH INVASION OF CY- away on June 30, 2002. As we mourn her charges rather than focusing on the gross in- PRUS loss, I would like to pay tribute to her life be- fractions of basic international rules of en- fore this body of Congress and this Nation. gagement. It is appropriate for this body and HON. GEORGE W. GEKAS At the early age of fourteen, Ruby Martinez for the Administration to adamantly oppose OF PENNSYLVANIA began striving for success when she began U.S. participation in the new court. working the fields to raise money so that she IN THE HOUSE OF REPRESENTATIVES [From the Omaha World-Herald, July 12, could attend Catholic school. Although her 2002] Thursday, July 18, 2002 graduation led her to a job in the larger city of Mr. GEKAS. Mr. Speaker, 28 years ago this Colorado Springs, she selflessly returned to ‘‘FAIRNESS’’ TO BE WARY OF week, Turkish troops illegally invaded the na- Boone to care for her ailing grandmother who Critics have scoffed at the insistence by tion of Cyprus seizing control of one third of had suffered from a stroke. Her civil involve- the Bush administration and Congress that the island and forcing tens of thousands of ment began through calling local officials with U.S. military personnel abroad be protected Greek Cypriots out of their homes. In 1983, the intent of organizing local volunteer pro- from indictment by international tribunals. Such courts, the critics claim, are intended the Turkish Republic of Northern Cyprus es- grams to help the less fortunate and actively address the town’s issues and concerns. only for prosecution of major war criminals. tablished itself through a declaration of inde- The indictment of U.S. policy-makers and pendence and to this day is recognized only Once her tenure as Mayor commenced, she soldiers, they say, isn’t very likely. created several agencies to improve the lives by the Turkish government. Today, 35,000 Recent events, however, have shown that Turkish soldiers are stationed on the island of her constituents with the Housing and U.S. concerns are justified. The Washington occupying the lands of Greek Cypriots and Urban Development agency, which repaired Times reported this week that a special tri- guarding the 113-mile, fenced border. Many homes for owners who could not find the bunal investigating war crimes in the Bal- consider this border to be one of the most means to do so themselves. She actively kans is examining whether charges are war- heavily militarized regions in the world. served as a board member of the Pueblo ranted against former President Bill Clinton This atrocious affront to the sovereignty of Community Health Board, the Pueblo Chem- and his aides for U.S. support of a Croatian Cyprus has received generous attention from ical Depot Reuse Commission and Chemical military offensive in 1995. the international community and, in particular, Demilitarization Authority, the Sheriff’s Advi- An advocacy group in Croatia sparked the the United Nations, however, it has resulted in sory Board, and she was the founding mem- court’s action. The activists told the tri- ber of the Boone-Avondale citizens Alliance. bunal that if it indicts a former Croatian little action taken by Turkey. I am heartened general accused of slaughtering Serbian ci- Mr. Speaker, I stand before you today to by this year’s talks between the President of vilians during that campaign, it should also Cyprus, Glafcos Clerides, and the Turkish pay tribute to the memory of an exemplary cit- indict American officials in the interests of Cypriot leader, Rauf Denktash, as they indi- izen in the State of Colorado. Ruby Martinez what it called ‘‘evenhanded justice.’’ cate a strong interest to find a peaceful and was a vibrant woman who achieved much This isn’t the first time U.S. officials have final solution to this decades old conflict. success and was a beacon of inspiration to come under scrutiny by that court. Pre- Potential membership in the European her entire community. I join her family and a viously, the prosecutor for the tribunal had Union has been the strongest catalyst for grateful community today in the mourning of investigated whether NATO had violated peace between the two parties since the initial her loss. international law during its 1999 bombing campaign in Yugoslavia. The prosecutor invasion of Cyprus. Both Cyprus and Turkey f are vying for inclusion in the E.U., but be- filed no indictments, saying she wouldn’t WHOSE DEFINITION OF have been able to collect sufficient evidence cause of certain requirements for membership, to bring charges against high-level officials. their requests may not be granted unless they ‘‘FAIRNESS’’? In light of those facts, the Bush adminis- first focus their attention to the forcibly divided tration has been amply justified in refusing nation. With this new motive for a solution, I HON. DOUG BEREUTER to seek congressional approval for a new en- have increased hope that this ancient part of OF NEBRASKA tity, the International Criminal Court, our world will once again see harmony within IN THE HOUSE OF REPRESENTATIVES which began operation last week and seeks its borders. global jurisdiction. (To keep United Nations The Greek and Turkish Cypriot leadership Thursday, July 18, 2002 peacekeeping on track in the Balkans, the have a long, tough road ahead of them for a Mr. BEREUTER. Mr. Speaker, this Member Bush administration compromised this week on the immunity question, while still refus- diplomatic solution, but they have come a long wishes to commend to his colleagues an edi- ing to endorse the court. The compromise way. With continued support from the U.S., torial from the July 12, 2002, edition of the should provide sufficient de facto protection the U.N., and now the E.U., I believe that free- Omaha World-Herald entitled ‘‘ ‘Fairness’ to be for troops.) dom and peace are attainable for the people wary of.’’ Supporters of the new court say it is a ve- of Cyprus. As the editorial stresses, the International hicle for trying only the most brutal of f Criminal Court (ICC) will place U.S. policy- international war criminals. But such claims makers and military personnel in a precarious lack credibility when a similar international PAYING TRIBUTE TO RUBY position whereby practically any random non- court is dutifully conducting an investiga- MARTINEZ governmental organization (NGO) could bring tion—out of ‘‘fairness’’—of possible war esoteric charges against them. Indeed, the crimes by a former U.S. president. HON. SCOTT McINNIS editorial highlights the story of a Croatian ad- On balance, we think it’s a good idea to have specially appointed courts consider OF COLORADO vocacy group which has brought charges against former President Clinton for his sup- war-crimes matters for individual military IN THE HOUSE OF REPRESENTATIVES conflicts. But the International Criminal port for military actions in Croatia. These Thursday, July 18, 2002 Court has been granted too much authority, charges, which were presented in the special and the Balkans tribunal has shown a trou- Mr. MCINNIS. Mr. Speaker, today I stand tribunal on the Balkans, were not presented bling lack of proportion by taking seriously before you to celebrate the life and mourn the due to any specific infraction but because the calls for indictments against high U.S. offi- loss of Ruby Martinez. Mrs. Martinez, a former advocacy group believes that all sides of the cials. Councilwoman and Mayor of Boone, Colorado, issue should be reviewed for the sake of American leaders are right to be wary selflessly committed years towards the devel- ‘‘evenhanded justice.’ about the potential for abuse.

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. E1292 CONGRESSIONAL RECORD — Extensions of Remarks July 18, 2002 DEPARTMENT OF THE INTERIOR TRIBUTE TO MIKE BENNETT Mr. Speaker, it is my pleasure to stand this AND RELATED AGENCIES APPRO- evening and honor Dean Dowson before this PRIATIONS ACT, 2003 HON. BOB SCHAFFER body of Congress and this nation. Thank you Dean for every minute of time you selflessly OF COLORADO SPEECH OF spent building a strong foundation in our com- IN THE HOUSE OF REPRESENTATIVES munity. Congratulations on your award and HON. MICHAEL N. CASTLE Thursday, July 18, 2002 good luck in your future endeavors! OF DELAWARE Mr. SCHAFFER. Mr. Speaker, it is an honor IN THE HOUSE OF REPRESENTATIVES to rise today to express gratitude and pay trib- f Wednesday, July 17, 2002 ute to one of Colorado’s outstanding public TRIBUTE TO ALEX REZA servants, Mike Bennett, who is stepping down The House in Committee of the Whole this month as Chief of Staff to U.S. Senator House on the State of the Union had under WAYNE ALLARD. Mike is a true professional HON. HOWARD L. BERMAN consideration the bill (H.R. 1854) making ap- who has performed his duties with the highest OF CALIFORNIA propriations for the legislative branch for degree of excellence. His leadership in Wash- IN THE HOUSE OF REPRESENTATIVES the fiscal year ending September– 30, 1996, ington on behalf of Colorado will be greatly and for other purposes: missed but always appreciated. Thursday, July 18, 2002 Mr. CASTLE. Mr. Speaker, I rise today in Over the past 11 years, Mike Bennett has Mr. BERMAN. Mr. Speaker, I rise today to support of the Slaughter-Dicks-Horn-Johnson- served our country with distinction, carrying recognize a good friend and an outstanding Morella Amendment to increase funding for out both his personal and professional life with educator, Alex Reza. In May 2002, Alex re- the National Endowment for the Arts and the dignity, respect and dedication. Beginning first tired after 34 years of service with the Los An- National Endowment for the Humanities. The as then-Congressman ALLARD’s District Direc- geles Unified School System. arts and humanities are important both socially tor, Mike later served as Senator ALLARD’s Ad- Alex was one of the founders of the Mexi- and economically to our nation as a whole. ministrative Assistant until his promotion to can-American Studies curriculum at San Fer- Studies have shown students benefit from Chief of Staff in 1999. nando High School where he has taught since exposure to both the arts and humanities. Prior to his public service, Mike Bennett was 1968. He has a unique ability to clearly com- They gain not only a better cultural apprecia- President of First National Bank of Brighton, municate history and make it relevant and un- tion but are able to translate their positive ex- Colorado, and the Valley Bank of Lyons. Mike derstandable generation after generation. periences into skills that are essential for their served as a member of the Board of Directors Known for his infectious passion when it academic future and their future in the Amer- of Valley Bank of Brighton from 1984 to 1996. comes to civil rights, Alex has made it a pri- ican workforce. His banking career from 1977 to 1990 also in- ority to ensure that his students learned about Arts and humanities funding are increasingly cluded positions at the Farmers State Bank of civil rights and labor leaders such as Cesar allocated to state agencies for grant programs Yuma, the Byers State Bank, and Valley Bank Chavez, Martin Luther King, and Walter Reu- that reach out to underprivileged and smaller of Frederick. ther. suburban and rural areas that do not have the A constituent of the Fourth Congressional A charismatic leader, Alex always manages benefits of big city art programs. In correlation, District in Colorado, Mike Bennett not only to enlist numerous faculty, students and com- seventy-nine percent of businesses believe it makes his community proud but also his state munity members in his many initiatives and is important to have an active cultural commu- and country. He has taken the responsibilities projects. His accomplishments and successes nity in the locale in which they operate. Busi- and standards of his job to a higher level, and are legion. He helped found the Cesar Chavez nesses in Delaware work hand in hand with I applaud him now before the House. On be- March, co-sponsored the San Fernando High the arts and humanities communities. This half of the citizens of Colorado, I ask the School chapter of MEChA (a national Chicano partnership makes my state a stronger com- House to join me in extending congratulations organization), and volunteered in the fund rais- munity than it otherwise would be. to Mike Bennett for his commendable accom- ing campaign for the Cesar Chavez Memorial. I have witnessed in Delaware firsthand how plishments. In recognition of his service to his community, rewarding arts and humanities programs can f Alex received the first Cesar Chavez Service be to our nation’s youth. For example, the Award in the City of San Fernando. Possum Point Players in Georgetown, Dela- PAYING TRIBUTE TO DEAN Alex’s integrity, enthusiasm and strong con- ware, is funded through the NEA’s Challenge DOWSON sensus building abilities have made him a role America Program. This organization provides model to many and an inspiration to many positive alternatives for youth in Sussex Coun- HON. SCOTT McINNIS more. Over the years I have witnessed first- ty high schools through the creation of theater OF COLORADO hand Alex’s genuine concern for youth and programs for rural and low-income students. IN THE HOUSE OF REPRESENTATIVES their surrounding communities. I have met Many of these students would not have the many of his former students whose interest in opportunity to participate in such programs Thursday, July 18, 2002 history, government and politics were inspired without the Challenge America Program. Mr. MCINNIS. Mr. Speaker, I am honored to by his enthusiasm. In fact, three of those stu- These students have a better chance to in- take this opportunity to recognize Dean dents now serve on my staff. crease their SAT scores, develop increased Dowson of Lakewood Colorado, for his ac- Lawyers, doctors, activists and leaders, in- self-confidence, and are more likely to create complishments and achievements towards the cluding the President of the Los Angeles City multiple solutions to problems and work col- betterment of his community. Dean has con- Council, proudly count themselves as alumni laboratively with one another. tributed greatly to the city of Lakewood, Colo- of Alex Reza’s classroom. Alex has created a Furthermore, the Delaware Humanities rado and is well known as a pillar of the Lake- living legacy through his students and in turn, Forum, through NEH funding, has played an wood business community. he has earned the respect of his colleagues essential role in bringing humanities to all cor- In May of 2002 Dean was awarded the and his community. ners of the state with programs available for ‘‘Minuteman Award’’ from the American Inter- Over the years, even though I never had the schools, businesses, and other community national Automobile Dealers Association privilege of being a student in Alex’s class, groups. Each year the Humanities Forum pre- (AIADA), for outstanding political and legisla- I’ve grown to trust his advice and counsel. In sents an annual living history event bringing tive involvement. He has actively involved him- 2000, I designated him as my elector in the education and entertainment together. Past self with Members of Congress, and has pio- Presidential primary. He represented me well, events have centered around the old west and neered many efforts of the AIADA. Dean has and served with enthusiasm and profes- the gilded age in American history. exhibited an unparalleled commitment to his sionalism. It is important for us to remember, the col- work and has become a pivotal part of the Mr. Speaker, it is my distinct pleasure to ask lective benefits gained by not only our districts AIADA, aiding an organization that uplifts and my colleagues to join me in saluting my good but also by the nation as a whole and that is reinforces the economy. He has truly excelled friend, Alex Reza, for his extraordinary service why I rise today in strong support of increased in many facets of his job, and continues to im- to the hundreds of students he has inspired in funding for the NEA and the NEH. prove. his distinguished career. CONGRESSIONAL RECORD — Extensions of Remarks E1293 IN MEMORY OF ADM ROBERT L.J. woven. The Bush Administration revoked a CONDEMNATION OF TERRORIST LONG Clinton-era ruling that said mining operations BOMBINGS IN ISRAEL would cause irreparable harm to these ances- HON. IKE SKELTON tral lands, an extremely sacred place to the HON. BENJAMIN A. GILMAN OF MISSOURI Quechan Indian tribe. Now the tribe is left OF NEW YORK IN THE HOUSE OF REPRESENTATIVES fighting for its religious and cultural history. IN THE HOUSE OF REPRESENTATIVES Thursday, July 18, 2002 Long before my ancestors arrived on these Thursday, July 18, 2002 shores, American Indians were the first stew- Mr. SKELTON. Mr. Speaker, it is with deep Mr. GILMAN. Mr. Speaker, The two simulta- sadness that I inform the House of the death ards of this land. They respected the earth, neous barbarous homicide bombing attacks of ADM Robert L.J. Long of Annapolis, MD. water and air. They understood you take only that struck Tel Aviv last night, claiming the ADM Long was born in Kansas City, MO, on what you need and leave the rest. They dem- lives of 3 innocent civilians, took place in the May 29, 1920, son of Trigg Allen and Mar- onstrated you do not desecrate that which is immediate aftermath of Tuesday’s terrorist am- garet (Franklin) Long. He attended Paseo sacred. bush of an Israeli bus carrying civilians outside High School, Kansas City Junior College, and Most Americans understand a reverence for the Jewish community of Immanuel, claiming Washington University in St. Louis, MO. the great Sistine Chapel, or even the United the lives of 8 Israelis, including an unborn ADM Long was a 1943 graduate of the U.S. States Capitol. But often non-Indians have dif- baby. This attack took the lives of three mem- Naval Academy at Annapolis. He served his ficulty giving that same reverence to a moun- bers of the same family. The military wing of country in the Pacific during World War II on tain, valley, stream or rock formation. Yasir Arafat’s Fatah movement, the Al Aqsa the battleship Colorado. He was awarded the Martyr’s Brigade, has taken responsibility for Bronze Star Medal with Combat ‘‘V’’, for meri- Recently Indian Country attained a victory in this attack. torious service as Plotting Room Officer during Valley of Chiefs, Montana. The oil company As President Bush stated in his June 24 ad- operations against enemy Japanese forces in which sought to drill in this valley of peace dress on the Middle East, as long as Israelis the Philippine Islands and the Ryukyu Islands. agreed to transfer its oil leases to the National continue to be victimized by terrorists, Israel ADM Long went on to serve the U.S. Navy Trust for Historic Preservation. will continue to defend itself. Any hope that in many other capacities including commander But we cannot fight to preserve Native the Palestinian Authority was serious about re- of the Atlantic Fleet Submarine Force and American sacred lands on a case by case jecting terrorism and undergoing serious re- Vice Chief of Naval Operations in 1972, and basis. Valley of Chiefs serves as a wake-up form, thereby creating the environment de- commander in chief of all U.S. military forces call for action, for the pressing need to protect manded by the President for peace talks to be in the Pacific from 1979 until his retirement in bona fide Native American sacred sites wher- able to proceed, has been dashed. 