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, WEDNESDAY, JUNE 12, 2002 No. 77 House of Representatives The House met at 10 a.m. and was great sacrifice, just as spiritual free- Church in Stillwater, Oklahoma, my called to order by the Speaker pro tem- dom and new birth come from the hometown. He provides ministerial pore (Mr. SIMPSON). blood of Your Son shed at Calvary. In support to Oklahoma State Univer- f His Name we pray. Amen. sity’s personnel and athletic programs f and to most of my family. He is also a DESIGNATION OF THE SPEAKER board member of Marriage Partners, an PRO TEMPORE THE JOURNAL organization that strives to reduce the The SPEAKER pro tempore laid be- The SPEAKER pro tempore. The divorce rate and strengthen marriages fore the House the following commu- Chair has examined the Journal of the and families in Oklahoma. nication from the Speaker: last day’s proceedings and announces Pastor Williams has served as Chap- to the House his approval thereof. WASHINGTON, DC, lain of the Week at the Oklahoma June 12, 2002. Pursuant to clause 1, rule I, the Jour- State House of Representatives and has I hereby appoint the Honorable MICHAEL K. nal stands approved. been a featured writer for national pub- SIMPSON to act as Speaker pro tempore on f lications. He has been a keynote speak- this day. er and seminar leader for many Chris- PLEDGE OF ALLEGIANCE J. DENNIS HASTERT, tian colleges and conventions, both na- Speaker of the House of Representatives. The SPEAKER pro tempore. Will the tionally and throughout the great f gentleman from Oklahoma (Mr. WAT- State of Oklahoma. He has worked KINS) come forward and lead the House across denominational lines to promote PRAYER in the Pledge of Allegiance. unity amidst diversity. The Reverend Kent Williams, Mr. WATKINS of Oklahoma led the Pastor Williams and his wife, Kay, Sunnybrook Christian Church, Still- Pledge of Allegiance as follows: have two sons, Gabe and Joel. Also water, Oklahoma, offered the following I pledge allegiance to the Flag of the with them on the trip to Washington prayer: United States of America, and to the Repub- has been their nephew, Clinton Sovereign God, I thank You for this lic for which it stands, one nation under God, Renken. great country, for President Bush and indivisible, with liberty and justice for all. Pastor Williams is deeply committed for these Members of Congress who are f to the service of his community, his dedicated public servants divinely ap- church, his family and the Lord. Today INTRODUCING PASTOR KENT pointed by You. Lord, build a spiritual I join with my colleagues in thanking WILLIAMS, GUEST CHAPLAIN wall of protection around all of our Pastor Williams for honoring us with leaders, our armed forces, and our citi- (Mr. WATKINS of Oklahoma asked his presence, his message, and his pray- zens. ‘‘Contend with those who contend and was given permission to address ers. with us.’’ You are faithful from ever- the House for 1 minute and to revise f lasting to everlasting. and extend his remarks.) We seek Your guidance and wisdom Mr. WATKINS of Oklahoma. Mr. ANNOUNCEMENT BY THE SPEAKER as we strive to discern and accomplish Speaker, I have the great pleasure of PRO TEMPORE Your plan and purpose. We commit welcoming our guest chaplain in the The SPEAKER pro tempore. The ourselves to upholding Your absolute House of Representatives today, Pastor Chair desires to make an announce- law, standards and precepts. Give us Kent Williams. I thank him for the ment. strength and courage, both in policy most appropriate and inspiring prayer After consultation with the majority and personal example, to be people of he has offered up on our behalf as we and minority leaders, and with their character and integrity, and may ‘‘In seek divine guidance for the task that consent and approval, the Chair an- God We Trust’’ be expressed in our lies before us today. nounces that during the joint meeting lives, not just stamped on our coins. Pastor Williams graduated with a de- to hear an address by the Honorable Continue to work in us and through us, gree in theology from Ozark Christian John Howard, Prime Minister of Aus- that we would be people with pure College in Joplin, Missouri. For 25 tralia, only the doors immediately op- hearts and clean hands. years he has been serving as pastor in posite the Speaker and those on his As Abraham Lincoln anticipated, churches in Missouri, Oregon, Texas, right and left will be open. ‘‘that this Nation under God shall have and Oklahoma. No one will be allowed on the floor of a new birth of freedom,’’ may we ac- Pastor Williams now serves as senior the House who does not have the privi- knowledge that freedom comes from pastor at Sunnybrook Christian lege of the floor of the House.

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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. H3456 CONGRESSIONAL RECORD — HOUSE June 12, 2002 Due to the large attendance that is The Senator from Florida (Mr. NEL- My friends, let me say to you today anticipated, the Chair feels the rule re- SON); that America has no better friend any- garding the privilege of the floor must The Senator from Mississippi (Mr. where in the world than Australia. be strictly adhered to. LOTT); Australians and Americans enjoy each Children of Members will not be per- The Senator from Oklahoma (Mr. other’s company. We share a love of mitted on the floor, and the coopera- NICKLES); sport, and in some of them we are tion of all Members is requested. The Senator from Texas (Mrs. fierce competitors, and we even from The practice of reserving seats prior HUTCHISON); time to time share the Academy to the joint meeting by placard will The Senator from Idaho (Mr. CRAIG); Awards. not be allowed. Members may reserve The Senator from Indiana (Mr. When I last came to this great Cham- their seats by physical presence only LUGAR); ber of democracy on the 12th of Sep- following the security sweep of the The Assistant to the Sergeant at tember last year, the smoke still hung Chamber. Arms announced the Acting Dean of in the air over New York and Wash- f the Diplomatic Corps, the Honorable ington. Brave and courageous police- Jesse Bibiano Marehalau, Ambassador men and firemen, with no regard for RECESS of Micronesia. their own safety, searched in the hope The SPEAKER pro tempore. Pursu- The Acting Dean of the Diplomatic of finding survivors. The scale of loss ant to the order of the House of Corps entered the Hall of the House of and destruction was yet to be fully cal- Wednesday, June 5, 2002, and clause 12 Representatives and took the seat re- culated. In seeking justice and not re- of rule I, the Chair declares the House served for him. venge, in choosing calm consideration in recess subject to the call of the The Assistant to the Sergeant at over blind fury, in turning to friends Chair. Arms announced the Cabinet of the before turning on enemies, the United Accordingly (at 10 o’clock and 6 min- President of the United States. States of recent months has led a great utes a.m.), the House stood in recess The Members of the Cabinet of the reaffirmation of all of those great val- subject to the call of the Chair. President of the United States entered ues and principles on which both of our During the recess, beginning at about the Hall of the House of Representa- societies are based. 10:50 a.m., the following proceedings tives and took the seats reserved for America fought back magnificently, were had: them in front of the Speaker’s rostrum. and in the process has won the admira- At 11 o’clock and 2 minutes a.m., the tion of the world. You demonstrated to b 1050 Assistant to the Sergeant at Arms an- the world that where fundamental free- JOINT MEETING OF THE HOUSE nounced the Prime Minister of Aus- doms flourish, evil men can do their AND SENATE TO HEAR AN ADDRESS tralia, the Honorable John Howard. worst, cause death and devastation, BY THE HONORABLE JOHN HOW- The Prime Minister of Australia, es- but in the end, they will never win. ARD, PRIME MINISTER OF AUS- corted by the committee of Senators In his inaugural address, George TRALIA and Representatives, entered the Hall Washington spoke of the destiny of the The Speaker of the House presided. of the House of Representatives, and American people to preserve the sacred The Assistant to the Sergeant at stood at the Clerk’s desk. fire of liberty. That promise has been Arms, Richard Wilson, announced the [Applause, the Members rising.] kept for more than two centuries, but Vice President and Members of the The SPEAKER. Members of the Con- never more so than since the appalling U.S. Senate who entered the Hall of the gress, it is my great privilege and I events of September last year. Through House of Representatives, the Vice deem it a high honor and a personal these times, Australians have shared President taking the chair at the right pleasure to present to you the Honor- your shock and anger, and have been of the Speaker, and the Members of the able John Howard, Prime Minister of partners in your resolve. We have Senate the seats reserved for them. Australia. taken our place beside you in the fight The SPEAKER. The Chair appoints [Applause, the Members rising.] against terrorism because what hap- pened last year in the United States as members of the committee on the f part of the House to escort the Honor- was as much an attack upon our nation able John Howard, the Prime Minister ADDRESS BY THE HONORABLE and the values that we hold dear as it of Australia, into the Chamber: JOHN HOWARD, PRIME MINISTER was upon yours. The gentleman from Texas (Mr. OF AUSTRALIA And as we meet, Australian and American troops are fighting side by ARMEY); Prime Minister HOWARD. Mr. The gentleman from Oklahoma (Mr. Speaker, Mr. President of the Senate, side in Afghanistan. It is our constant prayer that they all return safely home WATTS); distinguished Members of the House of The gentleman from California (Mr. Representatives and the Senate of the to their loved ones. In these past months, President Bush COX); Congress of the United States, may I has displayed the tenacity, the The gentleman from Illinois (Mr. say how very touched I am by the strength, and the depth of character of HYDE); warmth and generosity of your wel- a very great leader. And he is also ap- The gentleman from Nebraska (Mr. come. I appreciate very deeply the plying those great qualities to the ten- BEREUTER); honor that you have extended to me sions in the Indian subcontinent be- The gentleman from Missouri (Mr. today, but more importantly, the tween India and Pakistan, and in the GEPHARDT); honor you have extended to my coun- intractable situation in the Middle The gentlewoman from California try, Australia. East. (Ms. PELOSI); I, on behalf of the 90 million freedom- It is a special privilege for me to re- The gentleman from Texas (Mr. loving Australians, convey to you their turn to this historic place to address FROST); deep affection and warm greetings and the representatives of a great Nation of The gentleman from California (Mr. their sense of solidarity and friendship. whose people we hold in such high re- LANTOS); The bonds between Americans and gard, and for whom we feel great The gentleman from American Australians are as strong as they are warmth and affection toward. Samoa (Mr. FALEOMAVAEGA). genuine; and that is, of course, because Like you, Australia enters the new The VICE PRESIDENT. The Presi- we share so many values in common: A century strong and prosperous. Over dent of the Senate, at the direction of belief that the individual is more im- the past decade, the productivity and that body, appoints the following Sen- portant than the state; a belief that growth of our economy has been ahead ators as a committee on the part of the strong families are a nation’s greatest of most other developed nations. Senate to escort the Honorable John resource; a belief that competitive cap- Our pioneer past, so similar to your Howard, the Prime Minister of Aus- italism is the real key to national own, has produced a spirit that can tralia, into the House Chamber: wealth; and a belief that decency and overcome adversity and pursue great The Senator from South Dakota (Mr. hard work define a person’s worth, not dreams; where pursued, a society of op- DASCHLE); class or race or social background. portunity, fairness and hope, leaving as June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3457 you do, the divisions and prejudices of individual man and woman. Like you, I The challenge is to achieve a com- the old world far behind. Like your see family life at the heart of a na- prehensive Doha trade round. That will own, our culture continues to be im- tion’s existence. Not only does the fam- require close cooperation and collabo- measurably enriched by immigration ily nurture and educate our children ration between Australia and the from the four corners of the world. We but it provides emotional anchorage United States within the WTO. Amer- believe, as you do, that nations are for all of us as we travel through life. ican leadership will be crucial. May I strengthened and not weakened, broad- The strength of the family, of course, respectfully express the hope that Con- ened and not diminished, by a variety goes beyond the spiritual and the emo- gress gives the President full authority of views and an atmosphere of open de- tional. United, caring families are the to negotiate new trade agreements. bate. best social welfare system mankind has At the same time, we in America and Most of all, we value loyalty given ever devised. Australia have an historic opportunity and loyalty gained. The concept of Both of our societies draw great to give even greater momentum to our mateship runs deeply through the Aus- strength from the spirit of vol- bilateral economic relationship. That tralian character. We cherish, and unteerism. The huge, exuberant suc- is why Australia has proposed the ne- where necessary, we will fight to de- cess of the Sydney Olympic Games in gotiation of a free trade agreement be- fend the liberties we hold dear. 2000 owed a lot to the warm and infec- tween our two countries. A comprehen- Australian and American forces tious dedication of tens of thousands of sive free trade agreement by boosting fought together for the first time in volunteers. They gave the games a trade and investment between us would the Battle of Hamel in France in World sense of exhilaration and joy which add a stronger economic dimension to War I. The date of the attack, the 4th contributed enormously to their suc- the very deep bilateral ties that are al- of July, 1918, was deliberately chosen cess. ready there. by the Australian commander, General Edmund Burke once called voluntary Turning for a moment to the stra- John Monash, to honor your country- groups society’s ‘‘small platoons.’’ tegic challenges of our own region, let men. One of the Australian units held They are, in fact, the living tissue be- me say that Australia welcomes and in reserve for that attack was the tween the government and the people. encourages full and active engagement Third Pioneer Battalion, and it had a I think we would all agree that polit- by the United States in the Asia Pa- young signalman called Lyle Howard. ical life in both of our nations is under- cific. It is immensely important not He was my father. going great change. I find, as I am sure only to the nations of that region, but From that moment to this, we have you do, that politics now is a lot less also to the interests of the United been able to count on each other when tribal than it used to be. Lifelong alle- States. There is no region in the world it has mattered most; and let me say, giances are looser and less frequent. more dynamic and changing more rap- and I know I speak on behalf of all of Modern society has given young people idly than the Asian Pacific region. my fellow Australians, in saying that infinitely more options than was the For ourselves, Australia is proud of we will never forget the crucial help case a generation ago. Governments the leadership role that we were able to that Americans extended to us during must be decisive but also modest. play in East Timor. To share the great the darkest days of World War II. With- Grand gestures without practical re- independence celebration of that tiny out that help, our history and our soci- sults help no one. People want out- country of fewer than a million people ety would have been totally different. comes, not political fireworks and con- only a few weeks ago and to savor for Successive generations of Aus- stant battles. And above all, they want a moment their sense of hope and ex- tralians and Americans have fought space from governments to get on with hilaration was a very moving experi- side by side in every major conflict of their own lives. ence. We stand ready to work in part- the 20th century, in the jungles of New I have spoken much of our common nership with America to advance the Guinea, in Korea, in Vietnam, in the values, our shared history, and our cause of freedom, particularly in our Gulf, in the skies and oceans around deep respect and affection for each shared Pacific region. the globe, and now in another new cen- other as peoples. Let me say that we Mr. Speaker, Mr. President of the tury among the rock-strewn mountains also share a common interest in Senate, ladies and gentlemen of the of Afghanistan. spreading and better understanding the Congress, you have, as I said at the be- The ANZUS Treaty of 1951 pledged benefits of globalization. The balance ginning, paid a great honor and com- each country to come to the aid of the sheet of globalization is overwhelm- pliment to me but more particularly to other if it were under attack. ingly favorable to mankind. We must, my nation, Australia, in inviting me to And so it was that in a United States however, better understand and explain address you today. Our relationship Air Force plane made available to me its advantages to all of our citizens. has been long. The ties between us are for my return to Australia on the 12th Trade reform and liberalization have strong. The bonds on a people-to-people of September last year to enable me to delivered benefits to people in many basis between Americans and Aus- return to Australia and high above the countries, and I believe they can de- tralians are deep and rich. This rela- Pacific Ocean, I informed the United liver much more. tionship is nourished by many things. States Ambassador to Australia, Tom I understand that the demands of It is nourished by a shared history, it is Schieffer, that it was our intention for local constituencies and international nourished by a common commitment the first time in the 50-year history of responsibilities must be finely bal- to democratic ideals and values, and it the ANZUS Treaty to invoke that trea- anced. As a true friend, let me say can- is nourished by our deep and resolute ty in response to the attack upon didly that Australia was intensely dis- commitment to the role of the indi- America. appointed with the passage of the re- vidual in society and the place of the America was under attack. Australia cent farm bill. It will damage Aus- family in the national framework of was immediately there to help. tralia’s farmers. They are efficient pro- both of our nations. My friends, both of our societies are ducers with very little government I express to you on behalf of my fel- built on a deep respect for the worth of support. I know that the farm and ex- low countrymen and women our sense each individual. port subsidies of, for example, the Eu- of commitment to the constant strug- ‘‘The worth of a state, in the long ropean Union are much greater than gle to preserve democracy and freedom run,’’ wrote John Stuart Mill in 1859, those of the United States. Indeed, around the world. I say it with great ‘‘is the worth of the individuals com- OECD agricultural subsidies are two- warmth, because there is nothing false posing it . . . a state which dwarfs its thirds of Africa’s total gross domestic or phony or lacking in spontaneity in men in order that they may be more product. The cost of these subsidies is the relationship between our two peo- docile instruments in its hands even at least three times all of the Overseas ples. It is not contrived. It is genuine. for beneficial purposes, will find with Development Aid to developing coun- We like each other, and we do not mind small men no great thing can really be tries. This only serves to illustrate the saying it. Can I say to you today that accomplished.’’ urgent need for global reform of agri- as we move forward into this new cen- America and Australia are societies culture within the World Trade Organi- tury, we do so in the knowledge that no which extol the precious worth of each zation framework. matter what will happen, and there H3458 CONGRESSIONAL RECORD — HOUSE June 12, 2002 will be many paths of difficulty requir- eliminating the multibillion-dollar tax not they should remain married over ing courage and grit and sacrifice, we on the sanctity of marriage. If we fail paying a tax. will travel through the century in the to act, married couples in my home f constant company of a true and great State of Montana will be hit with more friend. than $150 million in increased taxes TRADE ADJUSTMENT ASSISTANCE May God bless the peoples of America every year. (Ms. ESHOO asked and was given per- and Australia. Mr. Speaker, the words ‘‘I do’’ that mission to address the House for 1 [Applause, Members rising.] are exchanged between married couples minute and to revise and extend her re- At 11:00 o’clock and 30 minutes a.m., should be a pledge to build a strong marks.) the Prime Minister of Australia, ac- family and achieve their own slice of Ms. ESHOO. Mr. Speaker, I rise today companied by the committee of escort, the American pie. It should not be a in support of the Trade Adjustment As- retired from the Hall of the House of forced commitment to paying higher sistant Compromise based on legisla- Representatives. taxes to the Federal Government. tion that the gentleman from Texas The Assistant to the Sergeant at I urge my colleagues to send a clear (Mr. BENTSEN) and I introduced in the Arms escorted the invited guests from message that this Congress stands with House and which passed the Senate last the Chamber in the following order: the American family by voting for the month. This compromise represents The Members of the President’s Cabi- permanent repeal of the marriage pen- the first major overhaul of this 40-year- net. alty. old program. For the first time in our The Acting Dean of the Diplomatic f history, a health care benefit is pro- Corps. vided for unemployed workers as a re- PLAN TO PRIVATIZE AIR TRAFFIC sult of trade. It increases eligibility, it f CONTROL doubles funding for worker training, it JOINT MEETING DISSOLVED (Mr. BERRY asked and was given harmonizes the NAFTA TAA, it ex- The SPEAKER. The purpose of the permission to address the House for 1 pands income support from 52 weeks to joint meeting having been completed, minute and to revise and extend his re- 78 weeks, and it allows for shifts in pro- the Chair declares the joint meeting of marks.) duction to any country, not just Can- the two Houses now dissolved. Mr. BERRY. Mr. Speaker, on June 4 ada or Mexico. of this year, the administration amend- Accordingly, at 11 o’clock and 31 b 1500 minutes a.m., the joint meeting of the ed executive order 13180 dated 12/7/2000 I want to tell a quick story that un- two Houses was dissolved. by amending the language that deemed derscores this point. Last month 3,300 The Members of the Senate retired to air traffic control as an inherently gov- electronic workers who were laid off their Chamber. ernmental function. This is the first step toward privatization of air traffic from JDS Uniphase in my region were f control, and it is a slap in the face to denied TAA benefits because their fac- ANNOUNCEMENT BY THE SPEAKER our Nation’s wonderful air traffic con- tory moved to China. At the same time trollers. workers in Connecticut were eligible The SPEAKER. The House will con- On 9/11 our air traffic controllers for TAA because their plant moved to tinue in recess subject to the call of safely landed 5,000 planes in 2 hours Canada, and that is because workers the Chair. without an error. They did an incred- only receive TAA benefits if their plant f ible job. What else must be done to moves to Canada or Mexico. Another problem with the program is b 1456 prove that the current system that we have that is in place works well? that it covers workers who make cars AFTER RECESS Mr. Speaker, I do not want my fam- but not those who make the parts that The recess having expired, the House ily or other Americans to board com- go into them. We need a 21st century was called to order by the Speaker pro mercial airliners that the traffic in the policy on the duality of trade. We should have fair trade, and fair treat- tempore (Mr. SIMPSON) at 2 o’clock and sky is controlled by the lowest bidder. 56 minutes p.m. I think we have tried that with airline ment should be the partners. security and have clearly demonstrated I urge all House Members to support f without a shadow of a doubt that it this in the conference. PRINTING OF PROCEEDINGS HAD does not work. f I rise today in opposition to this plan DURING THE RECESS RESTRUCTURE AND EXPAND to privatize air traffic control. Mr. REHBERG. Mr. Speaker, I ask TRADE ADJUSTMENT ASSIST- unanimous consent that the pro- f ANCE PROGRAM ceedings had during the recess be print- ELIMINATION OF MARRIAGE (Mr. BENTSEN asked and was given ed in the RECORD. PENALTY TAX permission to address the House for 1 The SPEAKER pro tempore. Is there (Mr. GIBBONS asked and was given minute and to revise and extend his re- objection to the request of the gen- permission to address the House for 1 marks.) tleman from Montana? minute and to revise and extend his re- Mr. BENTSEN. Mr. Speaker, I rise There was no objection. marks.) today in support of H.R. 3670, the bill f Mr. GIBBONS. Mr. Speaker, this introduced by the gentlewoman from week we are going to bring up the California (Ms. ESHOO) and myself to ANNOUNCEMENT BY THE SPEAKER elimination of the sunset clause for the restructure and expand the Trade Ad- PRO TEMPORE marriage penalty tax. justment Assistance Program. The The SPEAKER pro tempore. The Mr. Speaker, 120,000 individuals in other body has already adopted this Chair will entertain 10 one-minutes per my State, 60,000 married couples, are legislation as part of the Trade Pro- side. affected by this tax. If we allow this motion Authority, and the House will f tax to come back, to rise from the dead soon vote to go to conference with the one more time in the year 2010, we are other body to work out a trade pro- MARRIAGE PENALTY going to do severe injustice to those motion authority bill. As one who sup- (Mr. REHBERG asked and was given 60,000 couples. Couples are going to end ported TPA, who supported Fast permission to address the House for 1 up paying $1,300, $1,400 more in tax sim- Track, I believe it is imperative on the minute and to revise and extend his re- ply because they are married. This is part of the House that we adopt the marks.) an unjust and unfair clause, and we Senate’s version of Trade Adjustment Mr. REHBERG. Mr. Speaker, I rise must eliminate the sunset clause so Assistance. If we are going to have a today to urge my colleagues to stand that this tax remains buried once and real trade package for this country, it in strong support of the American fam- for all. We cannot afford to have our has to benefit not just those who win ily by once and for all permanently married couples deciding whether or from trade but those who lose from June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3459 trade as well, including the workers sponsibility of the Government. Simply the conference report funding for any who lose their job through no fault of put, air traffic controllers perform an item that is earmarked for a specific their own. We should have a full pack- inherently governmental function for project or individual Member of Con- age which includes a revamp of the our Nation. gress. That is to ensure that this sup- Trade Adjustment Assistance Program Mr. Speaker, proponents of plemental remains focused on the job for the first time since 1962 when it was privatizing air traffic controllers like before us, fighting terrorism, and that created by the Kennedy Administra- to cite three countries they consider to those engaged in that war on behalf of tion. So I hope that the leadership of be successful examples of privatization: the American people have the re- the House, the Republican leadership, Australia, Great Britain, and Canada. sources that they need to conduct that will have the wisdom if they really Unless we consider a walkout, a pend- war. want to pass a TPA bill and proceed to ing bankruptcy and a pending labor I find that ordinary people are some- the Senate for a real Trade Adjustment strike to be examples of success, I what amazed when they find that, de- Assistance reform package. would respectfully disagree. Let us face spite all the rhetoric about a war on terrorism, we often continue to decline f the fact that privatization of air traffic control does not work. to provide the resources needed to ac- PREVENTING CHILD ABDUCTIONS On September 11 of last year, air tually conduct that effort. One exam- (Mr. LAMPSON asked and was given traffic controllers proved their worth ple is the fact that the Pentagon called permission to address the House for 1 as inherently governmental employees. up 80,000 Guard and Reservists fol- minute and to revise and extend his re- Our air traffic control system is the lowing September 11. We need those Reserves because our marks.) envy of the world. Let us keep it that regular force is overwhelmed with all Mr. LAMPSON. Mr. Speaker, I have way. of the requirements being placed on been getting up every day for the last f several months and talking about Lud- them. If you do not believe me, Sec- wig Koons who has been held in Italy APPOINTMENT OF CONFEREES ON retary Rumsfeld has made that state- illegally after being taken away from H.R. 4775, 2002 SUPPLEMENTAL ment. We do not have enough mechan- the United States of America, and by APPROPRIATIONS ACT FOR FUR- ics to keep all of our planes in the air, now we all know the name Elizabeth THER RECOVERY FROM AND RE- we do not have enough MPs to protect Smart, the young girl who was ab- SPONSE TO TERRORIST ATTACKS our bases and guard prisoners. But, re- markably, when the Pentagon told the ducted from her bedroom in Salt Lake ON THE UNITED STATES White House budget office that it City, Utah. In light of the tragedy of Mr. YOUNG of Florida. Mr. Speaker, would cost $5.8 billion more than was her disappearance and on behalf of the I ask unanimous consent to take from contained in the regular fiscal 2003 ap- Missing and Exploited Children’s Cau- the Speaker’s table the bill (H.R. 4775) propriation bill to pay the cost of those cus here in Congress, I would ask and making supplemental appropriations Guards and Reservists called up to ac- send our prayers to Elizabeth and to for further recovery from and response tive duty, the White House budget of- her family, but I would also like to re- to terrorist attacks on the United fice told them they could only have $4.1 mind parents all across this country to States for the fiscal year ending Sep- billion. As a result, many of those re- talk to your kids about their personal tember 30, 2002, and for other purposes, serves will have to be sent home early, with a Senate amendment thereto, dis- safety, talk to them about the ‘‘Know unless we appropriate a considerable agree to the Senate amendment, and the Rules’’ educational program put amount above the White House re- out by the National Center for Missing agree to the conference asked by the quest. In my view, this is ludicrous. It and Exploited Children. And I would Senate. is one of those situations that con- The SPEAKER pro tempore (Mr. urge every parent to log on to tinues because it is so outrageous that www.missingkids.com and learn what SIMPSON). Is there objection to the re- nobody really believes it is going on. they can do to protect and educate quest of the gentleman from Florida? The truth is that some of the same their children. There was no objection. people at the other end of the avenue Nearly 2,000 children are reported MOTION TO INSTRUCT OFFERED BY MR. OBEY who give lectures about the war on ter- missing every day in the United States Mr. OBEY. Mr. Speaker, I offer a mo- rorism, particularly in the OMB, are of America, and we all must be pre- tion to instruct conferees. particularly stingy when it comes to pared as parents and grandparents to The Clerk read as follows: providing cash that is actually needed deal with the tragedy, should it occur. Mr. OBEY moves that the managers on the to conduct the effort. As a result, the That means having updated quality part of the House at the conference on the resources needed by those who are ac- disagreeing votes of the two Houses on the photographs and knowing our chil- tually engaged in that effort are not dren’s height and weight. We should be Senate amendment to H.R. 4775 be instructed to insist, for each item directly related to getting there and will not get there un- aware that looking at pictures of miss- the war on terrorism or homeland security, less Congress acts to reverse the re- ing kids brings them home and that we on the higher dollar amount in either the quest. commit ourselves to looking at the House bill or the Senate amendment and to I would give the House another exam- photos we get in the mail or we see in disagree to any item that appropriates addi- ple. We have heard a lot of talk in the a grocery store. If we all do our part, tional funds earmarked for a specific project last several days about a dirty bomb. together we can prevent abductions not related to the war on terrorism or home- The President and Secretary of Energy, and bring children like Elizabeth and land security. a former Republican Senator, a man like Ludwig Koons home where they The SPEAKER pro tempore. The gen- named to that office by the President belong. tleman from Wisconsin (Mr. OBEY) will and confirmed by the Senate when it f be recognized for 30 minutes and the was still in Republican hands, a man gentleman from Florida (Mr. YOUNG) respected on both sides of the aisle, PRIVATIZATION OF U.S. AIR will be recognized for 30 minutes. Secretary Abraham, has asked that we TRAFFIC CONTROL, A BAD IDEA The Chair recognizes the gentleman spend some money in this bill to deny (Mr. HOLDEN asked and was given from Wisconsin (Mr. OBEY). terrorists access to the radioactive ma- permission to address the House for 1 Mr. OBEY. Mr. Speaker, I yield my- terials that could be used to build a minute and to revise and extend his re- self 9 minutes. dirty bomb. He asked that we clean up marks.) Mr. Speaker, the motion to instruct sites where we used to make nuclear Mr. HOLDEN. Mr. Speaker, recently conferees directs the House Members weapons and increase security at those the idea of privatizing the United serving on the conference to convert sites. He asked that we relocate low States air traffic control system has what has been all too often merely a level radioactive materials in a central been given a renewed life. Mr. Speaker, rhetorical assault on terrorism into a depository. He asked that we provide that would be a very bad idea. A com- real war. It requires that we go to the more security for the movement of nu- petent and reliable air traffic control higher dollar figure on any item di- clear weapons. system is vital to the safety of our fly- rectly related to the war on terrorism, This the White House Budget Direc- ing public, and public safety is a re- and it also directs that we delete from tor did not say no to, they said ‘‘hell, H3460 CONGRESSIONAL RECORD — HOUSE June 12, 2002 no.’’ I would like to insert in the DEPARTMENT OF ENERGY, would tell you that the $100 million the RECORD at this point a letter written Washington, DC. FBI is asking for to fix that system is by the Assistant Secretary of Energy Ms. ROBIN CLEVELAND, cheap compared to the cost of letting for the Budget to OMB in order to dem- Program Associate Director, National Security one of those creeps get through the Division, Office of Management and Budg- onstrate what I just said. et, Eisenhower Executive Office Building, system with a dirty bomb or biological THE SECRETARY OF ENERGY, Washington, DC. weapon or any one of the things that Washington, DC, March 14, 2002. DEAR MS. CLEVELAND: The Department of could bring havoc to our cities. Hon. MITCHELL DANIELS, Jr., Energy is now at a crucial juncture in exe- I would oppose spending any money Director, Office of Management and Budget, Ei- cuting our safeguards and security program. that is not needed, but it is ridiculous senhower Executive Office Building, Wash- The Department’s remaining safeguards and ington, DC. to go down the road we are traveling security budgets are not sufficient to imple- now, short-sheeting some of the agen- DEAR MR. DANIELS: This letter and accom- ment the security posture requirements that panying enclosure transmit the Department appropriately respond to the September 11th cies who need more money now, not of Energy’s proposal to request supplemental attacks. On March 14, the Secretary trans- next year or the year after, in order to funding to meet urgent and compelling re- mitted to Director Daniels supplemental get the job done. You do not kill ter- quirements for safeguards and security, funding proposals fro safeguards and secu- rorists just by moving boxes on an or- emergency response, and energy security and rity, emergency response, and energy secu- ganizational chart. You also need to assurance activities. rity. The Secretary’s transmittal letter de- back up whatever changes you make in The Department of Energy is entrusted scribed the underlying need to increase our reorganization with adequate re- with the mission of designing, developing, response capabilities for emergencies and sources. Those resources cost money, manufacturing, assembling, stockpiling, re- improve the security posture of Department furbishing, decommissioning, and most im- in order to adequately protect the public, and we ought to provide it. portantly protecting the Nation’s critical our workers, and the environment. We appre- Now, the differences between the nuclear complex. To meet the Department’s ciate your support for our $26.4 million sup- House and the Senate bills are not critical security mission, we are storing vast plemental request to increase emergency re- large, Mr. Speaker, at least not in rel- amounts of materials that remain highly sponse efforts, however, we are very dis- ative terms. They have included ear- volatile and subject to unthinkable con- appointed that we did not get your support marks for certain Members which we sequences if placed in the wrong hands. for supplemental security funding. did not do in the House bill and which These materials permeate the Departmental We are disconcerted that OMB refused our we should not do in the conference re- complex including sites under the pro- security supplemental request. I would have grammatic jurisdiction of the National Nu- much preferred to have heard this from you port. They have excluded several of the clear Security Administration, the Office of personally, and been given an opportunity to savings that are in our bill, and some Environmental Management, and the Office discuss, not to mention, appeal your deci- of those we are going to disagree with. of Science. sion. We were told by Energy Branch staff But, to me it is important to keep the The events of September 11 resulted in that the Department’s security supplemental Guard and Reserve funds and the other heightened security throughout the complex. proposals were not supported because the re- needed defense funds in this bill, and Our sites were directed to conduct vulner- vised Design Basis Threat, the document this motion would help to do that. ability assessments based on an evaluation that outlines the basis for physical security There are other small but important measures, has not been completed. This isn’t of potential consequences of the type of differences. The Senate is above the event that occurred on September 11. These a tenable position for you to take, in my security vulnerabilities were assessed on a view. We are not operating, and cannot oper- House by $5 million for U.S. Attorneys. site-by-site basis and immediate action was ate under Interim Implementing Guidance, I ordinarily would not be standing here taken to mitigate many of the concerns. As and you have not provided resources to en- asking for more money for U.S. Attor- a result, the Department issued Interim Im- able us to do so. neys, but my information is that we plementing Guidance to the Design Basis Given our current security funding and the are putting a real load on prosecutors Threat document that outlined the basis for physical security situation we face today, with all of the arrests and detentions initial physical security measures. In con- Mr. Joseph Mahaley, our Security Director, and I would like to meet with you to discuss that we have engaged in, and that that junction with this guidance, I directed the money is needed. Departmental Elements to reassess their se- our fiscal year 2002 and 2003 safeguards and curity requirements and associated costs security concerns. I can be contacted on (202) b 1515 586–4171 to arrange this discussion. with a view towards maintaining the highest They are below us on the U.S. Mar- level of security commensurate with the re- Sincerely, vised threat and response strategy. Although BRUCE M. CARNES, shals, and I know that the marshals the initial supplemental and funds appro- Director, Office of Management, also need the money. priated by Congress helped respond to the Budget and Evaluation/CFO. What this instruction says is take a most urgent near term security needs, the Mr. Speaker, we have much the same look at the needs and go forward with Department now is unable to meet the next situation with the FBI. They have had the conference report that recognizes round of critical security mission require- a huge problem with respect to their that we are, in fact, at war, and ought ments. computers. The gentleman from Flor- to be providing these higher levels. The funding request of $379.7 million iden- ida (Mr. YOUNG) and I have tried to do Mr. Speaker, last week, the White tified in the enclosure is a critical down pay- House released a document calling for ment to the safety and security of our Na- everything possible to solve that prob- tion and its people. Failure to support these lem, both last year and this. a new Department of Homeland Secu- urgent security requirements is a risk that The FBI is ages behind in both the rity. Perhaps the most compelling page would be unwise. overall architecture of their computer in that document was an organization I appreciate the time your staff has spent system and the security of that sys- chart showing how many different por- with us in discussions about the Depart- tem. As a result, they have failed to tions of the government were engaged ment’s security concerns and needs. How- convert massive amounts of informa- in the war on terror. I have a copy of ever, as you can see, we need your financial tion into a digital format so that it can that chart directly from the White support to continue addressing the critical be stored in a safe and remote location House; but I would point out that what security requirements that face the Depart- the White House neglected to provide ment and our Nation. Accordingly, if you and so that it can be shared with and your senior staff need a more detailed agents working in other parts of the to Congress, the press, or the American classified briefing of our requirements, country or shared with other agencies, people, was a copy of what the organi- threats, and strategies, please have your such as the CIA. The FBI has been ask- zation of the war on terror would look staff contact Mr. Joseph Mahaley, the De- ing for the resources to make that hap- like after that reorganization plan was partment’s Director of Security, at 202–586– pen. But, again, there apparently are adopted. What those charts will show is 3345. people running the Justice Department that most of the government activities My point of contact on the specifics of this or people in OMB who think it would related to homeland security will still funding supplemental request is Dr. Bruce M. be too expensive. be untouched. Carnes, the Director of the Office of Manage- In my view, you do not have to have Now, the debate on reorganization ment, Budget and Evaluation/Chief Finan- cial Officer, who can be reached on 202–586– a master’s in public policy from Har- can wait for another day. We certainly 4171. vard or any other school to know that have to have reorganization; and in Sincerely, that is just plain nuts. Almost any per- some areas I think we have to go fur- SPENCER ABRAHAM. son you would meet on the street ther than the administration has so far June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3461 proposed. But the point I am trying to think because of that expertise, he un- FBI. You name it, we talked to them make is that we can pass all of the re- derstands that if we were to pass this about what their emergency needs organizations in the world, and we will motion to instruct, we would take were, and we tried to meet them. In the still not deal with the problem, unless away much of the flexibility of the con- end, over the threat of a veto from the we adequately provide the financial re- ference committee to resolve many of White House, we were able to put al- sources necessary to demonstrate that the differences that exist between the most $4 billion in additional funds into we really mean business in closing the House and the Senate. the appropriation bill to fight ter- security gaps that now face this coun- The Senate bill is approximately $3 rorism. try on the homeland defense front, and billion higher than the House bill. It If we had listened to the OMB rather that is the purpose of this motion. It does contain some special projects that than our own instincts and rather than simply says again, and I repeat, it says were added in the other body which I listening to the agencies who were that in each instance we should adopt would like to see taken from the bill, charged with the responsibility for the higher of the two numbers between and I would like to have the oppor- fighting that war, if we had done that the Senate and the House in dealing tunity to negotiate some of those spe- instead of listening to those agencies, with gaps in our homeland defenses, cial projects out of the bill, because we would not have fixed the problem and it says that we should eliminate or from what I have seen of the bill so far, that the FBI had with its computer not include in the conference report there are numerous projects that were system. They had a problem under any dollar items that are meant for the added there that I do not think belong which more than 50 percent of their purpose of what are known as ‘‘Member in this bill. But we have to have the computers could not even send a pic- earmarks.’’ ability and the opportunity to nego- ture of a terrorist to another FBI com- I think that is a very plain expla- tiate with our counterparts in the puter around the country. We fixed nation, and I would ask for a ‘‘yes’’ other body to reach a conference agree- that, because we appropriated more vote on the motion. ment that we can bring back to both money than was requested. We added Mr. Speaker, I reserve the balance of Houses and pass quickly and get this to the security of our ports and our my time. bill to the President. borders by providing more money than Mr. YOUNG of Florida. Mr. Speaker, What is happening, Mr. Speaker, is was requested. So we did not have to I yield myself such time as I might that here we are in the middle of June. rely on traffic cones as deterrants on consume. If the services do not have these mon- Mr. Speaker, I want to thank the the U.S.-Canadian border in the un- ies replaced by July 1, their planning is guarded checkpoints on that border. gentleman from Wisconsin (Mr. OBEY) for offering this motion to instruct, for already set to stand down training op- We took care of that problem. In the supplemental which is now be- it gives us an opportunity to remind erations, to stand down sailing Navy fore us, this committee has tried to re- our colleagues what it is that we are ships, Navy vessels, to stand down doing here. We are dealing with an flight hours, training hours for pilots. I spond, even though the White House emergency supplemental appropria- do not want that to happen. So we need Budget Office did not. We tried to re- tions bill to provide for the defense of to expedite this, and we need to have spond fully to the request of the FBI the Nation and our homeland security. the ability to conduct negotiations that they be given additional funds in What we are talking about is repaying that are necessary to get this con- order to hire the translators that are to the military services the funds that ference completed, and then passed by necessary so that some of the informa- they have expended already on the war the House and the Senate, and then tion which is lying on the floor in some in Afghanistan. The services have used sent to the President for his approval. of our security agencies can actually considerable amounts of money that So I think the gentleman’s motion is be reviewed. The Immigration and Nat- normally would have been reserved for well intended, but I think it really ties uralization Service asked for money their fourth quarter training activities our hands behind our backs on the part for which they were at least partially and maintenance activities, quality-of- of those of us who will be part of this denied; they asked for money so that life activities. So in effect, we are pay- conference that will be leading the ne- they could institute a new system so ing back money that has already been gotiations with the other body. that they would actually know when spent because of the war in Afghani- Mr. Speaker, I reserve the balance of someone had overstayed their visa and stan. my time. had been asked to leave the country So our troops are involved, our intel- Mr. OBEY. Mr. Speaker, I yield my- and had declined to do so. The Immi- ligence community is involved. We are self 5 minutes. gration and Naturalization Service talking about paying for the safety and Mr. Speaker, I know my good friend wanted a system which would enable security of the United States, at home from Florida, the chairman of the com- them to track those people so that we and abroad. We are talking about re- mittee, and I do not think that he is can give them the thumb and get them covery in New York City; and we are any happier to have to fight this war out of the country. Our bill corrected talking about promoting U.S. foreign on terrorism, at least in terms of re- the oversight of OMB. policy to prevent future terrorist at- sources, with one hand tied behind his Air marshals. They still are not able tacks. In other words, we were a gov- back, any more than I am. And I think to communicate directly with the ernment mobilized after the terrible, it is fair at this point to state what the ground. The House bill makes an at- terrible attack on September 11 to pro- record has been in the past on this tempt to fix that. It also made an at- tect America, to protect Americans, issue. tempt to correct the problem created and to do everything humanly possible After the tragic events of September by the White House Budget Office de- to guarantee that those tragedies are 11, we were asked by the White House clining to approve the Pentagon re- not allowed to happen again. Budget Office to provide emergency quest for the funds needed to reimburse So I thank the gentleman from Wis- funding of an unlimited nature for an them fully for the activation of the consin (Mr. OBEY) for giving us the op- unlimited number of years, a blank Guard and Reserves to fill in until we portunity to discuss this. But I cannot check. Both the chairman and I said can train additional personnel. support his motion to instruct for a no, we were not going to write a blank So I fully admit that this motion very simple reason, and it is not that I check to anybody; and we sat down and would cost more money than the ad- disagree with some of the items that he immediately worked out a com- ministration has asked for. I make no has spoken of and that he would like to promise. Within 10 days, we had sent to apology for it. I think it is needed. I see done. I know the gentleman from the White House a bill that contained think the average citizen would too, Wisconsin and I both have visited the $40 billion in emergency resources to and I would urge Members to vote agencies that he has mentioned and we deal with those events. ‘‘yes’’ on the motion. both understand the needs that they We then proceeded to, as he said, Mr. Speaker, I reserve the balance of have to bring their technology into the visit security agencies all over town. my time. 21st century, for example. We spent almost 5 days gathering in- Mr. YOUNG of Florida. Mr. Speaker, But the gentleman from Wisconsin is formation from the security agencies: I yield 6 minutes to the gentleman an experienced expert negotiator; and I NSA, CIA, Centers for Disease Control, from Kentucky (Mr. ROGERS). H3462 CONGRESSIONAL RECORD — HOUSE June 12, 2002 Mr. ROGERS of Kentucky. Mr. thing at a modest cost. So I think I believe that such a motion would Speaker, I thank the chairman for there are a lot of items in the House- prompt almost a guaranteed, if you yielding me this time. passed bill that perhaps would be ne- will, veto, and would absolutely unnec- Mr. Speaker, let me speak briefly to gated if we were to have to go to the essarily restrict the ability of the con- the motion that is before us insofar as higher levels on the Senate bill. ferees in negotiating with the other it relates to parts of the supplemental Mr. OBEY. Mr. Speaker, will the gen- body. that are not the military branch part; tleman yield? This is probably the most important specifically, the Transportation Secu- Mr. ROGERS of Kentucky. I yield to bill that we will pass in this Congress, rity Administration, which our sub- the gentleman from Wisconsin. and in some respects, if we were to do committee deals with. The House- Mr. OBEY. Mr. Speaker, I thank the this, it may very well jeopardize the passed bill includes some $3.8 billion in gentleman for yielding. passage, or if not jeopardize, certainly the supplemental for the TSA. We have I would simply like to say that I bog down the process. yet to receive from the TSA the jus- completely agree with the remarks The President has already indicated tifications for those figures. Yet the made by the gentleman with respect to that he would veto the bill as being too Senate bill, if we go along with this the Transportation Security Agency. costly, and if we move forward with motion, if this motion passes and we There is no question that that agency this motion and go to all those higher have to go to the higher figure in the so far has been without a clue, and levels, then the bill would go well be- Senate bill, some $4.7 billion, we have they are out of control. I think the yond and above the funding level pro- no justifications for it. I cannot show gentleman has played an excellent role posed by the Senate. to my colleagues the documents that in trying to introduce them to reality. So for those reasons and the reasons say, this is what we actually have to Let me simply say that obviously that the gentleman from Kentucky have. that agency needs to be straightened (Mr. ROGERS) had covered, and the In the House-passed bill, we already out, but I am sure that he understands chairman, the gentleman from Florida gave more than was requested for sev- as well that eventually that agency is (Mr. YOUNG), I would urge Members to eral items. For example, we said, here going to have to receive more money vote no on the motion. is $20 million. Replace all of the than is in either bill, probably. Mr. YOUNG of Florida. Mr. Speaker, magnetometers in 429 airports in the I would be, for instance, very inter- I yield back the balance of my time. country, because the new state-of-the- ested in working out a proposal under Mr. OBEY. Mr. Speaker, I urge a yes art magnetometers will save the need which we would appropriate the money vote on the motion to instruct, and I for a lot of hand wands that are now that is needed to that agency, but hold yield back the balance of my time. The SPEAKER pro tempore (Mr. LIN- searching you as you go through. The it in reserve until they meet the stand- DER). Without objection, the previous new machines will do that work for us. ards that the gentleman has laid out, question is ordered on the motion to It will save many of us taking our because I think both of us want to deal instruct. shoes off as we go through the airport with the problem. We simply want to make sure we are not throwing money There was no objection. and having somebody, a federally paid The SPEAKER pro tempore. The at an agency that does not know what employee, carry your shoes to be question is on the motion to instruct searched. to do with it. Mr. ROGERS of Kentucky. Mr. offered by the gentleman from Wis- b 1530 Speaker, I appreciate the gentleman’s consin (Mr. OBEY). The question was taken; and the Those requests were not in the ad- thoughts, and he is correct. I appre- Speaker pro tempore announced that ministration request. Yet, we put it in ciate the gentleman’s comments. We the noes appeared to have it. there, because we think it will save are right now, as the gentleman knows, Mr. OBEY. Mr. Speaker, on that I de- money down the pike. But we have yet in the process of gearing up for the 2003 mand the yeas and nays. to receive the justifications for the appropriations bills. In fact, I just got The yeas and nays were ordered. monies that we included in the House- off the phone with the Secretary of The SPEAKER pro tempore. Pursu- passed version of the bill, which is sig- Transportation about this bill and the ant to clause 8 of rule XX, further pro- nificantly less for TSA than the Senate 2003 bills coming up. In fact, we hope to ceedings on this motion will be post- figures. mark up the 2003 bills in a few days, poned. If this motion should pass and we even, which will give us the chance to f have to go to the higher levels in the take a second look and see what is Senate bill, then who knows how many needed down the pike in 2003 without RECESS employees they are going to hire. At having to address that at this par- The SPEAKER pro tempore. Pursu- first they said, we need 33,000 people. A ticular moment in time. ant to clause 12 of rule I, the Chair de- few weeks later they said, no, it is So I appreciate the gentleman’s idea clares the House in recess until ap- going to be more like 60,000. By the about the need for more funds in home- proximately 4 p.m. time we had our hearing, they were up land security TSA next year, but I do Accordingly (at 3 o’clock and 40 min- to 73,000. not think we need it now. utes p.m.), the House stood in recess We said, whoa, let us stand back and I would hope that we would not pass until approximately 4 p.m. talk about this. So we put a level in this motion and tie the hands of the f our House-passed bill that they cannot gentlemen as they negotiate with the b 1602 exceed in terms of the numbers of em- other body. I appreciate the gentleman ployees of TSA during the remainder of bringing this motion up because it AFTER RECESS this fiscal year, 45,000 people, max. If gives us a chance to talk about the The recess having expired, the House we have to go to the higher Senate fig- issue, but I would hope that it would was called to order by the Speaker pro ure, then that personnel level is out not pass, because I do not want to tie tempore (Mr. LINDER) at 4 o’clock and the window. the chairman and the ranking mem- 2 minutes p.m. We think it is wise to have some dis- ber’s hands when they go to do battle f cipline, I say to the gentleman from with the other body. Wisconsin (Mr. OBEY), on that hiring Mr. YOUNG of Florida. Mr. Speaker, APPOINTMENT OF CONFEREES ON process during the remainder of this I yield 5 minutes to the distinguished H.R. 4, SECURING AMERICA’S FU- fiscal year that is covered by the sup- gentleman from Virginia (Mr. WOLF), TURE ENERGY ACT OF 2001 plemental. another subcommittee chairman on the Mr. BARTON of Texas. Mr. Speaker, In addition, we also put in the bill Committee on Appropriations. I ask unanimous consent to take from monies to allow the air marshals that Mr. WOLF. Mr. Speaker, I thank the the Speaker’s table the bill (H.R. 4) to are flying in the planes to be able to gentleman for yielding time to me. enhance energy conservation, research communicate independently to ground Mr. Speaker, I rise in opposition to and development and to provide for se- stations. That was not requested, and the motion to instruct conferees of the curity and diversity in the energy sup- yet we think it is a very important gentleman from Wisconsin (Mr. OBEY). ply for the American people, and for June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3463 other purposes, with a Senate amend- What about the senior citizens? What cost of any industrialized society in ment thereto, disagree to the Senate about the people who built this coun- the world. Because of that, the United amendment, and agree to the con- try? What about the greatest genera- States has the world’s largest gross na- ference asked by the Senate. tion? My colleagues do not have a sur- tional product. We have the world’s The SPEAKER pro tempore. Is there plus to do all those other things until largest standard of living for a large in- objection to the request of the gen- they are sure they are not taking it out dustrialized nation, and we have tre- tleman from Texas? of the Social Security and Medicare mendous opportunities, as we speak, There was no objection. trust fund. for our children and our grandchildren. MOTION TO INSTRUCT OFFERED BY MR. MARKEY Mr. Speaker, I reserve the balance of So if the gentleman from Massachu- Mr. MARKEY. Mr. Speaker, I offer a my time. setts (Mr. MARKEY) wants to say that motion to instruct conferees. PARLIAMENTARY INQUIRY as we go to work on a bipartisan basis The Clerk read as follows: Mr. BARTON of Texas. Mr. Speaker, for an energy policy for the present and Mr. MARKEY of Massachusetts moves that I want to ask a parliamentary inquiry. the future that we try to ensure that the managers on the part of the House at the We are now debating the motion to in- our House conferees work to insist that conference on the disagreeing votes of the struct conferees; is that correct? it is all done in a cost-effective fashion two Houses on the Senate amendment to the The SPEAKER pro tempore. That is and does not increase the national bill H.R. 4 be instructed, to the extent pos- sible within the scope of conference, to en- correct. debt, I for one am going to endorse sure that no provision of the bill will create Mr. BARTON of Texas. Mr. Speaker, that and I would assume that in the ab- a deficit in the non-social security portion of the gentleman from Massachusetts sence of Chairman TAUZIN, what I say the Federal budget during any year of the 10- (Mr. MARKEY) has 15 minutes and I goes on this floor unless the Speaker year budget estimating period unless there have 15 minutes? sends me an urgent message to run the are sufficient offsets under the bill so that The SPEAKER pro tempore. The gen- other way in which I would have to at- there is no net deficit during such 10-year pe- tleman from Massachusetts (Mr. MAR- tack my good friend from Massachu- riod. KEY) and the gentleman from Texas setts (Mr. MARKEY) and try to impugn The SPEAKER pro tempore. Pursu- (Mr. BARTON) each have 30 minutes. him, and I am not going to do that be- ant to clause 7(b) of rule XX, the gen- Mr. BARTON of Texas. Mr. Speaker, cause I know he is a decent fellow at tleman from Massachusetts (Mr. MAR- I am sure we can do this in less than an heart and has got the national interest. KEY) and the gentleman from Texas hour, I would hope. So with that, Mr. Speaker, I would (Mr. BARTON) each will control 30 min- Mr. Speaker, I yield myself such time simply say that we are going to start utes. as I may consume. this conference on a bipartisan fashion The Chair recognizes the gentleman I want to compliment my excellent and it is going to be my recommenda- from Massachusetts (Mr. MARKEY). and good friend from Massachusetts for tion at the appropriate time that we Mr. MARKEY. Mr. Speaker, I yield offering this motion to instruct con- accept this motion to instruct con- myself 2 minutes. ferees. It is obvious that some thought ferees. The motion which I am offering at has gone into it. I do not believe any- Mr. Speaker, I reserve the balance of this time on behalf of myself, the gen- body on our side of the aisle is for def- my time. tleman from Texas (Mr. STENHOLM) and icit financing or deficit spending, and Mr. MARKEY. Mr. Speaker, I yield 2 many other Members is to ensure that obviously we worked very hard, as the minutes to the gentlewoman from Cali- as the Members of the House now meet gentleman from Massachusetts would, fornia (Ms. ESHOO). with members of the Senate on the en- I think, acknowledge, to create a bipar- Ms. ESHOO. Mr. Speaker, I thank our ergy bill, that the Members from the tisan bill, H.R. 4, that we are sending ranking member for yielding me this House be instructed that none of the to conference. time. expenditures inside of the bill, as it is I think after we have a little debate Mr. Speaker, today we are going to finally produced, using the number to flush out what exactly it is this mo- conference on a bill that gives $34 bil- which is now in the House bill, $34 bil- tion to instruct conferees is attempt- lion in tax breaks to energy companies. lion worth of subsidies, should be paid ing to do, I am going to recommend Who is going to pay these costs? I for out of the Social Security or Medi- that we accept it. I do not see any rea- heard my wonderful friend, the gen- care trust fund. son we cannot agree, going to con- tleman from Texas (Mr. BARTON), my The bulk of the subsidies in the bill ference, to try to make sure the Amer- colleague on the Committee on Energy go to the oil, to the gas, to the coal, to ican people know that we want an en- and Commerce, make his statement, the nuclear industries. Some of it goes ergy policy for this country that is and with all due respect, we see this to the renewable industries. That is all based on a balanced approach both on not only differently but very dif- fine, but it should not come out of the the production side and on the con- ferently. Who is going to pay these Social Security and Medicare trust sumption side, and in no way are we costs? It will be the Social Security funds. trying to create through the guise of beneficiaries and future generations Senior citizens in our country have an energy policy a bill that would in- because that is where the cash is. worked too long and too hard in build- crease the public debt. In California, and according to offi- ing those trust funds so they can be Having said that, I think we need to cial estimates, electricity suppliers there to provide both for the income make a few points in order so that the stuck California with at least $8.9 bil- retirement guarantee and for the Members that are in their offices lion in illegal electricity charges be- health care guarantee. Otherwise we watching this debate on television and tween May of 2000 and June of last will see a cutback in the quality of other interested citizens understand year. These estimates came before we health care which senior citizens get that the energy bill that we are send- started to learn about some of the un- and a cutback in the amount of money ing to conference is an authorization ethical and possibly criminal trading they will have on a daily or weekly bill. It is not a spending bill. It is not activities of energy suppliers. Almost basis to pay for the necessities in their an appropriation bill. So in one sense it every day there are news reports about life. has nothing to do with deficit spending another company that has gamed the So this is the critical moment where or any other thing like that. It is try- market in one way or another, and not we begin to decide whether or not we ing to list a series of priorities for this only in California but in a host of are going to be tough on the squan- country in terms of an energy policy. States. For months my colleagues and dering of the trust funds. We have al- Historically, the United States of I have been asking for a House inquiry ready seen over the last several weeks America has adopted, as a general pol- into these matters. While others are in- votes that now will extend the estate icy, that our energy policy is going to vestigating these serious flaws, and the tax benefits to the wealthiest people in be based on free markets, where we at- Senate already is, the House has been our country. There are going to be ef- tract private capital. We employ that conspicuously absent. forts coming up later on this week to private capital in the most cost-effi- The House must have a meaningful do the same thing when it comes to the cient fashion and allow private entre- inquiry before we consider a conference marriage penalty deductions. preneurs to provide energy at the least report on sweeping energy legislation. H3464 CONGRESSIONAL RECORD — HOUSE June 12, 2002 We should not repeat what happened Mr. Speaker, vote for this motion. also hope that we will help to revitalize last year, holding one or two hearings Vote for our constituents’ interest and the nuclear industry which has no and then declaring the problem solved. not the special interests. I commend emissions. We should all support this motion to the gentleman from Massachusetts Mr. RAHALL. Mr. Speaker, if the ensure that we do not saddle seniors (Mr. MARKEY) for offering the motion gentleman would continue to yield, I and future generations with the costs to instruct, and urge bipartisan sup- hope the gentleman does not forget of these energy company tax breaks. port. about his lignite coal in his home State These tax breaks at $34 billion should Mr. BARTON of Texas. Mr. Speaker, of Texas. be subjected to the same budget treat- I yield myself 3 minutes. Mr. BARTON of Texas. Mr. Speaker, ment as everything else. If you want it, Mr. Speaker, I listened with great in- we have some lignite coal, and we are pay for it and declare how you are terest to the comments of the gen- proud of it; and some of it was in my going to do it. That is what is de- tleman from West Virginia (Mr. RA- old congressional district. manded of other parts of the Federal HALL) about the oil and gas industry, Mr. MARKEY. Mr. Speaker, I yield budget. That is what we should be and I know they are heartfelt. I would such time as he may consume to the doing with this. So I urge my col- point out that this bill has a sizable gentleman from Texas (Mr. STENHOLM). leagues to support this motion. It section on clean coal technology that Mr. STENHOLM. Mr. Speaker, I makes sense and it is fair. the gentleman is one of the co-authors thank the gentleman for yielding me Mr. MARKEY. Mr. Speaker, I yield 4 of. I know the gentleman thinks that is this time. Mr. Speaker, I want to begin by ac- minutes to the gentleman from West an excellent part of the bill, and it is knowledging that now more than ever, Virginia (Mr. RAHALL). an excellent part of the bill. America needs a balanced, forward- Mr. RAHALL. Mr. Speaker, I thank Just as there are things that help his looking energy policy that will infuse the distinguished gentleman from Mas- part of the country and his industry our energy sector with both efficiency sachusetts (Mr. MARKEY), our friend, and his people, some of us think that and competition, formulated to protect for yielding time to me. some of the other parts of the bill that America against emergencies in the en- I do rise in support of this motion. might have some impact on deep water Certainly, Mr. Speaker, it is time to ergy market. This bill does that. drilling and keeping marginal wells I commend the gentleman from enact a new national energy policy for and stripper wells in, we do not see the 21st century, but not, not, at the Texas (Mr. BARTON). I appreciate the those as efforts to help an industry so spirit with which he has accepted this price of dipping into Social Security much as we see those as efforts to keep and Medicare to finance tax breaks for amendment to instruct. This amend- the working man working and to keep ment is not aimed at the committee. major oil companies. And that is ex- energy prices at stable levels. actly what the Republican-sponsored This amendment is aimed at the lead- Mr. Speaker, I understand that there ership of this House which continues to House energy bill would do through its can be differences of opinion, and I lavish tax and royalty relief provisions borrow on our Social Security trust want the gentleman to know that we funds in order to pay for those things for large oil companies. are going to accept this motion to in- This is not just political rhetoric. Ac- that we need. This is a good energy struct and go to conference in a bipar- cording to the nonpartisan Congres- bill. I commend the gentleman from tisan way. As some of the issues that sional Research Service, the House Massachusetts (Mr. MARKEY) for his version will provide $35 billion in tax the gentleman raised come up, Mem- participation in this, and I see the gen- breaks. There is no offset provided and, bers will listen; and as the gentleman tleman from Louisiana (Mr. TAUZIN) is of course, there are no budget surpluses is also a conferee, I am sure the gen- here. They have worked very well to to pay for it. Let me point out that one tleman will listen, and we will report put together a bill which has many provision in the House bill would let back a bill that the American people good features. companies that want to drill for oil and will find good for the country. We no longer can rely on the same gas in the Federal waters in the Gulf of Mr. RAHALL. Mr. Speaker, will the old policy, and I am pleased to see that Mexico forego paying royalties to the gentleman yield? we are on the verge of having a na- Mr. BARTON of Texas. I yield to the American people. Truly a royalty holi- tional energy policy that will achieve gentleman from West Virginia. day. many of these goals. There are many Under the House bill, a company Mr. RAHALL. Mr. Speaker, I thank provisions in H.R. 4, as well as in the drilling in Federal waters of between the gentleman for yielding. legislation passed by the Senate, that I I understand the bipartisan fashion 400 and 800 meters deep can receive, for have been a long-time supporter of, in- in which he speaks. The clean coal lan- free, 5 million barrels of oil or gas cluding access to capital for domestic guage in the bill, while I am not de- equivalent. The owners of these re- oil and natural gas production; in- tracting from the use of clean coal sources, the American people, guess creased research in alternative fuels technology, I do not cosponsor this what they get? Zero. Zero. Zilch. such as nuclear energy; advanced clean particular provision. It happened to coal technology; a sound commitment b 1615 come out of the Committee on Energy to renewable energy; and improved en- It gets even sweeter. Nine million and Commerce, not the Committee on ergy efficiency and environmental barrels of oil or gas equivalent for Resources. standards. drilling in waters between 800 to 1,600 I might also say to the gentleman, Yet when the House considered H.R. meters for free. If they drill deeper, that the coal that happens to come 4, I was disappointed that the tax in- they get a whopping 12 million barrels from my particular region of southern centives, again that I have supported of oil or gas equivalent for free. West Virginia is already clean coal. for many years, were not considered Oil production in the Gulf of Mexico Clean coal technologies are fine, and I within the context of the budget proc- has soared by 65 percent over the last 8 do not speak against them, but we do ess. years, with gas production in deep Gulf not have to apply those technologies to Last year, the President promised of Mexico waters increasing by 80 per- the coal that comes out of southern that we could have it all. He argued cent in the past 2 years alone. At a West Virginia and eastern Kentucky, that the projected $5.6 trillion in sur- time when the Gulf of Mexico is boom- which is some of the cleanest burning pluses within 10 years was enough for a ing in such a way, I do not feel that we coal, low sulfur content, high btu. large tax cut, a decent Medicare pre- need to give more oil and gas away to Mr. BARTON of Texas. Mr. Speaker, scription drug benefit, increases in edu- encourage the industry to drill. reclaiming my time, we will stipulate cation spending, a national energy pol- In conclusion, executives of major oil that the gentleman’s coal is clean. We icy, and increases in defense spending. companies will simply love the House might want to point out that coal in This Congress could have taken time energy bill. But a plain folk, a person general has sizably larger emissions of to look comprehensively at using the who pays for gas for their vehicle, VOCs than some of my dirty natural Tax Code to accomplish many goals, would have to wonder why they should gas. It is about 95 percent, maybe 96 including some much-needed improve- be gouged twice: at the pump and at percent cleaner. We are going to work ment to our energy policy. Regret- the U.S. Treasury. to clean up all energy sources. I would tably, we made it considerably more June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3465 difficult to provide for the needed The motion simply states the con- energy policy which was not written in spending in the area of energy as well ferees, to the extent possible, within fits and starts, but balanced things and as other top priority issues that are the scope of conference, ensure that no brought into play conservation and al- facing this country. provision of bill create a deficit in the ternative fuels and new technologies Instead of figuring out how are we non-Social Security portion of the Fed- and potential new sources of energy for going to stop the tide of red ink and eral budget during the duration of the our country. stop spending Social Security surplus bill, unless there are sufficient offsets We did it out of concern that we were dollars, the House leadership continues under the bill, thereby ensuring that it becoming more and more dependent to push irresponsible tax cuts. does not raid Social Security surpluses. upon foreign sources that were not as Just a few weeks ago, the majority Until we deal with the long-term fi- reliable as they once were. At a time leadership passed the supplemental ap- nancial problems facing Social Secu- when we were facing about 57 percent propriation that also makes room for a rity, we need to be very careful about of imports to satisfy this Nation’s en- $750 billion increase in the debt limit. any tax or spending bills that would ergy demands, we decided we had bet- Those of us who said that we ought to place a greater burden on the budget in ter do something. We better talk about sit down and figure out how to get our the next decade. If Members believe conservation. We better talk about al- budget back in order before we approve that more tax cuts and increased ternative fuels and new technologies another $750 billion in debt were ig- spending are more important than and new means by which we could nored. eliminating the national debt and pro- move about this country. We better This week is no different. We are con- tecting the integrity of the Medicare tell the automobile industry that we sidering a permanent extension of mar- and Social Security trust funds, vote wanted some fuel savings in the SUV riage penalty relief. Permanent exten- against this motion. I am glad nobody fleet, and we wanted to make sure that sion. Again, motherhood and the flag, is going to vote against it. I believe there was in fact new and available everybody is for it; except our grand- Members should support it. sources of energy to power the electric children should not be for it, but they Mr. Speaker, I support the spirit of grids of this country so the rest of do not have a vote. the gentleman from Texas (Mr. BAR- America did not experience what Cali- We will also vote in a moment on an- TON) for agreeing to this, and I do know fornia went through. other great-sounding issue, and that is that the spirit of the conferees will We did it on August 1, 2001. Then on requiring a two-thirds vote in order to somehow find it in their hearts to talk September 11, 9–11, we witnessed the raise taxes. But yet my friend from to the leadership and get the leadership awful effect of this new age we have en- Tennessee was denied an opportunity to go along with this excellent pro- tered, this new age where this country to have an amendment on the floor posal. is at war against terror; and it has that would suggest that we ought to The SPEAKER pro tempore (Mr. LIN- dawned on us what we did on August 1 have a three-fifths vote to borrow DER). Without objection, the gentleman has even more relevance after 9–11. money. It is easier to borrow money from Louisiana (Mr. TAUZIN) will con- Here are some numbers. I want Mem- because our grandchildren do not have trol the balance of the time of the gen- bers to think about the fact that we a vote on that issue. It is tough to raise tleman from Texas (Mr. BARTON). are now buying a million barrels of oil taxes. In fact, show me one Member of There was no objection. a day from Iraq. It costs this country this body who stands up and says, ‘‘I Mr. TAUZIN. Mr. Speaker, I yield $21 billion a year. That $21 billion is am going to raise taxes,’’ and I will myself such time as I may consume. money we send to the Iraqi Govern- show my colleagues a Member that is Mr. Speaker, as we begin the final ment, to that country. What do they about to get unelected in November. steps toward enacting a comprehensive use it for? They use it to build weapons But here we are. As a result, we are national energy policy for our country, of mass destruction after they have experiencing trust fund raids and def- I want to remind the Nation and this thrown the U.N. inspectors out. They icit for the foreseeable future, instead House of two important facts. The first use it to send money to the families of of large projected surpluses, all to pay was that this House passed H.R. 4, the suicide bombers. They use it to build for this reckless economic plan. SAFE Act, Securing America’s Future radar sites that lock onto the Amer- Mr. Speaker, all we are asking is let Energy on or about August 1 of last ican planes that are patrolling the no- us get back on a plan to balance the year. fly zones, and build missiles to try to budget without using Social Security. We passed it by an overwhelming bi- knock down American airmen as we The current estimates for this year’s partisan majority. In fact, it passed try to live up to and complete the unified budget deficit are between $150 out of the subcommittee by a vote of 29 terms of that peace agreement fol- billion and $250 billion. That is deficits, to 1, and I want to thank the chairman lowing the Persian Gulf War, planes and not all of it has to do with Sep- of the Subcommittee on Energy and that are carrying jet fuel that is made tember 11. Not all of it has to do with Air Quality, the gentleman from Texas in part from Iraqi oil. How crazy is the economy. As Members read in the (Mr. BARTON), for the great work the this? How insensible is this? Wall Street Journal today, Mitch Dan- gentleman did in perfecting the core of iels, director of OMB, is finally coming this bill in subcommittee. b 1630 around and beginning to have a mo- It passed out of the full committee We have watched as one of our dear- ment of honesty: ‘‘At this rate, there by a vote of 50 to 5, and I particularly est energy commercial friends, Ven- are not sufficient resources for a de- want to thank the gentleman from ezuela, has come under a regime that cent Medicare drug benefit, education Michigan (Mr. DINGELL) for his extraor- thinks Castro is a pretty nice guy. spending, or energy policy.’’ dinary cooperation and bipartisan sup- Fidel Castro, if you remember, was a I do not understand the philosophy of port for us to produce this energy pol- guy that Nikita Khrushchev’s son folks who do not have a problem with icy for the House and the Nation. I wrote about in the memoirs, who ac- leaving our children and grandchildren thank the gentleman from Massachu- knowledged that Castro asked and ad- with a large debt just so we can have a setts (Mr. MARKEY) for the work he did, vised Nikita Khrushchev to launch a tax cut or more spending today. I want and the gentleman knows that we full scale preemptive nuclear strike our children and grandchildren to in- worked out quite a number of impor- against America during the Cuban mis- herit a strong economy and a Federal tant features in the bill that he was in- sile crisis. That is the guy Mr. Chavez Government that can meet its commit- terested in regarding conservation, al- loves, and we depend upon Venezuela ments for Social Security and Medi- ternative fuels and other areas. for so much of our energy supplies in care. I definitely do not want them to The bottom line is we produced this this country. In fact, we depend upon inherit a massive national debt and bill for the House on August 1, 2001, be- Venezuela for lot of the reformulated legacy of deficit spending. fore September 11. We produced this gasoline that completes our clean air The motion to instruct conferees is bill for the House when after years of program in America. Think about that. very straightforward and reflects a sort of benign neglect, we came to a Think about the fact that this country principle that every Member of this conclusion that this Nation needed as a depends every day, every one of us that body has solemnly vowed to protect. matter of national security a cohesive gets in an automobile, every one of us H3466 CONGRESSIONAL RECORD — HOUSE June 12, 2002 that gets in an airplane, depends every this time and I rise in very strong sup- not had this debate and this level of co- day on people who are on the other side port of the Markey motion to instruct. operation about the economic stimulus in this war on terror to make fuel Make no mistake about it, the en- package, because had we started it available to us and that the money we ergy bill provides a world of oppor- sooner, it would have been bigger. The spend to buy fuel from them helps to tunity for wasting taxpayer dollars in fact is the economy would go faster underwrite the terrorists who are at- pursuit of very bad policy. I agree with and we would not have the challenges tacking this country. And then I think my dear colleague from Louisiana that we do about programs that the you begin to realize how important about the need for renewables here at American people want. this conference on energy is going to be home. The problem is the bill pays very I find it ironic that we have a debate and how critical it is that the work of short shrift to that while it gives away about robbing money from Medicare in this House on H.R. 4 be, as much as we $34 billion over 10 years and shovels the same month that we hope to pass a can, sustained in the conference with money like coal into energy blast fur- $300-billion-plus Medicare prescription the Senate. naces out of the Social Security trust drug benefit for seniors who des- The Senate has added some impor- fund. perately need it across this country. tant features to the bill we passed. We are really happy that the motion We will in this House, once again as we They have built a good electricity title to instruct apparently has been accept- did 2 years ago, pass it, but in all like- that we are going to work on. Chair- ed by the other side. But for the life of lihood we will not do it with a unani- man BARTON has done a good job in me, I do not know how they are going mous vote. building a House position. We are going to make the numbers work, because a Mr. Speaker, H.R. 4 does a tremen- to have a chance, with our Democratic week ago the Republican majority had dous amount, and I think we are in colleagues, to hopefully add an elec- borrowed $207 billion from the Social agreement on the highlights of this tricity title to the bill that is going to Security trust fund and that number bill. It is the SAFE Act. It is about se- better ensure transmission lines work, this week went up to $212 billion. And curing America’s future energy needs. that they are there to move energy now this bill adds $34 billion in red ink It is about making energy policy and from areas of surplus to areas of de- on top of that. Somebody has to keep energy availability predictable and, mand, that we have enough electricity the ledger balanced at the end of the most importantly, affordable. The in the grid that nobody has to go year. House passed a comprehensive national What seems to pass for energy policy through what California went through. energy bill which builds on the Presi- in this administration includes renewal We are going to continue to work with dent’s national energy policy and that of the Price Anderson Act which ex- the Senate on the provisions it has was to promote economic development empts nuclear power plants, for exam- added to make sure that we have other and domestic energy supplies and en- ple, from liability for accidents and po- blends in the mix, like ethanol in the courage increased efficiency and con- tentially streamlining the licensing mix of our reformulated gasolines. And servation. process for companies that are seeking we are going to try to make sure that This motion to instruct will be ac- to bring old reactors back on-line—like cepted, and we should, because nobody when we produce a bill, that it is well the one in my district which just had a balanced, that it contains not just con- wants to rob Social Security and Medi- hole eaten in its head, and they are care. But the fact is that many of the servation and new technologies and al- trying to figure out what to do about areas that have been pointed out as tax ternative fuels, but it also contains it. It has been shut down for months. breaks are, in fact, issues that were some incentives to make sure we The failure of this administration to produce here at home gas and oil and provide an intelligent energy policy lobbied for by all Members, because fuel and coal and other electric sup- and the failure of Congress to pass they deal with conservation. Let me just point out a few. We give plies that we can depend upon because tough, no-nonsense campaign finance a tax credit for residential solar energy they are made in America, instead of reform creates a climate for vast give- because we know that we need to diver- being produced by people that we can- aways of taxpayer dollars. If you look sify the sources that we get our energy not trust in this world anymore. We at the nuclear industry alone, which are going to try to produce a balanced the Vice President loves a great deal, from. We give tax credits for fuel cells, bill. they gave more than $13.8 million to the possible best breakthrough in the I am going to ask all our colleagues Federal candidates in the 2000 election future, for less of a reliance on the to stand with us as we go into con- cycle. Most of our citizens do not have fuels that we currently import. We give ference with the Senate to make sure that kind of election clout. modifications and extensions for provi- we have that. So I would just say it is important to sions relating to electric vehicles, If I could make just a point. That 1 pass this motion to instruct conferees clean fuel vehicles, clean fuel vehicles’ million barrels a day we buy from Iraq, to protect the Social Security trust refueling property. We give tax credits that is what we could produce in fund being tapped as the only place to for energy-efficient appliances. We give ANWR if we could include an ANWR get the money for the kind of corporate credits for energy-efficient improve- provision in the conference. We are giveaways that are included in this ments to existing homes. We give al- going to fight for one as we go to con- bill. Unfortunately, the surpluses that lowance and deductions for energy effi- ference with the Senate. had begun to build as of January 2001 ciency for commercial properties. We So today as we begin this process, as have now plummeted into deficits in give investment and production tax the conferees are named, as we begin every single account in this govern- credits for clean coal technology. the process to produce a comprehensive ment. The promise that was made with As a member of the North Carolina energy policy for America, we ought to seven votes that we took here on this delegation where we just passed smoke- be reminded every day of that con- floor ‘‘not to break the lockbox’’ has stack legislation which cleans up our ference of 9/11 and how much more crit- been broken seven times. We are now State, it is challenging, but we cannot ical it is that this House and the Sen- in the red already this year, as of yes- do it without the Federal Govern- ate succeed in putting a bill in front of terday $212 billion. This bill worsens ment’s investment in clean coal tech- the President to sign before we leave that problem. nology. here to go face the voters in November. I urge my colleagues to vote for the Markey By the way, Mr. Speaker, in addition, This may be the most important na- motion to instruct and stop the raid on Social we in this bill increase the LIHEAP au- tional security work we do. We ought Security trust funds being cashed out to the thorization levels. That is the needs of to do it well. We ought to do it right. corporate energy giants. low-income Americans for heat in the Mr. Speaker, I reserve the balance of Mr. TAUZIN. Mr. Speaker, I am winter, and I am sure that is probably my time. pleased to yield 5 minutes to the gen- calculated in these predictions of what Mr. MARKEY. Mr. Speaker, I yield 3 tleman from North Carolina (Mr. we steal from Medicare and Medicaid. minutes to the gentlewoman from Ohio BURR), the vice chairman of the Com- The fact is that, Mr. Speaker, we are (Ms. KAPTUR). mittee on Energy and Commerce. challenged with many more things Ms. KAPTUR. Mr. Speaker, I thank Mr. BURR of North Carolina. Mr. than just energy policy this year. This the ranking member for yielding me Speaker, my only regret is that we had one bill makes predictable not only the June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3467 supply but the cost. We as a Congress consistent. Things that we find inde- he or she now has a private Social Se- will be challenged with additional fensible in some regimes, they appear curity account and, of course, his or needs of supplemental appropriations to be almost virtues when the Saudis her friendly analyst would be glad to to fight a war on terrorism. We will be do them. But I agree we should be give that person a wholly objective im- challenged to find the money for the across the board. pression of what stocks to buy and Medicare prescription needs of our sen- As to conservation, I wish we would which accounting firms had been in- iors. But since we have taken care of go further. I wish the President of the volved in manipulation there. some of it in budget resolutions, we United States had not backed off his But that is the problem here. What may be challenged as money runs predecessor’s proposals regarding air you do is you tell people you can have short. We can find the areas we get it conditioning. When we are talking it all, we can have the standard of liv- from. We have before. We will again. about the need for energy at that peak ing we have already had, we can con- We will live up to the fiduciary respon- period in the summer when air condi- serve, and we can cut taxes, and we can sibility that the American people have tioning is such a drain, under the pre- continue everything else, except when entrusted in us. vious administration, the presidency of we get to Medicare and Social Secu- I hope that all of our colleagues will President Clinton, we had very good rity, people are going to be told we join us in supporting the motion to in- energy-saving proposals. The President have to cut back. struct conferees, protecting the bank has cut back, and here is the common One of the previous speakers men- that we are in charge of but, more im- theme. The President cut back be- tioned the prescription drug program. portantly, in passing an energy policy cause, well, we would have had to pay The prescription drug program that that is so overneeded in this country, for that a little bit in air conditioning. was passed 2 years ago was inadequate. making sure that our future is, in fact, The gentleman from North Carolina It did not give middle income older secure. said, why are we objecting? We are giv- Americans a fair deal, and neither will Mr. MARKEY. Mr. Speaker, I yield ing a tax cut here and a tax break here. the one that will be coming forward. such time as he may consume to the There a tax break, here a tax break, ev- Indeed, it has been held up because the gentleman from Massachusetts (Mr. erywhere a tax break. first impulse on the majority side was FRANK). I am for many of those; not for all of to cut Medicare to pay for it. Well, the Mr. FRANK. Mr. Speaker, I thank them. The problem is the attitude that Members were not ready to vote for my friend from Massachusetts who has says to the American people, here are that now, so we are going to get a still been such a leader on energy and envi- some freebies. The one word that peo- inadequate prescription drug program. ronmental issues for so long in this ple never mention is ‘‘sacrifice.’’ We But the consequence of this bill and Congress. are not talking about going around in every other bill, and we are not object- I am glad to note some points of sackcloth and ashes, whatever those ing at this point to doing some of these agreement. look like. I do not know myself, but I things, we are objecting to pretending First of all, as the previous speaker have heard that often enough. What we you can do them with no choices being made it clear, the important issue of are saying, however, is you cannot made, and that is probably even a bet- energy policy is one where there has to have it all. You cannot have more ter word than ‘‘sacrifice.’’ be a strong Federal Government role. spending on these programs and more What the majority wants to do is Sometimes there is rhetoric in this tax cuts for those programs, and then simply avoid choices, to tell everybody Chamber that assumes that the Fed- more tax cuts in general, and then still they can have everything. What this eral Government is simply a problem. make everything work. There is a fail- will result in is, on the one hand, peo- Indeed, Ronald Reagan in his first in- ure here to tell people the truth. ple will spend and cut taxes and raise augural said, ‘‘The government is not We vote here, but not under oath. the debt limit and increase the deficit the answer to our problems. The gov- Maybe we ought to vote under oath and reduce the revenues that are com- ernment is the problem.’’ I am glad to sometimes and not just testify under ing into the Federal Government and join the gentleman from North Caro- oath. Everybody is going to vote for turn a surplus into deficit, and then lina in repudiating that simplistic and this, they tell us, but I do not think it they will say in an entirely other con- inaccurate misstatement. As the gen- is going to be carried out. It has a par- text, hoping nobody remembers, oh, tleman said, without a Federal Govern- ticular relevance to Social Security and by the way, we are going to run ment investment, we cannot have a and Medicare. It is not the case that out of money, and, therefore, we have good energy policy. Obviously if you money spent here will in and of itself to reduce Social Security benefits. think the Federal Government is just a reduce Social Security benefits. Therefore, we have to restructure problem, you do not want it to go Medicare. Therefore, we have to cut around investing, presumably spread- b 1645 back. Therefore, we cannot afford an ing problems. That is not the argument. It is not adequate prescription drug benefit pro- He is right. The free market has a the case that it will reduce in and of gram. role to play, but the government has itself the money in Medicare. But here I am pleased that my friend from an indispensable role. Those who would is what is happening. People make pro- Massachusetts has offered this. I do denigrate government and those who jections, and they look at the cost of note one other thing that I meant to would think that you could somehow Medicare and Social Security as cur- mention. I did hear the chairman of the do away with it are reminded here, and rently structured 20 years from now subcommittee who began the debate I am glad to see that we have this and they say we will not have enough say, ‘‘Why are we so upset? This is, agreement, this is a bill to expand the money to pay for it. after all, not an appropriations bill, it role of the Federal Government in But what they then do by increasing is just an authorization bill. That is, dealing with our energy problem. I wel- spending and reducing taxes is to exac- this simply says we can spend the come that area of agreement. We may erbate that very problem. This is a money. It does not spend the money.’’ have disagreements about how to do it. self-created problem. We say there will Note the apparent assumption that We have one other disagreement, not be enough money at the Federal just because we say something does not though, and let me just say, there are level to meet the commitments of So- mean we mean it. When you say do not some areas where I wish the gentleman cial Security and Medicare. So how do worry, this is just an authorization bill from Louisiana had gone even further. we respond to that? Let us reduce the calling for the expenditure of these bil- He mentioned some of the unattractive revenues that would otherwise be lions, but it does not actually spend regimes with whom we must deal to available for it. them, I am reminded of the couplet get oil. I would have added Saudi Ara- That is why people are being fright- from Tom Lera that I cannot quite re- bia. Indeed, when I look at the list of ened with the need to privatize Social member, but it did involve Wernher things we find wrong with most of Security, although we have heard less Von Braun, the former German rocket these countries that have been criti- of that these days. We could all look scientist who became a part of the cized, I find Saudi Arabia right up forward, of course, to the average American science movement, and I re- there. It seems to me we are a little in- working person retiring and being told member the rhyme which was basically H3468 CONGRESSIONAL RECORD — HOUSE June 12, 2002 he was in this song disclaiming respon- which in a bipartisan way, thankfully, was not your budget on borrowing sibility for the damage his creations Republicans and Democrats reached money from the Social Security trust had done in England, because, the into that surplus, and they took out fund. We wanted a trigger. We wanted words went, in effect, I am not respon- money for the emergency, they took to avoid discussions like we are having sible. I am only in charge of when they out money for homeland security, we today. went up. I am not responsible for where took out money to fund the war, and I also want to remind my chairman, they came down, said Wernher Von we took out money to stimulate an the chairman of the Committee on the Braun. economy that was already in doldrums, Budget, that we did present, the Demo- Well, you are responsible when you that went into the doldrums even fur- cratic party, did present an alternative authorize and write into law for the ex- ther as a result of that attack, and we budget last year, the Blue Dog Demo- penditures that come. So what the gen- did that in a bipartisan way. And now, crats led and were followed by the tleman from Massachusetts said is ab- 7 months later, you wander to the floor overwhelming majority of Democrats solutely accurate: Do not pretend that and say where is the surplus? We spent on this side, that said we should not al- we can continue to cut taxes, incur it, folks. We spent it, appropriately so, locate all of the $5.6 trillion projected deficits, spend in other areas, and not on the needs of this country. surplus into spending and tax bills be- have that have a negative impact on So we had an energy bill that fit cause they might not happen and there our ability to continue to fund Social within the budget, and we appro- might be an emergency. We lost. We Security and Medicare. So I am glad priately spent the surplus and did were in the minority. that people are going to vote with us. I whatever it took in order to address I am used to losing when I am in the just wish they meant it. what happened in September. minority. What we are not used to Mr. TAUZIN. Mr. Speaker, I am hon- Now you wander to the floor and say doing is having the majority win and ored to yield 4 minutes to the gen- where is the surplus? Why are we in not assume the responsibility for your tleman from Iowa (Mr. NUSSLE), the deficit? Well, addressing that deficit, actions. The debt ceiling is going to distinguished chairman of the House we passed yet another budget plan this have to be increased, and yet you want Committee on the Budget. year and we said we can get back out of to duck that. Mr. NUSSLE. Mr. Speaker, I thank deficits if we control spending. We can But the gentleman is absolutely cor- the gentleman for yielding. have an energy plan, we can address rect, and I appreciate his kindness and his remarks. Mr. Speaker, what is probably most the needs of homeland security, we can Mr. TAUZIN. Mr. Speaker, I am humorous about the last statement on win the war, we can stimulate the pleased to yield 5 minutes to the gen- the floor is that the Democrats do not economy. Yes, we will be in deficit, but tleman from Texas (Mr. BARTON), the want to take credit when it is going up it will be periodic and we are able to or when it is coming down. In fact, this chairman of the Subcommittee on En- get back out of it if we can control ergy and Air Quality of the Committee year the Democrats presented no plan, spending. on Energy and Commerce. no budget, no ideas, no answers, no so- So the gentleman from Massachu- (Mr. BARTON of Texas asked and lutions, nothing. Not on energy, not on setts comes to the floor here and he was given permission to revise and ex- Medicare, not on agriculture, not on says, where are the choices? Where is tend his remarks.) Social Security, not on anything that the sacrifice? Mr. BARTON of Texas. Mr. Speaker, is addressing the needs of this Nation. We have a plan that shows you where I thank the gentleman for yielding me Not on homeland security, not on de- the choices are. Where is your plan? time. fense, not on intelligence. None of You do not have one. The very distin- Mr. Speaker, I want to point out the those things were presented in a budget guished gentleman from Texas pre- obvious before I get into a little of the this year. sented a plan. His plan was our plan, substance. We are technically debating Let us just review the bidding of how with a trigger. We do not agree with a motion to instruct conferees, and we we got here. Last year, not this year, the trigger. We will agree to disagree. are going to accept it. Some are trying last year the Republicans, together But the interesting thing is the only to pick a fight, and the Republicans are with the President, introduced a budg- plan you presented was our plan. The in a good mood today. We do not want et that said energy needs to be a pri- Senate, excuse me, the other body, can- to fight. We want to go to conference ority. When you are 60 percent depend- not even pass a budget. And you wan- and work on a bipartisan basis for an ent on foreign fossil fuels for the en- der in here and you say where are the energy policy. ergy of your nation, you have got a choices? The Committee on Energy and Com- problem. Mr. Speaker, wake up. We are going merce, the distinguished gentleman People come to my town meetings to accept this motion to instruct con- from Louisiana is the distinguished and they wonder sometimes a little bit ferees. But how did we get here? Re- chairman of it, passed this bill 50 to 5, about why we are entangled in the Mid- member back to what happened in Sep- with the good help of the gentleman dle East. Wake up, America. There is tember. Do not demagogue Social Se- from Michigan (Mr. DINGELL) and the your reason. We have not had a long- curity. Obviously for political purposes gentleman from Virginia (Mr. BOU- term energy strategy. We have allowed you can go ahead and do that, but we CHER) and others. My subcommittee it to deplete over time. The last 8 years need this energy strategy to get our passed it 29 to 1. We are the ‘‘happy have certainly been no friend to en- economy going, to become less depend- face’’ committee. We want to go to ergy. And so, yes, of course, we find ent and less entangled in the Middle conference with the other body and ourselves with that as a necessary pri- East. It fits within the budget. It re- work in a bipartisan basis. ority. It has impacted our economy, it sponsibly allows us to win the war and So we are very willing to say we do has impacted the creation of jobs. So get the economy going. We need to pass not want an energy policy that in- last year we put into the budget to this bill and get it through conference. creases the national deficit. Let us have an energy strategy, and last year Mr. MARKEY. Mr. Speaker, I yield 1 think about that a little bit. This in August we passed this bill in order minute to the gentleman from Texas country for over 150 years has had an to address it within the, fit within (Mr. STENHOLM). energy policy that is based on private budget, fit within surpluses as far as Mr. STENHOLM. Mr. Speaker, I markets, where we allocate capital the eye could see, and we managed the thank the gentleman for yielding me through the free enterprise system to problem. time. create energy sources at the lowest Now today Democrats are running to I appreciate my friend, the chairman possible cost possible. Because of that, the floor saying, ‘‘My God, what hap- of the Committee on the Budget, for we have the world’s greatest economy. pened? Where is the surplus? Where did acknowledging at the last part of his Now, if we were really having a de- it go? Why are we in deficits?’’ comments that there was an attempt bate today, I would posit the question, Well, there is a little incident that to offer a second amendment or budget if you have an energy policy that is occurred September 11, you may have this year, but we were denied. balanced and tries to have a production remembered that, I realize you dis- The gentleman is entirely correct; it component and an environmental com- count it now, but pretty significant, in was your budget on spending, but it ponent and a consumption component June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3469 that results in lower prices, is that the leadership of the gentleman from Mr. FRANK. Mr. Speaker, will the going to increase or decrease the na- Louisiana (Mr. TAUZIN), who is going to gentleman yield? I will answer him. tional deficit? Or if you have an energy chair the conference, I am very con- Will the gentleman yield for an answer. policy that tries to be anti-energy that fident that we are going to do that. The SPEAKER pro tempore (Mr. LIN- results in higher energy prices, is that Mr. MARKEY. Mr. Speaker, I yield DER). The gentleman will suspend. going to add to or subtract from the 11⁄2 minutes to the gentleman from Mr. FRANK. Mr. Speaker, would the deficit? Texas (Mr. DOGGETT). gentleman yield? I would say an energy policy that is Mr. DOGGETT. Mr. Speaker, I would Mr. NUSSLE. I do not have any time. balanced and that has the net result of just add that this bill was considered in Mr. FRANK. Or any knowledge of the a balanced approach, that has lower en- at least two committees; and in the rules either, apparently. ergy prices, is going to result in either Committee on Ways and Means, there The SPEAKER pro tempore. Who lower deficits or, probably, surpluses. was anything but a bipartisan, bal- yields time? To put this in personal terms, if you anced bill. Indeed, what we did have Mr. MARKEY. Mr. Speaker, I yield 30 go to the gas pump and pay $1.25 a gal- was a letter from the gentleman from seconds to the gentleman from Massa- lon, or if you go and pay $2.25 a gallon, Iowa (Mr. NUSSLE) assuring our com- chusetts (Mr. FRANK). which helps your economy the most? mittee that this bill could be passed Mr. FRANK. Mr. Speaker, I would Obviously, if you only pay $1.25. without taking any money from Social just say to the gentleman from Iowa, If you get your electricity bill and Security and Medicare; and as indi- because he wanted to know where the you pay 7 cents a kilowatt, is that bet- cated by his remarks on the floor this money could come from, I had several ter than getting an electricity bill that afternoon, it is pretty clear that has places. I am personally prepared to say you pay 17 cents a kilowatt? Obviously, changed completely. that incomes over $300,000 do not need if you pay less, you have more money Indeed, much has changed since Sep- a tax reduction which is scheduled to to do other things for your family. tember 11. This bill was passed before go into effect as urgently as we need Well, the energy bill before us actu- them, before the collapse of Enron, and energy and security. So to the extent ally is a balanced bipartisan approach before the Bush budget sprang a leak of that we have outstanding tax reduc- to try to create an energy policy for red ink that began with a trickle and tions that have not gone into effect for the 21st century that results in mod- has now become a flood. Many things incomes over $300,000, reducing the rate erately priced energy, in large quan- have changed, but one thing that has on that, there are tens of billions to be tities, so we can continue to have the not is the commitment of some here to gained by that; that would be one kind of free market economy that we a bill that is not so much an energy place. And personally, I would look at have had. policy as a collection of unjustified tax some of the money in the agriculture Now, let us look at some of the spe- breaks, loopholes, and special provi- bill also. cifics in the bill. Let us see whether we sions to aid traditional energy indus- Mr. MARKEY. Mr. Speaker, I yield think these are good things or bad tries. 11⁄2 minutes to the gentlewoman from things. These are in the bill. These are I like the idea of balance in an en- Texas (Ms. JACKSON-LEE). not debating points, they are in the ergy bill, but what we have is some (Ms. JACKSON-LEE of Texas asked bill. sweet words about the environment, a and was given permission to revise and We require that Federal buildings re- little sugar coating for new environ- extend her remarks.) duce their energy consumption by 35 mental technologies, and most all of Ms. JACKSON-LEE of Texas. Mr. percent. We require that we put more the tax benefits going to the same old Speaker, I thank the gentleman for money into the Low Income Heating polluting industries. yielding me this time. and Cooling Program, the LIHEAP pro- For the gentleman from Louisiana For a minute I thought the chairman gram. That was an amendment adopted (Mr. TAUZIN) to suggest that this has from Louisiana was calling for church in my subcommittee that was offered something to do with taking a million by saying ‘‘Come on’’, but let me hope by the gentlewoman from California barrels of oil a day from Iraq, I think, that he can do the same for me. We are (Mrs. BONO). is really misleading. familiar with that terminology, ‘‘come We have increased funding for the If this bill passes in today’s form, it on,’’ but let me explain to the Amer- DOE weatherization program. We have would not reduce that amount by one ican people my support for this par- a requirement that the gentleman from barrel; indeed, I would say not one ticular motion to instruct. I am de- Louisiana (Mr. TAUZIN) and the gen- pint. What this bill does is to give more lighted that my good friends, including tleman from Michigan (Mr. DINGELL) tax breaks to the companies that are the gentleman from Texas, is willing to worked out on a bipartisan basis that bringing in the million barrels of oil a accept it. But let me put a face on the our trucks and cars need to reduce the day from Iraq. It does not change or value of the motion of the gentleman amount of gasoline that they consume limit their ability to do that. from Massachusetts. by 5 billion gallons over 5 years. And the suggestion that we would replace Last year at this time, or last year in We have increased research grants that oil by exploiting the Alaskan National the summer, we were vigorously dis- for alternative fuels like hydrogen and Wildlife Refuge (ANWR) would be a serious cussing the energy bill. At that time things of that sort. We have a very mistake that would jeopardize an irreplaceable we had a $5.6 trillion in surplus. We good program for advanced clean coal environment for little real energy benefit. now are a year later and the tragedy of technology. We have increased funding Mr. TAUZIN. Mr. Speaker, I yield 30 September 11 has occurred, and we are requests for fusion energy, hydrogen seconds to the gentleman from Iowa now at a mere $400 billion. We do not energy, bioenergy, renewable energy (Mr. NUSSLE). have a prescription drug benefit. and solar energy. We have a program to Mr. NUSSLE. Mr. Speaker, I just The chairman knows that I come try to do some research for ultra-deep have to report to the Congress what I from oil country and clearly have water, oil and gas drilling in the Gulf just got. I just found out that the next worked collaboratively, and I thank of Mexico, which I think is a good motion to instruct, which is going to him for the amendments that were thing. be on the supplemental offered by the passed, the $5 million on bio- Democrats, is going to be to accept the engineering and the one dealing with b 1700 higher spending level between the assessing the amount of resources in I could go on and on. But the bottom House and the Senate. the Gulf. We come from that area. So line is, this is a balanced bill, it is a bi- Mr. TAUZIN. Come on. this is not a condemnation as much as partisan bill; it is a comprehensive bill. Mr. NUSSLE. Now, where is that it is a reality check on facing the fact We need to accept this motion to in- money going to come from, I ask my that we have no money. This is an im- struct, go to conference, and work with colleagues. Not $27 billion; they want portant amendment. the other body to bring back a con- the other body’s version of $31 billion. Mr. Speaker, might I also say, com- ference report that results in lower en- Where is that coming from? Is it com- ing from the community where Enron ergy prices for the American people for ing from Social Security? Why are you has collapsed and we have people who the next 20, 30, 40, 50 years. And with not down here demagoguing that? are unemployed and who are still H3470 CONGRESSIONAL RECORD — HOUSE June 12, 2002 struggling, I would hope that as this Mr. Speaker, I yield back the balance There was no objection. bill goes to conference that some con- of my time. The SPEAKER pro tempore. The versation can be raised on the issues Mr. MARKEY. Mr. Speaker, I yield question is on the motion to instruct dealings with the Enron collapse and myself the balance of the time. offered by the gentleman from Massa- how it has impacted the energy indus- Mr. Speaker, the gentleman from chusetts (Mr. MARKEY). try and, in particular, how we have Texas (Mr. STENHOLM) and I and the The question was taken; and the been able to deal with the employees, gentleman from Massachusetts (Mr. Speaker pro tempore announced that the ex-Enron employees who found FRANK), the gentlewoman from Texas the ayes appeared to have it. themselves standing in the back of the (Ms. JACKSON-LEE), the gentleman Mr. FRANK. Mr. Speaker, I object to line with no money, no resources in a from West Virginia (Mr. RAHALL), the the vote on the ground that a quorum bankrupt company. gentleman from Texas (Mr. DOGGETT), is not present and make the point of So what we are suggesting is that all of us want an energy bill. All of us order that a quorum is not present. this is an important motion to in- know that we need a new energy plan The SPEAKER pro tempore. Evi- struct, because we do not have the for our country. That is not what this dently a quorum is not present. money we had last year. I hope this debate is over. This debate is over who The Sergeant at Arms will notify ab- motion will be accepted, but I also is going to pay for the energy bill. sent Members. hope we recognize the concerns we Now, last summer, August 1, we Pursuant to clause 8 of rule XX, this have, Mr. Speaker, and I hope together raised this issue. The Republicans con- will be a 15-minute vote on the motion we can ‘‘come on’’ with this message tended that they could vote for a $1.7 to instruct, followed by a 5-minute trillion tax cut, and the President said, and face the fact that we need not go vote on the motion to instruct offered do not worry, there is plenty of money into Social Security and Medicare. by the gentleman from Wisconsin (Mr. left over for Social Security, plenty of Mr. TAUZIN. Mr. Speaker, I yield OBEY). After these votes, the Chair will money left over for Medicare. And the myself the balance of the time. appoint conferees on both sides. Republicans on the House floor said, Let me say again to the gentleman The vote was taken by electronic de- what is your problem? There is a sur- from Massachusetts (Mr. MARKEY) we vice, and there were—yeas 412, nays 1, plus. There is plenty of money. Let us will certainly accept his motion to in- answered ‘‘present’’ 2, not voting 19, as pass this energy bill now. Now, we hear struct and we will ask Members to vote follows: the chairman of the Committee on the for it. More importantly, I will ask the [Roll No. 223] gentleman and the other members of Budget out here on the floor saying, YEAS—412 the conference committee in the House the surplus is gone, all gone. Now, the to join with us in a cooperative spirit Democrats said that last August 1, but Abercrombie Chabot Ford it is kind of like the dog ate my home- Ackerman Chambliss Fossella to make sure we finish the job that we Aderholt Clay Frank started here on August 1 in this House, work. Al Qaeda ate the surplus. Now, Akin Clement Frelinghuysen and that we complete a good package we were saying this on August 1. It is Allen Clyburn Frost Andrews Coble Gallegly for the President to sign before we gone. Now, what are we told? Do not worry. Armey Collins Ganske leave here. Baca Condit Gekas I want to correct the record. It was Who cares if we have deficits? Who Bachus Cooksey Gephardt not just two committees which pro- cares? Grandma cares. Grandpa cares. Baird Costello Gibbons Baker Cox Gilchrest duced this bill. It was the Committee Because there is only one other place to go: the Medicare and Social Secu- Baldacci Coyne Gillmor on Ways and Means, the Committee on Baldwin Cramer Gilman rity trust funds. Energy and Commerce, the Committee Ballenger Crane Gonzalez What this energy bill does is set up on Science, the Committee on Finan- Barcia Crenshaw Goode an oil rig on top of the Social Security Barr Crowley Goodlatte cial Services, and the Committee on and Medicare trust funds, and it begins Barrett Cubin Gordon Bartlett Culberson Graham Natural Resources. This was a collabo- to drill into those trust funds. That is rative effort of not just Democrats and Barton Cummings Granger why they care, because grandma and Bass Cunningham Graves Republicans, but of many committees grandpa were told last summer, do not Becerra Davis (CA) Green (TX) of this House; and this represented the worry; there is plenty of money. In- Bentsen Davis (FL) Green (WI) best of this House’s ability to come to- Bereuter Davis (IL) Greenwood stead, a pipeline is being constructed Berkley Davis, Jo Ann Grucci gether and do something good for this into their pockets. They are being Berman Davis, Tom Gutierrez country in a time of need. Little did we tipped upside down and the money Berry Deal Gutknecht know on August 1 just how much we from their trust funds is going to be Biggert DeFazio Hall (TX) would need this bill, but we know Bilirakis DeGette Hansen shaken out onto this House floor and Bishop Delahunt Harman today. transferred over to the oil, to the gas, Blumenauer DeLauro Hart This is not about the surpluses and to the nuclear, to the coal industries. Blunt DeLay Hastings (FL) the deficit issues that the country Now, we can all debate on whether or Boehlert DeMint Hastings (WA) faces; we will get into those great de- Boehner Deutsch Hayes not they deserve subsidies, but I think Bonilla Diaz-Balart Hayworth bates when we get to them, and there we should all agree, it should not come Bonior Dicks Hefley will be time for that. This is truly out of the Medicare and Social Secu- Boozman Dingell Herger about whether we can now close this Borski Doggett Hill rity trust funds for the greatest gen- Boswell Dooley Hilleary deal with the Senate, the other body, eration. That is not an energy plan Boucher Doolittle Hilliard to make sure that we pass an energy that comports with the crisis that we Boyd Doyle Hinchey bill that really protects this country are in. It is patriotic to fight al Qaeda. Brady (PA) Dreier Hinojosa into the years ahead with predictable, Brady (TX) Duncan Hobson It is patriotic to fight terrorists. It is Brown (FL) Dunn Hoeffel affordable sources of energy to keep not patriotic to take the money out of Brown (OH) Edwards Hoekstra this economy strong and to keep our the Social Security and Medicare trust Brown (SC) Ehlers Holden Nation secure so that we do not have to Bryant Ehrlich Holt funds. We must find that money from Burr Emerson Honda depend upon people we cannot depend some other place in our country, and Burton Engel Hooley upon. That is going to be a good debate the majority and the President have a Buyer English Horn with the other body, but it is a debate responsibility to promote that plan. Callahan Eshoo Hostettler worth winning. Calvert Etheridge Hoyer They have yet to do so. Camp Evans Hulshof Mr. Speaker, I thank my colleagues Vote for the Markey-Stenholm reso- Cannon Everett Hyde from both sides of the aisle who joined lution rejecting the plundering of the Cantor Farr Inslee with us in an overwhelming vote of Medicare and Social Security trust Capito Fattah Isakson Capps Ferguson Israel support for H.R. 4 when it left the funds. Capuano Filner Issa House, and I ask them to join us in an- The SPEAKER pro tempore (Mr. Cardin Flake Istook other big vote when we return from the ISAKSON). Without objection, the pre- Carson (IN) Fletcher Jackson (IL) conference committee with a success- vious question is ordered on the mo- Carson (OK) Foley Jackson-Lee Castle Forbes (TX) ful product. tion. June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3471 Jefferson Mollohan Shadegg Mr. THOMAS changed his vote from Thompson (MS) Velazquez Weiner Jenkins Moore Shaw Thurman Waters Wexler John Moran (KS) Shays ‘‘yea’’ to ‘‘present.’’ Tierney Watson (CA) Woolsey Johnson (CT) Moran (VA) Sherman So the motion to instruct was agreed Towns Watt (NC) Wu Johnson (IL) Morella Sherwood to. Udall (CO) Waxman Wynn Johnson, E. B. Murtha Shimkus The result of the vote was announced Johnson, Sam Myrick Shows NAYS—235 Jones (NC) Nadler Shuster as above recorded. Aderholt Graves Phelps Jones (OH) Napolitano Simmons A motion to reconsider was laid on Akin Green (WI) Pickering Kanjorski Neal Simpson the table. Armey Greenwood Pitts Kaptur Nethercutt Skeen Bachus Grucci Platts Keller Ney Skelton f Baird Gutknecht Pombo Kelly Northup Slaughter Baker Hall (TX) Portman Kennedy (MN) Norwood Smith (MI) MOTION TO INSTRUCT CONFEREES Ballenger Hansen Pryce (OH) Kennedy (RI) Nussle Smith (NJ) ON H.R. 4775, 2002 SUPPLEMENTAL Barr Hart Putnam Kerns Oberstar Smith (WA) Bartlett Hastings (WA) Radanovich Kildee Obey Snyder APPROPRIATIONS ACT FOR FUR- Barton Hayes Rahall Kilpatrick Olver Solis THER RECOVERY FROM AND RE- Bass Hayworth Ramstad Kind (WI) Ortiz Souder SPONSE TO TERRORIST ATTACKS Bereuter Hefley Regula King (NY) Osborne Spratt Biggert Herger Rehberg Kingston Ose Stark ON THE UNITED STATES Bilirakis Hill Reynolds Kirk Otter Stearns The SPEAKER pro tempore (Mr. Blunt Hilleary Riley Kleczka Oxley Stenholm Boehlert Hinojosa Rogers (KY) Knollenberg Pallone Strickland ISAKSON). The pending business is the Boehner Hobson Rogers (MI) Kolbe Pascrell Stump question of agreeing to the motion to Bonilla Hoekstra Rohrabacher Kucinich Pastor Stupak instruct on H.R. 4775 on which the yeas Boozman Holden Ros-Lehtinen LaFalce Paul Sullivan and nays were ordered. Brady (TX) Hostettler Roukema LaHood Pence Sununu Brown (SC) Hulshof Royce Lampson Peterson (PA) Sweeney The Clerk will designate the motion. Bryant Hunter Ryan (WI) Langevin Petri Tancredo The Clerk designated the motion. Burr Hyde Ryun (KS) Lantos Phelps Tanner The SPEAKER pro tempore. The Burton Isakson Saxton Larsen (WA) Pickering Tauscher Buyer Issa Schaffer Larson (CT) Pitts Tauzin question is on the motion to instruct Callahan Istook Schrock Latham Platts Taylor (MS) offered by the gentleman from Wis- Calvert Jenkins Sensenbrenner LaTourette Pombo Taylor (NC) consin (Mr. OBEY). Camp John Sessions Leach Pomeroy Terry This will be a 5-minute vote. Cannon Johnson (CT) Shadegg Lee Portman Thompson (CA) Cantor Johnson (IL) Shaw Levin Price (NC) Thompson (MS) The vote was taken by electronic de- Capito Johnson, Sam Shays Lewis (CA) Pryce (OH) Thornberry vice, and there were—yeas 181, nays Castle Jones (NC) Sherwood Lewis (GA) Putnam Thune 235, not voting 18, as follows: Chabot Kanjorski Shimkus Lewis (KY) Radanovich Thurman Chambliss Keller Shuster Linder Rahall Tiahrt [Roll No. 224] Coble Kelly Simmons Lipinski Ramstad Tiberi YEAS—181 Collins Kennedy (MN) Simpson LoBiondo Rangel Tierney Cooksey Kerns Skeen Abercrombie Filner McDermott Lofgren Regula Toomey Cox King (NY) Smith (MI) Ackerman Ford McGovern Lowey Rehberg Towns Cramer Kingston Smith (NJ) Allen Frank McIntyre Lucas (KY) Reyes Turner Crane Kirk Souder Andrews Frost McKinney Lucas (OK) Reynolds Udall (CO) Crenshaw Knollenberg Stearns Baca Gephardt McNulty Luther Riley Udall (NM) Cubin Kolbe Stenholm Baldacci Gonzalez Meehan Maloney (CT) Rivers Upton Culberson LaHood Stump Baldwin Gordon Meek (FL) Manzullo Rodriguez Velazquez Cunningham Latham Sullivan Barcia Green (TX) Meeks (NY) Markey Roemer Visclosky Davis, Jo Ann LaTourette Sununu Barrett Gutierrez Millender- Mascara Rogers (KY) Vitter Davis, Tom Lewis (CA) Sweeney Becerra Harman McDonald Matheson Rogers (MI) Walden Deal Lewis (KY) Tancredo Bentsen Hastings (FL) Miller, George Matsui Rohrabacher Walsh DeLay Linder Tanner Berkley Hilliard Mink McCarthy (MO) Ros-Lehtinen Wamp DeMint LoBiondo Tauzin Berman Hinchey Moran (VA) McCarthy (NY) Ross Waters Diaz-Balart Lucas (OK) Taylor (NC) Berry Hoeffel Nadler McCollum Rothman Watkins (OK) Doggett Manzullo Terry Bishop Holt Napolitano McDermott Roukema Watson (CA) Dooley McCrery Thomas Blumenauer Honda Neal McGovern Roybal-Allard Watt (NC) Doolittle McHugh Thornberry Bonior Hooley Oberstar McHugh Royce Watts (OK) Dreier McInnis Thune Borski Horn Obey McInnis Rush Waxman Duncan McKeon Tiahrt Boswell Hoyer Olver McIntyre Ryan (WI) Weiner Dunn Mica Tiberi Boucher Inslee Pallone McKeon Ryun (KS) Weldon (FL) Ehlers Miller, Dan Toomey Boyd Israel Pascrell McKinney Sanchez Weldon (PA) Ehrlich Miller, Gary Turner Brady (PA) Jackson (IL) Pastor McNulty Sanders Weller Emerson Miller, Jeff Udall (NM) Brown (FL) Jackson-Lee Pomeroy Meehan Sandlin Wexler English Mollohan Upton Brown (OH) (TX) Price (NC) Meek (FL) Sawyer Whitfield Everett Moore Visclosky Capps Jefferson Rangel Meeks (NY) Saxton Wicker Ferguson Moran (KS) Vitter Capuano Johnson, E. B. Reyes Mica Schaffer Wilson (NM) Flake Morella Walden Cardin Kaptur Rivers Millender- Schakowsky Wilson (SC) Fletcher Murtha Walsh Carson (IN) Kennedy (RI) Rodriguez McDonald Schiff Wolf Foley Myrick Wamp Carson (OK) Kildee Roemer Miller, Dan Schrock Woolsey Forbes Nethercutt Watkins (OK) Clay Kilpatrick Ross Miller, Gary Scott Wu Fossella Ney Watts (OK) Clement Kind (WI) Rothman Miller, George Sensenbrenner Wynn Frelinghuysen Northup Weldon (FL) Clyburn Kleczka Roybal-Allard Miller, Jeff Serrano Young (AK) Gallegly Norwood Weldon (PA) Condit Kucinich Rush Mink Sessions Young (FL) Ganske Nussle Weller Conyers LaFalce Sabo Gekas Ortiz Whitfield Costello Lampson Sanchez NAYS—1 Gibbons Osborne Wicker Coyne Langevin Sanders Sabo Gilchrest Ose Wilson (NM) Crowley Lantos Sandlin Gillmor Otter Wilson (SC) Cummings Larsen (WA) Sawyer ANSWERED ‘‘PRESENT’’—2 Gilman Oxley Wolf Davis (CA) Larson (CT) Schakowsky McCrery Thomas Goode Paul Young (AK) Davis (FL) Leach Schiff Goodlatte Pence Young (FL) Davis (IL) Lee Scott NOT VOTING—19 Graham Peterson (PA) DeFazio Levin Serrano Granger Petri Blagojevich Houghton Pelosi DeGette Lewis (GA) Sherman Bono Hunter Peterson (MN) Delahunt Lipinski Shows NOT VOTING—18 Clayton Lynch Quinn DeLauro Lofgren Skelton Blagojevich Houghton Payne Combest Maloney (NY) Smith (TX) Deutsch Lowey Slaughter Bono Jones (OH) Pelosi Conyers Menendez Traficant Dicks Lucas (KY) Smith (WA) Clayton Lynch Peterson (MN) Goss Owens Dingell Luther Snyder Combest Maloney (NY) Quinn Hall (OH) Payne Doyle Maloney (CT) Solis Goss Menendez Smith (TX) Edwards Markey Spratt b 1736 Hall (OH) Owens Traficant Engel Mascara Stark Messrs. NORWOOD, POMBO, and Eshoo Matheson Strickland FOLEY and Mr. PRICE of North Caro- Etheridge Matsui Stupak b 1749 Evans McCarthy (MO) Tauscher lina changed their vote from ‘‘nay’’ to Farr McCarthy (NY) Taylor (MS) Ms. HART and Mr. RAHALL changed ‘‘yea.’’ Fattah McCollum Thompson (CA) their vote from ‘‘yea’’ to ‘‘nay.’’ H3472 CONGRESSIONAL RECORD — HOUSE June 12, 2002 Mr. ROSS changed his vote from From the Committee on Financial consideration of section 401 of the ‘‘nay’’ to ‘‘yea.’’ Services, for consideration of Division House bill and sections 201, 205, 301, 1262 So the motion to instruct was re- D of the House bill and sections 931–940 and 1351–1352 of the Senate amendment, jected. and 950 of the Senate amendment, and and modifications committed to con- The result of the vote was announced modifications committed to con- ference. as above recorded. ference: Mr. OXLEY, Mrs. ROUKEMA and From the Committee on Ways and A motion to reconsider was laid on Mr. LAFALCE. Means for consideration of Division C the table. From the Committee on the Judici- of the House bill and Division H and I PERSONAL EXPLANATION ary, for consideration of sections 206, of the Senate amendment, and modi- Mr. GOSS. Mr. Speaker, this afternoon I 209, 253, 531–532, 708, 767, 783 and 1109 of fications committed to conference: had to depart early for a previously scheduled the Senate amendment, and modifica- Messrs. THOMAS, MCCRERY and RANGEL. meeting at the White House. As a result, I was tions committed to conference: Messrs. For consideration of the House bill not able to be present for rollcall votes 223 SENSENBRENNER, SMITH of Texas and and Senate amendment, and modifica- and 224. Had I been present, I would have CONYERS. tions committed to conference: Mr. voted ‘‘yea’’ on rollcall vote 223 and ‘‘nay’’ on From the Committee on Resources, DELAY. rollcall vote 224. I request that this statement for consideration of sections 401, 2441– There was no objection. appear at the appropriate place in the 2451, 6001–6234, and 6301–6801 of the f RECORD. House bill and sections 201, 265, 272, 301, The SPEAKER pro tempore (Mr. 401–407, 602–606, 609, 612, 705, 707, 712, 721, PROPOSING A TAX LIMITATION ISAKSON). Without objection, the Chair 1234, 1351–1352, 1704, and 1811 of the Sen- AMENDMENT TO THE CONSTITU- appoints the following conferees: ate amendment, and modifications TION OF THE UNITED STATES Messrs. YOUNG of Florida, REGULA, committed to conference: Mr. HANSEN, Mr. SESSIONS. Mr. Speaker, by the LEWIS of California, ROGERS of Ken- Mrs. CUBIN and Mr. RAHALL. direction of the Committee on Rules, I tucky, SKEEN, WOLF, KOLBE, CALLAHAN, Provided that Mr. GEORGE MILLER of call up House Resolution 439 and ask WALSH, TAYLOR of North Carolina, California is appointed in lieu of Mr. for its immediate consideration. HOBSON, ISTOOK, BONILLA, KNOLLEN- RAHALL for consideration of sections The Clerk read the resolution, as fol- BERG, OBEY, MURTHA, DICKS, SABO, 6501–6512 of the House bill, and modi- lows: HOYER, MOLLOHAN, Ms. KAPTUR, Mr. fications committed to conference. H. RES. 439 VISCLOSKY, Mrs. LOWEY, Mr. SERRANO, From the Committee on Science, for and Mr. OLVER. consideration of sections 125, 152, 305– Resolved, That upon the adoption of this There was no objection. 306, 801, Division B, Division E, and sec- resolution it shall be in order to consider in tion 6512 of the House bill and sections the House the joint resolution (H.J. Res. 96) f proposing a tax limitation amendment to the 501–507, 509, 513–516, 770–772, 807–809, 814– APPOINTMENT OF CONFEREES ON Constitution of the United States. The joint 816, 824, 832, 1001–1022, title XI, title resolution shall be considered as read for H.R. 4, SECURING AMERICA’S FU- XII, title XIII, title XIV, section 1502, TURE ENERGY ACT OF 2001 amendment. The previous question shall be 1504–1505, title XVI, and sections 1801– considered as ordered on the joint resolution The SPEAKER pro tempore. Without 1805 of the Senate amendment, and and any amendment thereto to final passage objection, the Chair appoints the fol- modifications committed to con- without intervening motion except: (1) two lowing conferees: ference: Messrs. BOEHLERT, BARTLETT hours of debate equally divided and con- trolled by the chairman and ranking minor- From the Committee on Energy and of Maryland and HALL of Texas. ity member of the Committee on the Judici- Commerce, for consideration of the Provided that Mr. COSTELLO is ap- House bill and the Senate amendment, ary; (2) an amendment in the nature of a sub- pointed in lieu of Mr. HALL of Texas for stitute printed in the Congressional Record and modifications committed to con- consideration of Division E of the pursuant to clause 8 of rule XVIII, if offered ference: Messrs. TAUZIN, BILIRAKIS, House bill, and modifications com- by the Minority Leader or his designee, BARTON of Texas, UPTON, STEARNS, mitted to conference. which shall be considered as read and shall GILLMOR, BURR of North Carolina, DIN- Provided that Ms. WOOLSEY is ap- be separately debatable for one hour equally GELL, WAXMAN, MARKEY, BOUCHER, pointed in lieu of Mr. HALL of Texas for divided and controlled by the proponent and GORDON and RUSH. consideration of sections 2001–2178 and an opponent; and (3) one motion to recommit From the Committee on Agriculture, 2201–2261 of Division B of the House with or without instructions. for consideration of section 401 of the bill, and modifications committed to The SPEAKER pro tempore. The gen- House bill and sections 265, 301, 604, 941– conference. tleman from Texas (Mr. SESSIONS) is 948, 950, 1103, 1221, 1311–1313 and 2008 of From the Committee on Transpor- recognized for 1 hour. the Senate amendment, and modifica- tation and Infrastructure, for consider- Mr. SESSIONS. Mr. Speaker, for the tions committed to conference: Messrs. ation of sections 121–126, 151, 152, 401, purposes of debate only, I yield the cus- COMBEST, LUCAS of Oklahoma and 701, 2101–2105, 2141–2144, 6104, 6507, and tomary 30 minutes to the gentleman STENHOLM. 6509 of the House bill and sections 102, from Texas (Mr. FROST), pending which From the Committee on Armed Serv- 201, 205, 301, 701–783, 812, 814, 816, 823, I yield myself such time as I may con- ices, for consideration of sections 401 911–916, 918–920, 949, 1214, 1261–1262, and sume. During consideration of this res- and 6305 of the House bill and sections 1351–1352 of the Senate amendment, and olution, all time is yielded for purposes 301, 501–507, 509, 513, 809, 821, 914, 920, modifications committed to con- of debate only. 1401, 1407–1409, 1411, 1801, and 1803 of the ference: Messrs. YOUNG of Alaska, Mr. Speaker, House Resolution 439 Senate amendment, and modifications PETRI and OBERSTAR. provides for the consideration of H.J. committed to conference: Messrs. Provided that Mr. COSTELLO is ap- Res. 96, proposing an amendment to STUMP, WELDON of Pennsylvania and pointed in lieu of Mr. OBERSTAR for the Constitution of the United States SKELTON. consideration of sections 121–126 of the with respect to tax limitation. From the Committee on the Budget, House bill and sections 911–916 and 918– The rule provides for 2 hours of de- for consideration of section 1013 of the 919 of the Senate amendment, and bate in the House, equally divided and Senate amendment, and modifications modifications committed to con- controlled by the chairman and rank- committed to conference: Messrs. ference. ing minority member of the Committee NUSSLE, GUTKNECHT and MOORE. Provided that Mr. BORSKI is ap- on the Judiciary. The rule provides for From the Committee on Education pointed in lieu of Mr. OBERSTAR, for one amendment in the nature of a sub- and the Workforce, for consideration of consideration of sections 151, 2101–2105, stitute printed in the CONGRESSIONAL section 134 of the House bill and sec- and 2141–2144 of the House bill and sec- RECORD, if offered by the minority tions 715, 774, 901, 903, 1505 and 1507 of tions 812, 814 and 816 of the Senate leader or his designee, which shall be the Senate amendment, and modifica- amendment, and modifications com- considered as read and shall be sepa- tions committed to conference: Messrs. mitted to conference. rately debatable for 1 hour, equally di- MCKEON, NORWOOD, and GEORGE MIL- Provided that Mr. DEFAZIO is ap- vided and controlled by the proponent LER of California. pointed in lieu of Mr. OBERSTAR for and opponent. June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3473 b 1800 The Tax Limitation Amendment pushing for months, and called on Con- Finally, the rule provides for one mo- would allow Congress to raise taxes in gress to get to work creating an en- tion to recommit with or without in- those circumstances; but in the mean- tirely new structure. It is a huge job, structions. time, it would prevent the intrusive one that raises a lot of questions and Mr. Speaker, today the average and penalizing tax increases that have will take a lot of work. American pays more in taxes than for been enacted with recklessness to fund Meanwhile, prescription drug prices food, clothing, shelter, or transpor- government expansion for the last few are still sky high nearly 2 years after tation combined. For too long, the tax decades. many Republicans got elected prom- burden imposed by the government has It is time the Federal Government ising to do something about it; and been going up, not down. joined the States and listened to the still there is no credible Republican The Tax Limitation Amendment voices of Americans: it should be hard- plan to help senior citizens who cannot starts from this very simple premise: it er to raise taxes. Had this amendment afford their pharmaceutical bills. should be harder, not easier for the been adopted sooner, the four largest There is no question that the House government to raise taxes. Raising tax increases since 1980, which occurred has a tremendous amount of important taxes should be an absolute last resort, in 1982, 1983, 1990, and 1993, all would work left to do this year, including all not an easy, quick fix for excessive have failed. The tax increase in 1993 13 appropriations bills, none of which government spending. was the largest tax increase in Amer- has been considered yet. I have observed with great interest ican history, and it passed by just one Instead of addressing these and other the spirited debate surrounding our ef- vote. These tax increases today from important issues this week, Republican forts to make portions of our Presi- 1993 total $666 billion, taken from the leaders are once again wasting the dent’s tax cuts permanent. Last week, American taxpayer. House’s time on a gimmick they call the House passed a bill that would per- The bottom line of this debate, Mr. the Tax Limitation Constitutional manently repeal the death tax. In the Speaker, and let us make no mistake Amendment. We know it is a waste of same manner, the House will later this about it. Those Members who support time because, as I mentioned before, it week consider a bill that makes perma- this amendment are here to support has failed each of the previous six times the Republicans brought it to nent relief from the marriage penalty the hard-working taxpayers of Amer- the floor: in 1996, in 1997, in 1998, in tax. ica. Those Members who are opposed to 1999, in 2000, and in 2001. And we know Throughout these debates, it is ap- it are here to defend the tax collectors it is irresponsible because of what it parent that there are those who would of America. To me, it is really just support repealing parts, if not all, of does. that simple. For instance, this amendment would this historic tax bill. These individuals The Tax Limitation Amendment also would prefer that married couples be make it nearly impossible to close any allows for a simple majority vote to of the countless loopholes that shame- penalized for entering into holy matri- eliminate tax loopholes. The de mini- mony. They feel that the Grim Reaper less tax dodgers use to avoid paying mis exemption would allow nearly all their fair share. For example, right and the tax collector should visit loopholes to be closed without the American families and farmers on the now the gentleman from Massachusetts supermajority requirement. (Mr. NEAL) and the gentleman from same day. They believe that the Fed- Mr. Speaker, we will also hear that eral Government makes better deci- Connecticut (Mr. MALONEY) are trying the government will be unable to func- to close the loophole that allows big sions than families about how best to tion if a supermajority is required. We spend their hard-earned money. corporations to flee overseas to avoid all hear this as Members, but I encour- This line of reasoning is inconsistent their tax obligations. This amendment age Members to look at the States. with the fact that people all across this would make it even harder to stop Nation overwhelmingly support tax re- Thirteen States have some sort of these tax evaders, which is probably duction. I only wish that both bodies of supermajority limitation in effect. what Republican leaders want anyway. The millions of Americans living in Congress would reflect the sentiment After all, they have repeatedly blocked these States have enjoyed slower clearly expressed by the American peo- the Neal-Maloney bill in the Com- ple. The people of this great Nation growth in taxes, slower growth in gov- mittee on Rules. will not be fooled by those who would ernment spending, faster growth in If that were not bad enough, this support a tax cut during an election economies, and lower unemployment amendment would do serious harm to season, only to work to repeal it the rates. America’s democratic system. The very next session of Congress. Today we can take one step closer to Founding Fathers designed our govern- Many Members have stood on this retaining liberty and ensuring future ment around the principle of majority floor of this distinguished House extol- generations the freedom our Founding rule. Writing in ‘‘The Federalist Pa- ling the virtues of lower taxation. Fathers intended America to enjoy. pers,’’ James Madison wisely argued Today they will have the opportunity This debate is about requiring a two- against supermajorities like the one to show their constituents exactly thirds vote to raise taxes, and it boils Republicans are advocating today, where they stand. down to a debate about liberty and stating that, ‘‘The fundamental prin- The annual floor consideration of the freedom for the American people. ciple of free government would be re- Tax Limitation Amendment gives us Mr. Speaker, I reserve the balance of versed. It would be no longer the ma- an opportunity to take a stand on the my time. jority that would rule: the power would side of the American taxpayer. By en- Mr. FROST. Mr. Speaker, I yield my- be transferred to the minority.’’ acting the Tax Limitation Amend- self such time as I may consume. Make no mistake, this is exactly ment, we protect the taxpayer and Mr. Speaker, this is the seventh time what this constitutional amendment pledge that we as a Congress will focus in 7 years that the House has consid- would do. It would allow a relatively inward on cutting waste, fraud and ered this same constitutional amend- small minority, one-third plus one, to abuse instead of immediately raiding ment. We appear to have some slower stop widely supported, meaningful leg- the pockets of American taxpayers. learners on the other side of the aisle. islation. By requiring a supermajority to raise This is an amendment that would re- Mr. Speaker, right now we are in a taxes, an incentive for government quire a two-thirds majority to pass any global war to protect the American agencies would be created to eliminate provision that raises revenue for the way of life, and Republican leaders are waste and create efficiency, rather government. The House has rejected it trying to undermine our democratic than simply turning to more deficit six times before, and I hope today will system of majority rule here in the spending or increasing taxes. mark its seventh consecutive failure. House of Representatives. I urge my Mr. Speaker, this legislation does Before we get into a debate Members colleagues to defeat this misguided recognize and make allowances for have heard before, I want to begin by constitutional amendment and pre- times of extenuating circumstances putting it in context. Late last week serve majority rule in the United such as during a time of war, a na- the President finally agreed to make States of America and allow the House tional emergency, or when taxes may homeland security a Cabinet-level pri- to get on with the real business before need to be raised. ority, something Democrats have been it. H3474 CONGRESSIONAL RECORD — HOUSE June 12, 2002 Mr. Speaker, I reserve the balance of since the 1970s, the Department of basis that requires a supermajority. my time. Homeland Security. The day it opens, Everything is done by majority vote in Mr. SESSIONS. Mr. Speaker, I yield it will be the third largest Cabinet the House of Representatives. True, in myself such time as I may consume. agency in the executive branch, $39 bil- the United States Senate there are Mr. Speaker, there has been a lot lion as the President has outlined it. some limited chances to use a super- said about how we are doing this for Now, there are those of us on this majority. Ratification of treaties, a the seventh time. I understand that the side of the aisle who see the President very limited exception. But everything gentleman from Texas is simply op- as calling for us to reorganize the gov- that comes before the people’s House posed to the concept of making it more ernment. But one can infer from the requires a majority, not a super- difficult to raise taxes. That is what implications of the gentleman from majority. this is all about. The gentleman has Texas (Mr. FROST) that there may well Why do they fear the will of the ma- stated his point very clearly. I would be an intention to grow government in jority? It is very difficult to under- also like to point out that it was con- the wake of this national emergency, stand. Once again, I would point out servatives and Republicans in this as has been the practice that history this has been defeated six times. They House who made sure that the idea of a teaches in the wake of many crises in are very slow learners, indeed. balanced budget was talked about for our Nation. Mr. Speaker, I yield 4 minutes to the many, many, many years, and tried It is precisely at a time like this gentleman from Texas (Mr. DOGGETT). many different ways. We did not grow when America is reeling from a na- Mr. DOGGETT. Mr. Speaker, I thank weary. We knew it was the right thing tional emergency and preparing to the gentleman for yielding me this to do; and despite the onslaught of grow the executive branch, when this time. If you think that our current Tax Members voting against it, we kept Congress is preparing to respond to the Code is just right, that it is fair, that going. I am sure we did it more than needs of hurting seniors, that there it is equitable to everyone, including seven times, but the American people needs to be a break on the system, Mr. the most powerful corporations in this understood what it meant. Speaker. A break on the system that country, that all are being treated fair- I did not know this until today, Mr. says that we demand what the Amer- ly and are paying their fair share, and Speaker, but the 27th amendment to ican people demand, and that is that that there are not any lobbyists here in the Constitution was proposed on Sep- we go to our pocketbooks first, that we Washington that manage to get special tember 25, 1789. It was declared to have tighten our belts in this institution be- loopholes written into the Tax Code so been ratified by the legislatures of 39 of fore we go to the American people. Tax that they can shift the cost of our na- 50 States dated May 18, 1992. What was increases must be a last resort, and a tional security to you instead of pay- this? This was known as the Madison supermajority is designed to make it ing their fair share, then the proposal amendment. This was the Madison be just that. that is up tonight is just right for you. amendment to the Constitution, which The purpose of this proposal is not tax b 1815 I think made sense, and I am sure it relief, but to freeze, with constitu- took a long time, as we have heard. Does that, as the gentleman sug- tional protection, all of the various And what that was all about was to say gests, undermine our democratic sys- loopholes and preferences and backdoor Members of Congress could not get a tem? If that is the case, then our rules arrangements that plague our tax sys- pay raise during the term in which for a supermajority about amending tem. The provisions that make our Tax they are serving. They have to wait an- the Constitution apparently under- Code more complex and more inequi- other term. mines our democratic system. Or the table so that some are not paying their Our Constitution is a wonderful docu- requirement of a supermajority to im- fair share and those folks that are out ment, but occasionally we run into peach a President undermines our sys- there working hard for a living, work- some things that need to be perfected. tem. Or ratifying international treaties ing with small businesses and farms We are about a perfecting amendment by a supermajority. The practice is a and ranches around this country, they today, and I am proud of what we are part of our democratic system and it is are having sometimes to pay more doing. a much needful part as these days of than their fair share to make up for Mr. Speaker, I yield 4 minutes to the emergency beckon us perhaps to an era those who escape through the loop- gentleman from Indiana (Mr. PENCE), a of larger government beyond what our holes. member of the Committee on the Judi- children could possibly imagine. And so what do we have here? We ciary. States that have passed tax limita- have a provision that if we attempt to Mr. PENCE. Mr. Speaker, I thank the tion amendments, those laboratories of close one of those loopholes, that it gentleman for his outstanding leader- democracy, Mr. Speaker, they ought to will take not a majority, it will take ship on the Tax Limitation Amend- be teachers to us today. The States two-thirds of this House. If we could ment. that have passed amendments like the easily get a majority to clean up all Mr. Speaker, I am new to this insti- TLA have shown greater economic the special interest provisions in this tution; but with regard to the notion growth, better job creation and have Tax Code, it would have been done a that taxes are not yet high enough, it raised taxes less than half the time long time ago. But Republicans are not is going to be ever my ambition, than States without tax limitation satisfied to have a mere majority re- whether I serve here for 5 more years, amendments. Chief Justice John Mar- quired. They insist on requiring two- 5 more days, or 5 more decades, to al- shall said in the landmark McCulloch thirds of this body having the courage ways be a slow learner on that issue. v. Maryland Supreme Court case, ‘‘The to stand up to the special interests The truth is that the people of Indi- power to tax involves the power to de- that riddle our Tax Code with all these ana that I represent overwhelmingly stroy.’’ special preferences. That will never believe two things: taxes are too high, The American people believe in their happen. and government spends too much. I be- hearts, an overwhelming majority, in So many of our Republican col- lieve that the argument for the Tax that simple principle, if you owe taxes, leagues are a little like Will Rogers: Limitation Constitutional Amendment pay taxes, but they only want this Con- they have never met a tax loophole is drawn from the remarks of the gen- gress to ask them to pay more taxes as that they did not like. And so what we tleman from Texas (Mr. FROST). He al- an absolute last resort. That is a last really have is a measure here that luded to two issues that Congress will resort accommodated by the tax limi- ought to be called the ‘‘tax loophole take up this year, one of which is al- tation constitutional amendment. preservation’’ amendment, because ready accounted for in the budget that Mr. FROST. Mr. Speaker, I yield my- that is exactly what it is. we adopted, a prescription drug benefit self 1 minute. Mr. Speaker, it is hard to My good friend from Texas (Mr. SES- for which there is a Republican plan understand why the Members on the SIONS) says, not to worry, we have a that will be brought to this floor this other side of the aisle are so antago- ‘‘de minimis’’ provision in this amend- month. But also the gentleman alluded nistic to democracy. There is not a sin- ment that will permit repeal of tax to the President’s call for the estab- gle matter that comes before this loopholes and preferences. But the ‘‘de lishment of the first Cabinet agency House of Representatives on a regular minimis’’ provision is one of the most June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3475 defective features of this entirely de- So all I am saying is that if the gen- what we need today that we are enjoy- fective amendment. No one knows tleman from Texas really wants to be ing the benefits of. what ‘‘de minimis’’ really means. The generous with the taxpayers because of One could argue from now until king- tax loophole problem, the abusive cor- his very sincere opposition to loop- dom come. The gentleman from Texas porate tax shelter problem, is not holes, tell us where you would lower (Mr. STENHOLM) was the father of the minor, not de minimis. Some have esti- taxes and then you would get a major- balanced budget amendment. He mated the cost is as much as $10 billion ity vote. worked on it for 14 years, I guess, be- a year. I think that is pretty signifi- Mr. FROST. Mr. Speaker, I yield my- fore we got it up, and it was good and cant. self 30 seconds. I have been sitting over we passed it. Unfortunately, we have The gentleman from Massachusetts here trying to figure out why are these not been able to live up to it, but it is (Mr. NEAL) will speak shortly. Some of people so antagonistic to majority rule not because we are unwilling to do so, us share his concern with Stanley and it finally occurred to me. They are in many instances. It is because it is Works or, as one of my friends in Aus- worried that they are not going to be tough. It is tough to raise the money to tin says, they really ought to be called in the majority after this election and spend $1 million a copy on a cruise mis- Stanley Flees. That corporation and they are going to be in the minority, sile, to build the aircraft carriers we others, we have gotten to a point with and so they want minorities to be able need, to do the things we need in this abusive tax shelters that is so bad that to have a veto power over the will of country. That is not easy to do. But it they have the audacity to flee this the majority. It is very interesting. is our responsibility to do it. Instead, country, get a mailbox in someplace Mr. Speaker, I yield 5 minutes to the we shift it to the next generation by like Bermuda, misuse our tax treaties gentleman from Tennessee (Mr. TAN- saying, well, no, we are not going to and set up a new Bermuda Triangle out NER). raise taxes. As the gentleman said, we to the Barbados. Refusing to pay their (Mr. TANNER asked and was given are not going to stick it to the Amer- fair share of taxes, they shift burden to permission to revise and extend his re- ican public today, to us. We are going people in this country that are willing marks.) to stick it to the kids. Kids are people, to make a sacrifice after September 11, Mr. TANNER. Mr. Speaker, I went too, and the people that are going to that feel we have some responsibility before the Committee on Rules last pay the bills for what we have been to work together as a country and pay night and asked that rather than con- doing are not here. They do not have a our fair share. We will be freezing into sider a constitutional amendment, voice. law those special provisions if this which I do not favor normally, to re- It is hard to raise taxes. Nobody amendment were adopted. strict the raising of revenue, I thought comes here saying, ‘‘I want to raise And, of course, there is the fiscal re- it would be much better and more hon- taxes. Send me to Washington.’’ It is sponsibility concern. That is why a est and forthright if we changed re- easy to say, I want to cut taxes. But group like the bipartisan, nonpartisan stricting the ability of the Congress to yet I want to build the strongest mili- Concord Coalition has come out so raise revenue to restrict it from bor- strongly today against this proposal, tary in the history of the world. But we rowing money. are not going to ask you to pay any- noting that it ‘‘defies all notions of fis- We owe $6 trillion collectively, every cal responsibility.’’ This is a group thing for it. We are going to borrow the man, woman and child in this country, money and send it to the next genera- that has worked so hard to get us a bal- and we see that today as was the case anced budget and now sees balances so tion. yesterday, we continue to see the The President sent us a budget down quickly eluding us in a sea of red ink. amount of borrowing go up. The prob- This amendment would only make our here that does not balance without lem is excessive spending and unbal- using Social Security money for 10 budget situation worse. anced budgets because Congress in the Everyone who wants to see our tax years, for the next decade, and nobody past has not had the will to either cut system improved, who wants to see has raised a voice to say, look, we owe services to come in line with the exist- more equity and fewer accountants $6 trillion. We are paying $1 billion a ing revenue or to raise revenue to pay necessary to file a tax return on April day in interest. You talk about taxes. 