1983. ever they may lie on the public domain. Yasir Arafat, and his close associates, who After his retirement, ADM Long became a rule tyrannically over their own people while board member of Northrop Grumman Corpora- That is why today I am introducing the Na- trafficking with terrorists targeting Israel, con- tion and Hudson Industries. He was also prin- tive American Sacred Lands Protection Act. stitute the root cause of the Middle East vio- cipal executive of President Ronald Reagan’s Joining me in the introduction of this legisla- lence, as well as the major obstacles to fact-finding committee that investigated the tion are DALE KILDEE of Michigan, GEORGE peace. These attacks were designed to coin- 1983 bombing of the Marine barracks in Bei- MILLER of California, ENI FALEOMAVAEGA of cide with a renewed diplomatic process, spe- rut. American Samoa, FRANK PALLONE of New Jer- cifically the meeting of the Middle East ‘‘quar- Mr. Speaker, ADM Long was a valuable sey, TOM UDALL of New Mexico, BRAD CARSON tet’’ in New York, which is composed of the leader in the U.S. Navy. He was a role model of Oklahoma, BETTY MCCOLLUM of Minnesota, United States, the European Union, the United for younger people interested in military serv- PATRICK KENNEDY of Rhode Island and JOHN Nations and Russia. ice. I know the Members of the House will join BALDACCI of Maine. Mr. Speaker, Israel must and will continue me in extending heartfelt condolences to his First, the bill would enact into law a 1996 to defend itself and its citizens. Israel’s military family: his wife, Sara, and his three sons, executive order designed to protect sacred operation in the territories in recent weeks Charles Allen, William Trigg, and Robert lands. Specifically, it ensures access and cer- have resulted in the arrests of numerous ter- Helms Long. emonial use of sacred lands and mandates all rorists, and has undoubtedly prevented count- f federal land management agencies take the less acts of terror planned against Israeli civil- ians. Israel’s security cannot be entrusted to NATIVE AMERICAN SACRED necessary steps to prevent significant damage to sacred lands. anyone but Israel. Accordingly, we must sup- LANDS ACT port Israel’s right to defend itself in the face of Second, our bill gives Indian Tribes the abil- these continuing terrorist threats. HON. NICK J. RAHALL II ity to petition the government to place federal We must also make it clear to the Pales- OF WEST VIRGINIA lands off-limits to energy leasing or other in- tinian Authority that their insincere condemna- IN THE HOUSE OF REPRESENTATIVES compatible developments when they believe tions will not suffice. Those who cavort with those proposed actions would cause signifi- Thursday, July 18, 2002 terror, those who provide financial support to cant damage to their sacred lands. terrorist groups, and those who knowingly and Mr. RAHALL. Mr. Speaker, this body, the This is an extremely important provision. willingly harbor such organizations while taking United States House of Representatives, is The tribes would no longer have to depend on no actions against them, are enemies not just housed in a testament to freedom, a symbol of the good graces of federal bureaucrats to pro- of Israel, but of the United States and the rest government, a monument of national historical of the civilized world. They must be treated and cultural significance. Throughout the halls tect these lands. Rather, the tribes themselves could initiate those protections. accordingly. of the United States Capitol there are statues f of our founders, our heroes, our history. For If you look to our national parks, forests and the past 200 years, legislators have sweat monuments and you see the commitment to PAYING TRIBUTE TO DONALD blood and tears debating the laws of our great preserve many of our country’s natural treas- GETZ country. ures. The Federal Government has put its full In fact, many would argue the United States weight behind protecting these lands, and we HON. SCOTT McINNIS Capitol is sacred. can do the same for Indian Country. OF COLORADO But there are many places across this coun- At a time when the Bush Administration is IN THE HOUSE OF REPRESENTATIVES try, no less sacred than the building behind promoting increased energy development, we me, that are being desecrated as we speak. It Thursday, July 18, 2002 must enact comprehensive legislation that pro- is inconceivable to imagine an oil rig plopped Mr. MCINNIS. Mr. Speaker, I would like to hibits the loss of further Native American sa- in the middle of the Sistine Chapel. But in fact pay tribute to the life and memory of Donald that is the very problem facing Native Amer- cred lands. We must not stand idly by as L. Getz, who has contributed selflessly to the ican sacred lands today. these unique places are wiped off the face of betterment of his community and our society. For example, the proposed site for a 1,600- the earth. It is my pleasure to applaud Donald’s hard acre, open-pit gold mine in Indian Pass, Cali- We commend this legislation to the House work and to honor his achievements before fornia, is a place where ‘‘dream trails’’ were of Representatives. this body of Congress. E1294 CONGRESSIONAL RECORD — Extensions of Remarks July 18, 2002 Donald was born in October 17, 1931 in a nine-year veteran of the Harris County Sher- According to President Harry Bond, ‘‘The Brighton, Colorado where he spent most of his iff’s Department. Killed June 12 in a shootout company is constantly striving to improve childhood and adolescent years. He was a tre- after he responded to a home invasion, Officer planning and operations with the help of team mendous athlete, who guided his high school Bennett saved the lives of a Houston man, his members and their ideas. The best ideas football and basketball teams to the state stepdaughters and his 3-month-old grandson. come from our own staff. Monical’s believes in championship in 1949. Donald enlisted in the Shane Bennett left behind his wife of six hiring the best people and keeping them United States Navy in 1951, and served this years, Teresa, and their 20-month-old daugh- happy and productive.’’ country proudly during the Korean War. His ter Alyssa. Mr. Speaker, I urge this body to identify and humanitarian efforts during the war earned The bravery that this young man displayed recognize other companies in their own dis- him respect and honor during his tour of duty. isn’t the only character trait that describes his tricts whose actions have so greatly benefitted After his service, he returned to Colorado and life. At his funeral, he was described as ‘‘car- and strengthened America’s communities and worked in the trucking. Donald excelled in ing, loving and compassionate.’’ Teresa de- workforce. every aspect of his life, and used his hard scribed him as ‘‘one of the most perfect peo- f work and determination to open the Anchor ple you will ever meet.’’ TRIBUTE TO THE HIGH SCHOOL Bar and Cafe´ with his wife in 1974. He oper- The sacrifice Shane displayed was not only BOY’S ATHLETIC TEAMS IN ated this very successful business until 1989 evident in his final moments on this earth but PITTSBURG, KANSAS when he retired. countless times during his life. When he and Donald was known for his dedication to his Teresa first learned they were pregnant, he family and is survived by his wife Pat and their quit riding motorcycles because he didn’t want HON. JIM RYUN three children: Gregory, Todd, and Jill. Donald to get in an accident. He always wanted his lit- OF KANSAS had two wonderful great grandchildren Katie tle girl to have her daddy. IN THE HOUSE OF REPRESENTATIVES When Alyssa was born, he took a month off and Nathan who were his pride and joy. Al- Thursday, July 18, 2002 though his community mourns the loss of a of work to spend time with her and help his Mr. RYUN of Kansas. Mr. Speaker, I rise great charitable man, they celebrate his great wife. today to recognize the accomplishments of the accomplishments and achievements. Teresa also recalls that he never hesitated high school boy’s athletic teams in Pittsburg, Mr. Speaker it is a pleasure to praise the to help friends and neighbors in need, either. Kansas. accomplishments to an outstanding individual. ‘‘He would do anything for anybody,’’ Teresa Last fall, the St. Mary’s-Colgan Panthers I am sure his legacy will live on in the hearts said. This was evident in Shane’s last selfless began their school year by taking the state of his community and family. Donald Getz was act before he died. championship in football. They followed that a man of character and compassion and I take Friends and colleagues remembered Shane by winning the state basketball championship this moment to applaud his character and de- as ‘‘everybody’s friend’’ and that he was proud in double overtime. termination before this distinguished body. to be a sheriff’s deputy. Harris County Sheriff’s Deputy Bobby Davison said, ‘‘He was always The eyes of people all over Kansas turned f there for his partners. Always there to back to this small school recognizing their amazing PERSONAL EXPLANATION you up. He always had a smile on his face.’’ accomplishment. The Panthers then attempted Mr. Speaker, the world would be a better to complete the trifecta with a baseball cham- HON. DOUG BEREUTER place with more people like Shane Bennett, pionship. They finished the state baseball tour- OF NEBRASKA loving husband and father and a role model nament a respectable second. However, the Panthers already had a rich IN THE HOUSE OF REPRESENTATIVES for law enforcement officers everywhere. f baseball tradition, including state champion- Thursday, July 18, 2002 ships in four of the past six years. Mr. BEREUTER. Mr. Speaker, on July 17, CONGRATULATIONS TO MONICAL’S As a former Olympian, I can appreciate the 2002, an event at the White House to which PIZZA CORPORATION hard work, perseverance and grit that it takes this Member was invited caused this Member to reach this level of athletic achievement. to unavoidably miss 4 roll call votes on H.R. HON. JERRY WELLER I want to add my congratulations to this out- 5093, a bill to provide FY2003 appropriations OF ILLINOIS standing school and let them know that I, for the Department of the Interior. Had this IN THE HOUSE OF REPRESENTATIVES along with the rest of Kansas, eagerly antici- Member been present, he would have voted in Thursday, July 18, 2002 pate their next season. the following manner: Mr. WELLER. Mr. Speaker, I rise today to f Rollcall vote number 315—‘‘no’’ (the amend- honor the Monical’s Pizza Corporation for re- PAYING TRIBUTE TO BOB ment offered by the gentlelady from California, ceiving the 2002 Employer of Choice Award WALLACE Mrs. Capps); Rollcall vote number 316—‘‘aye’’ from the National Restaurant Association Edu- (the amendment offered by the gentleman cational Foundation. Monical’s Pizza Corpora- from Oregon, Mr. Blumenauer); Rollcall vote HON. SCOTT McINNIS tion (Monical’s,) is located in Bradley, Illinois number 317—‘‘aye’’ (the amendment offered OF COLORADO and is within my 11th Congressional District. IN THE HOUSE OF REPRESENTATIVES by the gentleman from Arizona, Mr. Shadegg); The Employer of Choice Awards are a com- and Rollcall vote number 3 18—‘‘aye’’ (final ponent of the Industry of Choice Program. The Thursday, July 18, 2002 passage of H.R. 5093). initiative identifies critical areas to he be ad- Mr. McINNIS. Mr. Speaker, tonight I rise to f dressed in the restaurant and food service in- pay tribute to the accomplishments of Bob SHANE BENNETT dustry to improve retention and operating per- Wallace. It is a great pleasure of mine to formance. The winners of the award are rec- honor his hard work and determination, which HON. KEVIN BRADY ognized for their ‘‘best practices’’ and are held led to the establishment of the Wallace Oil up as models for others to follow. Company in 1962. Mr. Wallace contributed OF TEXAS Monical’s employs 950 people in over 50 lo- selflessly to the betterment of his community, IN THE HOUSE OF REPRESENTATIVES cations located throughout Central Illinois with which is why he is deserving of our admira- Thursday, July 18, 2002 three in Indiana and one in Wisconsin. In tion. Mr. BRADY of Texas. Mr. Speaker, I rise 1997, Harry Bond, President of Monical’s, Bob Wallace graduated from Regis College today to honor Shane Bennett, a courageous began restructuring the company based on in Denver, where he was an All-American on Sheriff’s Deputy from my district who gave his Harvard Business School’s ‘‘Service Profit the school’s basketball team. Following his life so that others may live. Chain’’. The ‘‘Service Profit Chain’’ is based graduation, he spent 15 months in the Air In the months since September 11, we have on the idea of employee and guest satisfaction Force, where he was stationed at Tinker Air seen countless acts of bravery performed by as the key to success and continued growth. Force Base in Oklahoma and was ranked as our military, law enforcement officers and fire- Team leaders, support staff, restaurant man- an All-American in the 1952 AAU Tournament. fighters. Shane Bennett added his name to the agers as well as employees, have embraced Mr. Wallace later participated in the Phillips list of those who paid the ultimate price to pro- the guest, and employee focused idea. company basketball team, the ’66ers,’ where tect the people of this country. Monical’s has one of the lowest turnover rates he played at least 60 games a season. Officer Bennett, a resident of Montgomery, in the industry. Many of their employees have Mr. Wallace created the Wallace Oil Com- Texas, in the 8th Congressional District, was been with them for over two decades. pany in 1962 from nothing more than $15,000 CONGRESSIONAL RECORD — Extensions of Remarks E1295 in savings and a loan of $10,000. After fifty attack for not offering so-called ‘‘reproduc- Dysautonomia the second half of eighth grade. years of devotion and hard work, Bob is offi- tive health servicer (e.g.—abortions, etc). In She completed all of her work and was award- cially retiring as an independent distributor, al- recent years, we have seen orchestrated cam- ed the Presidential Award for academic paigns to force Catholic health providers to achievement. Andrea began 9th grade with though he frequently consults with his sons offer services that conflict with our values who now own the company. and moral principles. These campaigns have the hope of completing the school year, but a Mr. Speaker, I stand before you to offer my led to legislation in several states and local- virus caused a relapse of Dysautonomia. She appreciation to Mr. Wallace for being an out- ities that could force Catholic hospitals to was unable to attend school in October, 2001, standing inspiration for the Wallace Oil Com- close or substantially reduce their services and home tutored for the rest of the school pany. I wish him the best with all of his future to the community. These threats continue year. endeavors and applaud the many efforts he and fundamentally effect the ability of Dysautonomia is manifested by symptoms has made over the years to provide leadership Catholic Providers to deliver services to of fatigue, weakness, forgetfulness, brain fog, and guidance to the La Junta community—he their communities. and mood swings, etc. It has been a very try- In several states and for certain federal ing time for the family. Perhaps one of the big- is an invaluable citizen! I wish Bob the best of programs, Catholic and other faith-based luck in his future endeavors. providers have been able to secure ‘‘con- gest challenges was actually making a defini- f science clause’’ protection against manda- tive diagnosis of Dysautonomia. It took several tory provisions of objectionable services. Un- visits to multiple doctors before a definitive di- H.R. 4691 fortunately, these approaches are often inad- agnosis was made, making it quite apparent equate and require ‘‘year after year-’’ reau- why it is called an ‘‘invisible disease.’’ HON. JOSEPH R. PITTS thorization. They fail to provide permanent Mr. Speaker, I wish to extend my support to OF PENNSYLVANIA protection and assurances the Catholic pro- Andrea and many children like her that suffer viders can continue to operate IN THE HOUSE OF REPRESENTATIVES from Dysautonomia. It is my hope that we be- unencumbered. come educated about this disease and be- Thursday, July 18, 2002 In addition to supporting HR 4691, CHA come strong supporters for the research and Mr. PITTS. Mr. Speaker, last week, the supports legislative efforts to establish a permanent and comprehensive federal con- treatment of this invisible illness. I am proud to Health Subcommittee held a hearing on the science clause. We look forward to working have Andrea as a member of my district and Abortion Non-Discrimination Act, H.R. 4691. with you and the Committee to achieve hope that one day a cure for this disease will The bill clarifies existing federal conscience these ends. be found. protections that prohibit discrimination against Sincerely, f health care entities that object to participating REV. MICHAEL D. PLACE, STD, in abortion. This bill has the support of both President and Chief Executive Officer. COMMENDING THE U.S.–ASIA INSTITUTE faith-based and secular health care providers. ORGANIZATIONS SUPPORTING THE ABORTION At the hearing, the subcommittee heard tes- NON-DISCRIMINATION ACT (ANDA) H.R. 4691/ timony from Karen Vosburgh, who serves on S. 2008 HON. MICHAEL G. OXLEY the board of Valley Hospital in Palmer, Alaska. Americans United for Life OF OHIO Valley Hospital is a private non-sectarian hos- Association of American Physicians and IN THE HOUSE OF REPRESENTATIVES pital. But in 1997, the Alaska Supreme Court Surgeons Thursday, July 18, 2002 Catholic Health Association held that Valley Hospital was a ‘‘quasi-public Mr. OXLEY. Mr. Speaker, I would like to hospital’’ and ordered it to open its doors for Catholic Medical Association Christian Coalition bring to the attention of the House of Rep- elective second trimester abortions. resentatives the work of the U.S.-Asia Insti- Most hospitals do not participate in abor- Christian Legal Society Christian Medical Association tute, which plays an important role in improv- tions. According to the Alan Guttmacher Insti- Christus Medicus ing understanding between the United States tute, 86% of all hospitals choose not to get in- Concerned Women for America and China. This nongovernmental organization volved in abortions. These are religious hos- Democrats for Life of America promotes an ongoing exchange of views be- pitals of all denominations, non-religious pri- Eagle Forum tween policy makers in the U.S. and China. vate hospitals, and even public hospitals. Ethics & Religious Liberty Commission, Since 1985, a principal vehicle for furthering There is a reason why: abortion is not health Southern Baptist Convention Family Research Council this dialogue has been the congressional staff care. It is elective surgery that takes the life of delegation visits to the People’s Republic of an unborn child. Feminists for Life of America Focus on the Family China organized by the U.S.-Asia Institute and Abortion advocates are trying to force hos- Lutherans for Life hosted by the Chinese People’s Institute of pitals to perform abortions against their will. National Council of Catholic Women Foreign Affairs. These official visits serve to This is wrong. No hospital should be forced to National Organization of Episcopalians for increase awareness, knowledge, and under- take the life of an unborn child against its will. Life standing of U.S. and Chinese policies. The Religiously-affiliated hospitals and hospitals National Right to Life Committee 50th delegation will travel to China in August Presbyterians Pro-Life that simply don’t want to offer the elective pro- 2002. cedure shouldn’t have to. Seamless Garment Network Seventh Day Adventists, World Head- To commemorate this milestone, the U.S.- I hope the Congress acts quickly to pass Asia Institute is hosting special events in the Abortion Non-Discrimination Act, and I quarters Susan B. Anthony List Washington, D.C. in July 2002. The Chinese urge my colleagues to co-sponsor this legisla- Traditional Values Coalition People’s Institute of Foreign Affairs will recip- tion. I submit for the record a list of supporting United States Conference of Catholic rocate by hosting special events in Beijing in organizations, and letters we have received Bishops August 2002. from two of these organizations: the Catholic f Since its inception, this program has hosted Health Association, and the Association of more than 400 congressional staff members American Physicians and Surgeons. HONORING ANDREA MYSLENSKI who have traveled throughout China—from THE CATHOLIC HEALTH ASSOCIATION Heihe in the north on the Russian border to OF THE UNITED STATES, HON. DONALD A. MANZULLO Hainan Island in the south; from the dynamic June 17, 2002. coastal cities of Shanghai and Guangzhou to HON. MICHAEL BILIRAKAS, OF ILLINOIS Chairman, Subcommittee on Health, Committee IN THE HOUSE OF REPRESENTATIVES the remote city of Urumqi, an oasis on the an- cient Silk Road; from Tibet to Kunming to Bei- on Energy and Commerce, Washington, DC. Thursday, July 18, 2002 DEAR CONGRESSMAN BILIRAKAS: On behalf jing and other places in between. Over 150 of the Catholic Health Association of the Mr. MANZULLO. Mr. Speaker, I rise today congressional office and committee staff mem- United States (CHA) I am writing to express to recognize Andrea Myslenski, a special bers have benefitted from fact-finding and the our support for HR 4691, the Abortion Non- young girl in my Congressional district who opportunity to discuss in depth issues of mu- Discrimination Act. Provisions in this legis- suffers from a very rare and serious disease, tual interest to our great nations. The progress lation would provide Catholic Health pro- ‘‘Post Viral Dysautonomia.’’ This is a condition of the U.S.-Sino relationship rests on dialogue viders safeguards to continue operating in a manner consistent with their moral beliefs that affects the autonomic nervous system and and engagement, and this program provides and principles. renders her very tired and unable to go to participants with an unparalleled first-hand Increasingly, Catholic and other faith- school or have the normal social life of a 15- view of China, its culture, its government, and based health care providers have come under year old girl. Andrea was home tutored due to its people. E1296 CONGRESSIONAL RECORD — Extensions of Remarks July 18, 2002 In recognition of a program that promotes BIRTHDAY WISHES FOR MRS. SUE a poem she wrote, Flanders Field. Captain understanding, goodwill, and trade between SHAFFER Ambrose’s efforts on behalf of those who have the people of China and the United States, I served our country should be recognized, thus commend the U.S.-Asia Institute and the Chi- HON. PATRICK J. KENNEDY I have included one of her poems ‘‘Take My nese People’s Institute of Foreign Affairs for OF RHODE ISLAND Hand’’ so that my colleagues in Congress and their work and hope that this long-standing IN THE HOUSE OF REPRESENTATIVES all Americans may share in her compas- partnership will continue for many years to sionate views. I believe that by honoring Cap- come. Thursday, July 18, 2002 tain Ambrose, we are recognizing not only her Mr. KENNEDY of Rhode Island. Mr. Speak- efforts, but also the efforts and importance of f er, I rise today to offer best wishes and birth- nurses who serve during wartime. day greetings for a good friend of mine, Mrs. As a son of a World War II veteran, I would UKRAINIAN LEADERSHIP Sue Shaffer, Chairwoman of the Cow Creek like to extend my gratitude to Captain Jeannie PROGRAM Nation. We’ve worked together for years on Sweeney Ambrose for her kindness and com- issues of importance to tribal governments passion towards our servicemen and women. HON. MAURICE D. HINCHEY across the nation. Whenever I speak with trib- She is to be commended for her efforts on be- al leaders around the nation and with law- half of Pittsburgh veterans. OF NEW YORK makers here in our nation’s Capitol about In- TAKE MY HAND IN THE HOUSE OF REPRESENTATIVES dian Country, I talk about success stories like (By Jeannie Sweeney Ambrose) Thursday, July 18, 2002 those of the Cow Creek Band. Here—take hold of my hand, Lad, Sue represents the spirit of achievement I’ll try to kill the pain, Mr. HINCHEY. Mr. Speaker, I rise today to that so embodies the history of the Cow Creek You’ve had your share of fighting this day, thank Chairman TAYLOR and Ranking Member people. Fighting against a federal government We’ll get you well and home again. MORAN for their diligent work in putting to- that was at times hostile and at other times in- Here—take hold of my hand, Lad, gether the FY03 Legislative Appropriations bill. different towards them, the people of Cow Don’t go away from me now, I am particularly pleased that the Committee Creek worked hard from the first treaty with I’ll stop the blood and fix your wounds Report for this bill calls for a study by the Li- the United States in 1853 until their restoration But you must stay with me and fight the brarian of Congress to determine the feasibility in 1982 to make a great community for them- pain. of establishing a Ukrainian Leadership Pro- selves. They’ve purchased land for them- Here—take hold of my hand, Lad, gram (ULP). selves and have developed a great business I can’t lose more of you now, The ULP would target young Ukrainian lead- enterprise through the Seven Feathers Casino We’ve all come so far, the lot of us, And I’ve got to get you to your home again. ers from local and regional governments and and other diverse business interests. give them the opportunity to travel to the Mr. Speaker, what they’ve done for their Ah—Lad, you must not quit on me now, I’ll not let you go, you hear, United States and meet with federal officials in community and for all of the non-tribal mem- Come, fight with me just once more, Washington. The Ukrainian officials would also bers they employ is great, and it’s in no small Your mom must not be left to cry. travel to various congressional districts and part due to the leadership of Chairwoman He had looked at me with one brief smile, meet with local officials. While in local commu- Shaffer. I’m proud to recognize her as a lead- And had asked me my name. nities, these young leaders would meet with er in Indian Country and as a respected Chair- I said call me Jeannie, or call me your mom, farmers, bankers, educators, and business woman in her tribe, but I’m most proud to call Today it will all be the same. people. In these meetings, the Ukrainians will her my friend. Thank you for all you’ve done, My lad squeezed my had one more time, be able to observe the critical functions that Sue. Have a happy 80th birthday and I wish He smiled and then he died, these groups serve in a democracy. The you many more. I closed my eyes to remember his face, and Ukrainian American community will be actively f said, involved in its implementation and providing I’ll see you each year as we call out the HONORING JEANNIE SWEENEY AM- names. logistical support thus reducing the cost to the BROSE FOR HER COMMITMENT U.S. government. Ah Lad, I still see your face, TO VETERANS IN HER COMMU- And all those we tried to save, The ULP will provide the next generation of NITY Your face and smile were all we had, local leaders with a better understanding of To help get us through those days. the relationships between the federal and local I still remember those lads, they were governments and the constituencies they rep- HON. MICHAEL F. DOYLE Our country’s best resent. These young officials would be able to OF PENNSYLVANIA They had fought and died for all of us, return to Ukraine with greater knowledge of IN THE HOUSE OF REPRESENTATIVES In a land so far, far away, the inner workings of democracy. This knowl- Thursday, July 18, 2002 Now they were all gone, now all at rest. edge is critical to implementing further demo- My lads are here and everywhere today, Mr. DOYLE. Mr. Speaker, I rise today to cratic reforms in Ukraine. We must never forget what they gave, honor United States Air Force Captain Jeannie Ukraine is at a crossroads. While it has They cannot smile or laugh at war anymore, Sweeney Ambrose, a Vietnam veteran and fel- But then neither can we who stay. taken great strides towards democracy since low Pittsburgh Irish-American. Captain Am- its independence in 1991, reforms have Ah Lad, if I could just hold your hand once brose has served seven years on active serv- more, slowed over the last few years. As the sixth ice with the Air Force as a nurse and has It would help me remember this day, most populous nation in Europe, the Ukrainian dedicated much of her life to caring for and I cannot forget their faces anymore, people are people eager for reform. The U.S. honoring all veterans. Nor the reasons they died in such pain. can help ensure that democratic reforms are Born in Ireland, Captain Ambrose immi- I go to the Wall each year to find my lads, successful by supporting Ukraine’s young grated to the United States in the early 1960s There are so many of them now, leaders. and joined the Air Force after becoming a The Wall grows warm under my hand This bill takes a significant step towards the United States citizen. Captain Ambrose served As I find and touch their names. realization of the ULP. We all recognize the Here Lads, hold my hand, a tour in Vietnam at Camrahn Bay in a MASH We’re all together again. large task of establishing such a program. unit, where in her time off, she volunteered With this study in hand, Congress will have her skills as a midwife for impoverished Viet- f road map with which to move forward on this namese civilians. Following her Vietnam tour, WILLIAM BATTERMAN RUGER issue. she continued to serve our country in an Air The ULP has the support the Ukrainian Force Hospital in London where she met her HON. JOHN E. SUNUNU American community and the young leaders in husband, Eddie Ambrose, who has also OF NEW HAMPSHIRE Ukraine. This step that the Committee has served his country as a C–131 pilot in Europe. IN THE HOUSE OF REPRESENTATIVES taken is appreciated around the world. Again, In addition to compassionately caring for our I’d like to thank Chairman TAYLOR and Rank- soldiers during the Vietnam War, Captain Am- Thursday, July 18, 2002 ing Member MORAN for their hard work on this brose continues her work of honoring veterans Mr. SUNUNU. Mr. Speaker, I rise today to issue. I look forward to the report and working through her poems. Every Memorial Day, vet- express my condolences to the family of Wil- with my colleagues on this issue. erans gather to hear her touching rendition of liam B. Ruger who passed away on July 6 at CONGRESSIONAL RECORD — Extensions of Remarks E1297 his home in Prescott, Arizona, and to cele- NEW ALLIES, OLD FORMULA billion in oil revenue. A score of newspapers brate the life of this true American original—in- and an equal number of television stations ventor, manufacturer and business owner. have been forced to shut down in recent HON. NORMAN D. DICKS months, and a number of journalists have Although he was not New Hampshire born, OF WASHINGTON been attacked or threatened. Bill Ruger embodied the best of the Granite IN THE HOUSE OF REPRESENTATIVES Mr. Nazarbayev has arrogantly dismissed State. He blazed his own trail, and in the proc- Thursday, July 18, 2002 U.S. complaints about his behavior, just as ess, turned his name into a recognizable sym- he has waved off suggestions that he con- bol of ingenuity and workmanship. Mr. DICKS. Mr. Speaker, I rise to express sider allowing more democracy. Instead, he my deep concern about the undemocratic and seems to be modeling himself on the long- A native of Brooklyn, Bill Ruger was inter- totalitarian actions of the President of time U.S. allies in the Persian Gulf. Rather ested in firearms for virtually his entire life. He Kazakhstan, Nursultan Nazarbayev. He has than reform, he signs drilling and pipeline received his first rifle from his father at age 12, recently banned several opposition parties, ar- deals that will allow his country to rake in and as a teenager, read and studied as much billions in oil income; rather than respect rested and exiled their leaders, and has made as he could on firearms; the history of fire- human rights, he offers cooperation with the the formation of new parties virtually impos- arms, their design and how they are manufac- U.S. military. Just this week his government sible. He has shut down many newspapers tured. Bill carried his passion for firearms to formalized an agreement with the Bush ad- and television stations in Kazakhstan, pre- the University of North Carolina where as a ministration that will allow emergency land- venting its citizens from having a free press. ings and refuelings for U.S. military planes student he turned a vacant room into a ma- Furthermore, President Nazarbayev has re- at Almaty’s international airport. chine shop. His interest in firearms was so portedly placed $1 billion dollars of oil revenue Bush administration officials say they un- keen that while in his early 20’s, Bill devel- into a secret Swiss bank account. derstand that accepting a relationship on oped the preliminary plans for a light machine such terms is more than a political embar- This behavior should not be tolerated and I gun for use by the Army. rassment. ‘‘Authoritarian governments and believe it is important at this time to focus After two years at North Carolina, Bill left to largely unreformed economies,’’ Deputy As- international attention on this situation. Presi- sistant Secretary of State Lynn Pascoe told work at what he loved. He took a job in a gun dent Nazarbayev needs to allow for all legiti- a recent congressional hearing, ‘‘create the factory and eventually opened his own busi- mate opposition parties and their leaders to conditions of repression and poverty that ness as a toolmaker; a business which did not run for public office and allow for all exiled po- could well become the breeding grounds for succeed. Still, during that time, Bill kept ex- litical leaders to return to Kazakhstan. He further terrorism.’’ The question, then, is perimenting with firearm designs, eventually must also allow for a free press, the founda- how to break the old model that Mr. perfecting a design for a .22 caliber pistol. tion of any democracy. President Nazarbayev Nazarbayev would renew. As in the Persian Gulf, admonitions from ambassadors, and In 1949, with a $50,000 investment from his should be held accountable for widespread even rhetoric from the White House, will not partner, Alexander Sturm, Bill Ruger founded corruption, including the placement of govern- be enough; Mr. Nazarbayev must understand a firearm manufacturing business in a ‘‘little ment funds into secret Swiss bank accounts. that his country’s relationship with the red barn’’ in Southport, Connecticut. As busi- I am asking that we insert into the RECORD a United States depends on political change. ness increased, Sturm, Ruger and Company July 12th editorial written by the Washington Does the Pentagon really need another land- expanded, opening new plants including a Post Editorial Board which more fully de- ing arrangement in Central Asia? If such plant in Newport, New Hampshire in 1963 to scribes the injustices currently occurring in agreements were withheld—or frozen—Mr. produce its own firearms components instead Kazakhstan. [the article follows] Nazarbayev and other Central Asian dic- tators would be quick to get the message. of paying others to do the same. Today, [The Washington Post—Friday, July 12, 2002] Sturm, Ruger and Company is world-re- NEW ALLIES, OLD FORMULA f nowned for its more than 50 models of revolv- As the United States rushed to strengthen CONDOLENCES TO FAMILY AND ers, police sidearms, target pistols, rifles and ties to the countries of Central Asia after FRIENDS OF SAMATHA RUNNION shotguns, and has developed a reputation for Sept. 11, one question that quickly arose was quality in specialized castings for products in whether the new military agreements and the aerospace field, the automobile industry, economic packages would serve only to bol- HON. EDWARD R. ROYCE medicine and the sport of golf. The company ster the repressive rule of the region’s auto- OF CALIFORNIA has grown to become America’s largest fire- crats or whether U.S. influence would also be IN THE HOUSE OF REPRESENTATIVES used to bring about political and economic arms manufacturer and one of New Hamp- Thursday, July 18, 2002 shire’s largest employers; all under the watch- reform. Some 10 months later the first an- swers are in, and they are at best mixed. The ful eye of Bill Ruger. Mr. ROYCE. Mr. Speaker, I rise today to region’s most repressive ruler, Islam offer my condolences to the family and friends Bill Ruger valued his employees and their Karimov of Uzbekistan, has also proved to be craftsmanship and would never sell a product the one most eager to forge a close relation- of Samatha Runnion, and to all those who he would not have been proud to own himself. ship with Washington; consequently, his gov- have been affected by her tragic murder. This attention to excellence is a fact to which ernment has responded to concerted pressure Samantha was abducted from her home in generations of firearms owners, police officers from the Bush administration with a few Stanton, California, on Monday, July 15. She modest concessions and promises of more. and military personnel will attest. was sexually assaulted and murdered, and her Elsewhere, however, a couple of new allies body was found the next day in Cleveland Na- Beyond the success Bill Ruger enjoyed as a may have concluded that their new utility as tional Forest. firearms manufacturer, he had many other U.S. security partners empowers them to re- President George W. Bush has called on At- pursuits and interests including his collection press their domestic opponents all the more forcefully. torney General John Ashcroft and FBI Director of antique firearms, 19th Century Western Robert Mueller to order that all federal re- American art, and antique automobiles and Nursultan Nazarbayev, the president of Kazakhstan, certainly seems untroubled by sources necessary be made available to the was particularly known as a generous and any imperative to accept Western norms of Orange County sheriff’s office. Rewards total- charitable man who gave of himself and his fi- democracy or human rights. Though his ing more than $100,000 have been offered by nances. huge, oil-rich country once appeared to be British Petroleum, which employs Samantha’s The foundation of his life, though, was his leading the former Soviet republics of the re- mother, the Coalition of Police and Sheriffs in gion in reforming the old system, it has, family—his son, William Ruger Jr., who now Santa Ana and others. heads the family business; his daughter, Caro- since Sept. 11, moved steadily in the opposite direction. Mr. Nazarbayev, a former member What happened to Samantha is deeply dis- lyn Vogel; his six grandchildren, and 10 great- of the Soviet Politburo who took over turbing. Why does something like this have to grandchildren. Each held a special place in his Kazakhstan when it became independent and happen to an innocent child? We shouldn’t heart, as did the memory of his lovely wife, has ruled it ever since, did not take kindly have to keep children off the streets. They Mary Thompson Ruger, who passed away in to the formation of an opposition party by should be allowed to go out and play, without 1994, and that of his late son, James Thomp- former government officials late last year. fear of such horrendous acts. Parents son (‘‘Tom’’) Ruger. He arrested and tried several of its leaders, shouldn’t have to worry about their children and recently he had his rubber-stamp par- In New Hampshire, Bill Ruger’s legacy will liament pass a new law making the legal for- disappearing the moment they turn their remain for decades to come. He was an