15, less complexity and more simplicity for the services that they deem to be in If you want to make sure that all of us in our system, all of us who want real the public interest at that particular are overtaxed the rest of our lives, con- change, need to vote against this time. tinue to borrow money and continue to The most insidious tax increase in amendment. pay $1 billion a day in interest and Mr. SESSIONS. Mr. Speaker, I yield 2 the world is for us to continue to bor- leave that to your children to pay. Just minutes to the gentleman from Wis- row money, because that requires us to like we say we do not want to leave consin (Mr. SENSENBRENNER), the chair- pay interest. I hope every young person them a country where the air is so bad man of the Committee on the Judici- is listening to this, because what we one has to wear a mask to ride a bicy- ary. are doing is saddling your generation cle, and the water is so foul that fish Mr. SENSENBRENNER. Mr. Speak- with debt that we are unwilling to cannot live in it and kids cannot swim er, once again the gentleman from raise the money to pay for the services in it, I do not want to leave them a Texas (Mr. DOGGETT) is wrong. Had he that we think we require today. That is country that is so burdened with debt read the amendment that is being pro- what is going on. It has been going on, that they are going to be paying over posed, revenue-neutral legislation and this will do nothing to stop that. $1 billion a day in interest on the con- which raise taxes here and lower taxes In fact, this will make it worse. Be- sumption we had while we were in there in an equal amount do not re- cause if we have to do some things that charge and either would not pay for or quire a two-thirds vote. They can be were unforeseen last year when some of did not have the fortitude to cut the passed by a majority vote. So if the us voted for the tax bill when we did programs that we did not think were gentleman from Texas wanted to close not know about 9/11 and if we have to necessary. all of these loopholes that he was talk- do some things to spend money to pro- This is an ill-conceived constitu- ing about, maybe including some that tect the citizens of this country, the tional amendment. If you are really se- benefit the oil industry, then perhaps passage of this will restrict that ability rious about a constitutional amend- enough money could be raised to repeal to do so, number one. And, number ment, put one in that says it takes a the marriage tax penalty or to provide two, what we are really doing is engag- supermajority to borrow money. Then further relief on the death tax to small ing in the politics of shifting responsi- we will get down to the brass tacks of business owners and farmers. As long bility, not accepting it. We are shifting why we are here. as he wants to give a tax break for the to the Constitution something that it Mr. SESSIONS. Mr. Speaker, I yield money that he raises on closing the was not intended to do. But beyond myself such time as I may consume. loopholes, then it is a majority. But if that, I just feel so strongly that what I appreciate the gentleman from Ten- he wants to stick the American public we are doing is so wrong to the next nessee and his comments. You raise with a tax increase and not give a tax generation by continuing to borrow taxes, you increase spending. We know break, then it requires a two-thirds money because we do not have the will- there are two sides to this equation. vote. power to raise the money to pay for What the gentleman talked about that H3476 CONGRESSIONAL RECORD — HOUSE June 12, 2002 he offered in the Committee on Rules passed a temporary income tax bill. years, because it is very difficult to make a bill last night was to balance the budget The tax burden on the average tax- be exactly revenue neutral in all the relevant and not borrow any more money. But payer has gone up 4,000 percent since time periods. Since bills which are a net rev- we have also got to make it more dif- 1914; 4,000 percent. enue loss are subject to complicated budget ficult to raise taxes. The fact of the Those of us that support this amend- process rules, the Tax Limitation Amendment matter is the last tax increase we had ment say it is now about time to give allows these and other small increases to in 1993 that was retroactive, that the taxpayers a break, to require a pass with a simple majority. reached back, the bottom line is they supermajority two-thirds vote to raise Opponents of the Tax Limitation Amend- increased taxes to pay for more spend- taxes. ment argue that we are trying to protect tax ing. That is what they did with it. Mr. Speaker, the Tax Limitation Amendment loopholes; however, the truth is that the de They spent the money that they taxed has 150 cosponsors and is supported by over minimis exemption would allow nearly all loop- on the American people. That is what three dozen pro-taxpayer, pro-growth, and holes to be closed without the super majority the party did, and that is why we be- small business organizations. requirement. Most loophole closing would not lieve it ought to be more difficult to do I am proud to be an original cosponsor of produce enough revenue to surpass the ‘‘de that. H.J. Res. 96, the Tax Limitation Amendment, minimis’’ test, and, therefore, could be passed Mr. Speaker, I yield 2 minutes to the which would require a two-thirds supermajority with the current simple majority. Only the com- gentleman from Texas (Mr. BARTON) requirement for net tax increases. I have long bining of several major loopholes would ex- who is really the father of this fabulous been a firm proponent of tax limitation since ceed the ‘‘de minimis’’ amount and require the tax limitation amendment, a gen- my arrival in Congress in 1985. The American two-thirds vote. tleman who carried not only the ideas Taxpayers deserve the right to know that Experience in the states proves tax limita- but also the legislation, a fabulous Members of congress will not spend their tion works. The millions of Americans living in friend of Texas and a fabulous friend of money needlessly or without a strong con- states who have tax limitation in their state the taxpayer. sensus. One vote is simply not enough. constitutions know they are better off. These (Mr. BARTON of Texas asked and I strongly believe it must be more difficult for people have slower growth in taxes, slower was given permission to revise and ex- Congress to raise taxes. That is the primary growth in spending, faster growing economics, tend his remarks and include extra- purpose behind this amendment. In fact, taxes and more shrinking unemployment rate. neous material.) are higher now than they have ever been and Taxpayers would enjoy the same type of federal revenues are growing at an alarming benefits and protection on their Federal re- b 1830 rate. Individual income taxes are higher now turns if the Tax Limitation Amendment is Mr. BARTON of Texas. Mr. Speaker, than ever before. By raising the bar on tax in- adopted on a national scale. With super- I thank the gentleman for yielding me creases, we place the focus where it should majority requirements for tax increases, Amer- time. be—on cutting wasteful spending. ican taxpayers would see fewer and smaller Mr. Speaker, it is ironic that my There has long been in our political system growth in taxes and spending, and a stronger good friend the gentleman from Texas a bias toward raising taxes. Spending benefits economy and employment base. (Mr. FROST) from the 24th District was are targeted at specific groups. These special In fact, the American taxpayers would be talking about being afraid of the ma- interests successfully lobby Congress and the taxed billions of dollars less if tax limitation jority. This bill has passed with ma- President for more spending. Taxes, on the had been in effect during the last five major jorities every time it has come to the other hand, are spread among millions of peo- tax increases. Four of those five bills passed floor. My guess is later this evening ple. Taxpayers usually cannot come together with less than a two-thirds supermajority. The when we vote on it, we are going to get as effectively as a special interest group with 1993 tax increase, the largest in history, over 200 Republicans to vote for it and a specific appropriation to defend. As Con- passed by one vote. In order to achieve a somewhere between 30 and 40 Demo- gress seeks fiscal responsibility and spending supermajority, that tax increase would have crats. I wish we could get 90 Democrats remains high, the built-in pressure forces Con- had to be much lower to even have a chance and actually get the two-thirds vote, gress towards more taxes. The supermajority of passing. but because the Constitution says you provision balances this pressure. Any tax increase that passes with a two- have to have a supermajority to pass a The Tax Limitation Amendment will provide thirds vote in each chamber of Congress will tax increase, we have not been able to flexibility to Members who want to honestly have greater support among the American reach that hurdle. adjust the tax code without raising taxes. The people than an increase that is passed by the I am okay with requiring a two- language of the Amendment subjects net tax slimmest of margins. Such a consensus thirds vote to pass a constitutional increases to the supermajority requirement. should be required from both Congress and amendment, because you need con- Any bill that would increase some taxes, but the American people before we start increas- sensus in the country. As long as two- also reduce others by a larger amount, could ing tax bills again. That is why I am here—to thirds of the House Democrats oppose still pass with a simple majority. Also, any fun- make future tax increases more difficult. this, it is not going to pass, even if we damental tax reform which would have the April 15 has become known in this country get 80 or 90 percent of the House Re- overall effect of lower taxes could still pass not for the warm weather that usually accom- publicans. So the Constitution says to with a simple majority. The Tax Limitation panies it, but for the ‘‘Tax Man’’ who on this do important things you have got to Amendment will keep the current tax code day reaches into the pockets of the American show that you have got a super-con- from getting much worse and will lock into taxpayer to take too much of their hard earned sensus. place any new system which may replace it. money. Americans are frustrated with the size I also think that it is ironic that in The amendment does not require a two- of their individual tax bills and the effect that the other body, which is controlled by thirds vote for every tax increase in any bill. the collective tax burden has on the economy, the Democrats right now, it takes a Individual provisions of bills which increase in- their businesses, and their lives. The Amer- supermajority to bring a bill to the ternal revenues are not along subject to the ican people want to know that Congress is try- floor. My good friend from the Com- two-thirds requirements. Any entire bill which ing to help them. Making future tax increases mittee on Rules knows this. If 41 Sen- overall would increase the internal revenues more difficult is the perfect response. It is time ators do not want a bill to come to the beyond the de minimis amount is subject to to stand up for the American Taxpayer. It is floor in the other body, it will not the two-thirds requirement. As a result, Con- time to pass the Tax Limitation Amendment. come to the floor. It takes a super- gress could pass by a simple majority a bill Mr. FROST. Mr. Speaker, I yield 3 majority in the other body to invoke which does have provisions increasing the in- minutes to the gentleman from Massa- cloture. I think it should take a super- ternal revenue, yet on the whole does not chusetts (Mr. NEAL). majority to raise taxes on the Amer- have an increase beyond the de minimis (Mr. NEAL of Massachusetts asked ican people. amount. and was given permission to revise and The Constitution as it was originally The Tax Limitation Amendment is intended extend his remarks.) adopted had an absolute prohibition to make major tax increases more difficult. It Mr. NEAL of Massachusetts. Mr. against income taxes, an absolute pro- is not intended to stop all tax legislation. Most Speaker, for the seventh time since Re- hibition. In 1913 the Supreme Court legislation making corrections or small publicans assumed the helm of this in- said income taxes are constitutional. changes to the tax code are structured to be stitution, we are taking up a constitu- In 1914 President Woodrow Wilson slightly revenue positive, at least in some tional amendment on tax increases. If I June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3477 said it once, I have said it 10 times, or is it they will not give us a vote here you one example. In 1998, we said we at least seven times; this is the wrong on those companies that are running promised a balanced budget in 2002 amendment. Why do we not channel off to Bermuda in this aura of patriot- based on a prediction of revenues that our energies into simply balancing the ism that the American people are expe- have ended up this year, even with the budget? That is the responsible posi- riencing because they do not want to tax cut, $120 billion more than we pro- tion to take. Do you know what? We pay their share? jected in 1998. So our revenues are could pass a balanced budget here with- Will Rogers did say it right. He said higher than we projected. We are still out any difficulty whatsoever. The this country has come to feel the same in deficit spending, and that is because country would be better off. when Congress is in session as when a we have dramatically increased spend- Let us talk about the ‘‘gimmickry of baby gets hold of a sledge hammer. Op- ing, even over and above what the war the week’’ that we witness here time pose this dangerous gimmick. on terrorism has cost us. and again. Remember not long ago Mr. SESSIONS. Mr. Speaker, I yield 4 Let me just conclude by saying our when we had a balanced budget amend- minutes to the gentleman from Michi- founders created a system where taxes ment to the Constitution that they gan (Mr. SMITH). are the price for government benefits were all hollering about on the other Mr. SMITH of Michigan. Mr. Speak- and services. The idea is that voters side? Well, it strikes me as being odd er, I thank the gentleman from Texas would restrain the growth and expan- that we were able to balance the budg- for yielding me time. sion of government because of the per- Mr. Speaker, I think the question is, et without disturbing the Constitution. sonal costs to themselves in taxes. Why we are back to deficit spending when are taxes too high? We have a If we are going to keep the motiva- in large measure is because of the tax system in the United States that has tion that made our system great in cut. That is why we are here today. made us successful, I think, based on this free enterprise system, then there The President has proposed $48 billion the fact that those that work hard, has to be a supper-effort on the part of that save, that learn, that try, that in- more for defense. He is going to get this Congress and presidents of the vest, end up better off than those that much of what he wants. He has pro- United States to restrain the growth in do not. So when, at what point, are posed $38 billion for homeland security. borrowing and restrain the growth in taxes so high that it loses some of the He certainly is going to get much of taxes. free enterprise motivation that has what he wants. In this institution our Mr. FROST. Mr. Speaker, I yield 5 made us so successful in this country? minutes to the gentlewoman from response is, ‘‘Let us cut taxes, the es- We are now faced with a dilemma. Texas (Ms. JACKSON-LEE). tate tax. Let us move to an artificial How can any free nation survive when (Ms. JACKSON-LEE of Texas asked gimmick on raising taxes in this insti- a majority of its citizens now depend- and was given permission to revise and tution.’’ ent on government services for so Well, let us say very easily today extend her remarks.) much no longer have the incentive to Ms. JACKSON-LEE of Texas. Mr. that perhaps the Director of the Budg- restrain the growth in government and Speaker, I thank the gentleman for et had it right. He now says, a presi- the growth in taxes? Today the major- yielding me time. dential employee, by the way, that ity of Americans can vote themselves Mr. Speaker, with the greatest moving the government back into bal- more generous government benefits at amount of humility and a desire to be ance by 2005 ‘‘is very iffy. We know little or no cost to themselves, and, as genteel in this very gentle place, I what the models that we have been a result, they have little incentive to would offer to say to you, Mr. Speaker, using are telling us, but they are very restrain the growth in taxes. obsolete.’’ So I think the question one has to that I am disappointed and saddened What a difference a year makes, Mr. ask is, somehow we have to somehow, that my colleagues and friends would Speaker. It seems the much-touted $1 someplace, come to grips with, at what cause us to engage in a frivolous dis- trillion tax cut that was based on glow- point do we lose that motivation that cussion, almost a hoax on the Amer- ing predictions about endless govern- has made us great in the first place, ican people. ment surpluses now apparently has and, with our redistribution of wealth, This debate is irrelevant and unnec- vanished, while the House leadership discourage the kind of effort of so essary. Let me share with you the rea- and the President’s Budget Director many people that are trying to work a son why. First of all, as many of my wobble on the burden of controlling little harder and learn a little more colleagues have already said, this spending. and save a little more and invest a lit- amendment has been brought to the I am going to suggest tonight a great tle more? floor some six times and defeated. A opportunity: Have every Member who Listen to this: 50 percent of Ameri- constitutional amendment requires ap- submits a request to the Committee on cans now pay less than 4 percent of the proval by two-thirds of both Houses Appropriations publish the letter. Let total individual income taxes, while and three-quarters of the State legisla- us have the Committee on Appropria- the top 5 percent pay most of the indi- tures of the United States of America. tions publish the letters. Let us find vidual income taxes. At the same time, In the very legislation that is written, out who asks for the most money in the folks who are paying the least for it provides a waiver. The waiver ac- spending, put it in front of the public government are receiving the most knowledges that when there is a dec- for an opportunity to examine it, and benefits. Americans who receive nearly laration of war in effect, the Congress then let us have the debate about half of the Federal benefits pay only 1 may waive this article. spending. percent of the income taxes. Many of Now, whether or not there has been a The same people that march to the those beneficiaries are poor, but an in- specific declaration of war, the Presi- well hollering about taxes all the time, creasing amount are middle class and dent has repeatedly said this Nation is they load up the requests of the appro- wealthier citizens. at war. Having just come back from Af- priators. They are the ones that help to So what is the restraint, when most ghanistan, I can tell the Nation that drive spending. They make the de- of the population is going to benefit we are spending $1 billion a month mands on the appropriators. Let us from higher taxes? It seems to me part fighting terrorism in Afghanistan. And publish those letters, and not put the of that restraint that we should con- yet my friends want to bring a frivo- appropriators on the spot the way we sider to keep the motivation that has lous amendment to the floor talking do here time and again. made us great in the first place is hav- about a two-thirds amendment dealing This type of amendment is not only ing a supermajority to increase taxes. with increase to the revenue. futile, it is dangerous. If this amend- The gentleman from Texas earlier Let me tell you what the Founding ment were to pass and get enacted, it said, let us have a supermajority for in- Fathers thought about that when they would make legislation such as legisla- creasing the debt limit. I agree on that, gathered some 200 years-plus ago, ex- tion I proposed on those companies too. Let us not hoodwink the American cited about a new Nation, excited that are running off to Bermuda much people with increasing the debt so that about democracy, excited about a Con- harder to pass. A Member said not long we can spend more money. stitution that would reflect a democ- ago that the American people do not It is not the tax cut that has resulted racy. James Madison argued that under object to paying their taxes fairly. Why in this deficit spending. Let me give the supermajority requirement, the H3478 CONGRESSIONAL RECORD — HOUSE June 12, 2002 fundamental principles of free govern- amendment, there is some language carrying debts. So in Arizona, the de- ment would be reversed. It would no that says that there is an exemption, a bate has been this year on how are we longer be the majority that would rule. waiver; that if this increase to the In- going to bring spending in line with The power would be transferred to the ternal Revenue system or stream of revenue. That is a debate that we minority. money is de minimis, then it is okay. ought to have every year in the Fed- That is what my friends are asking b 1845 eral Government, because we run defi- us, to in fact give a one-third minority cits. We can do that here; we should the right to control the whims, the de- Well, I know when we are sitting not be able to. That is why we need a sires and the needs of the American around as families around the kitchen balanced budget amendment as well. people. table, there is a question about what is But until we have one, we ought to Just a year ago this Nation had $5.6 de minimis. What is de minimis? Will make it more difficult to raise taxes. trillion in surplus. Now, with an enor- we be in a protractive, legal litigation In Arizona, it has forced a debate that mous, unnecessary tax cut, fostered in Federal courts trying to understand is healthy. There they have decided we and run through by the Republicans, what is de minimis to protect Social are going to cut spending in this area we have almost zero. Out of that zero Security, de minimis to protect the and this area. There have been a few we must pay for the war against ter- Medicare system, de minimis to fight gimmicks, yes; but in large measure, rorism, we must provide protection to the war in Afghanistan, de minimis to they have actually done what we ought the people of the United States as it re- be able to secure our borders, de mini- to be doing here. We ought to cut frivo- lates to homeland security. We must mis to be able to pay our military per- lous spending and take it from there. give our first responders the kind of sonnel or our veterans? So I commend the authors of this leg- dollars that are necessary to ensure Mr. Speaker, I wish I did not have to islation, I support the rule, and I com- the protection of the American people. come to the floor and argue against the mend my colleagues for bringing it for- We were tragically, tragically hurt value of what we do in this place; but, ward. by the serious attack on the United Mr. Speaker, this is a hoax, it is frivo- Mr. FROST. Mr. Speaker, I yield 5 States of September 11. New York in lous; and I hope my colleagues will minutes to the gentleman from Mis- its tragedy and in its mourning looked vote it down as they have six times be- sissippi (Mr. TAYLOR). to the Federal Government to provide fore. Mr. TAYLOR of Mississippi. Mr. the resources. I am sorry to say that I Mr. SESSIONS. Mr. Speaker, I yield Speaker, I believe I am a cosponsor of do not believe New York has even re- myself such time as I may consume. that resolution, and I am going to vote ceived the full $40 million that we have The opportunity to be able to come to for it. But what I object to is the con- promised them. People are still hurting the well of this House and to speak is tinued reference on this House floor, and people still mourning, but yet we really a wonderful thing. It is an oppor- the continued effort on the part of have this amendment that is ridiculous tunity for people to express their views some Members of this body to deceive inasmuch as it has never passed and we and visions, but we should remember the American public into thinking that are asking for this Congress to stand that a majority of the Members have we are balancing our budget. I do not here and debate something that will voted for this each of the six times care if a Democrat said it or a Repub- not pass. that we voted on it, and today is an- lican said it, or I do not care if Adam’s But, more importantly, it makes no other opportunity for us to seek that house cat said it. We are not. sense. I wonder whether any of the ap- supermajority that it will require. The fact of the matter is that the propriators are on this particular Mr. Speaker, I yield 2 minutes to the President submitted a budget that was amendment? Why? Because they real- gentleman from Arizona (Mr. FLAKE), a passed by a Republican majority in the ize what they are facing behind their member of the Committee on the Judi- House and the Senate last summer closed doors trying to fund the needs of ciary. when the Republicans still controlled the American people. They realize we Mr. FLAKE. Mr. Speaker, I thank both bodies, as they did for 7 years. For have no prescription drug benefit, as I the gentleman for yielding me this 6 of those 7 years, we had deficit spend- previously said. They realize we have time. ing. As a matter of fact, I find it the danger of going into Social Secu- Mr. Speaker, it has been said re- strange that we have to address the tax rity and Medicare. cently that this is a frivolous debate. problem, because taxes have been ad- Mr. Speaker, let me tell you, in 1993, Well, I would submit that there is no dressed four times in the past 20 years this Congress did a most courageous more important debate that we can de- when, for 41 of the past 42 years, Con- thing. It was my colleagues in the bate here in the Congress. For those of gress has run a deficit. Democratic party that cast a vote that us who believe in the principles of a So I am going to say this very slow- provided us with the most prosperous limited government, economic free- ly. The President just submitted the years we could have ever had; $5.6 tril- dom, individual responsibility, the first $2 trillion budget. The Republican lion in surplus, the ability for the econ- question of how easy it should be to Congress passed it. The Republican omy to be generating jobs. Now, in my raise taxes is a very relevant debate to Congress increased spending by 8 per- own community of Houston in the have every day that we have it. cent last year and decreased revenues State of Texas, we have over 5-plus per- Now, we have been told that the by 16 percent. That equated to, and I centage of unemployment. We have Founding Fathers would not approve am going to say this very slowly so people who are unemployed. That this. Well, the Founding Fathers did that no one misses it, $232 billion. This means that we need unemployment in- not approve the Federal income tax. In is the month of March. Actually, the surance. We have airlines who are tee- fact, they expressly prohibited it. I number is, and I do not have it in front tering. We need transportation secu- would suggest that if the Founding Fa- of me, but it is on my Web site, because rity resources. The borders need to be thers were alive today and realized I memorized it. The deficit has in- secured. that 22 percent of the national income creased by $363 billion. That is a thou- Mr. Speaker, why are we giving this is now taken in taxes, they would ap- sand times a thousand times a thou- hoax on the American people? And, plaud this move. They would applaud sand times 363 in the past 12 months. most importantly, most importantly, if this move, because they realized that The debt is now over $6 trillion. This I can again refer you to the Founding they believed in limited government, was just March. It is now over $6 tril- Fathers. For those of us who cherish economic freedom, and individual re- lion. Two weeks ago my Republican the Constitution and who understand sponsibility. colleagues voted to raise the debt limit the Bill of Rights, Mr. Speaker, this is, If we look across the country today by $750 billion; that is a thousand again, a hoax. Two-thirds, which then we see several States, nine in fact, that times a thousand times a thousand allows the American people to be di- have such provisions. Arizona, the times 750. That is not balancing the minished, if you will, by a one-third State that I come from, is one of them. budget. minority controlling the majority. Now, we recently had a huge deficit in Mr. Speaker, my point is, we are Let me say this, Mr. Speaker, as Arizona and the States, unlike the Fed- bringing the wrong constitutional well. In this legislation, this proposed eral Government, are prohibited from amendment to the House floor. We June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3479 have had but one vote in the past 7 that we have a new person that gets Colorado, a two-thirds supermajority; years on a balanced budget amendment employed in this country, the Social Delaware, a three-fifths supermajority; to the Constitution. We sent it to the Security trust fund shows a deficit, and Florida, a three-fifths supermajority. Senate. It failed by one vote. If we are every single time a person goes to work Louisiana, Missouri, Montana, Nevada, really concerned about the future of and draws a paycheck in this country, Oklahoma, Oregon, South Dakota, our country, and if we have some guilt that shows as a deficit also. So by Washington, all of these States have about sticking our kids with our bills, America working harder, with the old, supermajority requirements in their which is what we are doing; none of my antiquated Social Security system that State constitutions to control tax in- colleagues would go buy a car, a $40,000 we have, it all increases what is known creases because the power to tax is the Lexus and say, I have a 7-year-old, bill as the debt of this country, because we power to destroy. him when he grows up. None of my col- do not save that money, we spend it. The founders, the authors of those leagues would go to the Realtor in So what the gentleman has talked State constitutions recognized that it their hometowns and say, I want the about is part of our own system which is important to force the debate in most expensive house in town and, by is creating the deficit, which is why we those legislative bodies to focus on the way, I have a 4-year-old grandchild, need to change it. controlling spending first and to limit stick them with the bill, plus interest. So whoever comes to work for the the ability of those legislatures to in- But it is precisely what you have been first time tomorrow and for whoever is crease taxes. doing with this country; and, guys, I drawing a paycheck today, simply by This would be an extraordinarily think you are missing the point. working, we are creating a debt, be- healthy thing for the United States My Republican colleagues have run cause it is a liability that this govern- Congress to have this requirement in the House for the past 7 years. The ment has to pay for. But that should the U.S. Constitution to force us all to ‘‘they’’ you keep talking about that is not imply that that is necessarily irre- think carefully before we raise spend- raising spending is you. When you go sponsible. It is the system that we ing and, above all, to make it more dif- to shave tomorrow morning, look in have. Yes, it is Republicans and some ficult for us to take more money out of the mirror. You all did it. Democrats that have suggested that we the American taxpayers’ pockets. I liked you all so much better when change that too. But let us not suggest Mr. Speaker, I am proud to join the you said you were for a balanced budg- it is spent, it is a future liability. gentleman from Texas (Mr. SESSIONS) et amendment, and I like you so much Being responsible and being irrespon- in coauthoring this important legisla- less when you do not do it. sible should have been something that tion. Pass a balanced budget amendment I wish the gentleman had spent some Mr. FROST. Mr. Speaker, I yield my- to the Constitution. We have found time on also, because this debt that is self the remaining time. time to take care of nutrea eradication being set before us is from people who This is not a complicated matter. Ei- on the Eastern Shore of Maryland. We work in this country. ther one believes in majority rule, or found time to take care of tigers and Mr. Speaker, I yield 2 minutes to the one does not. This is the people’s rhinoceroses. We have named every gentleman from Houston, Texas (Mr. House; the majority rules. My friends post office in the United States of CULBERSON), a bright young gentleman. on the other side somehow have gone America. We have found time for a de- Mr. CULBERSON. Mr. Speaker, I astray and do not believe in the basic bate for all sorts of things that really thank the gentleman for yielding me principle of democracy, of the majority are not all that vital. But, Mr. Speak- this time on this important debate rules. This constitutional amendment er, we cannot find time to bring a de- that I am hopeful there are many peo- should be defeated for the seventh bate and have a vote on a balanced ple out there watching tonight. I am time. budget amendment to the Constitution pleased to join with the gentleman Mr. Speaker, I yield back the balance in the almost 4 years you have been from Mississippi (Mr. TAYLOR) and with of my time. Speaker, because it gets in the way of my colleague, the gentleman from b 1900 your tax cuts. Texas (Mr. SESSIONS), in supporting Quit sticking my kids with your this constitutional amendment which Mr. SESSIONS. Mr. Speaker, I yield bills. Quit robbing the 1 trillion, 270 tracks the language that has been myself such time as I may consume. billion dollars that is already owed to adopted in many State constitutions Mr. Speaker, we have had a vigorous the Social Security trust fund. I have across the country. I am pleased to debate again today about an important memorized that one too. Quit robbing hear the gentleman from Mississippi issue. I simply believe it should be the $228 billion that you have stolen (Mr. TAYLOR) say that he will support more difficult to raise taxes. I think from the Medicare trust fund. Quit rob- this amendment to the United States that that will help America. I think bing the over $500 billion, a thousand Constitution tonight, limiting the abil- most Americans understand what we times a thousand times a thousand ity of the United States Congress to are talking about. It is so easy to raise times 500, that is owed to the Federal raise taxes, because it is all too easy to taxes today. That is why they have Employees Retirement System right raise spending here. been raised in the past. now. There is not a penny in any of I think it is important to remember I am going to continue to bring this those accounts and, for God’s sake, as what the gentleman from Arizona (Mr. effort to the floor. I am going to keep you tell the troops how much you love FLAKE) said is occurring today in the talking about a balanced budget. We them, quit stealing the $167 billion, and State of Arizona. Because Arizona has are going to keep talking about the I memorized that one too, that you owe a tax limitation amendment that re- things that will bring honor and dig- to the military retirees’ trust fund. quires a supermajority before taxes can nity to the taxpayer of this country, There is not a penny in any one of be raised, the State of Arizona is going and will solve our problems with the those accounts. through precisely the debate that the deficits. This is part of that overall de- All you are concerned about is taxes gentleman from Mississippi (Mr. TAY- bate. when you ought to be concerned about LOR) so correctly points out that we I am proud of what we are going to fulfilling the promises we made to each ought to be engaged in here is how do do here today. This vote is on the rule. and every American, because each and we control spending. Arizona is first The rule is a fair rule. It is a rule that every American falls into those cat- asking, what can we do as a legislature was passed yesterday in the Committee egories. Quit stealing from them; pass to control spending before we go to on Rules by a voice vote. I am going to a balanced budget amendment to the raise taxes, because Arizona has a two- ask all my colleagues to please vote for United States Constitution. thirds supermajority requirement be- this rule. We will have a vigorous de- Mr. SESSIONS. Mr. Speaker, I yield fore taxes can be raised. bate here in just a few minutes on that myself such time as I may consume. Mississippi has a three-fifths super- bill, but I would like to ask that we I appreciate that what the gentleman majority requirement before they can support the rule. is talking about is very important; but raise taxes. The State of Arkansas has Mr. Speaker, I yield back the balance part of this equation that was not a three-fourths requirement. California of my time, and I move the previous talked about was every single time requires a two-thirds supermajority; question on the resolution. H3480 CONGRESSIONAL RECORD — HOUSE June 12, 2002 The previous question was ordered. Mr. Speaker, there has been a vig- Now, I have looked at what this con- The resolution was agreed to. orous debate on the rule. Most of the stitutional amendment would have A motion to reconsider was laid on debate on the rule was on the merits of done to tax increases over the last 22 the table. House Joint Resolution 96. It is a sim- years, had it been in effect. What I Mr. SENSENBRENNER. Mr. Speak- ple and straightforward proposal. It came up with is kind of surprising. The er, pursuant to House Resolution 439, I proposes to amend the United States opponents of this constitutional call up the joint resolution (H.J. Res. Constitution to require a two-thirds amendment repeatedly state that it 96) proposing a tax limitation amend- vote for tax increases, and by requiring will be impossible to ever pass a tax in- ment to the Constitution of the United a two-thirds vote on tax increases, crease, nohow, no way, if a two-thirds States, and ask for its immediate con- there would be a requirement that vote was required in the Senate and in sideration. there be a consensus within the Con- the House of Representatives. The Clerk read the title of the joint gress, and hopefully within the Amer- Since 1980, there have been 16 tax in- resolution. The SPEAKER pro tempore (Mr. ican public, that taxes should go up. creases enacted into law by the Con- I think that given the history of gress of the United States. Surpris- ISAKSON). Pursuant to House Resolu- tion 439, the joint resolution is consid- some of the tax debates that have oc- ingly, 10 of those tax increases passed ered as read for amendment. curred since I have been in Congress, both Houses by two-thirds majorities, The text of H.J. Res. 96 is as follows: that type of consensus is sadly needed. if we look at the vote on the conference H.J. RES. 96 The American public has been asking report, which is the final version of the Resolved by the Senate and House of Rep- Senators and Representatives, Repub- tax bill. resentatives of the United States of America in licans and Democrats, to be Americans That included the 1980 reconciliation Congress assembled (two-thirds of each House first and partisans second, and to be act; the 1980 crude oil windfall profits concurring therein), That the following article both bipartisan and nonpartisan when tax; the $50 billion Social Security tax is proposed as an amendment to the Con- approaching the problems facing the increase, which was necessary to re- stitution of the United States, which shall be country. store solvency to the Social Security valid to all intents and purposes as part of All too often, we have very hot de- trust fund in 1983; the 1986 reconcili- the Constitution when ratified by the legis- latures of three-fourths of the several States bates and very split votes with very ation act; the 1986 tax reform act, within seven years after the date of its sub- narrow majorities, and the American which increased taxes in 3 of the 5 fol- mission for ratification: public, I think, is probably as evenly lowing years and decreased them in the ‘‘ARTICLE — politically divided today as at any other 2; the 1988 Miscellaneous Revenue ‘‘SECTION 1. Any bill, resolution, or other time in the history of the country. The Act; the 1989 reconciliation act; the legislative measure changing the internal Republicans control this House by six 1992 energy policy tax act; the 1996 revenue laws shall require for final adoption votes, the Democrats control the other Small Business Job Protection Act; in each House the concurrence of two-thirds body by one vote. The 2000 Presidential and the 1998 Internal Revenue Service of the Members of that House voting and election was the closest Presidential restructuring act. present, unless that bill, resolution, or other legislative measure is determined at the election in the history of the country. All of those were tax increase bills, I time of adoption, in a reasonable manner I do not think that the voters, in di- would submit, of more than a de mini- prescribed by law, not to increase the inter- viding themselves so evenly, voted for mis amount, because the smallest of nal revenue by more than a de minimis gridlock and expected nothing to be these raised taxes by $1 billion, which I amount. For the purposes of determining done during the 2-year period in 2001 think very few people would argue any increase in the internal revenue under and 2002. being de minimis. this section, there shall be excluded any in- With a constitutional amendment to The tax increases which were enacted crease resulting from the lowering of an ef- require a two-thirds vote to raise fective rate of any tax. On any vote for that failed of a two-thirds vote in the which the concurrence of two-thirds is re- taxes, neither side will be able to use House were the 1982 Tax Equity and quired under this article, the yeas and nays majority voting power, narrow as it Fairness Responsibility Act, or of the Members of either House shall be en- may be, to one-up the other and to pass TEFRA; the 1984 deficit reduction act; tered on the Journal of that House. a tax increase. Maybe a constitutional the 1985 reconciliation act; the 1987 rec- ‘‘SECTION 2. The Congress may waive the provision that has the effect of forcing onciliation act; the 1990 reconciliation requirements of this article when a declara- bipartisanship will bring about the bi- tion of war is in effect. The Congress may act; and the 1993 reconciliation act, also waive this article when the United partisanship in economic issues that which was the big tax increase that I States is engaged in military conflict which has been so sorely lacking, as con- referred to earlier on. causes an imminent and serious threat to na- trasted to the bipartisanship in facing So people who really want biparti- tional security and is so declared by a joint the war on terrorism. sanship being forced upon the Congress resolution, adopted by a majority of the I can tell the Members, I do not on tax policy should vote in favor of whole number of each House, which becomes think I would be standing here today this, because it will mean, the way the law. Any increase in the internal revenue en- presenting this constitutional amend- acted under such a waiver shall be effective voters are presently divided, that nei- for not longer than two years.’’