mation of such parties virtually impossible. backs. American original, and those of us fortunate The president also did not like reading re- Sadly, the television has recently been enough to have been able to know Bill will ports in the Kazakh media about a secret strewn with alarming news of missing children truly miss him. Swiss bank account in which he deposited $1 like Samantha, Elizabeth Smart, Jahi Turner, E1298 CONGRESSIONAL RECORD — Extensions of Remarks July 18, 2002 and others. We hope that justice will be ance committee and was unaware his cor- practices, which were parallel to those of other served, but even finding those accountable poration was badly out of compliance, then I corporations now under current public scrutiny. gives just a slightly cathartic feeling after such have to wonder if he’s fit to manage the De- Vice President CHENEY was not merely a vice a huge loss. Our hearts go out to Samantha’s partment of Justice. president or division chief at Halliburton, Mr. family, the families of these other children, and It’s bad enough for someone with the sen- Speaker, he was the CEO. He was in charge. anyone else feeling the pain of losing a child. sitivities Thompson should have, that Polls have shown that 53 percent of the Amer- f Providian’s growth relied on pursuing cus- ican people believe he is either lying or hiding tomers with poor credit card histories, who something about his involvement in ‘‘WATCH WHAT WE DO, NOT WHAT have difficulty obtaining further credit, misled Halliburton’s questionable corporate practices. WE SAY’’ them into accepting excessive interest rates This is hardly surprising since the Nation is al- and hidden charges, and denied the cus- ready suspicious about Mr. CHENEY’s refusal HON. JOHN CONYERS, JR. tomary grace period for delinquent credit card to make public his secret meetings with oil in- OF MICHIGAN payments. Apparently, Thompson, and other dustry executives lobbying his energy policy IN THE HOUSE OF REPRESENTATIVES executive insiders, dumped large blocks of task force behind the scenes. Yet the Vice Thursday, July 18, 2002 stock knowing that the reported revenues President refuses to disclose his records re- were overstated because of these unlawful garding his role in these Halliburton trans- Mr. CONYERS. Mr. Speaker, over the past practices. And worse still—just like the Enron actions. He won’t even talk about this troubling few months, we have seen one revelation officials Thompson is supposed to be inves- matter, even though there is no law, regulation after another about the conflicts of interest tigating—the Providian executives sold their or rule that he has been able to cite that rampant among figures of the Bush Adminis- company stock while recommending purchase would prevent him from doing so. tration, from the President and Vice President, The Vice President says that whenever the of large holdings of that stock to the employ- themselves, to senior officials in key agencies. SEC asks him for information, he will cooper- ees 401 K plan. It is true that Thompson We have had a veritable cornucopia of con- ate fully. . . But that raises a catch 22 prob- would have had to sell his shares in the com- flicts. Almost every day, the media has uncov- lem because the head of the SEC, Chairman pany in connection with his nomination; but ered a new one. It reminds me of a prophetic Harvey Pitt, himself has two conflicts of inter- there is no suggestion yet that he was going invitation made by John Mitchell, President est that are equally serious to act any differently than his Providian col- Nixon’s first Attorney General. Before we HARVEY PITT leagues, even before his nomination. learned the scope of Watergate, Mitchell First, as is now widely known, Mr. Pitt for asked the American people to: ARMY SECRETARY THOMAS WHITE years was private lapdog of almost every WATCH WHAT WE DO—NOT WHAT WE SAY Thomas White was Vice President of major accounting firm and numerous banking Well we watched what Mr. Mitchell did, as Enron’s Energy Services Unit, one of the com- clients. His bona fides to conduct vigorous in- he requested. And John Mitchell went to jail. pany’s components engaged in its most egre- vestigation of past wrongdoing and oversight His advice seems particularly pertinent these gious accounting practices. In 1981, between of future conduct are highly suspect. This is days. Practically every senior official of the June and October he unloaded over $12 mil- especially disturbing because his one year Bush Administration has made pious speech- lion worth of Enron stock. Investigators are as- ‘‘probation period’’ under the Ethics Law is es about the importance of business ethics, sessing whether he violated insider trading about to end. He then will be free even to par- professional integrity and scrupulous avoid- laws. In addition he first hid the full number of ticipate in cases involving his former clients. ance of conflict of interest. That’s what they contacts he had with Enron officials after he To be sure, in recent weeks, Chairman Pitt have said. had assumed federal office. Then he admitted has missed no opportunity to proclaim how But when we examine what they have done, to having 84 phone calls with company offi- tough he plans to be on corporate criminals. the chasm between their sermons and their cials in his first 10 months as Army Secretary. But last fall, he was telling people that what actions is striking. That sharp contrast angers He also failed to comply with the ethics laws the private sector needed was a ‘‘kinder, ordinary citizens who have been laid off, or in divesting himself in a timely manner of all gentler SEC.’’ This year he strongly lobbied for seen their nest egg investments evaporate, or of his Enron shares and options. As in Larry the far weaker Oxley bill to regulate corporate their pensions become worthless. Why should Thompson’s case, if White’s dubious claims misbehavior, rather than the tough Sarbanes they be angry? Let me count the ways. are true that he was unaware of the corpora- bill that passed the Senate unanimously last tion’s phony accounting, it is hard to have con- week. DEPUTY ATTORNEY GENERAL LARRY THOMPSON fidence in his ability to manage operations and Second, it will not be credible to the Amer- The head of the President’s so-called ‘‘Swat ican public that Mr. Pitt will really pull out all Team’’ on corporate crime is Deputy Attorney procurement involving billions of dollars. In sum, I cannot put his offensive situation the stops to investigate wrongdoing by the General Larry Thompson. He already has re- any better than a New York Times Editorial Halliburton and Harken corporations and ‘‘let jected my call, months ago, for him to recuse that said: ‘‘Army Secretary Thomas White has the chips fall where they may’’ regarding any himself from the Department’s decisions in the repeatedly pledged that, if questions stemming culpable involvement of the President or the Enron scandal. I did so because Thompson from his ties to Enron became too much of a Vice President. As James Madison sagely ad- had received benefits from—and might be re- distraction, he would resign. They now have vised over two hundred years ago, ‘‘If men ceiving a pension from—a law firm that has and he should.’’ were angels,’’ we would need no government substantially represented Enron. That raised a watchdogs. Even if we were convinced that serious possibility that he could not vigorously PRESIDENT BUSH The numerous serious questions raised Mr. Pitt is an honorable man, none of us are pursue the case against Enron. At the least, I angels. It is too much to expect that he will su- asked him to explain his decision if he did not about President’s Bush’s relationship with Harken Energy while he served on its board pervise investigations which may involve his recuse himself. bosses, President Bush and Vice President have been widely reported in the press. These Now Thompson has pledged to the public CHENEY, without being influenced one iota by principally include the circumstances under that he will hunt down corporate criminals their relationship to him. The inherent conflict which he received several loans to purchase ‘‘with vigor and aggressive manner.’’ Yet is just too great. Thompson was on the board of Providian Fi- company stock; and under which he sold Therefore, I call on Chairman Pitt to appoint nancial Corporation and chaired its compli- stock with knowledge of negative business a widely respected Special Counsel to the ance and audit committee, at a time when— news that was about to be made public. Obvi- SEC, clearly independent of Pitt’s chain of to put it very charitably—Providian was not ously such serious charges require a thorough command authority, to conduct those inves- only unscrupulously enticing and exploiting the airing. In the meanwhile, the public will have tigations, as well as any investigation involving poorest class of debtors, but also inflating to make its own judgment as to whether the Pitt’s former clients. Should he and the De- earnings by excessive charges and by shady President’s corporate experience makes it in- partment of Justice determine he lacks full au- lender practices that violated federal and state appropriate for him to so sternly lecture the thority to do so, then I call on them to present consumer protection rules. Thompson’s private sector on the importance of the highest to the House and Senate the necessary legis- spokesman has claimed that he only learned ethical standards for American business. lation to provide that authority, so that we may of these practices when regulators made in- VICE PRESIDENT CHENEY enact it expeditiously. quiries. His spokesman actually claimed that A major Securities and Exchange Commis- Mr. Speaker, I agree with President Bush Thompson was owed applause for helping to sion investigation is underway of oil services and the other outspoken Administration offi- settle the claims. Well I’m sorry, Mr. Speaker, giant Halliburton Corporation. Among other ac- cials that it is essential to restore public con- but if he was chairman of Providian’s compli- tivities at issue are Halliburton accounting fidence in American corporate ethics, investor CONGRESSIONAL RECORD — Extensions of Remarks E1299 markets and the operation of our free market Secretary William Cohen has said, he proved ners, and workers were killed in the gigantic system. Appointing a Special Counsel for the that blacks and whites cannot only serve to- explosion of armaments being loaded aboard SEC to pursue these sensitive cases will help gether, they can succeed together. ships bound for the Pacific theater. Most of us start to do so right away. General Davis, we salute you, Sir, for your the men, who served as munitions loaders, f great and distinguished service to our great were black. Commanded exclusively by white nation. officers, they were given little training or equip- CHAMPION OF HOUSING f ment to assist them in the dangerous and ulti- mately fatal job of loading high explosives. For HON. SUE WILKINS MYRICK RECOGNIZING REAR ADMIRAL years, the exact nature of the explosives they ROLAND KNAPP OF NORTH CAROLINA loaded remained secret, concealing the fact IN THE HOUSE OF REPRESENTATIVES that the dangers and the need for training— Thursday, July 18, 2002 HON. NORMAN D. DICKS had been significantly underestimated. OF WASHINGTON Several days after the explosion—after they Mrs. MYRICK. Mr. Speaker, I rise today to IN THE HOUSE OF REPRESENTATIVES had tended the wounded and picked up the pay tribute to a great leader and a pillar of the shredded remains of their colleagues—the Thursday, July 18, 2002 community, Rollan Jones. surviving black sailors were ordered back to Founder and Chairman of the Board of R- Mr. DICKS. Mr. Speaker, I rise today to rec- load more ships without any further training, Anell Housing Group in Denver, North Caro- ognize an outstanding naval officer, Rear Ad- and before it was even established what had lina, Rollan was known as a driving force in miral Roland Knapp, from Gig Harbor, Wash- caused the cataclysmic loss of life. Several the manufactured housing industry until his ington. Admiral Knapp has served with consid- hundred refused, and ultimately, 50 were tried death on May 29, 2002. His vision and his de- erable distinction and dedication for the past for mutiny and convicted. termination were contributing factors to the 33 years, and I would like to take this oppor- Over the past decade and a half, there has growth of manufactured housing in North tunity in the House of Representatives to been a great movement to clear the names of Carolina and the Southeast. In his 46 years in thank him for his service and his contributions these men, who were loyal, brave and dedi- the manufactured housing industry, he gained to the defense of our great nation. cated sailors serving a nation that segregated expertise in every facet of the business, from On July 26, Admiral Knapp will retire from them, exposed them to unreasonable dangers, production line to Chairman of the Board. the Navy after 33 years of active service, and and railroaded them into prison on trumped up His accomplishments as an innovator and he will leave command of the Navy’s Execu- mutiny charges. Over a half century later, the leader in the manufactured housing industry tive Office for Aircraft Carriers here in Wash- terrible mistreatment of these sailors calls out were nationally recognized with his induction ington, DC. for justice. into the Hall of Fame in 1994. He was also a During his tenure as Commander of the When we began the effort to inform the founding member and past President of the Navy’s Aircraft Carriers Office, Admiral Knapp American people about Port Chicago, it was North Carolina Manufactured Housing Insti- has overseen the christening of USS Ronald an almost forgotten chapter in American mili- tute, James E. Lavasque Award recipient, and Reagan, our newest nuclear aircraft carrier, tary and social history. Now, a decade and a served on the MHI Board of Directors for ten the complex refueling overhaul of the USS half later, there are books, articles, documen- years. Nimitz and the contract awarding of CVN–77. taries that have ran repeatedly on cable tele- Rollan is credited with pioneering many of He has also been responsible for all aircraft vision, and even a full length television movie. the manufacturing processes and technologies carrier acquisition and life cycle support pro- While we have not cleansed the convictions in use today. Noted as a champion of design, grams the past 21⁄2 years. During this tenure from the records of all the men, the conviction materials, workmanship and service, he estab- his command worked with the fleet to ensure was removed from one record because of lished the core principles required to make R- our ‘‘in-service’’ carrier force was maintained congressionally mandated review, and Freddie Anell Housing Group an industry benchmark. at the highest possible levels of readiness. Meeks, one of the few sailors remaining alive, He will be remembered through the count- Their brilliant dedication to our force was visi- received a full presidential pardon. less lives he touched, the friends, family and bly evident during the recent sustained com- Today, the Port Chicago Naval Magazine acquaintances he held so important, and his bat-operations conducted during Operation National Memorial at the site of the explosion habit of lending a hand wherever it was need- ‘‘Enduring Freedom.’’ In addition, Admiral commemorates the men who lost their lives on ed. In all of his glory, through his tireless ef- Knapp has ensured the success of our aircraft July 17, 1944, and all those who served at forts in the housing industry, somehow Rollan carrier programs well into the future through that base. That Memorial, which I was hon- found the time to be a FINE fisherman as well. his numerous innovative business practices as ored to sponsor, was dedicated on the 50th He will be sorely missed. well as merging the latest technological ad- anniversary of the explosion. f vances into our carrier fleet. For those interested in learning more about Mr. Speaker, I am proud to recognize Admi- this historic story, there are also numerous GENERAL BENJAMIN O. DAVIS, JR. ral Knapp and his wife Jean for their honor- web pages, including: able service to our nation. I Join my col- www.portchicagomunity.com; HON. SANFORD D. BISHOP, JR. leagues in the House today in wishing them www.cccoe.k12.ca.us/pc/; OF GEORGIA continued success and the traditional naval www.historychannel.com/exhibits/portchicago/; IN THE HOUSE OF REPRESENTATIVES wish of ‘‘Fair winds and Following seas’’ as www.ibiblio.org/hyperwar/USN/fax/PC/; www.history.navy.mil/faqs/faq80-1.htm; Thursday, July 18, 2002 Admiral Knapp closes out his distinguished military career. www.history.navy.mil/faqs/faq80-4.htm; Mr. BISHOP. Mr. Speaker, I rise today in f www.nps.gov/poch/index.htm. memory of General Benjamin O. Davis Jr., This year, a team of very talented young who departed this life on July 4th, after a dis- HONORING PORT CHICAGO people from Bakersfield High School in Ba- tinguished career as our country’s first black ANNIVERSARY kersfield, California produced an outstanding Air Force general officer. documentary that won the statewide History He will be remembered in history for his HON. GEORGE MILLER Day competition and was submitted to the na- command of the Tuskegee Airmen—that OF CALIFORNIA tional competition. I congratulate Dan Ketchell amazing squadron that flew more than 10,000 IN THE HOUSE OF REPRESENTATIVES and his entire team, for their outstanding work sorties over North Africa and Europe during on the Port Chicago film. World War II and never lost a plane! Even Thursday, July 18, 2002 And the Port Chicago story has changed more than that, his colleagues in the military Mr. GEORGE MILLER of California. Mr. lives. I have been to many of the annual serv- recognize him as a truly great leader and war- Speaker, this week we commemorate the 58th ices held at the Port Chicago chapel, and rior throughout his 34 years of uniformed serv- anniversary of the July 17, 1944 disaster that have spoken with the men and women who ice to his country. And, perhaps most of all, caused the largest Home Front loss of life dur- lost parents, brothers, and other relatives in General Davis is known by all as an exem- ing World War II: the massive explosion at the the explosion: many who never knew the full plary public servant and model citizen whose Port Chicago Naval Magazine near Concord, story of how their loved one perished until extraordinary success and many contributions California. reading the story of Port Chicago in a news have played a big part in turning the tide Fifty eight years ago this week, 320 sailors, story or seeing one of the films. And then they against official racism. As former Defense Marines, Coast Guardsmen, Merchant Mari- came to the site of the explosion, perhaps saw E1300 CONGRESSIONAL RECORD — Extensions of Remarks July 18, 2002 their relative’s name engraved on the marble, RECOGNIZING THE SAN GABRIEL/ This building will be used for courtrooms, of- and understood something about their family POMONA VALLEY C.O.P.E. OF fice space, and other public purposes. The they never really knew before. One daughter THE LOS ANGELES COUNTY FED- building will be a center of justice and local of a victim from Texas, Raye Adkins, who was ERATION OF LABOR FOR OVER 50 government for generations to come. born after her father’s death and was named YEARS OF SERVICE AND LEAD- Our nation is a nation of laws. Our constitu- for him, has dedicated herself to researching ERSHIP tion is strong, enduring and based on prin- the families of the victims. ciples of right and wrong. We believe in free- dom, justice and certain unalienable rights that One year ago, several dozen Members of HON. HILDA L. SOLIS are extended to all people. Many of these the Congress joined me in sending a letter to OF CALIFORNIA issues are considered daily in courthouses all President Bush, asking that he examine the IN THE HOUSE OF REPRESENTATIVES across America. Port Chicago case and the impressive record Thursday, July 18, 2002 A courthouse is more than bricks and mor- developed in conjunction with the Meeks par- Ms. SOLIS. Mr. Speaker, I rise today to tar. A courthouse is a physical testament to don. We asked him to use his Executive pow- honor the San Gabriel/Pomona Valley Council the commitment of the American people to the ers to grant clemency to all the sailors pros- on Political Education (C.O.P.E.) for more than principles we hold dear. Times change. Soci- ecuted for protesting the racism under which 50 years of leadership and service to the ety changes. Other buildings may come and they were forced to live and work, even as Southern California community. go. they served their nation during a war against The San Gabriel/Pomona Valley C.O.P.E. But a court house remains—visible, strong, racism and persecution. I am so pleased that has championed the rights of working men and permanent. A courthouse reassures our the members of Alpha Kappa Alpha, a sorority and women throughout the community. citizens that our law is here today, was here with more than 140,000 members throughout Through its large network of dedicated union yesterday and will be here tomorrow. the nation, has sent dozens upon dozens of members and their families, C.O.P.E. has ac- In addition to being used a courthouse, this names on a petition to the President urging tively worked to improve wages, working con- historic building will provide the citizens of him to accede to this request for his interven- ditions, health care, education, and the overall Paris and Lamar County with additional public tion. quality of life of every worker. space to be used in a way that is deemed ap- The Port Chicago story lives on as an in- Much of the success of the San Gabriel/Po- propriate by the community and its leaders. creasingly fascinating piece of U.S. history mona Valley C.O.P.E. is attributed to the ef- Those uses may change from year to year. and as a moving tribute to the men who forts of its membership and the tremendous This is as it should be. A building such as this served and died that terrible night 58 years commitment of its leadership. Today, I would recognizes both the stability of our society and ago. I know the Members of the House of like to recognize the service of past leaders the changing needs of that society. Representatives join me in honoring all the that played an important role in the organiza- I think it is entirely fitting and proper that the men of Port Chicago for their selfless service, tion’s well-being, namely: Arnold F. Hackman, United States House of Representatives rec- Meat Cutters Local Union #439; Dallas Jones, their courage and their sacrifice. ognize and commend Lamar County Judge formerly of the Los Angeles County Fire- M.C. Superville, and County Commissioners fighters Local #1014 and now serving as Di- f Michael R. Blackburn, Rodney C. Pollard, Carl rector of the Governor’s Office of Emergency L. Steffey, and Jackie Wheeler for their vision SPECIAL BIRTHDAY TRIBUTE TO Services for the State of California; William R. in making this opportunity available to the citi- MS. IDA HILL-MOORE Lathrop, United Food & Commercial Workers zens of Lamar County. Union #1167; Jesse Martinez, United Brother- The acquisition of this facility by Lamar hood of Carpenters and Joiners of America, County is an excellent example of what can HON. BARBARA LEE Local #1976, #309, and #409; Joseph R. be accomplished when we all work together. I Rocha, Laborers International Union of North appreciate the commitment of the local citi- OF CALIFORNIA America Local #1082; Herb Schisler, Los An- zens and the generous attitude of the United IN THE HOUSE OF REPRESENTATIVES geles County Firefighters AFLÐCIO Local States Postal Service. Both were necessary to #1014; and John M. Wolsdorf, hitemational complete this project. Thursday, July 18, 2002 Brotherhood of Electrical Workers AFLÐCIO As a result of their efforts, the public has Local #1710. been well served. Ms. LEE. Mr. Speaker, I rise to pay a spe- Therefore, I ask my colleagues to join me in cial birthday tribute to Ms. Ida Hill-Moore, who congratulating the San Gabriel/Pomona Valley f will be celebrating her 80th birthday on Satur- C.O.P.E. for their work and contributions to REGARDING H.R. 5067, TO PROVIDE day, July 20th. this great nation. HEALTH CARE COVERAGE FOR Ms. Hill-Moore was born in Columbia, South f CHILDREN AND PREGNANT Carolina and raised in Detroit, Michigan. She COMMENDING THE COMMUNITY OF WOMEN FROM MICRONESIA WHO attended Detroit Public schools, after which LAMAR COUNTY, TEXAS, ON THE RESIDE IN THE U.S. she attended many institutions of higher edu- PURCHASE OF THE OLD PARIS cation. POST OFFICE HON. PATSY T. MINK Ida Hill-Moore has dedicated her life to her OF HAWAII family and friends in all of the communities in HON. MAX SANDLIN IN THE HOUSE OF REPRESENTATIVES which she has lived. She loved her two sons, OF TEXAS John and Jeffery, very dearly. Sadly, both Thursday, July 18, 2002 IN THE HOUSE OF REPRESENTATIVES have passed away. Mrs. MINK of Hawaii. Mr. Speaker, Microne- Thursday, July 18, 2002 In 1957, Ms. Hill-Moore moved to Los Ange- sians residing in the U.S. are classified as les, California, where she worked for the Los Mr. SANDLIN. Mr. Speaker, I rise today to lawful non-immigrants and are unable to ob- Angeles Police Department. Afterward, she celebrate the vision and leadership of the tain federal health care services. They cannot worked for the prestigious Los Angeles County leaders of Lamar County, Texas, the commit- obtain Medicaid benefits even though they are Museum. Ms. Hill-Moore has a long history of ment of its citizens and the recognition of the members of our local communities and pay taxes. civic duty and continues to remain active in success that can occur when the federal and Citizens of the Federated States of Micro- her community. She has served as a Member local governments work together for the com- mon good. nesia, the Republic of the Marshall Islands of the Conference of Concerned Citizens, and Tomorrow, on July 19, 2002, the Lamar and the Republic of Palua have made sac- she is the current President of Angeles Place County Commissioners Court will save a build- rifices for the U.S. The U.S. tested a total of residential home. ing in Paris, Texas, that reflects the history of 67 atomic and hydrogen bombs between 1946 I am proud to join Ms. Hill-Moore’s family this community. Further, the Court will give the and 1958 at the Bikini and Enewetak atolls in and friends as we celebrate her commitment building new life and a new public purpose. the Marshall Islands. The effects of these tests and dedication to her family, friends and hu- In a matter of hours, Lamar County will ap- are still felt throughout the region. manity itself. Today, I wish you a very happy prove the purchase of the historical Paris Post Additionally, the Compact of Free Associa- birthday. Office from the United States Postal Service. tion prevents other countries from entering into CONGRESSIONAL RECORD — Extensions of Remarks E1301 military alliances with the Republic of the Mar- PROTECT CONSUMERS’ RIGHT TO tice and throughout the years, supported the shall Islands, the Federated States of Micro- TAKE COMPANIES TO COURT Home and provided free medical care to the nesia, and the Republic of Palau. Such mili- WHEN DISAGREEMENTS ARISE children. Upon his death in 1928, Dr. tary alliances could threaten the security of McQuade dedicated much of his estate to the our nation. Between 1918 and 1941, foreign HON. LUIS V. GUTIERREZ Home, enabling it to continue to provide serv- powers did occupy these islands. And as his- OF ILLINOIS ices throughout difficult times such as the Great Depression. tory will recall, many World War II battles were IN THE HOUSE OF REPRESENTATIVES fought in the islands fortified and occupied by Today, McQuade Children’s Services pro- Japan. The Compact prevents this from hap- Thursday, July 18, 2002 vides quality care in a variety of settings to pening again. Mr. GUTIERREZ. Mr. Speaker, today I am 300 children and their families. Its mission, In the Compact, the U.S. government prom- introducing the ‘‘Consumer Fairness Act of however, has remained one of providing an ised to assist Micronesians in exchange for 2002,’’ a bill to address arbitration clauses that accepting, nurturing environment for children. their continued sacrifices. The U.S. agreed to are unilaterally imposed on consumers as un- Putting ‘‘Children First’’ is not just a pledge foster economic development and help these fair and deceptive trade practices and prohibit taken annually by staff, but a philosophy that countries become self-sufficient. their use in consumer transactions. is truly internalized by all those who help McQuade’s succeed. This same treaty allows Micronesians to Increasingly, companies such as banks and credit card companies, computer makers, in- The services available to children are vast freely migrate to the U.S. According to the and varied, ranging from therapeutic residen- 2000 Census, 115,247 Micronesians are living surance firms and car dealers are requiring customers to waive their right to sue when a tial care to special education. McQuade’s fa- in the U.S. Most Micronesians do not become cilities and programs include: a boys and girls citizens, yet they become members of our disagreement occurs. Furthermore, these mandatory arbitration clauses are usually not Residential Treatment Center, the Kaplan communities. They are here legally. They pay School for special education, Diagnostic As- taxes, attend our schools, and join our military. clearly disclosed in agreements and contracts. Requiring consumers, as a mandatory con- sessment Centers, and community programs They work with and for us. Nevertheless, the focused on family counseling and independent federal government denies Medicaid health dition of providing a service or selling a good, to waive his or her right to pursue a grievance living skills. Teaching responsibility and im- care benefits to noncitizens and lawful non-im- parting values to children, McQuade’s staff migrants. through the United States justice system is problematic for several reasons. works tirelessly to provide social, academic, My bill, H.R. 5067, will give Micronesian Arbitration can cost more than pursuing a physical and spiritual growth. children and pregnant women legally residing case in court, with fees that often run into the McQuade’s numerous success stories are a in the U.S. access to Medicaid and the State thousands of dollars. testament to its importance to the Hudson Val- Children’s Health Insurance Program (SCHIP). Arbitration limits the evidence that can be ley community. The McQuade staff and volun- Micronesians should be covered because it is used. teers share an unparalleled commitment to im- in the interest of our nation to improve the Arbitration usually does not allow for ap- proving the lives of children in need. Once public’s health, which includes basic health peals. again, I commend McQuade Children’s Serv- care for poor children and pregnant women re- To address these problems, this Act would ices for providing quality care to children for gardless of their nationality or citizenship sta- prohibit companies from using clauses in con- well over a century and I look forward to cele- tus. tracts and sales agreements that require con- brating their 140th anniversary this coming I urge my colleagues to cosponsor H.R. sumers to agree, in advance, to submit any Sunday, July 21, 2002. 5067 and help the U.S. fulfill its commitment disagreements to arbitrators. Such clauses f to our neighbors and coworkers from Micro- ban consumers from suing a company and DEPARTMENT OF THE INTERIOR nesia. They made sacrifices to ensure the se- participating in class action lawsuits. This leg- curity of our nation. It is time for our nation to AND RELATED AGENCIES APPRO- islation protects consumers’ right to sue and PRIATIONS ACT, 2003 fulfill its promises. clarifies that consumers can choose to resolve their disputes with companies through arbitra- SPEECH OF f tion. Mr. Speaker, I urge my colleagues to sup- HON. MAXINE WATERS FAITH UNITED METHODIST port this much-needed legislation for all con- OF CALIFORNIA CHURCH CENTENNIAL ANNIVER- sumers in America. IN THE HOUSE OF REPRESENTATIVES SARY f Wednesday, July 17, 2002 The House in Committee of the Whole RECOGNIZING MCQUADE HON. NICK LAMPSON House on the State of the Union had under CHILDREN’S SERVICES OF TEXAS consideration the bill (H.R. 1854) making ap- propriations for the legislative branch for IN THE HOUSE OF REPRESENTATIVES HON. SUE W. KELLY the fiscal year ending September 30, 1996, and Thursday, July 18, 2002 OF NEW YORK for other purposes: IN THE HOUSE OF REPRESENTATIVES Ms. WATERS. Mr. Chairman, the United Mr. LAMPSON. Mr. Speaker, I am here States government has a history of leasing Thursday, July 18, 2002 today to bear witness to the 100th Anniversary lands belonging to Indian tribes and individual of the Faith United Methodist Church in Dick- Mrs. KELLY. Mr. Speaker, I rise today to Indians. The government has been receiving inson, Texas. This extraordinary religious com- recognize McQuade Children’s Services, lo- grazing, timber and mineral royalties from the munity traces its roots back more than a cen- cated in New Windsor, NY, for its dedicated lease of these lands—royalties that the gov- tury to the establishment of the Warren Chap- service to special needs children of the Hud- ernment was supposed to hold in trust for the el in the town of Dickinson in 1901. Six years son Valley. On Sunday, July 21, McQuade rightful owners of the lands. later, the Methodist community in League City Children’s services celebrates its 140th birth- Unfortunately, the United States government founded their own chapel in 1907. These two day. has admitted that it mismanaged these trust communities, separated by a mere seven McQuade’s service to Hudson Valley resi- funds for decades and lost the money of our miles shared both the trials and the joys of life dents dates back to 1862, when it was found- nation’s first peoples. Federal courts have together and in June of 1967, the two con- ed as a home for orphaned or abandoned chil- ruled that the government owes Indians an gregations merged to form the Faith United dren. Established by the Newburgh Union Fe- historical accounting of all Indian trust funds Methodist Church. male Guardian Society as the ‘‘Home for the going back to the date the funds were depos- On September 7, this community will com- Friendless,’’ it was renamed in 1945 to com- ited. memorate its Centennial with the unveiling of memorate the life of Dr. Milton Ash McQuade. This bill includes provisions to restrict the a Texas historical marker celebrating 100 Dr. McQuade was an ear, nose and throat ability of the Federal government to provide an years of faith and community. I ask you to join specialist who himself was abandoned at a accounting of Indian trust funds. The bill even me in recognizing this remarkable congrega- church doorstep as a baby and raised by the presumes that all trust fund records prior to tion’s faith and sense of community that has Reverend McQaude and his wife. Dr. 1985 were correct. These provisions defy passed the test of time and remains a shining McQuade emigrated from Canada to New- court decisions and have no place in an ap- example of America’s strength and unity. burgh, NY in 1914 to establish a medical prac- propriations bill. E1302 CONGRESSIONAL RECORD — Extensions of Remarks July 18, 2002 I urge my colleagues to strike these unjust for supplier-billed drugs than suppliers’ poten- scription drug benefit this year. On top of the provisions and let Native Americans know tial acquisition costs in 2000. Some drugs many other serious concerns I have with the what happened to their money. were available at prices averaging just 15 per- drug benefit passed by the Republican leader- f cent of the manufacturer’s reported AWP, ship, I am deeply disappointed that it did not while Medicare continued to pay 95 percent of address the abuses of the current AWP sys- INTRODUCTION OF THE MEDICARE AWP. tem. We must not shirk our responsibility to MARKET ACQUISITION DRUG The Office of the Inspector General at the ensure that Medicare properly pays for the PRICE Department of Health and Human Services limited outpatient prescription drugs it already found that Medicare could save $761 million covers. There is no need for taxpayers to con- HON. FORTNEY PETE STARK per year by paying the actual wholesale prices tinue to fill pharmaceutical companies’ coffers OF CALIFORNIA available to physicians and suppliers for just with the ill-gotten gains of the current AWP IN THE HOUSE OF REPRESENTATIVES 24 of the outpatient drugs currently covered by system. I hope all of my colleagues will join Thursday, July 18, 2002 Medicare. me in passing this important legislation. Numerous states, consumer groups, and Mr. STARK. Mr. Speaker, I rise today to in- private health plans have sued drug manufac- f troduce the Medicare Market Acquisition Drug turers for fraudulently inflating Medicare drug Price Act of 2002. This bill would correct a prices. HONORING HISPANIC CITIZENS— long-standing and well-documented problem These suits follow on the heels of a record 9TH DISTRICT OF TEXAS with the way Medicare pays for the few out- Medicare and Medicaid fraud settlement by patient prescription drugs it covers today. This TAP Pharmaceutical Products. In October bill would save taxpayers billions of dollars, 2001, TAP pleaded guilty to a charge of con- HON. NICK LAMPSON without compromising Medicare beneficiaries’ spiracy to violate federal law. TAP agreed to OF TEXAS access to cancer treatment or other services. pay $875 million—the largest criminal fine Congress should enact this bill immediately. ever levied by the government for health care IN THE HOUSE OF REPRESENTATIVES This problem must be resolved—this year— fraud—to settle the suit, in which the govern- Thursday, July 18, 2002 whether or not we succeed in creating a new ment alleged the company artificially inflated Medicare prescription drug benefit. Due to the AWP of the company’s prostate cancer Mr. LAMPSON. Mr. Speaker, I rise today to pharmaceutical industry efforts, this problem drug Lupron. honor local Hispanic citizens from the 9th Dis- was not addressed in the prescription drug Drug manufacturers have resisted efforts to trict of Texas who were chosen for their work legislation recently introduced and passed by investigate this problem. For example, last in the community. While the dedication of His- the House Republican leadership. Despite summer the GAO continued its investigation panic leaders is well-known throughout the their neglect of the issue, I believe there is bi- into AWP on Congress’ behalf and requested United States, local citizens, right here in the partisan consensus that Medicare should not drug price information from many manufactur- Southeast Gulf Coast region, are just as im- continue to pay exorbitant prices for prescrip- ers. One pharmaceutical company, Pfizer, re- portant to ensuring equal rights and economic tion drugs. I urge my colleagues to join me in fused to comply with GAO’s request until this progress for all Texans. supporting this bill. January, when GAO subpoenaed the com- Last month I asked members of the commu- Medicare currently pays for only a limited pany’s CEO, Henry McKinnell. number of outpatient drugs, generally ones Mr. Speaker, the problem is well known. nities in the 9th District to nominate individuals that a patient cannot self-administer, such