. ment to the House of Representatives ther political party will have the votes The SPEAKER pro tempore. The gen- if it were not for the one-vote margin to be able to pass a tax increase on the by which the then-majority Demo- tleman from Wisconsin (Mr. SENSEN- American people solely with their own cratic party passed a big tax increase BRENNER) and the gentleman from New votes. They will have to reach out and in 1993, 218 to 216 in the House and 51 to York (Mr. NADLER) each will control 1 compromise with the other party, and hour of debate on the joint resolution. 50 in the other body, where then-Vice then sell this issue to the American The Chair recognizes the gentleman President Gore was called upon to public. from Wisconsin (Mr. SENSENBRENNER). break a tie. Because of the reaction of That is why I am in favor of this con- GENERAL LEAVE the American public against the major- stitutional amendment. Mr. SENSENBRENNER. Mr. Speak- ity using its voting power in the way Mr. Speaker, I reserve the balance of er, I ask unanimous consent that all that it did, it had a sea change in the my time. Members may have 5 legislative days 1994 elections and brought Republicans Mr. NADLER. Mr. Speaker, I yield within which to revise and extend their to majorities in both the House and myself such time as I may consume. remarks and include extraneous mate- Senate. Before I begin my statement on the rial on House Joint Resolution 96 cur- So I think that by requiring biparti- constitutional amendment, I just have rently under consideration. sanship on tax policy, which is one of one factual correction for the distin- The SPEAKER pro tempore. Is there the two key elements of our Federal guished chairman. The 2000 election objection to the request of the gen- economic policy that Congress has con- was not the closest race in American tleman from Wisconsin? trol of, spending being the other, we history. In 1960, John Kennedy beat There was no objection. are going to be able to perhaps force Richard Nixon by 118,000 votes. In 2000, Mr. SENSENBRENNER. Mr. Speak- both parties to compromise, to seek Al Gore got 556,000 votes more than er, I yield myself such time as I may consensus, and to seek support before George Bush. It was, in fact, close in consume. going for a tax increase. the Electoral College. June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3481 Mr. Speaker, I rise in opposition to It requires a two-thirds consensus, a bi- voodoo economics. That was a slander this proposed constitutional amend- partisan consensus, to change taxes in against voodoo. Now instead of sound ment for the seventh time in as many one direction, but a simple majority in fiscal policies, we get this constitu- years. As the ranking Democrat mem- the other. tional amendment, again designed to ber of the Subcommittee on the Con- So a majority in Congress one year take our attention away from what is stitution of the Committee on the Ju- can reduce taxes, can get elected on a going on. The American people do not diciary, I would urge my colleagues not slogan of let us reduce taxes by $100 need symbolic politics. They need real to treat the Constitution as if it were billion, and then it turns out that what leadership. some derelict warehouse on which peo- they did reduces taxes by $1 trillion. Supermajorities, Mr. Speaker, are ple could plaster their political post- Then the American people think it is anathema to the democratic system of ers. more important not to clobber Social government. That is why the Framers The Constitution is the fundamental Security so they elect a different ma- of the Constitution limited them to a document of our Nation which sets the jority next year and say, restore the very few areas, such as the impeach- rules of government to protect our de- taxes up to the $100 billion they said ment of an elected President or amend- mocracy and the rights of individuals. they were going to cut. But no, that ing the Constitution, the fundamental Yet, week after week, year after year, means a two-thirds majority. document of our government, itself. we come to the floor of the House to If Members want the Tax Code to be- And let me add one thing. We today consider proposed constitutional come even more unfair, even more have a given philosophy or most people amendments that are in fact little slanted towards the special interests, have a given philosophy: it is good to more than glorified press releases. even more complex than it now is, then reduce tax; it is bad to increase them. This constitutional graffiti has be- this amendment is the best chance to Maybe the majority of opinion of the come so commonplace, so much part of do so. This amendment would tie Con- American people agree with that. the ritual of this House, so much of the gress’ hands in economic emergencies Maybe not. That is what elections are way we all mark the passing of the sea- unrelated to war, and it would tie Con- about. But even assuming that most sons, that it has become something of gress’ ability to protect Social Secu- people think that today, maybe our an inside joke among the people who rity or Medicare, to respond to finan- grandchildren 50 years hence will not work here and the people who report on cial crises, or to the next fiscally irre- think that. Maybe 50 years hence our our work. sponsible President. That makes no grandchildren will think, or the major- This is the seventh time since 1995 sense. ity will, that it is a good idea to in- that the House has been subjected to Now, is there any special reason we crease taxes in order to pay them for this supermajority proposal. We will need this constitutional amendment? Social Security or for whatever will waste a couple of hours debating this The courage shown by the first Presi- seem necessary for them at that time. before it is voted down yet again. We dent Bush and by President Clinton Who are we today to tie their hands have also considered amendments con- eliminated what many had considered and say that our grandchildren and our cerning the nonexistent epidemic of permanent deficits. This was accom- children, that a minority shall rule in flag-burning, victims’ rights, and any- plished by cuts in spending and tar- their day? Who are we to say because thing else that Republican pollsters geted tax increases. Many of my Re- we have a particular opinion on an think might play well in the 30-second publican colleagues blamed President issue that 50 years from now our grand- campaign ads. Bush and demanded the head of his children shall be bound by our opinion The core flaw of this amendment is OMB director. Many of those same col- on that issue, that if they want to in- that it requires a two-thirds vote of leagues denounced and opposed Presi- crease taxes in 50 years to pay for what both houses of Congress to raise taxes. dent Clinton’s budgets. they think is more important than a This is profoundly anti-democratic in Well, the discipline imposed by the lower tax rate, we will tell them no, that it enables a one-third minority to majority in Congress and President you need a two-thirds vote, one-third overrule almost two-thirds. Bush I and President Clinton, worked, can block it? That is saying that we That includes any tax reform meas- and we got rid of huge budget deficits are writing a particular opinion about ure that would eliminate special inter- and we finally got budget surpluses to a particular issue into the Constitu- est loopholes, such as the loophole that show for it. We were able to start pay- tion, and we should never do that. The allows American industries to incor- ing down the national debt. Constitution is a guide to process. It porate in Bermuda and avoid paying What has happened since then? In lit- distributes power to different agencies taxes in the United States, or any of a tle more than a year, the current of the government. It reserves the number of multi-million dollar favor- President Bush and his supporters in right of people against government to ites that fill the thousands of pages in Congress have managed to undo the free speech and so forth. It does not the Internal Revenue Code. work, the hard work, of more than a enact particular ideas, particular eco- If this amendment were to be adopt- decade. We are running deficits, an nomic doctrines, or it should not at ed, a small minority could block the over $230 billion deficit this year into any rate. elimination of these outrageous and the foreseeable future, and will con- Just how small a minority could hold unfair tax loopholes, but a simple ma- tinue to do so even without such need- this Nation hostage under this amend- jority could put new loopholes into ed reforms, which will cost money, ment? A group of Senators rep- law. In fact, it would be a one-way such as a prescription drug benefit resenting one-tenth of the population rachet. A majority elected by the under Medicare, which most people of the United States, those from the American people could establish new here claim to support. smaller States, could block any effort tax loopholes for large corporations, or We will continue to raid the Social to raise revenues, to reform the Tax for anyone else. And if the American Security and Medicare trust funds. Code, to improve law enforcement, to people, as is the process in our democ- That is not because of a flaw in the exercise fiscal discipline, to balance racy, became very angry at this and Constitution, it is because of a failure the budget or do anything else that the threw out the rascals and elected a dif- of leadership, and a failure, a lack of remaining 90 percent of the Nation be- ferent majority to Congress next year, courage to make tough decisions. This lieves is absolutely necessary. Is this they could not change it because they sort of fiscal crack-up is what happens what the Members of this House really would need a two-thirds majority to when Members of Congress try to want? change what a simple majority did the promise the American people some- In Federalist Number 58, James year before. It is a one-way rachet. thing for nothing. Madison, perhaps the Father of our That is an absurd constitutional anom- Constitution, argues as follows. He b 1915 aly. said: The gentleman spoke of making it The first President Bush in 1980 It has been said that more than a majority necessary to have a two-thirds, a bipar- called candidate Reagan’s promise to ought to have been required . . . in par- tisan consensus, to change tax policy. slash taxes, increase spending, and bal- ticular cases, if not in all . . . for a decision. That is not what this amendment does. ance the budget all at the same time That some advantages might have resulted H3482 CONGRESSIONAL RECORD — HOUSE June 12, 2002 from such a precaution cannot be denied. It should be debating something else, if the Constitution already requires a might have been an additional shield to some the gentleman will yield back the bal- supermajority vote. For example, con- particular interests, and other obstacle gen- ance of his time, I will yield back the viction by the Senate following an im- erally to hasty and partial measures. But balance of mine and we can vote right peachment; overriding a Presidential these considerations are outweighed by the inconveniences in the opposite scale. In all away on this. veto; consent to a treaty; and amend- cases where justice or the general good Mr. NADLER. Reclaiming my time, ing the Constitution require more than might require new laws to be passed, or ac- if we had scheduled something else for a simple majority, and there are oth- tive measures to be pursued, the funda- this time now instead of just going ers. Moreover, Mr. Speaker, 14 States mental principle of free government would home for dinner, I would be happy to currently have tax limitation provi- be reversed. It would be no longer the major- do that. But since the leadership of the sions for all, most, or some tax in- ity that would rule: this power would be House has decided this is more impor- creases. Out of those, 12 States require transferred to the minority. Were the defen- tant than anything else and nothing a supermajority for any tax increase. sive privilege limited to particular cases, an else is available, that would not serve. This amendment will help to stem interested minority might take advantage of the tax-and-spend policies that too it to screen themselves from equitable sac- Mr. Speaker, I reserve the balance of rifices to the general weal, or, in particular my time. often rule this place, that rule Wash- emergencies, to extort unreasonable indul- Mr. SENSENBRENNER. Mr. Speak- ington. American working men and gences. er, I yield 5 minutes to the gentleman women now have to toil from January And that of course is exactly what from Ohio (Mr. CHABOT) since the gen- to late April just to satisfy their tax this amendment would do. It would say tleman from New York (Mr. NADLER) obligation. Only after Big Govern- that in time of economic crisis or of wants us to debate this waste-of-time ment’s insatiable appetite for taxes is real necessity where the majority felt constitutional amendment further. satisfied, can American families begin it necessary to increase taxes to pay Mr. CHABOT. Mr. Speaker, I thank to look out for their own needs. In the 1950s, the Federal Government for whatever it was they thought it the gentleman for yielding me time. took about 5 percent of the average necessary to pay for, a minority, a one- Contrary to the statement of the American family’s money, and that third minority, could say no or could gentleman from New York (Mr. NAD- was after fighting World War II and the say okay, but only if you change the LER) that this is some kind of inside Korean War. Since then, that figure abortion laws in one way or another. joke, what this actually does is it re- has increased by five times. It has up The one-third minority would be able veals clearly those of us in this House to about 25 percent of the American to blackmail the majority of the Na- who are seriously committed to reduc- families’ money going just to pay their tion. ing the tax burden on the American Federal income taxes. If you add State We are now in a time of crisis, and people and making it tough to raise and local taxes on top of that, it is the very real possibility that, as we that tax burden in the future. Those even higher. seek to meet the challenges of the fu- folks who believe that will vote ‘‘yes.’’ It separates them from the folks that Today, the Federal Government ture, economic as well as military, a takes about a quarter of what we earn, determined minority may be able to really do not care how high taxes are or how high they might go in the fu- and I am not sure anyone here would blackmail the Nation, is truly terri- even suggest that government has be- fying. ture. They will vote ‘‘no.’’ The amount of money taken out of come 500 percent more productive and This debate is not about a particular efficient. Add that to the tax burden tax rate. It is, as Madison rightly the pockets of working Americans in the form of taxes is simply too high. imposed by States and localities, and pointed out, about the very fabric of working families face an even larger our democracy. We should not be con- This House has made significant efforts this year and in previous years to re- tax bill. sidering this nonsense. We just did it The tax limitation amendment would duce the tax burden on the American last year. I know there is nothing I can greatly help American families who are people. We have done that in coopera- do to dissuade the majority. already struggling to pay mounting tax tion with the President. We have been I thank my colleagues for their in- bills. It would also require Congress to successful in passing some of those dulgence. Thank goodness like April 15, focus on options besides raising taxes pieces of legislation into law. It is also this preposterous notion comes up only to manage the Federal budget, helping important that we protect hard-work- once a year. to impose fiscal discipline, something ing American families from a future of Mr. SENSENBRENNER. Mr. Speak- we need in this place, and to constrain excessive taxation. er, will the gentleman yield? the growth of government, something Let us face it. Taxes are just too high Mr. NADLER. I yield to the gen- we talk about a lot but far too often do in this country. By making it more dif- tleman from Wisconsin. not do. Mr. SENSENBRENNER. Mr. Speak- ficult to raise taxes, H.J. Res. 96, the Mr. Speaker, let us do right by work- er, I appreciate the gentleman yield- debate that we will hear this evening, ing American families by supporting ing. If I have been listening to you and it will do just that. H.J. Res. 96 would this legislation. hearing you correctly, do you believe impose fiscal discipline and constrain Mr. NADLER. Mr. Speaker, I yield that the debate on this constitutional the growth of Federal Government by such time as he may consume to the amendment tonight is a waste of time? requiring a two-thirds vote for any bill gentleman from Michigan (Mr. CON- Mr. NADLER. Yes, essentially I do. I that increases the internal revenue by YERS), the distinguished ranking mi- do believe it is a waste of time and that more than just a de minimis amount. nority member of the Committee on it is a ridiculous proposal. We have re- The amendment would exclude any in- the Judiciary. jected it six times in 6 years. We are crease from the lowering of an effective Mr. CONYERS. Mr. Speaker, I thank going to reject it again. The gentleman rate of any tax. Congress may enforce the ranking member of the sub- knows that, and we ought to be debat- and implement the amendment committee, and I am interested that ing the appropriations bills. We ought through legislation as authorized by everybody is now ready to turn this de- to be debating the reorganization of law. In addition, if the United States bate in and just have a vote; but yet it our homeland security. We ought to be needs to increase revenues to wage the was scheduled late in the hour of debating a prescription drug bill for war on international terrorism or en- today, and now we are anxious to get Medicare. We ought to be debating So- gage in military conflicts abroad, the out of here. Let us leave. cial Security. We do not have time for amendment provides that the super- Well, I just left the White House all that, we are told. We have time for majority requirement could be waived where there was a meeting with Mem- this. if the Congress declared war or adopted bers of both bodies about a homeland Mr. SENSENBRENNER. Mr. Speak- a joint resolution to engage in military defense department. We have not fig- er, will the gentleman yield further? conflict which caused an ‘‘imminent ured out what the budget is going to be Mr. NADLER. Yes, I yield to the gen- and serous threat to national secu- or where the money is coming from, tleman from Wisconsin. rity.’’ and I am glad to note that our chair- Mr. SENSENBRENNER. Let me pro- Supermajority voting is not a radical man of the Committee on the Judici- pose a deal for the gentleman. Since we idea. There are 10 instances in which ary, the gentleman from Wisconsin June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3483 (Mr. SENSENBRENNER), was at that later point, I would urge everyone con- the taxes; so it ought to be hard to do meeting. And we are going to have to sider this measure very carefully as we that. produce a lot of money from some- move toward a vote tonight, and I We ought to balance the budget by where. It is not in the budget right thank my colleague from New York for cutting expenses, and any serious eco- now. yielding me the time. nomic situation that might be, that Could I ask, if we have this law in ef- Mr. SENSENBRENNER. Mr. Speak- might call for increased taxes would fect, if this constitutional amendment er, I yield 3 minutes to the distin- have to be addressed with the coopera- was prevailing, would we be able to guished gentleman from Texas (Mr. tion and understanding of all Ameri- raise that additional money? I think HALL). cans and with more than a simple ma- not. And so I would just like to remind (Mr. HALL of Texas asked and was jority vote. us that we are in a serious, different given permission to revise and extend This legislation would ensure that situation. his remarks.) such dialogue would take place. I urge When the previous President, Bill Mr. HALL of Texas. Mr. Speaker, I my colleagues on both sides of the aisle Clinton, left the White House, we had a rise today in support of H.J. Res. 96, a to support this commonsense measure. $280 billion surplus. We now have a def- tax limitation constitutional amend- Mr. NADLER. Mr. Speaker, I yield 4 icit of how much? $100 billion roughly. ment. I have been a supporter of this minutes to the distinguished gen- And now we are arguing the same kind amendment from the very first day I tleman from Virginia (Mr. SCOTT). of arguments. Let us make it bad. headed up here, and I will continue to Mr. SCOTT. Mr. Speaker, it is kind of My dear friend, the gentleman from support it as long as it takes to provide hard to take this resolution seriously. Ohio (Mr. CHABOT), says we need to re- some constitutional protection against We have heard references to a balanced duce taxes. Taxes are too high. Well, I tax increases for hardworking Ameri- budget. This resolution has nothing to have got an idea. Why do you not in- cans. do with a balanced budget. Balanced troduce some legislation to lower The tax increases that have been en- means that one’s spending does not ex- taxes? Why do you need a constitu- acted since I have been in Congress ceed their revenues, but as we read the tional amendment to restrain yourself? have passed by a very narrow margin, resolution, there is no limitation on I remind you that since our former sometimes by a single vote. It is my spending. There is no limitation on size colleague Newt Gingrich’s activities of recollection that the Tax Reform Act of government. Spending can be in- 1994 have taken over, the Republican of 1986 passed, I believe, by one vote. It creased with a simple majority. Paying Party has controlled the House, and was probably the worst Act this Con- for the spending takes a two-thirds most times, the Senate. So what is gress ever passed. It was supported by vote. wrong with passing bills to reduce President Reagan and it was supported New programs can be enacted with a taxes? by Rostenkowski. One of them knew simple majority. Increase the size of Now, I would like to turn to the what was in it, and I guarantee my col- government with a simple majority, other concern that in we are in a def- leagues it was not President Reagan. but two-thirds vote in each House will icit situation. If Social Security is Let me just tell my colleagues that be required to pay for that new spend- being jeopardized, do we really want to legislation that hits everybody’s pock- ing or we just run up a deficit. make it harder to account for how we etbooks ought to require more than a We have heard reference that the are going to make up for these funds? simple majority for a vote for passage. States have a simple majority to raise I am not so sure if you really do. And A two-thirds supermajority vote re- taxes, but those States balance their if everybody keeps that in mind, we quirement would offer that protection budgets as a matter of law. So if they will be a lot better off in terms of how that taxpayers need. cannot raise the taxes, they cannot do this budget thing is going to play out. Let me tell my colleagues the biggest the spending. In this House, however, We have got big bills coming along, and task in, of course, this legislation we can increase the spending whether we are going to need money. And so to should not be whether Democrats or we increase the taxes or not. We can argue the same arguments that were Republicans are for it, whether liberals run up a deficit and just leave it to the heard in other Congresses when this or conservatives support it, but what next generation to pay for it. same constitutional amendment was most Americans want and how many Further, Mr. Speaker, if we look at brought forward may not be consistent Americans support this. If my col- the resolution, we see what it does to with what we are faced with at the leagues would go home to their district corporate loopholes. To eliminate the present time. and ask the first 10 constituents that corporate loophole that allows some Now, there is another reason that we they meet and just ask them the sim- corporations to move offshore and save may want to be careful about giving a ple question whether they think it taxes, that would require a two-thirds minority one-third the right to deter- ought to be harder for us to raise taxes, vote. mine the tax structure for an over- I feel certain that all 10 of them would Finally, Mr. Speaker, this is a dubi- whelming majority, two-thirds. say yes. I have done that test and from ous effect, anyway, because the provi- in front of post offices on tax days and sions can be waived with a simple ma- b 1930 days that we were given runs with this jority any time the United States is That would be that there are a num- bill in the years of the past, and I have ‘‘engaged in a military conflict which ber of corporate tax provisions that are never gotten a no from any of them. A causes an imminent and serious threat in the tax laws that would not be able simple question, does anyone think it to national security.’’ Mr. Speaker, to come up. My colleagues would not ought to be harder to raise taxes. that has been the case almost continu- want that to happen, would they? We Every doggone one of them says yes. ously for the last 50 years, and it is not want to be able to go in and take out, Most Americans feel it is far too easy just for the conflict that we could raise for example, the tax benefits that come to raise taxes, and I think this amend- taxes. It is during the conflict. So we from setting up a company offshore ment would let them know we under- would waive this provision and pass and then reaping the benefit of little or stand their concerns and are willing to legislation, whether it has anything to no taxes and other corporate tax provi- address them. do with terrorism or not. sions that are being re-examined as we The economic climate today is not Mr. Speaker, this resolution is a rec- speak in the Congress now. what it was last year when Congress ipe for fiscal disaster. Increased spend- In fact, under this amendment, were worked with President Bush to enact ing with a simple majority, paying for it to pass, it would take more votes to some much-needed and deserved tax re- that spending requires a two-thirds close a tax loophole that might have lief for our citizens. As a result, it is vote and a two-thirds vote to close cor- been engineered by a powerful interest critical that we make a statement now porate loopholes. For the sake of fiscal group than it would to cut Social Secu- that we are committed to controlling sanity, this resolution should be de- rity, Medicare and education programs. government spending rather than rais- feated. So I think this is not good economic ing taxes in order to maintain a Fed- Mr. NADLER. Mr. Speaker, I yield 3 policy, and for those reasons and some eral balanced budget. It would be easy minutes to the distinguished gen- more that I would like to go into at a to balance the budget by simply raising tleman from Oregon (Mr. DEFAZIO). H3484 CONGRESSIONAL RECORD — HOUSE June 12, 2002 Mr. DEFAZIO. Mr. Speaker, I had not when America is engaged in a fight to I thank the gentleman from New intended to speak this evening. I am defend our citizens against deadly York for allowing me this amount of not an attorney, one of the few in the threats from abroad and even perhaps time. House who I guess is not, but I decided within our own Nation, the wealthiest b 1945 to come and speak on certain practical of the wealthy would pay nothing to- aspects of this farcical legislation ward that fight, and under this legisla- Mr. NADLER. Mr. Speaker, I yield which we are voting on again this tion, it would be impossible to ever re- myself such time as I may consume. evening. quire that they pay some semblance of Mr. Speaker, this amendment, if I heard a gentleman from the Repub- a fair share. This is absolutely out- passed, would contravene the funda- lican side say this is about working rageous. My colleagues should be mental principle of American democ- families. Come on, let us not kid people ashamed of what they are trying to do. racy which is that majority rules. The in America. This is not about working Mr. NADLER. Mr. Speaker, I yield gentleman from Ohio pointed out ear- families. This is about the super myself 30 seconds. lier that the principle supermajorities, wealthy and the unpatriotic corpora- I simply want to point out that there meaning a minority can block some- tions who want to set up new tax have been no hearings on this resolu- thing, is not a radical proposal. It may dodges to move their profits offshore. tion this year, no committee hearings, not be, but it is a fundamentally un- For years they have been moving their no committee markup. This came democratic proposal. foreign earned profits offshore to Ber- straight to the floor from I am not sure Mr. STARK. Mr. Speaker, I rise today in op- muda and that has been accepted. Un- where, and this is a very cavalier way position to this ridiculous, misdirected constitu- fortunately, the Clinton administra- to treat amending the Constitution. tional amendment to require a two-thirds super tion left that loophole open and the Mr. Speaker, I yield such time as he majority vote for raising taxes. Bush administration has tried to widen may consume to the gentleman from The House Republican majority won’t ad- it. Michigan (Mr. CONYERS). dress the issues the American people want us Now they have got a new dodge. They Mr. CONYERS. Mr. Speaker, I thank to address because they just don’t care or strip their corporation and move the my friend from New York for yielding they simply can’t get their act together. They assets and profits to a tax treaty coun- me the time. won’t give seniors a prescription drug benefit, try, Luxembourg being one, but Lux- It is bad enough we did not have their appropriations bills aren’t ready to go, embourg might require that they pay hearings in committee. It is bad and they’ve about run out of taxes to cut. So some taxes. God forbid they should pay enough the bill is brought on the floor instead they bring bills like this one to the floor any taxes. So then they also do the at this late hour, and now nobody in order to kill time and look like they’re work- Bermuda trick so it has become now wants to debate it. It has never passed. ing. the new Bermuda Triangle. We have never had it in the Senate. I’m amused to see this constitutional This debate is too strange. It reminds This bill has never come up in the Sen- amendment on the floor again this year. And me a lot of the Bermuda Triangle, but ate, and now we want to rush to a vote. my emphasis is on the word again. We have this is a new tax dodge being pushed by This is, I think, a serious disregard of voted on this constitutional amendment seven the same folks who brought us Enron, a constitutional amendment. items in the past seven years. Seven times, those same wonderful, ethical account- Why did we bring it up? Is there Mr. Speaker! And in each of the past seven ing companies, and now they have set somebody in the country, somebody’s years, the amendment has failed by large up Stanley Works and other American constituents that are urging that we margins. Why has it failed? Because it’s irre- corporations who are based in the have a constitutional amendment in sponsible and everybody knows it. United States of America, sell most of which the majority rule would be Requiring a two-thirds majority for Congress their product in the United States of taken away? I have not heard it. It has to increase taxes just doesn’t make sense. For America, have traditionally produced never passed the House ever, and yet it starters, it would risk the long-term solvency of goods in the United States of America, is being brought up now. Medicare and Social Security. It would also of course now they are all going to I think it is a little bit inappropriate, short-circuit our ability to produce balanced China to produce their product. Some and I think our leadership should take budgets and pay down the debt. Finally, it are still employing people here and it a little bit more care about keeping would undermine our efforts to enhance will say that they will pay taxes on Members late and then wondering why homeland security. their profits nowhere. That is the new we should not even have a full debate The Republicans’ haughty talk about fiscal Bermuda Triangle trick. on the matter. I feel very strongly that discipline is truly laughable. These Repub- So, under this legislation, which is, there should be a majority rule in licans who claim to be fiscally responsible are of course, for working families, yeah, terms of these kinds of questions. The the same people who squandered our history- wink, wink, nod, nod, Stanley Works supermajority should be rarely used, making surplus on a 1.3 trillion dollar tax cut. and other unpatriotic corporations and and it is my hope that as we have That tax cut, coupled with needed funding for other unpatriotic multi-millionaires gradually begun to accumulate nega- the fight against terrorism, has plunged our and billionaires would move all of their tive votes on this proposal, that we nation into debt. And now they want to tie our profits offshore, pay no taxes in the will get even more people voting hands with an ill-conceived constitutional United States of America, still enjoy- against it tonight. amendment? ing the defense and the blood of our For a number of reasons, in addition If the truth be known, the Republicans don’t young men and women in the military, to the ones that have already been dis- even need this amendment to make such a still enjoying all the privileges of liv- cussed, I think that making it difficult change. If they really want to require a two- ing in the greatest country on earth to close loopholes is not a good way to thirds majority vote on raising taxes, they need but paying nothing to support it, and proceed. This could create a lot of only change the rules of the House. But that guess what it would take to change problems for us in a number of ways, wouldn’t be as flashy as a constitutional that? A two-thirds vote of the United and I am disappointed that we are pro- amendment. And it probably wouldn’t fill up as States House of Representatives. We ceeding in a very rushed manner. much time, either. cannot even get a simple majority vote We voted on this bill in April of 1996. What this House really needs is leadership. to stop the unpatriotic corporations We voted on this bill in April of 1997. We need leaders who will respond to the and these people from moving their We voted on this bill in April of 1998. needs of the American people, not puppets profits offshore, and imagine what it We voted on this bill in April of 1999. who do the bidding of giddy, right-wing con- would take to get a two-thirds vote. We voted on this bill in April of 2000. servatives. Leadership is what we need, but It is pretty easy these days to buy We voted on this bill in 2001. Now we we clearly won’t get it with this Republican half the House of Representatives. All have it again with us today. What is majority. So let’s go on with the charade, de- they would have to do in the future the point? I think that this is a proce- bate this dumb amendment, and vote it down would be cheaper, just buy a third of dure that I have to have made very as usual. No reason to get too excited about the House, and they could block any clear, that this is not the way that we it; I’m sure it’ll be back again next year. changes to close these loopholes. This should proceed on constitutional Mr. BEREUTER. Mr. Speaker, this Member is absolutely outrageous. At a time amendments. rises in principled and strong opposition to June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3485 H.J. Res. 96, the so-called ‘‘tax limitation The amendment deserved to fail. It pro- quire a super-majority vote to adopt tax in- amendment.’’ Certainly it would be more politi- moted a ‘‘save us from ourselves’’ gimmick creases. I continue to oppose this measure, cally expedient to simply go along and vote in as a replacement for leadership. It also which would simply provide greater obstacles support of a constitutional amendment requir- would have allowed a majority of both houses to be overruled by one-third of the for the Federal government to properly react ing two-thirds approval by Congress for any members, plus one, of either house. The to economic conditions. This amendment is tax increase. However, as a matter of principle Founders reserved such a supermajority re- fundamentally inconsistent with majority rule and conscience, this Member cannot do that. quirement for rare instances, such as im- and would make it more difficult to react to the As this Member stated when a similar peaching the president, overriding vetoes potential need to close corporate tax loopholes amendment was considered by the House in and ratifying treaties. But the raising of tax or to protect Social Security of Medicare. the past, there must be a very great burden of rates is a policy decision that should con- This Congress needs to face current fiscal proof to deviate from the basic principle of our tinue to be handled the way things ordi- realities that have led to growing deficits. The democracy—the principle of majority rule. Un- narily are in a representative democracy— President’s tax cuts are compromising the fortunately, this Member does not believe the that is, by majority rule. This is not to say that raising tax rates government’s ability to ensure security, fund proposed amendment to the U.S. Constitution should be easy. Indeed, when the House last domestic priorities, and honor our commit- meets that standard. year wrote a supermajority requirement into ments to Social Security and Medicare, with- This Member has too much respect for the its rules, a World-Herald editorial acknowl- out burdening future generations with enor- Constitution, majority rule, and for deficit re- edged that there is room for reasonable dis- mous debts. It is time for Congress to deal duction to vote for this transparently political agreement on the question. We expressed the with the tax code and budget responsibly—not maneuver. A better answer is to elect more hope that the rule would lead to greater de- use the Constitution as a political prop. people who make the maximum effort to vote liberation if a rate increase were proposed. Ms. JACKSON LEE of Texas. Mr. Speaker, against tax increase and, where appropriate, But changes in the Constitution shouldn’t be necessary to get control of tax rates and I rise to oppose H.J. Res. 96, Tax Limitation vote for tax cuts. That’s real tax relief, not Constitutional Amendment. There are three phony gamesmanship. This Member would spending levels. What is needed is more lead- ership from Congress and, in the current sit- key points that are relevant to this constitu- ask that the attached two editorials, from the uation particularly, the White House. The tional amendment. Omaha World Herald, and the Washington job should be done by the people whom the This Constitutional Amendment states that Post, be included with this statement in the voters have entrusted with making the any bill changing the internal revenue laws will CONGRESSIONAL RECORD. These editorials tough calls on a bill-by-bill, program-by-pro- require approval by two-thirds of the Members support this Member’s position on the same gram basis. of both the House and Senate. legislation which was introduced in the pre- A constitutional amendment must pass both [From the Washington Post, Apr. 20, 1998] vious 104th Congress. The Washington Post houses of Congress by a 2⁄3 vote before it is editorial noted that this amendment is likely . . . AND A TERRIBLE AMENDMENT passed onto the states for ratification. ‘‘to add to future deficits while disturbing the The House this week is scheduled to ob- Adoption of the 16th amendment in 1913 balance of powers and undercutting the demo- serve Tax Day a few days late by taking up first allowed direct taxation of the American cratic process by enshrining minority rule.’’ a constitutional amendment requiring two- people by the federal government. While this Member could not support this bill thirds votes of both houses to pass any bill raising federal revenue. It’s bad idea that has The underlying legislation of H.J. Res. 96, is (H.J. Res. 96), there should be no question of an attempt to help the most well to do Ameri- his continued and enthusiastic support for a been defeated before and deserves to be again. Supporters say it will lock in place cans through a constitutional amendment that balanced budget and a constitutional amend- what they regard as responsible fiscal policy. limits the ability of Congress to raise taxes ment requiring it. Tax increase should not rou- In fact, it would have the opposite result. Its and cut deficits. It is no secret that this legisla- tinely be employed to achieve a balanced likely effect would be to add to future defi- tion is designed to disproportionately help the budget. That is why this Member supported cits while disturbing the balance of powers richest people in this country. the inclusion of a provision in the House Rules and undercutting the democratic process by H.J. Res. 96 could make it difficult to main- requiring a three-fifths majority vote to pass a enshrining minority rule. tain a balanced budget or to develop a re- tax increase during the previous 105th and the The country is about to enter an era of tight budgets. The prospect of a temporary sponsible plan to restore Medicare or Social 104th Congresses and would do so again. Security to long-term solvency. H.J. Res. 96 is This supermajority requirement was adopted surplus is in that sense particularly mis- leading. The cause will be demographic. The a resolution proposing an amendment to the on January 7, 1997. However, to go beyond retirement of the baby boomers, beginning in Constitution of the United States of America such a rule change and amend the Constitu- fewer than 10 years, will both detract from with respect to tax limitations, that would re- tion as proposed in the so-called Tax Limita- revenues and add to costs. There will have to quire any bill, resolution, or other legislative tion Amendment, is, in this Member’s opinion, be benefit cuts, but there is no responsible measure changing the internal revenue laws an unreasonable and dangerous action. A way to deal with the problem just by cuts. require for final adoption in each House the change in house rules, of course, is not the Neither party would vote for such devasta- concurrence of two-thirds of the Members of permanent straight-jacket that a constitutional tion, nor should it. Revenue increases also that House voting and present, unless the bill change would be. will be necessary; even then the country may In conclusion, this Member will vote against have to shoulder additional debt. is determined at the time of adoption, in a rea- H.J. Res. 96, the so-called ‘‘tax limitation This amendment would let one-third plus sonable manner prescribed by law, not to in- one of either house hold the country hostage amendment,’’ as he has done in the past crease the internal revenue by more than a de in such circumstances. Who knows what the minimis amount. when this same legislation was debated on price of acquiescence in a revenue bill might the House Floor. By requiring a two-thirds supermajority to be? It is not at all clear it would be the in- adopt certain legislation, H.J. Res. 96 dimin- [From the Omaha World Herald, Apr. 17, creased austerity the sponsors seek. An addi- 1996] tional benefit here, a change in unrelated so- ishes the vote of every Member of the House GRANDSTANDING IN LIEU OF LEADERSHIP cial policy there—those are the traditional and Senate, denying the seminal concept of The Republican push to make passage of coins for extracting extra votes. Does anyone ‘‘one person one vote’’. This fundamental tax increases more difficult was a shameless seriously think that tradition will change? democratic principle ensures that a small mi- bit of election-year grandstanding. The amendment would create a lopsided nority may not prevent passage of important GOP House members proposed adding to condition is still another respect. Taxes, legislation. This legislation presents a real the Constitution an amendment requiring against which it seeks to protect, are paid danger to future balanced budgets and Medi- two-thirds majorities in the House and Sen- disproportionately by the better off. Bene- care and Social Security. fits, which it would not protect, but put at ate in order to raise tax rates. An exception Under H.J. Res. 96, it would be incredibly was built in for military emergencies. greater risk, go largely to people when they In theory, the plan was to get the amend- are in need. The society is healthier because difficult obtaining the requisite two-thirds ment through Congress with the required of these relatively modest shifts of income; supermajority required to pass important, fis- two-thirds majorities and then send it to the the amendment would militate against cally responsible deficit-reducing packages. states. The amendment would be enacted if them. It’s a clumsy and unnecessary step in And at a time in our history when the Baby three-fourths of the state legislatures rati- any number of wrong directions, and the Boomers are now retiring, H.J. Res. 96 could fied it within seven years. House should vote it down. make it more difficult to increase Medicare Supporters acknowledged that the measure was not likely to pass. But the vote—pur- Mr. BLUMENAUER. Mr. Speaker, for the premiums for those most able to pay their fair posely scheduled for April 15, tax day—al- second time in this 107th Congress, Repub- share of the bill, and could make it difficult bal- lowed them to classify congressmen as lican leadership is bringing before the House ancing both Medicare and Social Security pay- wimps or zealots on keeping tax rates down. this measure to amend the Constitution to re- roll taxes in the long term. H3486 CONGRESSIONAL RECORD — HOUSE June 12, 2002 H.J. Res. 96 would make it nearly impos- printed in the CONGRESSIONAL RECORD Ramstad Shays Thune sible to plug tax loopholes and eliminate cor- and if offered by the minority leader or Regula Sherwood Tiahrt Rehberg Shimkus Tiberi porate tax welfare, or even to increase tax en- his designee, would be in order at this Reynolds Shows Toomey forcement against foreign corporations. H.J. point. The Chair is aware of no quali- Riley Shuster Upton Res. 96 would also make it nearly impossible fying amendment. Roemer Simmons Vitter Walden to balance the budget, or develop a respon- Pursuant to House Resolution 439, Rogers (KY) Simpson Rogers (MI) Skeen Walsh Wamp sible plan to restore Medicare or Social Secu- the previous question is ordered. Rohrabacher Smith (MI) Watkins (OK) rity to long-term financial solvency. The question is on the engrossment Ros-Lehtinen Smith (NJ) Watts (OK) Souder I am deeply troubled by the concept of di- and third reading of the joint resolu- Ross Weldon (FL) vesting a Member of the full import of his or tion. Royce Stearns Weldon (PA) her vote. As Professor Samuel Thompson, The joint resolution was ordered to Ryan (WI) Stump Weller Ryun (KS) Sullivan one of this Nation’s leading tax law authorities, be engrossed and read a third time, and Whitfield Sanchez Sununu Wicker observed at a 1997 House Judiciary Sub- was read the third time. Sandlin Sweeney Wilson (NM) committee hearing on the same proposal: ‘‘the The SPEAKER pro tempore. The Saxton Tancredo Wilson (SC) core problem with this proposed Constitutional question is on the passage of the joint Schaffer Tauzin Wolf amendment is that it would give special inter- resolution. Schrock Taylor (MS) Young (AK) Sensenbrenner Taylor (NC) Young (FL) est groups the upper hand in the tax legisla- The question was taken. Sessions Terry tive process.’’ The SPEAKER pro tempore. In the Shadegg Thornberry By requiring a supermajority to do some- opinion of the Chair, two-thirds of thing as basic as getting the money to run those present have not voted in the af- NAYS—178 government, H.J. Res. 96 diminishes the firmative. Abercrombie Hill Morella power of a member’s vote. It is a diminution. Mr. CHABOT. Mr. Speaker, I object Ackerman Hilliard Murtha Allen Hinchey Nadler It is a disparagement. It is inappropriate, and to the vote on the ground that a Baca Hinojosa Napolitano the fact that this particular amendment has quorum is not present and make the Baird Hoeffel Neal failed seven times in a row suggests that Con- point of order that a quorum is not Baldacci Holden Oberstar gress knows it. Baldwin Holt Obey present. Olver H.J. Res. 96 will also make it nearly impos- Barrett Hooley The SPEAKER pro tempore. Evi- Becerra Hostettler Ortiz sible to eliminate tax loopholes, thereby lock- dently a quorum is not present. Bentsen Hoyer Pascrell ing in the current tax system at the time of The Sergeant at Arms will notify ab- Bereuter Hyde Pastor Blumenauer Inslee Pelosi ratification. The core problem with this pro- sent Members. Pomeroy posed constittional amendment is that it would Boehlert Israel The vote was taken by electronic de- Bonior Jackson (IL) Price (NC) give special interest groups the upper hand in vice, and there were—yeas 227, nays Borski Jackson-Lee Rahall Rangel the tax legislative process. Once a group of Boucher (TX) 178, not voting 29, as follows: Rivers Boyd Jefferson taxpayers receives either a planned or un- [Roll No. 225] Rodriguez Brady (PA) John planned tax benefit with a simple majority vote Rothman YEAS—227 Brown (FL) Johnson (CT) Roukema of both Houses of Congress, the group will Brown (OH) Johnson, E. B. Aderholt Ehlers Kennedy (MN) Roybal-Allard Kanjorski then be able to preserve the tax benefit with Akin Ehrlich Kerns Capps Rush just a 34 percent vote of one House of Con- Andrews Emerson King (NY) Capuano Kaptur Sabo gress. Armey English Kingston Carson (IN) Kennedy (RI) Sanders Carson (OK) Kildee In addition, H.J. Res. 96 would make it inor- Bachus Etheridge Kirk Sawyer Baker Everett Knollenberg Clay Kilpatrick Schakowsky dinately difficult to make foreign corporations Ballenger Ferguson Kolbe Clement Kind (WI) Schiff pay their fare share of taxes on income Barcia Flake LaHood Clyburn Kleczka Scott earned in this country. Congress would even Barr Fletcher Latham Conyers Kucinich Serrano Costello LaFalce be limited from changing the law to increase Bartlett Foley LaTourette Shaw Barton Forbes Leach Coyne Lampson Sherman penalties against foreign multinationals that Bass Fossella Lewis (CA) Crowley Langevin Skelton avoid U.S. taxes by claiming that profits Berkley Frelinghuysen Lewis (KY) Cummings Lantos Slaughter earned in the U.S. were realized in offshore Berry Gallegly Linder Davis (CA) Larsen (WA) Smith (WA) Biggert Ganske LoBiondo Davis (FL) Larson (CT) Snyder tax havens. Estimates of the costs of such tax Bilirakis Gekas Lucas (KY) Davis (IL) Lee Solis dodges are also significant. An Internal Rev- Bishop Gibbons Lucas (OK) DeFazio Levin Spratt enue Service Study estimated that foreign cor- Blunt Gilchrest Maloney (CT) DeGette Lewis (GA) Stark porations cheated on their tax returns to the Boehner Gilman Manzullo Delahunt Lipinski Stenholm Bonilla Goode McCarthy (NY) DeLauro Lofgren Strickland tune of $30 billion per year. Boozman Goodlatte McCollum Deutsch Lowey Stupak Another definitional problem arises from the Boswell Gordon McCrery Dingell Luther Tanner fact that it is unclear how and when the so- Brady (TX) Goss McHugh Doggett Markey Tauscher Brown (SC) Graham McInnis Dooley Mascara Thomas called ‘‘de minimis’’ increase is to be meas- Bryant Granger McIntyre Doyle Matheson Thompson (CA) ured, particularly in the context of a roughly $2 Burr Graves McKeon Dreier Matsui Thompson (MS) trillion annual budget. What if a bill resulted in Buyer Green (WI) Mica Edwards McCarthy (MO) Thurman increased revenues in years 1 and 2, but Callahan Greenwood Miller, Dan Engel McDermott Tierney Calvert Grucci Miller, Gary Eshoo McGovern Towns lower revenues thereafter? It is also unclear Camp Gutknecht Miller, Jeff Evans McKinney Turner when the revenue impact is to be assessed, Cannon Hall (TX) Moran (KS) Farr McNulty Udall (CO) based off estimates prior to the bill’s effective Cantor Hansen Myrick Fattah Meehan Udall (NM) Capito Harman Nethercutt date, or subsequent determinations calculated Filner Meek (FL) Velazquez Castle Hart Ney Frank Meeks (NY) Visclosky many years out. Further, if a tax bill was retro- Chabot Hastings (WA) Northup Frost Millender- Waters actively found to be unconstitutional, the tax Coble Hayes Norwood Gephardt McDonald Watt (NC) refund issues could present insurmountable Collins Hayworth Nussle Gillmor Miller, George Weiner Condit Hefley Osborne Gonzalez Mink Woolsey logistical and budget problems. Cooksey Herger Ose Green (TX) Mollohan Wu I hope that my colleagues take seriously the Cox Hilleary Otter Gutierrez Moore Wynn path H.J. Res. 96 would lead us down were it Cramer Hobson Oxley Hastings (FL) Moran (VA) to be adopted as is, therefore, I urge my col- Crane Hoekstra Pallone Crenshaw Horn Paul NOT VOTING—29 leagues to oppose H.J. Res. 96. Cubin Hulshof Pence Mr. Speaker, I yield back the balance Culberson Hunter Petri Berman Ford Peterson (MN) of my time. Cunningham Isakson Phelps Blagojevich Hall (OH) Peterson (PA) Mr. SENSENBRENNER. Mr. Speak- Davis, Jo Ann Issa Pickering Bono Honda Quinn Davis, Tom Istook Pitts Burton Houghton Reyes er, I yield back the balance of my time. Deal Jenkins Platts Cardin Jones (OH) Smith (TX) The SPEAKER pro tempore (Mr. DeMint Johnson (IL) Pombo Chambliss Lynch Traficant ISAKSON). All time having been yielded, Diaz-Balart Johnson, Sam Portman Clayton Maloney (NY) Watson (CA) Doolittle Jones (NC) Pryce (OH) Combest Menendez Waxman under House Resolution 439, an amend- Duncan Keller Putnam DeLay Owens Wexler ment in the nature of a substitute, if Dunn Kelly Radanovich Dicks Payne June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3487 b 2010 that void with all the wrong things. So I think on this particular occa- Messrs. MCNULTY, HILL, WYNN, The number of children living in house- sion, when we look at our Nation, when LARSON of Connecticut, and Mrs. holds without fathers has tripled over we look at our Nation’s future, if I ROUKEMA changed their vote from the last 40 years from just over 5 mil- could really ask for one thing, if I had ‘‘yea’’ to ‘‘nay.’’ lion in 1960 to almost 18 million today, one wish that could be granted, it So, two-thirds not having voted in which represents an increase of 350 per- would be that our fathers would fulfill favor thereof, the joint resolution was cent. According to the National Fa- their responsibility, that our fathers not passed. therhood Initiative, 24 million children would be honored truly on Father’s The result of the vote was announced live without their biological fathers at Day, because almost all of the social as above recorded. the present time. Nearly one-half of ills that we are looking at in our coun- our children will live at least part of A motion to reconsider was laid on try today and all of the difficult things their childhood without a father. the table. our young people are looking at really The problems associated with Stated for: go back to the fact that our families fatherlessness are far-reaching. The are not intact, and particularly our fa- Mr. CHAMBLISS. Mr. Speaker, on rollcall National Fatherhood Initiative cites No. 225 I was inadvertently detained. Had I thers are not doing their job. numerous studies as it relates the fol- Mr. Speaker, I appreciate this oppor- been present, I would have voted ‘‘yea.’’ lowing: a child living in a fatherless tunity. Mr. PETERSON of Pennsylvania. Mr. home is five times more likely to live Ms. CARSON of Indiana. Mr. Speak- Speaker, on rollcall No. 225 I was unavoidably in poverty than one who lives in a er, continuing my reservation of objec- detained. Had I been present, I would have home with a father. tion, let me say that, as you know, I voted ‘‘yea.’’ introduced in the first session of this Mr. HONDA. Mr. Speaker, on rollcall No. b 2015 Congress H.R. 1300, the Responsible Fa- 225, H.R. Res. 96—Constitutional Amendment There is a much higher incidence of therhood Act of 2001. It was legislation Requiring a super majority vote to increase teenage pregnancy, suicide rates are that sought to prescribe parameters for taxes, had I been present, I would have voted much higher, they are two to three block grants to States and territories ‘‘nay.’’ times more likely to commit a crime, to implement at their option media Mr. FORD. Mr. Speaker, on rollcall No. 225, much more likely to drop out of school, campaigns promoting responsible fa- H.R. Res. 96—Proposing a tax limitation much more likely to get involved with therhood. It would have required the amendment to the constitution of the United drugs and alcohol, and I think, most Secretary of Health and Human Serv- States, had I been present, I would have importantly, and something that a lot ices to contract with a nonprofit fa- voted ‘‘nay.’’ of people miss, a fatherless daughter suffers just as much or more than a fa- therhood promotion organization to de- f therless young man. It would appear velop and distribute media campaign SUPPORTING RESPONSIBLE that daughters are much more likely literature that addressed the issue of FATHERHOOD to be abused or assaulted if they do not responsible fatherhood to States, local have a father. A father acts as a pro- governments, public agencies and pri- Mr. OSBORNE. Mr. Speaker, I ask vate entities. unanimous consent that the Com- tector for his daughter. We need fathers to be active in their Although I have only been a Member mittee on Education and the Workforce children’s lives to instill values and act of Congress going into my sixth year, be discharged from further consider- as role models. Fathers have a unique annually I have sponsored a workshop ation of the resolution (H. Res. 442) role to play in their children’s lives to for the Congressional Black Caucus supporting responsible fatherhood and provide affirmation, affection and ad- weekend dealing with fatherhood and encouraging greater involvement of fa- vice. responsible fatherhood and responsible thers in the lives of their children, es- We have had a lot of conversation partnerships. My legislation would pecially on Father’s Day, and ask for over the last several months about he- have developed a national clearing- its immediate consideration. roes. We hear the term quite often. I house to assist States in community The Clerk read the title of the resolu- would like to point out another aspect, efforts to promote and support respon- tion. which I think has to do with persons sible fatherhood by disseminating in- The SPEAKER pro tempore (Mr. being a hero. formation under this media campaign. SUNUNU). Is there objection to the re- Sometimes it is a person that gets up I introduced also in the first session quest of the gentleman from Nebraska? every morning and goes to work. It is a of the 107th Congress House Resolution Ms. CARSON of Indiana. Mr. Speak- person who honors their marriage 167, a resolution in support of father- er, reserving the right to object, and I vows. It is a person who honors his hood and in celebration of Father’s do not intend to object, I yield to the commitment to his children. So, some- Day. gentleman from Nebraska to explain times heroism is not something that is This evening I am here, Mr. Speaker, the resolution. done in a moment of great danger, but to support H. Res. 442, which was au- Mr. OSBORNE. I thank the gentle- it is something that is acted out on the thored by the gentleman from Okla- woman for yielding. stage of life over a long period of time. homa (Mr. SULLIVAN), on which my Mr. Speaker, as we approach the up- We also would like to mention an staff and his staff worked together to coming celebration of Father’s Day anecdote here, which I think is accu- try to figure out how we could best so- this Sunday, June 16, I am pleased to rate. This was kind of interesting. lidify the two measures for the benefit have this opportunity to speak on be- There was a chaplain who worked in a of advancing legislation dealing with half of this resolution before us on the prison for men, and on Mother’s Day fatherhood and responsible fatherhood importance of fatherhood in this coun- the chaplain was asked by one of the legislation. try. H.R. 442, introduced by the gen- inmates to get a card for Mother’s Day. I want to commend all of the respon- tleman from Oklahoma (Mr. SULLIVAN), A greeting card company offered to sible fathers who have worked labori- urges all Americans to support respon- provide several boxes of cards. So the ously to raise their children, along sible fatherhood and to encourage word got around and nearly all of the with their children’s mothers, and who greater involvement of fathers in the inmates picked up a card and sent it to have provided college educations and lives of their children, especially on their mother on Mother’s Day. lifetime opportunities for their chil- Father’s Day. So they thought they would repeat dren. Over 36 years in my last profession, I the process on Father’s Day. Father’s There are certainly countless num- worked with a great many young men Day came, they had a box of cards, and, bers of men who have been engaged in who were fatherless. I saw directly the strangely enough, according to this responsible fatherhood and who have results of that fatherlessness, because story, not one single inmate picked up been an integral part of the well-being if your dad does not care enough to a card to send to his father. The point and growing up of their children, and stick around sometimes, even to see was that probably in almost every case now are involved in the lives of their what you look like, there is a void in the father was absent, the father had grandchildren. I think they stand as your life and sometimes you try to fill abrogated his responsibility. beacons, as role models in terms of H3488 CONGRESSIONAL RECORD — HOUSE June 12, 2002 what this country could in fact do for fatherhood, beginning early in the tion, I yield to the gentleman from families if more fathers were respon- morning and going all day. It is a won- Maryland (Mr. HOYER) for comments he sible and accountable for their chil- derful activity. Many of the individuals may have in support of this effort. dren. we find are looking for ways to recon- Mr. HOYER. Mr. Speaker, I want to My legislation that I offered in no nect with families, to reestablish rela- thank the gentleman from Oklahoma way intended to insult the kind of par- tionships with their children. They and the gentlewoman from Indiana for ticipation that fathers have with their simply need a little facilitation and a cosponsoring this resolution which ex- children. I recognize that there are sit- little bit of help. presses, I think, profound thoughts. We uations, Mr. Speaker, where the father I think this kind of discussion, this do not often express profound thoughts is unable to be at home in the same kind of initiative, and this kind of ac- on the floor of this House. household with their children as their tion will go a long ways toward that. Sunday will be Father’s Day, and I children grow up, but under my legisla- Ms. CARSON of Indiana. Mr. Speak- will be blessed on Sunday. On Sunday tion we intend to try to connect chil- er, I thank the gentleman from Illinois two of my daughters, two of my grand- dren with their fathers in a very re- for his comments. daughters, and one of my grandsons sponsible way so that children can Continuing my reservation of objec- will be at my house, and we are going enjoy the benefits of having their fa- tion, I yield to the gentleman from to have a wonderful time. They are thers involved in their lives. Oklahoma (Mr. SULLIVAN), and I thank coming on Saturday. They will spend Approximately 50 percent of all chil- the gentleman for his partnership in the night there. We will have a good dren born in the United States spend at this effort. time Saturday night and have dinner Mr. SULLIVAN. Mr. Speaker, I least half of their childhood in families together. thank the gentlewoman for hers as without father figures. Three out of My oldest daughter, who lives in Illi- four adolescents in the United States well. Mr. Speaker, I would like to thank nois, will not be there, but we will talk report that they did not have adults in the gentleman from Nebraska (Mr. on Sunday. She will call and she will their lives that served as positive role say, ‘‘Dad, I love you, and I wish you a OSBORNE). I liked what he had to say. models. Mr. Speaker, I rise today to offer H. happy Father’s Day,’’ and nothing bet- Children who are apart from their bi- Res. 442, to honor fathers on Father’s ter will happen to me that day or any ological fathers are, in comparison to Day and commend them for enhancing day. We lost Mom 5 years ago. Mother’s other children, five times more likely the lives of their children. Day was a special day at our house as to live in poverty, more likely to bring Fathers play a critical role in the de- well. weapons and drugs into the classroom, velopment of our youth. In addition to This resolution, as I say, articulates to commit other crimes, to drop out of traditionally being the head of the profound thoughts. As I was in the school, to commit suicide, to abuse al- household, these men must serve as cloakroom, I heard the gentleman from cohol or drugs. Girls are inclined some- both spiritual leaders and protectors of Nebraska (Mr. OSBORNE) speaking. TOM times to become pregnant as teenagers. their families. Millions of men OSBORNE is a special person in this The Federal Government spends bil- throughout this country effectively body. Few of us, perhaps maybe none, lions of dollars to address social ills, execute these duties each day. Their have had the opportunity to be a father and very little to promote responsible children, in return, learn to be con- figure, not necessarily a biological fa- fatherhood. Child support is an impor- fident and productive citizens. ther, obviously, but a father figure, tant means by which a parent can take Our active fathers rarely get the rec- someone to whom young men looked financial responsibility for a child, and ognition they deserve. Many under- for guidance, for discipline, for direc- emotional support is an important stand that they must not only raise a tion, and for a sense of responsibility. means by which a parent can take so- child physically, but must also meet TOM OSBORNE, as all of us know, is cial responsibility for a child. It is im- the emotional needs of their kids. one of the great football coaches in the portant for the United States Congress Above all, dads must instill a sense of history of America. So it was appro- as a body to promote responsible fa- morality and spirituality in the hearts priate that he spoke and leads the ef- therhood and to encourage loving and of their children. fort on this resolution, because I know healthy relationships between parents Every child deserves the love and at- an awful lot of young men who perhaps and their children in order to increase tention of their father. This is a simple did not have a dad at home, or did not the chance that children will have two fact. But we know that simple is not have a dad that cared as much about caring parents in their lives to help always synonymous with easy. In the them as we would have hoped he would them grow up healthy, secure, respon- chaotic and increasingly busy world, it have, looked to TOM OSBORNE for the sible and accountable. is important to understand and, more growing of character that a father That is why I believe it is imperative, important, to demonstrate that chil- ought to give a son or a daughter. Mr. Speaker, that we do all that we can dren are their fathers’ number one pri- b 2030 to ensure that every human being who ority. My children, Tommy, Meredith is growing up to adulthood have access and Sidney, are my number one pri- So I congratulate the gentleman to two responsible parents in their ority. from Nebraska (Mr. OSBORNE) for the lives and to ensure that fathers are not The children of today are the promise literally scores, hundreds, of young inhibited or prohibited through some of tomorrow. With that in mind, the men, whose lives you have made a dif- archaic system from having active in- role of our fathers must be to continue ference in. volvement in the well-being of their to raise a Nation of leaders. We must Mr. Speaker, on page 2 of this resolu- children. teach our children to have a sense of tion it says something very important: Mr. Speaker, happy Father’s Day optimism about the future and what ‘‘Whereas, the promotion of responsible again. lies ahead. Their generation will be fatherhood should not, 1, denigrate the Mr. Speaker, continuing my reserva- better than ours. It will build on our standing and parenting efforts of single tion of objection, I yield to the gen- wisdom to produce a bright and pros- mothers whose efforts are heroic.’’ tleman from Illinois (Mr. DAVIS). perous world. That is so true. I know the gentle- Mr. DAVIS of Illinois. Mr. Speaker, I Mr. Speaker, tonight I ask my col- woman from Indiana knows that to be simply want to add my voice to that of leagues to join me as we renew our the case. Young women, middle-aged the gentleman and the gentlewoman in commitment to being good parents. I women whose partners, in producing terms of raising the issue, as well as especially call upon fathers throughout the greatest blessing of life, a child, do bringing to our attention the impor- the country to instill those values that not participate in the raising of that tance of fatherhood, especially as we will change the lives of children. child. This resolution says that not approach Father’s Day. I urge my colleagues to join me in only is that good for the fathers, but it It just happens that in my Congres- supporting this important piece of leg- is absolutely critical for the children. sional district come Saturday we have islation. Study after study shows us that there a full day of activity that is designed Ms. CARSON of Indiana. Mr. Speak- is nothing better for a child in the to do nothing but promote responsible er, continuing my reservation of objec- world than a stable family, than two June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3489 parents caring for that child and giving on the lives of children, as well as the stability pel us into action to ensure that chil- that child direction. of families. dren do, in fact, have a connection with It goes on to say that ‘‘this does not As the father of three lovely and intelligent a responsible fatherhood figure, if you in any way lessen the protection of women, I know first hand the remarkable chal- will, in their lives. children from abusive parents.’’ What a lenge, work and dedication it requires to be a Mr. Speaker, under my reservation of tragedy, that God gives to some a good father. objection, I yield to the gentleman child, and they abuse that child and It is through fatherhood that I live my most from Oklahoma (Mr. WATKINS). abuse that gift. ‘‘Or cause women to re- valued, joyful and reward moments. Mr. WATKINS of Oklahoma. Mr. main in or enter into abusive relation- On Father’s Day, I would like to commend Speaker, I thank the gentlewoman for ships.’’ Some of us know about that, those who have fulfilled their responsibility as yielding me this time, and I appreciate and it is appropriate that we say that, a father by providing materially for their fami- her allotting me the time to say a few that certainly a two-parent family that lies, as well as playing vital roles in the lives words on this, I think, very important creates an abusive relationship is not a of their children, such as nurturer, moral in- issue. I want to say a special thanks to relationship in which children ought to structor and mentor. the gentleman from Oklahoma (Mr. be raised. It is a serious problem con- However, it is important for our society to SULLIVAN) and also to the gentleman fronting our society; and as we con- take note that many children will face a void from Nebraska (Mr. OSBORNE), who has sider this resolution, we look to the on Father’s Day because they have no one been a tremendous role model and ‘‘responsible’’ in the reference to ‘‘fa- with which to celebrate the occasion. friend, who understands the need to therhood,’’ responsible towards the Today, an estimated 17 million children are have a role model and, truly, the gen- child and responsible towards the mom. living in households without a father. This tleman from Nebraska has been a role Lastly, it says that ‘‘we do not want makes the United States the world leader in model for many young men. to compromise the health and safety of fatherless families. I, like many others, have lived trying a custodial parent.’’ Children, on average, achieve more when to make sure, trying to be the kind of I rise in support of this resolution be- they have involved, responsible, and com- father that my children would like. I cause of its importance. We can appro- mitted fathers. A study released in May 2001, was raised in a broken home, and there priate all the money we want; we can by the U.S. Department of Education, clearly were lots of nights I went to bed think- have all the programs we want; we can shows how a father’s active involvement in ing about, hoping and praying that God have Head Start, we can have Chapter their child’s education is particularly important would let me be a father one of these 1; we can have the CHIP program for for academic achievement, as measured by days and maybe I could be a father to child health; we can do all of those receiving mostly A grades and not having to my children and also my grand- things, and nothing, nothing, nothing repeat a grade. children, because I do know the mean- will be important, as important as two In fact, research shows that children with ing. My mother raised me outside of a parents caring for that child they absentee fathers are twice as likely to drop small farming community of less than brought into this world. out of school, to commit a crime and to abuse 200 population, and I always look back I doubt, and I hope there is not a par- alcohol and drugs. And, they have a five times and think how my mom, as a single ent in this body or in this country that greater chance of living in poverty and are parent, how she did it. We all worked. can hear the ballad that is so poignant, more likely to become pregnant as a teenager. We all worked three part-time jobs and so compelling, the ‘‘Cats in the Cra- The social implications of this reality are we were able to make it. But that dle.’’ Those of my colleagues who re- staggering. Action is needed to stop these vi- small town was like a father, so to member the ‘‘Cats in the Cradle’’ song cious cycles of poverty and teen pregnancy. speak. It just consumes itself in trying about the young man, the young man I believe it is important to reinforce the val- to make sure that we as young people who asked dad to go out and play ball, ues that all Americans share: hard work, self- followed certain standards and values, the young man who asked dad to read discipline, and personal and family responsi- et cetera; and I am just thankful to the book, the young man who asked bility. have been raised in that small commu- dad to spend a little bit of time with I support meaningful legislation that will help nity. him. Dad is too busy. Dad is probably make both parents responsible for taking care But I would like for my colleagues to like some of us. He thinks things are of their children, such as improvements to the know that I lay awake at night and I too important, and he will be with his wonder how in the world do we save the son a little later. And of course as that interstate enforcement of child support, as well inner city kids? How do we save those song continues, as my colleagues will as media awareness campaigns to promote kids who many of them do not know recall, the dad gets older, the son gets responsible fatherhood skills. who their father is? Sometimes they do older, and the dad says to the son, son, It is important for society to send a clear not know either parent, and they find let us spend some time together. Of and strong message to parents—especially there is no role model. I know the gen- course by that time the son, like his teenage parents—that they must be respon- tleman from Nebraska (Mr. OSBORNE) dad when he was his age, has become sible for their children—and I will continue to preoccupied. support and promote such initiatives. and I have talked about role models. I For those of us who have lived for It is my great pleasure to stand here tonight think each and every one of us in life is some period of time who were very ac- with my colleagues to reinforce the importance a role model in one way or the other, tive when our children were young, of responsible parenting and to commend fa- one way or the other. I think it be- who thought our lives were very impor- thers who have had a positive and lasting in- hooves us to try to get that message tant then, we perhaps look back and la- fluence on the lives of their children. across, that we are responsible to try ment that we did not spend the time Ms. CARSON of Indiana. Mr. Speak- to help raise the children in some way with our children that we should have. er, continuing under my reservation of so that they can be responsible and so It is important not only that all of us objection, let me thank the gentleman that they can enter their fatherhood urge fathers to be responsible, urge very much for those very vital points somewhere along the way. them to be engaged, but as well to urge that the gentleman inserted into this As the gentleman from Maryland was ourselves to be the best possible par- dialogue. It forces us to rethink our po- talking about, statistics prove it out. I ents we can, for nothing, nothing can sition in terms of the configuration of know I have been on the selection team be more positive for this country than the family when we reflect on 9/11, as of the top 10 students at Oklahoma that. responsible fathers went to work to en- State University for about 15 years; Mr. Speaker, I stand here tonight in support sure that their families had economic and over that period of time, it has of House Resolution 442 which calls upon fa- well-being, only to be interrupted in been amazing to me to see the out- thers around the country to use this Father’s terms of their life and being unable to standing students, and most of them Day to reconnect and rededicate themselves go back. had both parents. Let me say this to to their childrens’ lives. So when we talk about fatherhood any young person who may come from This coming Sunday, June 16th, 2002, mil- and partnerships and responsible fa- a broken home, a divorced home, you lions of Americans will celebrate Father’s Day. therhood, we do consider that there are can use it as an excuse, or you can use As a nation we set aside this day to recog- circumstances beyond the control of it as a building stone, a stepping stone. nize the tremendous impact that fathers have the biological father which would pro- Because it is easy for us to say, well, H3490 CONGRESSIONAL RECORD — HOUSE June 12, 2002 because I did not have a parent is the hood or by all of these other systemic United States have not seen their fa- reason why I did not do this or maybe kinds of situations. thers in a year. Fifty percent of such I turned out bad. Continuing to reserve my right to ob- children have never visited their fa- I am so thankful that the good Lord ject, I yield to the gentleman from In- ther’s homes. Nearly four out of 10 blessed me along the way. I stand in diana (Mr. PENCE), whose oratory is al- children born in America today are support of H. Res. 442, because I think most as good as mine, but it is a joy to born in homes where their father will we cannot do too much in trying to have him in the delegation. I was just never live. It breaks my heart. reach a lot of people and trying to with him the other night at a dinner. But I think that the leadership that make sure we provide for them that op- He would not want anybody to know the gentlewoman from Indiana (Ms. portunity to be a father and be a role that, but I have to tell that, and I do CARSON) is providing on this issue to- model as a father. have a lot of appreciation for the good night is even more important, because So I thank the gentlewoman from In- work that my colleague, the gentleman if fatherlessness is an epidemic in diana (Ms. CARSON) and the gentleman from Indiana (Mr. PENCE), does; and it America as a whole, it breaks my heart from Oklahoma (Mr. SULLIVAN) and es- is a pleasure to yield to him. to say that in the last 25 years, pecially my friend, the gentleman from Mr. PENCE. Mr. Speaker, I thank the fatherlessness has become a crisis in Nebraska (Mr. OSBORNE), who I am just gentlewoman for yielding and for those black America; that, for whatever rea- thankful that he will be coming to kind words and, more to the point, for sons, whether they are a consequence Oklahoma to be the presenter for my her original sponsorship of this impor- of social welfare policies or trends or entry into the Oklahoma Hall of Fame; tant resolution tonight and to its au- urbanization, black America, and par- and I really and sincerely mean that, thor, one of the newest Members of this ticularly black American young men, because as I have told my friend, as the institution, the gentleman from Okla- have been growing up increasingly in a Nebraska coach, we owe him a whole homa (Mr. SULLIVAN), who has already generation without their fathers at lot. I really want him to come because begun to make a tremendous