as The solution is straightforward. Both the GAO for my ‘‘Henry B. Gonzalez Latino Leadership chemotherapy drugs. Medicare spends over and the OIG have recommended that we re- Award,’’ named in honor of the late Congress- $5 billion every year on these drugs. Under vise Medicare’s drug payment policies to re- man Henry B. Gonzalez, that gives special current rules, Medicare vastly over-pays for flect actual market prices, accounting for re- recognition to those who have worked self- these drugs, because it bases payments on bates and other discounts available from man- lessly, often without recognition, and made the artificially high ‘‘average wholesale price’’ ufacturers. That is exactly what this bill does. contributions both in the Hispanic community (AWP) reported by the drug’s manufacturer— Manufacturers would be required to report and the broader society as well. Recipients regardless of the actual price a provider pays the actual average market acquisition prices were chosen because they embodied a giving for the drug. There is abundant evidence that for their drugs as a condition for Medicare and sharing spirit, and had made a contribu- drug manufacturers have boosted their own coverage of those drugs. Each manufacturer tion to our nation. drug sales and increased their profits, at great would have to certify the accuracy of its re- While their efforts may not make the head- taxpayer expense, by manipulating the AWP ports and the Secretary of HHS would be em- lines every day, their service and dedication to of their drugs. Simply put, drug manufacturers powered to audit price information to verify the our country is nevertheless vital to our entire report inflated prices, sell providers the drugs accuracy of the reports. Drug manufacturers region. This region of Southeast Texas is not for much less, and then encourage providers would be subject to unlimited civil monetary successful in spite of our diversity; we are to bill Medicare for the maximum allowable penalties for filing false reports and would be successful because of it. amount—95 percent of the inflated AWP re- subject to a penalty of $100,000 for each day Please join me in recognizing and congratu- ported by the manufacturer. they fail to provide timely information. lating these leaders for their work and commit- This bill offers a straightforward solution to The bill is also carefully crafted to ensure ment to their communities and to Southeast this problem. It would require Medicare pay- that the reimbursement revisions will not ad- Texas. It is leaders like these men and women ments to be based on the actual market prices versely impact Medicare beneficiaries’ access that continue to be a source of pride for at which manufacturers sell their drugs. This to care. First, to ensure these drugs are avail- Texas. The winners of this years Henry B. price, called the average acquisition price, able in areas of the country where providers Gonzalez Latino Leadership Award’’ are: would be verifiable. The Secretary would have must purchase covered drugs at prices above the authority to audit drug companies’ reports. the average, the actual reimbursement level to Alice Flores, Elias de la Cerda, Jr., Ruben Drug companies would be subject to steep providers would be set 5 percent above the F. DeHoyos, John J. DeLeon, Joe Escobedo, fines for deliberately filing false or incomplete average acquisition price. Second, Medicare Jr., Ella Flores, Roberto C. Flores, Robert D. information. would pay dispensing fees to reflect dif- Gallegos, Tina Garcia, Manuel Guajardo, Mr. Speaker, the current Medicare AWP ferences in the costs of dispensing different Manuel R. Gonzalez, Elida Saenz Matthews, rules are a sham and must be changed. Con- drugs and biologics. Third, the bill would en- Eugenia Rios, Elisa Vasquez, Gilbert Zamora, sider the following: sure continued access to cancer treatment. Jr., Manuel Urbina II, Gilbert Hinojosa, Joseph The General Accounting Office has de- Oncologists have argued that inflated AWP re- Cantu, Gregory Flores, Carlos Hernandez, and scribed the AWP as ‘‘neither ‘average’ nor imbursements are necessary to compensate Jesus Abrego. ‘wholesale;’ it is simply a number assigned by for the administration of cancer medicines. Mr. Speaker, the recipients of the ‘‘Henry B. the product’s manufacturer.’’ The GAO found This bill would correct this anomaly by revising Gonzalez’’ award are dedicated and hard- that Medicare’s payments for physician-admin- Medicare payments for oncology services to working individuals who have done so much istered outpatient drugs were at least $532 appropriately account for these indirect costs, for their neighbors and for this nation as a million higher than providers’ potential acquisi- in accordance with GAO recommendations. whole. Today, I stand to recognize their spirit tion costs in 2000. Similarly, the GAO found Mr. Speaker, I sincerely hope that Congress and to say that I am honored to be their Rep- that Medicare paid at least $483 million more will act to provide a meaningful Medicare pre- resentative. CONGRESSIONAL RECORD — Extensions of Remarks E1303 THE IMPORTANCE OF PUBLIC work to continue to strengthen and expand DEPARTMENT OF THE INTERIOR TRANSIT public transit programs, to ensure ‘‘the lifeline AND RELATED AGENCIES APPRO- for the public’’ continues. PRIATIONS ACT, 2003 FORT GAY, WEST VIRGINIA HON. NICK J. RAHALL II SPEECH OF OF WEST VIRGINIA July 16, 2002 IN THE HOUSE OF REPRESENTATIVES UNITED STATES SENATE, HON. MAXINE WATERS Banking, Housing, and Urban Development, OF CALIFORNIA Thursday, July 18, 2002 Subcommittee on Housing and Transpor- IN THE HOUSE OF REPRESENTATIVES Mr. RAHALL. Mr. Speaker, I am pleased to tation, Washington, DC. Wednesday, July 17, 2002 submit a statement made by Mrs. Faye MR. CHAIRMAN AND COMMITTEE MEMBERS: It Thompson of Wayne County, West Virginia is an honor to be with you here today to talk The House in Committee of the Whole before the U.S. Senate Committee on Bank- about something that is dear to my heart. House on the State of the Union had under ing, Housing and Urban Affairs, Subcommittee First, let me tell you something about my- consideration the bill (H.R. 1854) making ap- on Housing and Transportation, on the impor- self. My late husband and I raised three sons, propriations for the legislative branch for and that was an experience in itself. After tance of public transit. Mrs. Thompson is a the fiscal year ending September 30, 1996, and my children got into school, my husband for other purposes: member of the Wayne County, West Virginia who was employed by the Norfolk and West- Ms. WATERS. Mr. Chairman, I rise to sup- Community Service Organization, Inc. Board ern Railroad went to work and I started back of Directors. port the Capps amendment to prohibit the use to school to become an elementary school of funds for new oil drilling on 36 leases off Public transit is a vital transportation link for teacher in a one room schoolhouse in rural the coast of California. people in rural areas, who do not own their Appalachia, West Virginia. own cars, or cannot find someone to drive Oil spills would devastate the sensitive ma- I saw the many challenges of the rural Ap- rine environment of California’s coast. The them to medical appointments, etc. palachian people, so I changed careers and In her testimony, Mrs. Thompson told how Santa Barbara oil spill in 1969 dumped over became a Social Worker for the Department four million gallons of oil into the sea, killed she went to work as a social worker for the of Health and Human Resources in rural thousands of animals, blackened beaches and Department of Health and Human Services West Virginia. Throughout my career, I after her three sons became old enough to go worked with low income families and one of decimated the local marine envirorunent. The to school. Mrs. Thompson worked with low-in- the biggest obstacles of obtaining services coast took years to recover. come families and said that ‘‘one of the big- was the lack of transportation. At that time California’s economy depends upon the gest obstacles of obtaining services was the there was no public transportation in Wayne health of its coasts. Tourism brings in nearly lack of transportation.’’ During those years, County. Throughout my twenty-two years in $30 billion a year to our state, and the fishing Wayne County had no public transportation. my career there was always a need for indi- industry is also important to our economy. viduals to access, services. Throughout my California cannot afford the risks of offshore oil At the time, Mrs. Thompson had her own life I have been a very independent person as car, and was able to drive anywhere she drilling. you can see, raising a family, starting not The people of California are strongly op- wanted to go, at any time. just one career but two in my life, and hav- Later in life, Mrs. Thompson’s husband posed to offshore oil drilling. Leases off the ing the priviledge of having my own trans- coasts of Florida, Alaska and North Carolina passed away. Then she was told she needed portation. Most of us take for granted pick- have already been terminated. It is time to ter- to have both knees replaced. Her two older ing up our car keys, going out of the house, sons live out of state, and her youngest son and going anywhere we want to go. minate the California leases as well and re- worked full-time, and was unable to drive her spect the will of California’s people. Even though I have always recognized the I urge my colleagues to support the Capps to physical therapy sessions. need for rural transportation. I never amendment. Suddenly, Mrs. Thompson realized she was thought that it would be something that I no longer independent and that she was now would need. After my husband passed away, f one of the people who need public transpor- I lived alone in my home. I then downsized ARGENTINA MUST TAKE ACTION tation. But unlike the earlier years, when she to an apartment. I was still able to go to my AGAINST TERRORISTS WHO CAR- homemaker meetings, church activities, worked to help low-income families who had RIED OUT THE 1994 AMIA BOMB- no access to public transportation, Wayne Board Member meetings, volunteer work, and continued to meet my friends for lunch ING County now offered public transportation. and social activities. My physician informed As Mrs. Thompson said, ‘‘Thanks to public me that I was going to have to have both of TOM LANTOS transportation, I was able to obtain the med- my knees replaced. He stated that after my OF CALIFORNIA ical services that I needed.’’ surgery and rehabilitation that I would need IN THE HOUSE OF REPRESENTATIVES Mrs. Thompson was able to look at how to go to physical therapy three times a week tough it was, years ago, for low-income fami- for several weeks. My two eldest sons both Thursday, July 18, 2002 lies in Wayne County to be without public tran- live out of state and my youngest son works Mr. LANTOS. Mr. Speaker, eight years ago sit, and look at how much easier it was for full-time, therefore was unable to take me to today—on July 18, 1994, a car bomb ex- her, while in rehabilitation, to receive physical my therapy sessions. I then realized that I ploded at the AMIA Jewish Community Center therapy because she could rely on public tran- was one of the people who needed transpor- in Buenos Aires, Argentina, leaving eighty-five sit. tation. I was no longer independent and this people dead and leveling the building. Now, was quite a shock to me. Thanks to Public Mrs. Thompson noted that ‘‘Wayne X-Press Transportation I was able to obtain the med- eight years later, the trial of a handful of sus- Public Transit System in Wayne, West Virginia ical services that I needed. pected accessories to the crime has only provides transportation services to people for barely begun, and the masterminds behind the medical appointments, to jobs, job interviews, Being a member of Wayne County Commu- horrific attack are still unidentified and at-large. nity Service Organization, Inc. Board of Di- While we recognize that Argentina is cur- job training, social activities, senior citizen rectors, I can sit here today in front of you centers, Adult Day treatment programs, gen- and let you know how important the Public rently struggling with serious political and eco- eral education training, parenting classes, Transit System is to the people. How it en- nomic crises, the government of President etc.’’ ables them to access needed services. Wayne Duhlade must remain focused on the inves- She described public transit as ‘‘the lifeline X-Press Public Transit System in Wayne, tigation of the AMIA bombing and the trial of for the public.’’ West Virginia provides transportation serv- the accused. The resolution of this case is crit- As a Member of Congress representing the ices to people for medical appointments, to ical to demonstrate that Argentine society fully Third Congressional District of West Virginia, I jobs, job interviews, job training, social ac- embraces the rule of law and is moving to- have been working to help low-income, rural tivities, senior citizen centers, Adult Day ward the fulfillment of justice. The AMIA case West Virginians to enhance their quality of life treatment programs, general education presents Argentina with the opportunity to by providing transportation to medical care, training, parenting classes, etc. I’m here send a message to the world that terrorism today to ask you distinguished ladies and educational facilities and jobs. gentlemen to continue funding for Public does not pay and that known terrorists will be Public transit helps to create and build jobs, Transit Systems. Why, because it is the life- prosecuted. which is a boost to the economy. We must line for the public. So I invite all of you to Mr. Speaker, the trial has been long in com- maintain and expand public transit programs. Wayne County, West Virginia to ‘‘hop ing and has faced many obstacles, some of When we reauthorize the surface transpor- aboard’’ the Wayne X-Press. which Fernando de la Rua and current Presi- tation legislation in the 108th Congress, I will FAYE THOMPSON dent Eduardo Duhlade have addressed. There E1304 CONGRESSIONAL RECORD — Extensions of Remarks July 18, 2002 is speculation about why the case was not were responsible for perpetrating this out- monitored, with no consistent, individual- tried and closed years ago. rageous crime. ized care. Not surprisingly, many deteriorate in county care, populating our jails, home- First, fifteen of the twenty suspects are f former Buenos Aires police officers who have less shelters and mental wards after they ‘‘age out’’ of a failed system. Many never been linked to a ring of automobile thieves. Al- CONTINUING CRISIS IN FOSTER CARE overcome the effects of the abuse or neglect though these are not the individuals who or- they have suffered. dered and carried out the attacks, they may At a time when funds for children’s serv- have supplied the vehicle used for the bomb- HON. GEORGE MILLER ices are ever more scarce, we are paying ing, knowing that it was to be used in an at- OF CALIFORNIA more for less in terms of healthy outcomes. tack on the Jewish Community Center. The IN THE HOUSE OF REPRESENTATIVES Millions of federal dollars are at risk because most prominent of these suspects are former of our inability to meet reasonable guide- Thursday, July 18, 2002 lines for stable placements—through family senior police commander Juan Jose Rebelli reunification, adoption or long-term foster and local stolen-car dealer Alberto Telleldin. Mr. GEORGE MILLER of California. Mr. Speaker, today the ACLU and several child care. More important, the children whom the Both were formally charged with multiple system is intended to protect are being irrep- homicides in July 1999 in connection to the advocacy groups brought a suit requesting the arably harmed. bombing and are currently standing trial. court to hold accountable those county and This is not a problem that can be solved Second, the physical evidence from the state officials responsible for oversight of Cali- simply by changing the person at the top, as bombing was handled extremely poorly. Most fornia’s foster care system. Plaintiffs charged L.A. County has done twice in recent years. of the evidence from the crime scene, includ- that negligence, mismanagement, and abuse It requires a philosophical change at all lev- els—from a system based on what services ing personal identification and the remains of and neglect of children are routinely com- mitted by the very state agency charged with are available to a system based on earlier the victims, was stuffed haphazardly into bags intervention and individualized needs. and abandoned at an open dump for three protecting children and ensuring their safety A suit will be filed today on behalf of fos- years before being tossed into the Rio de la and well-being. ter children put at risk by a failed system. It Plata. One investigator estimates that less In the following article in today’s Los Ange- will demand a wider array of mental health than five percent of the material evidence re- les Times, one of the plaintiffs reports that the services available under Medi-Cal; multi- mains today. Also, a renovation project to suit will demand all appropriate mental health disciplinary assessments of the needs of each make the courtroom large enough to accom- services; multidisciplinary assessments of the child based on all relevant information; con- tinuity in services and plans for each child; modate the anticipated press consumed many needs of each child; case plans; and providers to ensure that no child will be neglected. Judg- and the development of services and pro- months. viders to ensure that no child will be re- After the public trial began on September ing from recent news reports, this same law- jected. 24, 2001, the prosecution’s case has plodded suit could be brought against most state child MacLaren Children’s Center in El Monte, through a seemingly interminable procession welfare agencies. the county’s emergency shelter for abused of witnesses. Over 1500 witnesses were The federal child welfare law that I authored and neglected children, is an apt symbol of called to testify in the trial. Yet, there still has in 1980 requires States to comply with a num- our failed system. Designated a short-term been no clear identification of those respon- ber of core requirements intended to protect shelter, it has become instead the county’s children placed in foster care as a condition of warehouse for the unwanted. Once a home sible for the AMIA bombing. The main ques- for wayward girls, it retains its foreboding tion of the trial remains whether the police receiving Federal foster care funds. Yet twenty atmosphere. Such control as exists—in many who were involved with selling the vehicle years after enactment of P.L. 96Ð272, many of instances, poor management has led to chil- knew that it would be used for the bombing. the same shortcomings as prompted the pas- dren being abused, often by other residents— So far, the police have denied all charges of sage of the law are affecting hundreds of is prison-like. wrongdoing. thousands of children in foster care place- Some MacLaren residents languish for A number of other anti-Semitic incidents ments, raising serious questions about the dili- months beyond the ostensible 30-day limit. since the 1994 bombing indicate the impor- gence of the states and the federal govern- Many more are constantly ‘‘recycled’’ as fos- ment in enforcing the law and protecting the ter homes reject them, adding to the trauma tance of a prompt and decisive resolution in that brought the children to the county’s the AMIA bombing case. After the AMIA Jew- children. care. One plaintiff, removed from her home ish community center was rebuilt, several tele- The situation described in the Times article as a result of sexual and physical abuse by phoned bomb threats against the new build- is not unique to California, which has had a her stepfather, was moved by the county 28 ing, as well as against a Jewish country club very troubled history in foster care for dec- times between the ages of 9 and 13. Another and a Jewish theater, have been received. ades. In Florida, in the District of Columbia, in is in a locked facility because of the healthy Once again, no one has claimed responsibility, New York, and in many other jurisdictions, al- impulse to find a better life elsewhere. In no evidence has been found, and the Argen- legations about inappropriate services, im- less than three years, she was moved 25 times. tine authorities have not produced results from proper placements, inadequate staff training When Dickensian stories like these are re- their formal investigations into these bomb and compensation coupled with massive case- lated to the uninformed, they are greeted threats. In August 1999, two Jewish families loads and staff turnover are commonplace. with incredulity. It is often assumed that were threatened with unidentified bomb And yet the Congress has not taken a broad lack of resources must be the problem. Of threats. One month later, unidentified individ- look at how best to assist in the improvement course, no one desires these rootless sojourns uals fired gun shots at a Jewish school. There of accountability and services in the nation’s through impersonal care. And our society have been no developments in the investiga- foster care system. could, no doubt, better invest in the needs of The time has come for a broad review that its children. But lack of money is not at the tions of either of these cases as well. root of these problems. Mr. Speaker, Argentina faces numerous brings together experts and practitioners and Inertia and lack of accountability are the challenges today, including pursuing both the advocates to help shape a thoughtful critique culprits. The county has become increas- domestic and international dimensions of the of current practice and make recommenda- ingly defensive about releasing cost esti- AMIA bombing case. Some of these investiga- tions for the federal, state and local govern- mates. tive leads may take Argentine prosecutors to ments. This is not only a family crisis and a According to a recently released Los Ange- the highest reaches of their society and to children’s crisis; it is a fiscal crisis, because les Grand Jury report, however, costs during we are spending billions of dollars a year on the 2001–2002 fiscal year at MacLaren ap- state sponsors of terrorism in the Middle East. proximated $757 per day for each child—more We in the United States Congress must con- a system that, despite efforts at reform, con- than $276,000 per year. Group-care facilities, tinue to demonstrate our support for the efforts tinues to fail the children in its custody. The recognized as contrary to the interests of of non-governmental organizations, such as article follows: most children, were estimated to cost about B’nai B’rith, which are actively working to bring [From the Los Angeles Times, July 18, 2002] $33,000 annually per child five years ago. By contrast, children at risk who can be as- complete closure to the AMIA bombing and A FOSTER-CARE TRAGEDY WORTHY OF sisted without removal from the home costs other cases of anti-Semitism. DICKENS Mr. Speaker, resolution of the AMIA bomb- less than $5,000 a year, and foster home and (By Lew Hollman) kinship placements less than $10,000 a year. ing is an integral part of our fight against ter- Los Angeles has a foster-care system driv- Medi-Cal, through the early and periodic rorism. It is essential that the government of en by what is available, not what is needed. screening, diagnosis and treatment program Argentina know and understand that the Children receive too few services too late. and other federal programs, can pay for United States government continues to expect Thousands are shuttled to ineffective and ex- many of the intensive services that children appropriate action against all of those who pensive institutional care. They are poorly need. True case management would ensure CONGRESSIONAL RECORD — Extensions of Remarks E1305 the effective use of such services to enable California and in other states, where it has those in custody are estimated to have seri- children to remain in—or quickly return to— reduced costs and improved the outcomes of ous emotional problems. Those problems will their homes, be freed for adoption or settled children in foster care. The goal is for case- become increasingly difficult and expensive in long-term foster care. workers, therapists, health providers and to treat if effective care is not provided. The county recognizes the penny-wise, schools to work together to ensure children The U.S. Supreme Court has held that due pound-foolish nature of the system. In addi- prompt and stable placements and the early process under the Constitution requires the tion to grand jury reports, state audits, inde- development of a long-term plan to see chil- government to protect from harm any child pendent evaluations and testimony before dren reunited with their families, adopted or it takes into its custody. the Board of Supervisors, it brought its own placed in long-term foster care. expert in to evaluate and make recommenda- Two years after his initial report, Cole The Constitution is violated when children tions in 1998. praised the county for being poised to imple- deteriorated in county care or are subjected Dr. Robert F. Cole, an independent expert ment coordinated services for foster chil- to policies—such as 25 different placements nationally recognized for his work with dis- dren. But in that time, the county had con- in less than three years—that no disin- turbed children, centered his recommenda- tracted with only two providers for wrap- terested professional would countenance. tions on an ‘‘integrated delivery system,’’ around care, serving two children each. Al- Federal Medicaid laws are broken when such as ‘‘wrap-around’’ care, that would co- though additional foster care providers have needed medical services for children are not ordinate services and deliver them in a fam- been found since 2000, wrap-around care and provided. ily-like environment, or the child’s home, other types of intensive care are virtually The lawsuit to be filed today will ask the whenever possible. unavailable in a system providing services to court to cut the knot of inertia and hold ac- A successfully tested method, the wrap- more than 50,000 children year, with slightly countable the county and the state officials around concept is used in other counties in less than 38,000 in county custody. Half of responsible for oversight. Thursday, July 18, 2002 Daily Digest

HIGHLIGHTS Senate passed H.R. 5011, Military Construction Appropriations. The House passed H.R. 5121, Legislative Branch Appropriations. Senate the part of the Senate: Senators Feinstein, Inouye, Chamber Action Johnson, Landrieu, Reid, Byrd, Hutchison, Burns, Routine Proceedings, pages S6967–S7091 Craig, DeWine, and Stevens. Page S6976 Measures Introduced: Ten bills and one resolution Science and Technology Emergency Mobilization were introduced, as follows: S. 2750–2759, and S.J. Act: Senate passed S. 2037, to mobilize technology Res. 41. Page S7033 and science experts to respond quickly to the threats Measures Reported: posed by terrorist attacks and other emergencies, by H.R. 5010, making appropriations for the Depart- providing for the establishment of a national emer- ment of Defense for the fiscal year ending September gency technology guard, a technology reliability ad- 30, 2003, with an amendment in the nature of a visory board, and a center for evaluating antiterror- substitute. (S. Rept. No. 107–213) ism and disaster response technology within the Na- S. Res. 293, designating the week of November tional Institute of Standards and Technology, after 10 through November 16, 2002, as ‘‘National Vet- agreeing to a committee amendment in the nature erans Awareness Week’’ to emphasize the need to of a substitute, and the following amendment pro- develop educational programs regarding the con- posed thereto: Pages S7081–84 tributions of veterans to the country. Reid (for Wyden/Allen) Amendment No. 4311, to S. 862, to amend the Immigration and Nation- ensure that private sector input is considered in the ality Act to authorize appropriations for fiscal years wireless communications capabilities policy options 2002 through 2006 to carry out the State Criminal report required by section 6. Pages S7081–84 Alien Assistance Program. Born-Alive Infants Protection Act: Senate passed S. 2395, to prevent and punish counterfeiting and H.R. 2175, to protect infants who are born alive, copyright piracy, with an amendment in the nature clearing the measure for the President. Page S7084 of a substitute. Recognizing Ignacy Jan Paderewski Accomplish- S. 2513, to asses the extent of the backlog in ments: Committee on Foreign Relations was dis- DNA analysis of rape kit samples, and to improve charged from further consideration of S. Res. 296, investigation and prosecution of sexual assault cases recognizing the accomplishments of Ignacy Jan Pa- with DNA evidence, with an amendment in the na- derewski as a musician, composer, statesman, and ture of a substitute. Page S7033 philanthropist and recognizing the 10th Anniversary Measures Passed: of the return of his remains to Poland, and the reso- Military Construction Appropriations: By 96 lution was then agreed to. Page S7084 yeas to 3 nays (Vote No. 181), Senate passed H.R. Greater Access to Affordable Pharmaceuticals 5011, making appropriations for military construc- Act: Senate continued consideration of S. 812, to tion, family housing, and base realignment and clo- amend the Federal Food, Drug, and Cosmetic Act to sure for the Department of Defense for the fiscal year provide greater access to affordable pharmaceuticals, ending September 30, 2003, as amended. taking action on the following amendments proposed Pages S6972–76 thereto: Pages S6977–S7016, S7019–28 Senate insisted on its amendment, requested a Adopted: conference with the House thereon, and the Chair By 56 yeas to 43 nays (Vote No. 182), Reid (for was authorized to appoint the following conferees on Stabenow) Modified Amendment No. 4305 (to D778 July 18, 2002 CONGRESSIONAL RECORD — DAILY DIGEST D779 Amendment No. 4299), to clarify that section 1927 APPOINTMENT: of the Social Security Act does not prohibit a State U.S. Commission on Civil Rights: The Chair, on from entering into drug rebate agreements in order behalf of the President pro tempore and upon the to make outpatient prescription drugs accessible and recommendation of the Republican Leader, pursuant affordable for residents of the State who are not oth- to Public Law 98–183, as amended by Public Law erwise eligible for medical assistance under the Med- 103–419, reappointed Russell G. Redenbaugh of icaid program. Pages S6977–S7016 Pennsylvania to the United States Commission on Pending: Civil Rights. Page S7084 Reid (for Dorgan) Amendment No. 4299, to per- Nominations Confirmed: Senate confirmed the fol- mit commercial importation of prescription drugs lowing nomination: from Canada. Pages S6977–7016, S7019–28 By a unanimous vote of 98 yeas (Vote No. Ex. Graham Amendment No. 4309, to amend title 184), Richard R. Clifton, of Hawaii, to be United XVIII of the Social Security Act to provide coverage States Circuit Judge for the Ninth Circuit. of outpatient prescription drugs under the Medicare Pages S7016–19, S7091 program. Pages S7019–28 Prior to this action, by 97 yeas to 1 nay (Vote Hatch (for Grassley) Amendment No. 4310, to No. 183), three-fifths of those Senators duly chosen amend title XVIII of the Social Security Act to pro- and sworn, having voted in the affirmative, Senate vide for a Medicare voluntary prescription drug de- agreed to the motion to close further debate on the livery program under the Medicare program, and to nomination of Richard R. Clifton, of Hawaii, to be modernize the Medicare program. Pages S7019–28 United States Circuit Judge for the Ninth Circuit. A unanimous-consent agreement was reached pro- Page S7016 viding for Senators Graham and Grassley to offer Nominations Received: Senate received the fol- amendments to the bill, and on Tuesday, July 23, lowing nominations: at 2:15 p.m., there be 30 minutes for debate equally Roger P. Nober, of Maryland, to be a Member of divided between Senators Graham and Grassley; that the Surface Transportation Board for a term expiring at 2:45 p.m., Senate vote on waiving the Budget Act December 31, 2005. with respect to Senator Graham’s amendment; that Pamela F. Olson, of Virginia, to be an Assistant following that vote, the Senate vote on waiving the Secretary of the Treasury. Budget Act with respect to Senator Grassley’s S. James Otero, of California, to be United States amendment; that if the Budget Act is waived for ei- District Judge for the Central District of California. ther amendment, the amendment be further debat- Robert G. Klausner, of California, to be United able and amendable; and that if the Budget Act fails States District Judge for the Central District of Cali- to be waived on either amendment, the amendment fornia. be withdrawn. Further, that when the Senate re- Robert A. Junell, of Texas, to be United States sumes consideration of Reid (for Dorgan) Amend- District Judge for the Western District of Texas. ment No. 4299 (listed above), Senator Gregg, or his James E. Kinkeade, of Texas, to be United States designee, be recognized to offer a second degree District Judge for the Northern District of Texas. amendment thereto, and that upon disposition of William E. Smith, of Rhode Island, to be United Senator Gregg’s amendment, Senator Rockefeller be States District Judge for the District of Rhode Is- recognized to offer a second degree amendment to land. Reid (for Dorgan) Amendment No. 4299. 1 Air Force nomination in the rank of general. Pages S7007–08 Routine lists in the Air Force, Army, Coast Nomination—Cloture Motion Filed: A motion Guard. Pages S7085–91 was entered to close further debate on the nomina- Messages From the House: Page S7033 tion of Richard H. Carmona, of Arizona, to be Med- Measures Placed on Calendar: Page S7033 ical Director in the Regular Corps of the Public Health Service, subject to qualifications therefor as Additional Cosponsors: Pages S7033–35 provided by law and regulations, and to be Surgeon Statements on Introduced Bills/Resolutions: General of the Public Health Service, Department of Pages S7035–48 Health and Human Services and, in accordance with Additional Statements: Pages S7031–32 the provisions of Rule XXII of the Standing Rules Amendments Submitted: Pages S7048–80 of the Senate, by unanimous consent, a cloture vote will occur at 10:45 a.m. on Tuesday, July 23, 2002. Authority for Committees to Meet: Pages S7080–81 Page S7019 Privilege of the Floor: Page S7081 D780 CONGRESSIONAL RECORD — DAILY DIGEST July 18, 2002 Record Votes: Four record votes were taken today. cally responsible, bipartisan appropriation bills to the (Total—184) Pages S6976, S7016, S7019 Senate not later than July 31, 2002. Adjournment: Senate met at 9:30 a.m., and ad- NOMINATIONS journed at 8:03 p.m., until 9:30 a.m., on Friday, July 19, 2002. (For Senate’s program, see the re- Committee on Banking, Housing, and Urban Affairs: marks of the Acting Majority Leader in today’s Committee concluded hearings on the nominations Record on pages S7084–85). of Paul S. Atkins, of Virginia, and Harvey Jerome Goldschmid, of New York, each to be a Member of the Securities and Exchange Commission, after the Committee Meetings nominees testified and answered questions in their own behalf. Mr. Atkins was introduced by Senators (Committees not listed did not meet) Allen and Warner. PESTICIDE HARMONIZATION ACT ENRON ENERGY MARKET MANIPULATION Committee on Agriculture, Nutrition, and Forestry: Sub- Committee on Commerce, Science, and Transportation: committee on Production and Price Competitiveness Committee concluded hearings to examine the role concluded hearings on S. 532, to amend the Federal of Enron Energy Services, Inc. (EESI) played in ma- Insecticide, Fungicide, and Rodenticide Act to per- nipulation of western State electricity markets, after mit a State to register a Canadian pesticide for dis- receiving testimony from Thomas E. White, Sec- tribution and use within that State, after receiving retary of the Army. testimony from Senator Dorgan; Representative Pomeroy; William T. Hawks, Under Secretary of NOMINATIONS Agriculture for Marketing and Regulatory Programs; Committee on Commerce, Science, and Transportation: Stephen L. Johnson, Assistant Administrator, Office Committee concluded hearings on the nominations of Prevention, Pesticides and Toxic Substances, Envi- of Frederick W. Gregory, of Maryland, to be Deputy ronmental Protection Agency; North Dakota Lt. Administrator of the National Aeronautics and Space Governor Jack Dalrymple, on behalf of North Da- Administration, and Kathie L. Olsen, of Oregon, and kota Crop Protection Product Harmonization and Richard M. Russell, of Virginia, each to be an Asso- Registration Board, and Roger Johnson, North Da- ciate Director of the Office of Science and Tech- kota Department of Agriculture, both of Bismarck; nology Policy, after the nominees testified and an- Barry Bushue, Oregon Farm Bureau Federation, Bor- swered questions in their own behalf. Mr. Gregory ing, on behalf of the American Farm Bureau Federa- was introduced by Senator Bill Nelson, and Mr. tion; and David J. Frederickson, National Farmers Russell was introduced by Senator Allen. Union, and Jay Vroom, CropLife America, both of Washington, D.C. CORPORATE RESPONSIBILITY/CONSUMER PROTECTION BUSINESS MEETING Committee on Commerce, Science, and Transportation: Sub- Committee on Appropriations: Committee ordered favor- committee on Consumer Affairs, Foreign Commerce, ably reported the following bills: and Tourism concluded hearings to examine perspec- H.R. 5010, making appropriations for the Depart- tives on improving corporate responsibility and con- ment of Defense for the fiscal year ending September sumer protection, in light of the recent corporate ac- 30, 2003, with an amendment in the nature of a counting scandals, after receiving testimony from substitute; former Senator Howard M. Metzenbaum, Consumer An original bill making appropriations for the Federation of America, Joan Claybrook, Public Cit- Departments of Commerce, Justice, and State, the izen, and Nell Minnow, Corporate Library, all of Judiciary, and related agencies for the fiscal year Washington, D.C.; and Richard H. Moore, North ending September 30, 2003; Carolina Department of State Treasurer, Raleigh. An original bill making appropriations for foreign operations, export financing, and related programs NATIONAL PARKS for the fiscal year ending September 30, 2003; Committee on Energy and Natural Resources: Sub- An original bill making appropriations for the committee on National Parks concluded hearings on Departments of Labor, Health and Human Services, S. 1865, to authorize the Secretary of the Interior to and Education, and related agencies for the fiscal study the suitability and feasibility of establishing year ending September 30, 2003; and the Lower Los Angeles River and San Gabriel River An original resolution encouraging the Senate watersheds in the State of California as a unit of the Committee on Appropriations to report thirteen, fis- National Park System, S. 1943, to expand the July 18, 2002 CONGRESSIONAL RECORD — DAILY DIGEST D781 boundary of the George Washington Birthplace Na- pursuant to an intergovernmental Agreement be- tional Monument, S. 2571, to direct the Secretary of tween the Southern Ute Indian Tribes and the State the Interior to conduct a special resources study to of Colorado concerning Air Quality Control on the evaluate the suitability and feasibility of establishing Southern Ute Indian Reservation, receiving testi- the Rim of the Valley Corridor as a unit of the Santa mony from Renny Fagan, Colorado Deputy Attorney Monica Mountains National Recreation Area, S. General, Denver; and Leonard C. Burch and Fran 2595, to authorize the expenditure of funds on pri- King Brown, both of Southern Ute Indian Tribe, vate lands and facilities at Mesa Verde National Ignacio, Colorado. Park, in the State of Colorado, and H.R. 1925, to Hearings recessed subject to call. direct the Secretary of the Interior to study the suit- ability and feasibility of designating the Waco Mam- BUSINESS MEETING moth Site Area in Waco, Texas, as a unit of the Na- Committee on the Judiciary: Committee ordered favor- tional Park System, after receiving testimony from ably reported the following business items: Senator Warner; Representatives Schiff and Solis; S. 486, to reduce the risk that innocent persons Durand Jones, Deputy Director, National Park Serv- may be executed, with an amendment in the nature ice, Department of the Interior; and Lori A. Mellon, of a substitute; Mesa Verde Foundation, Mesa Verde, Colorado. S. 862, to amend the Immigration and Nation- NOMINATIONS ality Act to authorize appropriations for fiscal years Committee on Environment and Public Works: Com- 2002 through 2006 to carry out the State Criminal mittee concluded hearings on the nominations of Alien Assistance Program; John S. Bresland, of New Jersey, to be a Member, S. 2395, to prevent and punish counterfeiting and and Carolyn W. Merritt, of Illinois, to be a Member copyright piracy, with an amendment in the nature and Chairperson, both of the Chemical Safety and of a substitute; Hazard Investigation Board, after the nominees testi- S. 2513, to assess the extent of the backlog in fied and answered questions in their own behalf. DNA analysis of rape kit samples, and to improve investigation and prosecution of sexual assault cases BUSINESS MEETING with DNA evidence, with an amendment in the na- Committee on Indian Affairs: Committee ordered favor- ture of a substitute; and ably reported the following bills: S. Res. 293, designating the week of November S. 1210, to reauthorize the Native American 10 through November 16, 2002, as ‘‘National Vet- Housing Assistance and Self-Determination Act of erans Awareness Week’’ to emphasize the need to 1996, with an amendment in the nature of a sub- develop educational programs regarding the con- stitute; and tributions of veterans to the country. S. 2711, to reauthorize and improve programs re- lating to Native Americans, with amendments. IDENTITY THEFT INDIAN WATER RIGHTS CLAIMS Special Committee on Aging: Committee concluded Committee on Indian Affairs: Committee held hearings hearings to examine issues with respect to identify on S. 2743, to approve the settlement of water theft and senior citizens, including related provisions rights claims of the Zuni Indian Tribe in Apache of S. 2541, to amend title 18, United States Code, County, Arizona; receiving testimony from Senator to establish penalties for aggravated identity theft, Kyl; Neal McCaleb, Assistant Secretary of the Inte- after receiving testimony from Alice S. Fisher, Dep- rior for Indian Affairs; Joe Carter, Arizona Game and uty Assistant Attorney General, Criminal Division, Fish Commission, Safford; Malcolm B. Bowekaty, Department of Justice; James G Huse, Jr., Inspector Pueblo of Zuni, Zuni, New Mexico; Norman Ray General, Social Security Administration; Howard Brown, Lyman Water Company, St. Johns, Arizona; Beales, Director, Bureau of Consumer Protection, David Brown, Brown and Brown Law Offices, Pine- Federal Trade Commission; Douglas Coombs, Dep- top, Arizona; and David C. Roberts, Salt River uty Special Agent in Charge, Financial Crimes Divi- Project, and John B. Weldon, Jr., Salmon, Lewis, sion, U.S. Secret Service, Department of the Treas- and Weldon, both of Phoenix, Arizona. ury; Boris F. Melnikoff, Atlanta, Georgia, on behalf Hearings recessed subject to call. of the American Bankers Association; Stuart K. Pratt, Consumer Data Industry Association, and AIR QUALITY CONTROL Dennis Carlton, International Biometric Group, both Committee on Indian Affairs: Committee held hearings of Washington, D.C.; Lt. Col. John T. Stevens, Jr., on certain provisions of S. 2065, to provide for the USAF (Ret.), Upper Marlboro, Maryland; and Mari implementation of air quality programs developed J. Frank, Laguna Niguel, California. D782 CONGRESSIONAL RECORD — DAILY DIGEST July 18, 2002 House of Representatives on Taxation by $590,000 by a recorded vote of 206 Chamber Action ayes to 213 noes, Roll No. 320. Pages H4905–08 Measures Introduced: 14 public bills, H.R. Points of Order Sustained Against: 5155–5168; and 3 resolutions, H. Res. 492–494, Section 110 which transfers disbursing functions were introduced. Pages H4930–31 of the Capitol Police to the Chief of the Capitol Po- Reports Filed: Reports were filed today as follows: lice; and Pages H4904–05 H.R. 1070, to amend the Federal Water Pollution Language of page 11 that withholds $590,000 Control Act to authorize the Administrator of the from the Joint Committee on Taxation until the Environmental Protection Agency to make grants for Committee releases the report on tax evasion by ex- remediation of sediment contamination in areas of patriates. Page H4905 concern and to authorize assistance for research and H. Res. 489, the rule that provided for consider- development of innovative technologies for such pur- ation of bill was agreed to by a yea-and-nay vote of poses, amended (H. Rept. 107–587 Pt. 1); 219 yeas to 206 nays, Roll No. 319. Agreed that H.R. 4940, to amend title 38, United States during consideration of H.R. 5121, pursuant to the Code, to enact into law eligibility requirements for rule, pro forma amendments offered by the Chairman burial in Arlington National Cemetery (H. Rept. or ranking minority member of the Committee on 107–588); Appropriations or their designees for the purpose of H.R. 5055, to authorize the placement in Arling- debate may be offered at any time. Pages H4878–84 ton National Cemetery of a memorial honoring the Late Report—Supplemental Appropriations Con- World War II veterans who fought in the Battle of the Bulge (H. Rept. 107–589); ference Report: The Committee on Appropriations received permission to have until midnight, Friday, H.R. 1701, to amend the Consumer Credit Pro- tection Act to assure meaningful disclosures of the July 19, 2002, to file a conference report on H.R. terms of rental-purchase agreements, including dis- 4775, making supplemental appropriations for the closures of all costs to consumers under such agree- fiscal year ending September 30, 2002. Page H4909 ments, to provide certain substantive rights to con- Late Report—In the Matter of Representative sumers under such agreements, amended (H. Rept. James A. Traficant, Jr.: The Committee on Stand- 107–590 Pt. 1); ards of Official Conduct received permission to have H.R. 3215, to amend title 18, United States until midnight on Friday, July 19, 2002, to file a Code, to expand and modernize the prohibition privileged resolution and report. Pages H4916–17 against interstate gambling, amended (H. Rept. Late Report—Intelligence Authorization: The 107–591 Pt. 1); and Permanent Select committee on Intelligence received H.R. 4628, to authorize appropriations for fiscal permission to have until midnight tonight, July 18, year 2003 for intelligence and intelligence-related 2002 to file a report on H.R. 4628, to authorize ap- activities of the United States Government, the propriations for fiscal year 2003 for intelligence and Community Management Account, and the Central intelligence-related activities of the United States Intelligence Agency Retirement and Disability Sys- Government, the Community Management Account, tem, amended (H. Rept. 107–592). Page H4930 and the Central Intelligence Agency Retirement and Guest Chaplain: The prayer was offered by the Disability System. Page H4917 guest Chaplain, Rev. Ronald A. Jansen, Pastor, Holy Treasury, Postal Appropriations—Rule Pro- Cross Lutheran Church of Collinsville, Illinois. viding for Consideration: The House agreed to H. Page H4875 Res. 488, the rule that is providing for consideration Recess: The House recessed at 10:23 a.m. and re- of H.R. 5120, making appropriations for the Treas- convened 12:52 p.m. Page H4878 ury Department, the United States Postal Service, Legislative Branch Appropriations: The House the Executive Office of the President, and certain passed H.R. 5121, making appropriations for the Independent Agencies, for the fiscal year ending Sep- Legislative Branch for the fiscal year ending Sep- tember 30, 2003 by a recorded vote of 224 ayes to tember 30, 2003 by a yea-and-nay vote of 365 yeas 188 noes, Roll No. 323. Earlier, agreed to order the to 49 nays, Roll No. 321. Pages H4884–H4909 previous question on the rule by a yea-and-nay vote Rejected the Moran of Virginia amendment that of 258 yeas to 156 nays, Roll No. 322. sought to reduce funding for the Joint Committee Pages H4909–16 July 18, 2002 CONGRESSIONAL RECORD — DAILY DIGEST D783 Legislative Program: The Majority Leader an- Online Travel Sites.’’ Testimony was heard from nounced the Legislative Program for the week of public witnesses. July 22. Pages H4917–18 MOLD: A GROWING PROBLEM Meeting Hour—Monday, July 22: Agreed that Committee on Financial Services: Subcommittee on when the House adjourns today, it adjourn to meet Oversight and Investigations and the Subcommittee at 12:30 p.m. on Monday, July 22 for morning-hour on Housing and Community Opportunity held a debate. Page H4918 joint hearing entitled ‘‘Mold: A Growing Problem.’’ Calendar Wednesday: Agreed to dispense with the Testimony was heard from Stephen Redd, M.D., Calendar Wednesday business of Wednesday, July Chief, Air Pollution and Respiratory Health Branch, 24. Page H4918 National Center for Environmental Health, Centers Senate Messages: Message received from the Senate for Disease Control and Prevention, Department of today appears on page H4884. Health and Human Services; and public witnesses. Amendments: Amendments ordered printed pursu- SOUTH ASIA—RECENT DEVELOPMENTS ant to the rule appear on pages H4932–33. Committee on International Relations: Subcommittee on Quorum Calls—Votes: Three yea-and-nay votes Middle East and South Asia held a hearing on Re- and two recorded votes developed during the pro- cent Developments in South Asia. Testimony was ceedings of the House today and appears on pages heard from Christina Rocca, Assistant Secretary, Bu- H4883–84, H4908, H4909, H4915–16, and reau of South Asian Affairs, Department of State. H4916. There were no quorum calls. OVERSIGHT—U.S. PATENT AND Adjournment: The House met at 10 a.m. and ad- TRADEMARK OFFICE journed at 7:13 p.m. Committee on the Judiciary: Subcommittee on Courts, the Internet, and Intellectual Property held an over- Committee Meetings sight hearing on ‘‘The U.S. Patent and Trademark Office: Fee Schedule Adjustment and Agency Re- STEWARDSHIP CONTRACTING form.’’ Testimony was heard from James Rogan, Committee on Agriculture: Subcommittee on Depart- Under Secretary, Intellectual Property and Director, ment Operations, Oversight, Nutrition and Forestry U.S. Patent and Trademark Office, Department of held a hearing on Stewardship Contracting. Testi- Commerce; and public witnesses mony was heard from Dale Bosworth, Chief, Forest Service, USDA; and public witnesses. LAKE ERIE WESTERN BASIN INTERNATIONAL WILDLIFE REFUGE NATIONAL DEFENSE AUTHORIZATION ESTABLISHMENT ACT ACT; EXPRESSING SENSE OF CONGRESS— Committee on Resources: Subcommittee on Fisheries FUNDS NEEDED TO FIGHT WAR ON Conservation, Wildlife and Oceans held a hearing on TERRORISM H.R. 4722, Lake Erie Western Basin International Committee on Armed Services: Ordered reported the fol- Wildlife Refuge Establishment Act. Testimony was lowing bills: H.R. 4547, National Defense Author- heard from Representatives Kaptur and Dingell; ization Act for Fiscal Year 2003; and H.R. 5132, to Barry W. Stieglitz, Deputy Chief, Division on Con- express the sense of Congress concerning the fiscal servation Planning and Policy, National Wildlife year 2003 end strengths needed for the Armed Refuge System, U.S. Fish and Wildlife Service, De- Forces to fight the War on Terrorism. partment of the Interior; Sam Speck, Director, De- partment of Natural Resources, State of Ohio; and CIVIL MONETARY PENALTIES public witnesses. Committee on Education and the Workforce: Sub- committee on Employer-Employee Relations ap- MISCELLANEOUS MEASURES proved for full Committee action, as amended, H.R. Committee on Resources: Subcommittee on National 4054, to provide for civil monetary penalties in cer- Parks, Recreation and Public Lands approved for full tain cases. Committee action the following bills: H.R. 2099, amended, to amend the Omnibus Parks and Public ONLINE TRAVEL SITES Lands Management Act of 1996 to provide adequate Committee on Energy and Commerce: Subcommittee on funding authorization for the Vancouver National Commerce, Trade and Consumer Protection held a Historic Reserve; H.R. 2748, amended, National hearing titled ‘‘Are All Online Travel Sites Good for War Permanent Tribute Historical Database Act; the Consumer: An Examination of Supplier-Owned H.R. 3434, amended, McLoughlin House National D784 CONGRESSIONAL RECORD — DAILY DIGEST July 18, 2002 Historic Site Act; H.R. 4622, Gateway Communities tation; Robert Epley, Associate Deputy Under Sec- Cooperation Act of 2002; H.R. 4874, to direct the retary, Policy and Program Management, Veterans Secretary of the Interior to disclaim any Federal in- Benefits Administration, Department of Veterans Af- terest in lands adjacent to Spirit Lake and Twin fairs; and Frederico Juarbe, Jr., Assistant Secretary, Lakes in the State of Idaho resulting from possible Veterans’ Employment and Training Service, Depart- omission of lands from an 1880 survey; and H.R. ment of Labor. 4968, amended, Federal-Utah State Trust Lands Consolidation Act. DISAPPROVING EXTENSION OF WAIVER AUTHORITY—VIETNAM NASA WORKFORCE AND MANAGEMENT CHALLENGES Committee on Ways and Means: Adversely reported H.J. Res. 101, disapproving the extension of the Committee on Science: Subcommittee on Space and Aer- waiver authority contained in section 402(c) of the onautics held a hearing on NASA Workforce and Trade Act of 1974 with respect to Vietnam. Management Challenges. Testimony was heard from David M. Walker, Comptroller General, GAO; Sean ADMINISTRATION’S WAIVER FOR O’Keefe, Administrator, NASA; and a public wit- VIETNAM ness. Committee on Ways and Means: Subcommittee on IN THE MATTER OF REPRESENTATIVE Trade held a hearing on the Administration’s Waiver JAMES A. TRAFICANT, JR. for Vietnam from the Jackson-Vanik Freedom of Emigration Requirements. Testimony was heard Committee on Standards of Official Conduct: Held a from Ralph F. Ives III, Assistant U.S. Trade Rep- Sanction hearing in the Matter of Representative resentative, Southeast Asia, the Pacific and APEC.; James A. Traficant, Jr. The Adjudicatory Sub- Christopher LaFleur, Acting Assistant Secretary, East committee Report containing the recommendation Asia and Pacific Affairs, Department of State; and that Representative Traficant be expelled from the public witnesses. House was presented to the Committee by Robert Walker, Staff Director and Chief Counsel. IN THE MATTER OF REPRESENTATIVE Joint Meetings JAMES A. TRAFICANT, JR. 9/11 INTELLIGENCE INVESTIGATION Committee on Standards of Official Conduct: Adjudica- Joint Hearing: Senate Select Committee on Intel- tory Subcommittee concluded hearings in the Matter ligence held joint closed hearings with the House of Representative James A. Traficant, Jr., to deter- Permanent Select Committee on Intelligence to ex- mine whether any counts in the Statement of Al- amine events surrounding September 11, 2001. leged Violations have been proven by clear and con- Committees will meet again on Tuesday, July 23. vincing evidence. The Adjudicatory Subcommittee found Represent- SUPPLEMENTAL APPROPRIATIONS ative Traficant guilty of nine of the 10 counts in the Conferees agreed to file a conference report on the Statement of Alleged Violations. Senate and House passed versions of H.R. 4775, TRANSITION ASSISTANCE PROGRAM making supplemental appropriations for further re- covery from and response to terrorist attacks on the Committee on Veterans’ Affairs: Subcommittee on Bene- United States for the fiscal year ending September fits held a hearing on the Transition Assistance Pro- 30, 2002. gram and the Disabled Transition Assistance Pro- gram. Testimony was heard from Cynthia Bascetta, f Director, Health Education, Workforce, and Income COMMITTEE MEETINGS FOR FRIDAY, Security, GAO; the following officials of the Depart- JULY 19, 2002 ment of Defense: John M. Molino, Deputy Assistant Secretary, Military, Community and Family Policy; (Committee meetings are open unless otherwise indicated) John McLaurin, Deputy Assistant Secretary, Human Senate Resources, Department of the Army; Anita Blair, No meetings/hearings scheduled. Deputy Assistant Secretary, Personnel Programs, De- partment of the Navy; and Kelly Craven, Deputy House Assistant Secretary, Force Management Integration, Committee on Energy and Commerce, Subcommittee on Department of the Air Force; Rear Adm. Joyce Oversight and Investigations, hearing titled ‘‘A Review of Johnson, USCG, Director, Directorate of Health and DOE’s Accelerated Cleanup Program and State-Based Safety, U.S. Coast Guard, Department of Transpor- Compliance Agreements,’’ 9:30 a.m., 2123 Rayburn. July 18, 2002 CONGRESSIONAL RECORD — DAILY DIGEST D785

Committee on Financial Services, Subcommittee on Inter- Committee on Government Reform, Subcommittee on the national Monetary Policy and Trade, hearing on the ex- District of Columbia, hearing on Voting Representation pected authorization request for the U.S. Participation in in Congress, 12 p.m., 2154 Rayburn. the World Bank-International Development Association, Select Committee on Homeland Security, to mark up H.R. 9:30 a.m., 2128 Rayburn. 5005, Homeland Security Act of 2002, 9:30 a.m., 210 Cannon. D786 CONGRESSIONAL RECORD — DAILY DIGEST July 18, 2002

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9:30 a.m., Friday, July 19 12:30 p.m., Monday, July 22

Senate Chamber House Chamber Program for Friday: Senate will be in a period of morn- Program for Monday: To be announced. ing business until 11:30 a.m.

Extension of Remarks, as inserted in this issue

HOUSE Gutierrez, Luis V., Ill., E1301 Pitts, Joseph R., Pa., E1295 Hinchey, Maurice D., N.Y., E1296 Rahall, Nick J., II, W.Va., E1293, E1303 Bereuter, Doug, Nebr., E1291, E1294 Kelly, Sue W., N.Y., E1301 Royce, Edward R., Calif., E1297 Berman, Howard L., Calif., E1292 Kennedy, Patrick J., R.I., E1296 Ryun, Jim, Kans., E1294 Bishop, Sanford D., Jr., Ga., E1299 Lampson, Nick, Tex., E1301, E1302 Sandlin, Max, Tex., E1300 Brady, Kevin, Tex., E1294 Lee, Barbara, Calif., E1300 Schaffer, Bob, Colo., E1292 Castle, Michael N., Del., E1292 McInnis, Scott, Colo., E1291, E1292, E1293, E1294 Skelton, Ike, Mo., E1293 Conyers, John, Jr., Mich., E1298 Manzullo, Donald A., Ill., E1295 Solis, Hilda L., Calif., E1300 Dicks, Norman D., Wash., E1297, E1299 Miller, George, Calif., E1299, E1304 Stark, Fortney Pete, Calif., E1302 Doyle, Michael F., Pa., E1296 Mink, Patsy T., Hawaii, E1300 Sununu, John E., N.H., E1296 Gekas, George W., Pa., E1291 Myrick, Sue Wilkins, N.C., E1299 Waters, Maxine, Calif., E1301, E1303 Gilman, Benjamin A., N.Y., E1293 Oxley, Michael G., Ohio, E1295 Weller, Jerry, Ill., E1294

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