impres- home. Six out of 10 black Americans I want the people of Oklahoma to know sion on all of his colleagues on issues today will be born and raised in a home the gentleman from Nebraska (Mr. important to the family. And to the where their fathers are not present, OSBORNE) whom I have grown to love gentleman from Nebraska (Mr. and it breaks my heart. When we look at the statistics of and respect as a fellow human being. OSBORNE), my thanks to him for his what happens when dad is not around, But to the gentleman from Nebraska, leadership on this issue as well. children are five times more likely to we thank him so much for being part of My father was Ed Pence, who raised end their lives in poverty, multiple our family here. I want to thank the a family of four boys and two girls that times to become involved in crime and gentleman from Oklahoma (Mr. SUL- were the passion of his life until he drugs and premarital sex and gang vio- LIVAN) and look forward to having him passed away in 1988 at the young age of lence. in Oklahoma. I thank the gentleman 58, leaving all of us to this day heart- We must today come together, Chris- for what he has meant to the delega- broken. And let me say that my father tians and Jews, people of every race tion in bringing this to our attention. was tough as a father with a drill in- and every creed and every background As I go through life, and as some here structor background. He was at times and every party in this country, and know, I am going home after this year, completely unfair. His punishments declare war on fatherlessness, because and people ask me what I am going to were unjustifiable and without appeal, it is, as the gentleman from Maryland do, and I say I am going home to try to but my father was there, and that (Mr. HOYER) said with great passion be the best father I can be, to be a privilege for me is one of the greatest and eloquence a moment ago, it is papa, and to make memories. evidences of God’s grace in my life. something about which the survival of Ms. CARSON of Indiana. Mr. Speak- And my father’s presence in my life our Nation is tied up. er, continuing my reservation of objec- and the lives of my brothers and sisters With this I close. The Bible talks of tion, I thank the gentleman from Okla- I have tried to emulate and replicate in a time of renewal in the world, when homa (Mr. WATKINS). the lives of Michael and Charlotte and the hearts of the fathers would be I too want to add accolades to the Audrey who sit at our home at this turned back to their children. It seems gentleman from Nebraska (Mr. hour watching this important con- to me that the resolution offered to- OSBORNE) and certainly for the kind versation. It is one of the sublime night by the gentleman from Okla- words from the gentleman from Okla- privileges of my life to be their daddy homa (Mr. SULLIVAN), by the gentle- homa (Mr. WATKINS) and also to the and to try to live up to the high stand- woman from Indiana (Ms. CARSON), and gentleman from Maryland (Mr. HOYER) ards of my father. But it was a stand- the gentleman from Nebraska (Mr. and the gentleman from Illinois (Mr. ard that was set simply by the idea OSBORNE), is all about doing just that, DAVIS). that we really celebrate tonight in the in whatever small way we can in this As we continue this dialogue in gentleman from Oklahoma’s resolu- institution to do our part to turn the terms of these measures that are before tion, and that is it is about being there hearts of the fathers of America back us, I think that the gentleman from for dads. to their children; to sear their con- Oklahoma (Mr. WATKINS) brought up a Sometimes I wonder in my heart if in sciences as this Father’s Day ap- very valuable point, and I want to in- the sitcom culture that we have in- proaches, and maybe even begin the sert a very invaluable point, I believe. vented today we have not raised the process in this place of turning Fa- All children in the inner city are not bar too high for fathers, creating some ther’s Day not into a day where you the stereotypical kind that one would standard where if dad is not there at get a new pair of slippers, a new sub- believe. I myself came from an urban the end of the day at school talking scription to Sports Illustrated, some area and was born to a teen-age single through every single problem conversa- new homemade chiseled gifts and mother, and the gentleman from Okla- tion that their child had that somehow nailed boards, but maybe it is a day homa (Mr. WATKINS) made a good point that father is not living up to the mod- when fathers do not receive but they that people can make choices about ern standard of a touchy-feely dad. decide to give. what it is that they want to be, and it Those of us who have the privilege to b 2045 is kind of difficult for us to muscle our- call ourselves fathers or to be called selves through life being branded as Today in this resolution we simply daddy by somebody special in the world bastards, illegitimate, and coming call on fathers to reconnect; to be will recognize this holiday as a day from inner city areas. When you look promise-keepers, to live out the com- when we can renew, as the gentleman back at some of the national episodes mitment that is not just biological but from Oklahoma (Mr. SULLIVAN) sug- that occurred perpetuated by children begins there and remains spiritual and gests, renew and reconnect and rededi- that came from two-parent families, I relational through their lives. cate ourselves to our children’s lives. think we have to stress the importance Fatherlessness, as the gentleman Again, I commend the gentlewoman of building on the morals of an indi- from Nebraska said, is an epidemic in from Indiana for her passion, her lead- vidual rather than classifying an indi- America. Forty percent of children who ership, her testimony, and the gen- vidual by environment or by neighbor- live in fatherless households in the tleman from Oklahoma (Mr. SULLIVAN). June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3491 Ms. CARSON of Indiana. Continuing What they have determined is that a the gentlewoman from Indiana (Ms. to reserve my right to object, Mr. child whose parent is in prison, and in CARSON), because she has been preach- Speaker, I thank the gentleman from particular, in many instances, it is the ing this unity, this message about fa- Indiana very much for his input, and I male parent, that child is doomed to therhood, for many, many years. I am yield to the gentlewoman from Texas the cycle of incarceration or imprison- just delighted that she has brought (Ms. JACKSON-LEE). ment. The father, again, not in their this message to the United States Con- Ms. JACKSON-LEE of Texas. Mr. lives. In many instances, this effort is gress to be able to not only honor our Speaker, I thank the distinguished gen- to boost the child’s self-esteem, but fathers, to pay tribute to them, but tlewoman from Indiana for her early also to find ways to ensure that if also to challenge them to find their and constant leadership on this issue, there can be a relationship, even with children, wherever they might be, and and the gentleman from Oklahoma that incarcerated parent, and there can bring them close to them, and they will (Mr. SULLIVAN) for his leadership on be a support system on the outside that find great reward in the idea of father- this issue. bolsters that child’s ability to achieve, hood, both for themselves and for their Two reasons, or more than two rea- it is an important program. children. sons, I rise to support this resolution: This resolution applauds such efforts Ms. CARSON of Indiana. Continuing First of all, to pay tribute to America’s to create the opportunity for parent to reserve my right to object, Mr. fathers, many of whom are serving in and child to be together, and that is for Speaker, certainly I would like to do a the front lines of our war against ter- children to be with their parents. It premature congratulations to Alex rorism, many of whom will not be with promotes responsible fatherhood, so Nock, who has worked very hard with their children on Father’s Day because that fatherhood or the idea of being a the staff, and who in October will be- of that. father would not denigrate the stand- come a father. So I want to be the first I also would like to acknowledge my ing or parenting efforts of single moth- one to tell him congratulations, and father, my late father, Ezra C. Jack- ers whose efforts are heroic. certainly to Ms. Nock. We look forward son, who certainly represented a major We are not trying to condemn or to to this explosion of the population, and force in my life; and then to pay trib- criticize those individuals who have to for him to move into the role that he ute to my husband, Dr. Elwyn C. Lee, raise their children alone, but we are has so aptly described in this resolu- who plays a major role, not only in his saying to the fathers, wherever they tion, along with the gentleman from children’s lives, but that of his commu- are, they can make a holistic family by Oklahoma (Mr. SULLIVAN). nity. coming to those children and raising Continuing to reserve my right to ob- That is why this resolution is so themselves up as a person to be ad- ject, Mr. Speaker, I yield to the gen- vital, because it emphasizes the impor- mired, respected, and someone who tleman from Minnesota (Mr. KENNEDY). tance and the very vitality of a man’s Mr. KENNEDY of Minnesota. Mr. love for his children. It indicates that wants to nurture and love their chil- Speaker, I thank the gentlewoman that steady hand is needed, and the dren. We believe, of course, that putting fa- from Indiana for yielding to me, and I resolution calls for action. It literally thers in the lives of children does not thank and commend the gentleman asks fathers, wherever they may be, condone being abusive. We know there from Oklahoma (Mr. SULLIVAN) for whether they are united with their families or they are not, it asks fathers are circumstances where we must sepa- bringing this, along with the gentle- to make an effort to be united with rate the children from the family; and, woman from Indiana, to our attention their children on Father’s Day, and for as well, we do not want to keep chil- and to the floor. I would recognize also the children to make an effort to be dren or families, rather, or women in the gentleman from Nebraska (Mr. united with their fathers. abusive relationships. That is not the OSBORNE) for his leadership on this It is well known that this resolution intent of this resolution. Nor do we very important issue. also says that 40 percent of children want to compromise the health or the Mr. Speaker, we have many titles, who live in fatherless households in the safety of a custodial parent. Many many things we are called over the United States have not seen their fa- times there are restraining orders. course of our lives. During school we thers in at least 1 year, and 50 percent To put all of that aside, we are not have a lot of nicknames, and during my of such children have never visited attempting to change situations where time in business I had a lot of fancy ti- their father’s homes. there is any jeopardy, but what we are tles, and today we are called Congress- As chair of the Congressional Chil- saying is that in this Father’s Day, men or Congresswomen. But there is dren’s Caucus, I see the poverty of chil- this third Sunday in June, we want to nothing more important than to be dren. When I see that, I am not only make sure that children and fathers called ‘‘dad.’’ It is the most important talking about the physical poverty, the have an opportunity to come together. title that I have. financial poverty, but also the spiritual So we urge in this resolution an un- I have had the opportunity to invest and social poverty of children; that derstanding, we urge in this resolution in many things that are valuable to when children do not have the steady love, we urge in this resolution bonding me, whether it be my home, buying a hand of the dad, we can see the dif- and friendship. I might simply say that car every now and then, or other ference; that firm hand, that hand that we as a Nation understood the prin- things. But as my father would always either plays the local sports, that sits ciples of motherhood and fatherhood; say, my assets sit around the table, and on the front row of that school cere- we have Mother’s Day, we have Fa- they are the most important, most val- mony, that visits that teacher, that ther’s Day. We understand the toiling uable things that we have. waves you off to school. and the hard work. We have many jobs. I have had many There is something about the bond- We made efforts to ensure that when jobs in my life during my 20-year ca- ing between father and child, girl or we built towns to the West, when we reer in business, and I have an impor- boy, and I am gratified that this House said, go west, young man and young tant job here serving the people in the would rise today on the eve of Father’s woman, we would put together towns Second District of Minnesota. Day to be able to acknowledge the im- around families. The first thing that But there is no more important job portance of Father’s Day. would be built would be the little that I have, no more important job I am affiliated with an effort called schoolhouse. that any father has, than in being a fa- the U.S. Dream Academy. Senator We even know that the tragedy of ther to their children. That is really ORRIN HATCH and the gentlewoman slavery unfortunately undermined fam- what this resolution talks about, is the from Maryland (Mrs. MORELLA), Sen- ily systems. There was a great impact importance of that, and the need to ator HILLARY CLINTON, Senator on that. We have to continue to mend really reach out and honor that, thank CORZINE, and many others have offered that psychological crack, if you will. In those that do a good job, and encourage their support for this operation spon- all of that, we have come full circle to those fathers out there to take a more sored by Wintley Phipps. The idea of it understand the value of fatherhood. active role in their lives. is to work with children of incarcer- So, Mr. Speaker, I am very honored I have had the example in my life, as ated parents, those parents that are in to join the leaders of this resolution. many have, and unfortunately, some prison. Again, I want to add my accolades to have not, of having a great father to H3492 CONGRESSIONAL RECORD — HOUSE June 12, 2002 guide me in this path. I can fondly re- coach, the gentleman from Nebraska (3) cause women to remain in, or enter member the nights when he would tuck (Mr. OSBORNE), in particular, because I into, abusive relationships; or me in at night and come over to my know what an impact coaches have on (4) compromise the health or safety of a bed and say my prayers. the lives of young men, and even custodial parent; Whereas children with fathers at home Every night when I am home, which though I do not know the gentleman tend to do better in school, to be less prone in our role is not often enough, but I personally, I have observed him, and to depression, and to have more successful always try to take time at the end of just his style suggests that he has relationships; the night to go to each child’s bed- touched many lives of young people Whereas boys and girls alike demonstrate room, and I am very blessed to have who have been guided in a very positive greater self-control and ability to take ini- four children, along with my wife, way. tiative when fathers are actively involved in Debbie, and spend time with them talk- In Indiana we have Coach Dungy, their upbringing; ing about their day, saying our pray- who is head of the coaches, who is an Whereas promoting responsible fatherhood can help increase the chances that children ers, giving them the sign of the cross incredible father himself to his biologi- cal children. But he has reached out will grow up with two caring parents; on their forehead to keep them safe Whereas a broad array of America’s lead- through the night and keep them and embraced other children who did ing family and child-development experts strong in their faith, and help them not have the benefit of having the love agree that it is in the best interests of chil- grow in their lives. of a father that he gives to his chil- dren, and the Nation as a whole, to encour- dren. We have Mike Davis, an incred- age more two-parent, father-involved fami- b 2100 ible coach at Indiana University, who lies; But there are 24 million kids that do has reached out and embraced other Whereas in a study of fathers’ interaction not have a father to come and talk to children who did not have the benefit with their children in intact two-parent fam- them at night or during the day or any- of a personal father in their own life. ilies, nearly 90 percent of the fathers sur- time. And it is those that we really our We have Emil, who just left to coach veyed said that being a father is the most and went to the Oakland Raiders, who fulfilling role a man can have; hearts go out to them and we should do Whereas according to a 1996 Gallup poll, everything we can to support them in has created an incredible program for 90.3 percent of Americans agree that fathers our own way in role models. But the the benefit of children, particularly make a unique contribution to their chil- best thing that could happen for them young men who did not have fathers. dren’s lives; is if their father was more involved. We have Tim Harris, who is a million- Whereas married fathers are more likely to And that is what we are trying to do aire, African American, all of the men have a close, enduring relationship with today, to encourage current fathers I have mentioned, African American their children than unmarried fathers; and future fathers to play a very im- men who are reaching out doing what Whereas the promotion of responsible fa- they can do for the benefit of young therhood is a bipartisan issue; and portant role in their children’s lives. Whereas Father’s Day is the third Sunday As we celebrate Father’s Day, we men who are not so fortunate to have a in June: Now, therefore, be it want to encourage them to remember, father in their home. But to coaches in Resolved, That the House of all fathers to remember that they have particular, they do have a very special Representatives— a role not just in bringing your child to segment in the lives of kids. (1) urges men to understand the level of re- life, but in teaching them, teaching Mr. Speaker, I just wanted to tell the sponsibility fathering a child requires, espe- them and working with them in their gentleman how much I appreciate him cially in the encouragement of the academic, school work, working with them in and the many numerous lives that he moral, and spiritual development of chil- has touched along the way in his pro- dren; terms of imparting your faith with (2) recognizes the need to encourage active them, working with them in helping fession. Mr. Speaker, I withdraw my reserva- involvement of fathers in the rearing and de- them learn how to play sports, how to velopment of their children; deal with some of the tough issues they tion of objection. (3) encourages each father to devote time, face in life and dealing with young kids The SPEAKER pro tempore (Mr. energy, and resources to his children, recog- in their challenges that are giving FLAKE). Is there objection to the re- nizing that children need not only material them a hard time and sharing their quest of the gentleman from Nebraska? support, but even more importantly, a secure There was no objection. stories as the struggles you went and nurturing family environment; The Clerk read the resolution, as fol- (4) commends the millions of fathers who through. lows: serve as wonderful, caring parents for their So I would just commend and thank H. RES. 442 children, while also recognizing that there all fathers who are doing that today are children who will have no one with whom Whereas 40 percent of children who live in and commend them to redouble their to celebrate on Father’s Day; fatherless households in the United States (5) urges mothers to encourage fathers to efforts. I would encourage fathers that have not seen their fathers in at least 1 year, play an active role in child-rearing; maybe have not really focused on that and 50 percent of such children have never (6) calls on fathers across the Nation to use as much to really make a resolution visited their fathers’ homes; Father’s Day to reconnect and rededicate this Father’s Day to do that more. And Whereas approximately 50 percent of all themselves to their children’s lives, to spend children born in the United States spend at I would also speak to the young men of Father’s Day with their children, and to ex- least half of their childhood in families with- the world that are not yet fathers to press their love and support for their chil- out father figures; say, listen, if you are going to do that, dren; and Whereas 3 out of 4 adolescents in the you ought to take that act responsibly (7) urges American institutions, and gov- United States report that they do not have ernment entities at every level, to promote and you ought to have a commitment adults in their lives that serve as positive public policies that encourage and support to those children that you bring into role models; the efforts of, and remove barriers to, re- this world to bring them up as someone Whereas children who are apart from their sponsible fatherhood. that you would be as happy to say that biological fathers are, in comparison to this is someone I have invested a lot of other children, 5 times more likely to live in The resolution was agreed to. my life in and I am very pleased how poverty, and more likely to bring weapons A motion to reconsider was laid on they turned out. and drugs into the classroom, commit other the table. So thanks to the fathers. Thanks crimes, drop out of school, commit suicide, abuse alcohol or drugs, and become pregnant f again to the gentlewoman from Indiana as teenagers; GENERAL LEAVE (Ms. CARSON). Thanks to the gentleman Whereas the Federal Government spends from Oklahoma (Mr. SULLIVAN) for billions of dollars to address these social ills Mr. OSBORNE. Mr. Speaker, I ask bringing this forward, as well as to the and very little to promote responsible fa- unanimous consent that all Members gentleman from Nebraska (Mr. therhood; may have 5 legislative days within OSBORNE). Whereas the promotion of responsible fa- which to revise and extend their re- Ms. CARSON of Indiana. Mr. Speak- therhood should not— marks on H. Res. 442. er, further reserving the right to ob- (1) denigrate the standing or parenting ef- The SPEAKER pro tempore. Is there forts of single mothers, whose efforts are he- ject, I thank the gentleman from Min- roic; objection to the request of the gen- nesota (Mr. KENNEDY). Let me say be- (2) lessen the protection of children from tleman from Nebraska? fore I release my right to object, to the abusive parents; There was no objection. June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3493 SPECIAL ORDERS (a) to conduct an investigation into, and shall apply in all hearings and other pro- study of, all matters that may have any ceedings of this Joint Inquiry, except where The SPEAKER pro tempore. Under tendency to reveal the full facts about— superseded by these Joint Inquiry Rules, pro- the Speaker’s announced policy of Jan- (1) the evolution of the international ter- vided that, at any joint hearing, if any rules uary 3, 2001, and under a previous order rorist threat to the United States, the re- of the two Committees are inconsistent, the of the House, the following Members sponse of the United States Government in- rules of that Committee whose Chairman or will be recognized for 5 minutes each. cluding that of the Intelligence Community his designee is presiding shall apply. to international terrorism, from the creation 1.3. For the purposes of the proceedings of f of the Director of Central Intelligence’s this Joint Inquiry, all employees on the staff The SPEAKER pro tempore. Under a Counterterrorist Center in 1986 to the of either Committee working on the Joint previous order of the House, the gen- present, and what the Intelligence Commu- Inquiry shall be considered to be acting on tleman from Nebraska (Mr. OSBORNE) is nity had, has, or should have learned from behalf of both Committees. recognized for 5 minutes. all sources of information, including any ter- JOINT INQUIRY RULE 2. HEARINGS (Mr. OSBORNE addressed the House. rorist attacks or attempted ones, about the 2.1. All testimony at hearings shall be His remarks will appear hereafter in international terrorist threat to the United taken under oath or affirmation. States; JOINT INQUIRY RULE 3. DEPOSITIONS the Extensions of Remarks.) (2) what the Intelligence Community knew 3.1. All testimony taken, and all docu- f prior to September 11 about the scope and nature of any possible attacks against the ments, records, or other materials produced, The SPEAKER pro tempore. Under a at a deposition of the Senate Select Com- previous order of the House, the gen- United States or United States interests by international terrorists, including by any of mittee on Intelligence shall be considered part of the record of both Committees. tleman from California (Mr. FILNER) is the hijackers or their associates, and what recognized for 5 minutes. was done with that information; f (Mr. FILNER addressed the House. (3) what the Intelligence Community has The SPEAKER pro tempore. Under a His remarks will appear hereafter in learned since the events of September 11 previous order of the House, the gentle- the Extensions of Remarks.) about the persons associated with those woman from Ohio (Ms. KAPTUR) is rec- events, and whether any of that information f ognized for 5 minutes. suggests actions that could or should have (Ms. KAPTUR addressed the House. INITIAL SCOPE AND SUPPLE- been taken to learn of, or prevent, those events; Her remarks will appear hereafter in MENTAL RULES FOR THE JOINT the Extensions of Remarks.) INQUIRY BEING CONDUCTED BY (4) whether any information developed be- fore or after September 11 indicates systemic f THE HOUSE PERMANENT SELECT problems that may have impeded the Intel- COMMITTEE ON INTELLIGENCE ligence Community from learning of or pre- HONORING MARTIN AND GRACIA AND THE SENATE SELECT COM- venting the attacks in advance, or that, if BURNHAM MITTEE ON INTELLIGENCE remedied, could help the Community iden- The SPEAKER pro tempore. Under a tify and prevent such attacks in the future; previous order of the House, the gen- The SPEAKER pro tempore. Under a (5) how and to what degree the elements of previous order of the House, the gen- the Intelligence Community have interacted tleman from Kansas (Mr. TIAHRT) is tleman from Florida (Mr. GOSS) is rec- with each other, as well as other parts of fed- recognized for 5 minutes. ognized for 5 minutes. eral, state, and local governments with re- Mr. TIAHRT. Mr. Speaker, I humbly Mr. GOSS. Mr. Speaker, I ask that the initial spect to identifying, tracking, assessing, and stand before you today to honor Martin scope and the supplemental rules for the Joint coping with international terrorist threats; and Gracia Burnham, who are pictured Inquiry being conducted by the House Perma- as well as biological, chemical, radiological, here in a photograph from over a year or nuclear threats, whatever their source nent Select Committee on Intelligence and the ago. (such as the Anthrax attack of 2001). Today is the day I had been looking Senate Select Committee on Intelligence be (6) the ways in which the Intelligence Com- forward to for over a year, a day when published in the CONGRESSIONAL RECORD. munity’s responses to past intelligence prob- I could finally tell you that Martin and Both the Joint Inquiry’s initial scope and its lems and challenges, whether or not related Gracia Burnham are no longer being supplemental procedural rules were adopted to international terrorism, have affected its held hostage by Muslim terrorists, but by the full membership of HPSCI and SSCI. counterterrorism efforts; and (7) any other information that would en- it is bittersweet. PREAMBLE able the Joint Inquiry, and the Committees The Burnhams’ captivity by Muslim To reduce the risk of future terrorist at- in the performance of their continuing re- terrorists in the Philippines is finally tacks; to honor the memories of the victims sponsibilities, to make such recommenda- over at 377 days and on Monday, Gracia of the September 11 terrorist attacks by con- tions, including recommendations for new or arrived home in Kansas and was joy- ducting a thorough search for facts to an- amended legislation and any administrative fully reunited with her three children, swer the many questions that their families or structural changes, or other actions, as Jeff, Mindy and Zach. But I am deeply and many Americans have raised; and to lay they determine to be necessary or desirable a basis for assessing the accountability of in- to improve the ability of the Intelligence saddened to tell you that Martin will stitutions and officials of government: Community to learn of, and prevent, future not be returning to Kansas. Martin was THE SENATE SELECT COMMITTEE ON international terrorist attacks; and mortally wounded in rescue and has INTELLIGENCE (b) to fulfill the Constitutional oversight gone on to be with our Lord and Sav- and informing functions of the Congress with AND ior, Jesus Christ. regard to the matters examined in the Joint Martin was born in Wichita, Kansas, HOUSE PERMANENT SELECT COMMITTEE ON Inquiry. on September 19, 1959, the eldest son of INTELLIGENCE HOUSE PERMANENT SELECT COMMITTEE ON IN- Paul and Oreta Burnham, who served ADOPT THIS TELLIGENCE SUPPLEMENTAL JOINT INQUIRY as missionaries and now reside in Rose INITIAL SCOPE OF JOINT INQUIRY RULES Hill, Kansas, just outside of Wichita. Pursuant to section 5(a)(1) of Senate Reso- In connection with the Joint Inquiry with Gracia is daughter of Reverend Norvni lution 400, 94th Congress, Rule 6 of the Rules the Senate Select Committee on Intelligence into the events of September 11, 2001, author- and Betty Jo Jones of Arkansas. Mar- of Procedure of the Senate Select Committee tin and Gracia met at Calvary Bible on Intelligence, Rule XI(1)(b) of the Rules of ized by the House Permanent Select Com- the House of Representatives, and Rule 9 of mittee on Intelligence (‘‘HPSCI’’) pursuant College in 1982 and were married in the Rules of Procedure of the House Perma- to Rule XI(1)(b) of the Rules of the House of 1983. In 1986 they went to the Phil- nent Select Committee on Intelligence, the Representatives and Rule 9 of HPSCI’s Rules ippines where they have been and since two Committees have authorized an inves- of Procedure, and pursuant to Rule XI(2)(a) have served as missionaries with the tigation, to be conducted as a Joint Inquiry, of the Rules of the House of Representatives, New Tribes Mission. into the Intelligence Community’s activities HPSCI adopts the following Joint Inquiry Martin and Gracia’s three children, before and after the September 11, 2001 ter- Rules to supplement HPSCI’s Rules for pur- Jeff, 15; Mindy, 12; and Zach, 11, were rorist attacks on the United States. The poses of the Joint Inquiry only: all born in the Philippines. During Committees have undertaken this Joint In- JOINT INQUIRY RULE 1. JOINT PROCEEDINGS their years of service, Martin was chief quiry pursuant to their responsibility to 1.1. HPSCI may conduct hearings jointly pilot for New Tribes Mission. He flew oversee and make continuing studies of the with the Senate Select Committee on Intel- intelligence activities and programs of the ligence. All joint hearings shall be consid- supplies to missionaries in remote lo- United States Government and all other au- ered hearings of both Committees. cations, and Gracia assisted in a vari- thority vested in the Committees. 1.2. The Rules of Procedure of HPSCI and ety of roles supporting New Tribes Mis- The purpose of this Joint Inquiry is— the Senate Select Committee on Intelligence sion aviation program. Martin has been H3494 CONGRESSIONAL RECORD — HOUSE June 12, 2002 commended as a skillful pilot but is each and every one of you for every Martin said if he had to go, a martyr would known more for his friendliness and time you remembered us in prayer. We be the way, strong faith. needed every single prayer you prayed Enjoy it Martin, we will join you soon, just one last thing to say. Gracia is appropriately named, and I for us during our ordeal in the jungle.’’ If Bin Ladens bunch is keeping score, you have heard stories from her loved ones The outcome was not what I had may have killed my hero, over the past few years and found them hoped for or worked for or prayed for But let me tell you the final score, Heaven to be true when I had a chance to meet but I believe our prayers did make a one, Terrorists zero—Ted Miller her on this Monday. I was in complete difference. Please continue to pray for f awe of her boundless spirit and viva- the Burnham family and their family NATIONAL MEN’S HEALTH WEEK ciousness. It was her grace and peace, and friends. The SPEAKER pro tempore. Under a however, that truly amazed me. I could In closing let me share a couple of previous order of the House, the gen- feel the presence of God within her. It stanzas from a poem written by a tleman from Illinois (Mr. DAVIS) is rec- is no wonder that Martin and Gracia friend of the Burnhams, Ted Miller. It ognized for 5 minutes. have touched so many hearts or that so is called the ‘‘Final Score.’’ The poem Mr. DAVIS of Illinois. Mr. Speaker, I many people across the world have goes, ‘‘We thought of you both every rise to call attention to this Nation’s been involved in efforts to free them. day, wondered what it was like, guns observance of National Men’s Health Martin and Gracia were captured last shooting, grenades going off, an all day Week which takes place this year from May while on vacation to celebrate jungle hike. It may be over in the jun- June 10 to June 16. their 18th wedding anniversary. They gle, but it will not all be left behind. In May of 1994 Congress sent to the were taken hostage and held for ran- May God pour out more grace on you President a joint resolution estab- som because they were Americans. But and give you peace of mind. lishing the week leading up to Father’s Martin and Gracia’s ministry did not ‘‘Martin said if he had to go, a mar- Day each year as National Men’s end with their capture by terrorists. tyr would be the way. Enjoy it Martin, Health Week. It was signed by Presi- During the past year, they never lost we will join you soon, just one last dent Clinton on May 31, 1994, and be- their faith or joy of life despite their thing to say. If bin Laden’s bunch is came Public Law 103–264. The resolu- frail condition and the terror they en- keeping score, you may have killed my tion requested our chief executive to dured. hero, but let me tell you the final issue a proclamation calling upon the Fellow captives who were freed ear- score, Heaven one, terrorists zero.’’ people of the United States to observe lier spoke of their love and strength. Mr. Speaker, the poem in its entirety this week with appropriate programs Martin and Gracia comforted their fel- is as follows: and activities. low hostages, shared their food and FINAL SCORE As our sons and daughters across supplies, and helped raise their spirits We all know Martin and Gracia, even if we America scurry about this week to buy through singing, telling stories and have never met. that special Father’s Day gift and card, even reciting recipes. They were on our radios, church prayer re- and as I wish my 90-year-old father and Gracia became a mother figure to her quests, on our TV sets. my 98-year-old uncle and my 88-year- fellow hostages, and Martin always I remember that famous video, in my mind old uncle and my 78-year-old uncle, I graciously offered to carry things for it’s still planted, wish them all a happy Father’s Day, I both terrorists and other hostages. All Gracia wanted was privacy, things I can think of no better way to honor Martin and Gracia praised God and take for granted. our present and future generations of thanked Him for each day. Martin even We all could probably confess, we never fathers than to learn more about the seem content, unique challenges men face and how we reached out to the terrorists and tried That little short video changed my life, to show them the ways of Christ. He you can not know what it meant. can help them preserve the precious constantly prayed for them. All this was no accident, this last year fits gift of good health. On June 7 before Martin’s death, he Gods plan, b 2115 and Gracia prayed together and While we were in our comfort zone, The All of our citizens have benefited thanked God for his faithfulness and Burnhams hid and ran. greatly from the strides made by med- lay down for a nap. Martin stated, ‘‘We But Gracia let me tell you, through all the ical science, but despite these ad- might not leave this jungle alive but at hunger and pain, vances, a review of our health statis- least we can leave this world serving We have grown closer to the Lord as one, no one died in vain. tics show that the health status of the Lord with gladness.’’ He left the Your families have held the ropes for you, American men, and especially many of world serving the Lord with gladness they always did their best, our ethnic minorities, lags far behind and Gracia continues to do so. They pleaded for prayers, pleaded for help, the rest of our citizens. The average I also want to honor Martin’s par- never seem to rest. life expectancy at birth for all men in ents, Paul and Oreta Burnham. For the We always knew how to pray for the kids, the United States is 74.1 years, more past year they have taken care of Jeff, constant specific updates, The things they missed about mom and than 5 years less than for women. The Mindy, and Zach. They have worked gap widens to almost 7 years when tirelessly to do all they can to bring dad, Gracia your funny cakes. All these things that seem so small, your comparing the life expectancy of black Martin and Gracia home. I have been kids did not let go, males, which is 68.3 years, to white impressed with their humbleness, their What a testimony they have been, as time males which is 74.8 years. strength and their faith. The Burnham passed so slow. I am especially concerned about the family has shown us the power of faith We thought of you both everyday, won- number one illness that contributes to and love. As Rhonda Holman, editorial dered what it was like, the reduced life expectancy for men, writer for the Wichita Eagle said, Guns shooting, grenades going off, an all heart disease. Despite the wealth of ‘‘Confronted by humanity at its most day jungle hike. world class hospitals in Chicago, a evil, they exemplified humanity at its It may be over in the jungle, but it will not all be left behind, study conducted by the Centers for Dis- best, responding not with fear and de- May God pour out more grace on you and ease Control and Prevention in the spair, but with unflagging hope. As give you peace of mind. year 2000 found that Illinois has the they adjust to bittersweet events of Thanks for the opportunity to pray for Nation’s third highest rate of death Friday, may the Burnhams realize how you, what a blessing that it was, from heart disease among African deeply they have touched and inspired God is still on the throne, we are excited to American men. According to the Amer- us with their strength.’’ see what he does. ican Heart Association, all men have a Over the past year, many of us who I thought of Gracia and Martin, shot, greater risk of heart disease and heart never met Martin and Gracia came to wounded on the ground, attacks much earlier in life than know and love them. We often felt As Martin slipped off to be with God, I think he heard this sound. women. Men must take this disease helpless. Our prayers were heard by the Thousands of angels welcoming him home, more seriously and understand that Burnhams as Gracia told us in her first then there is the SON, this killer can and should be prevented. statement to the world following her Welcome home Martin Burnham, well done In addition to the disproportionately captivity, she said, ‘‘We want to thank my child well done!!! higher rates of heart disease and other June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3495 illnesses among African American same drugs made in exactly the same numbers, the average Social Security men, census data has confirmed the plants, under the same FDA approval. recipient received a cost-of-living ad- tremendous growth of the Latino popu- What I have here tonight is a chart justment of 31⁄2 percent. Prescription lation in the United States. Hispanic which shows what I think are 15 of the drugs went up 19 percent. We hear sto- men are also affected more than other most commonly prescribed drugs in the ries every day about these seniors who groups by illnesses that can often be United States and a comparison which have to make difficult, painful choices prevented or treated successfully if de- was done. These are not my numbers. that no American should have to make, tected early. Hispanic Americans are These were done by the Life Extension and a big reason is because of the price. almost twice as likely to have diabetes Foundation, and they have been study- What does this mean ultimately for as non-Hispanic white Americans of ing this issue for a number of years and the budget? I have a plan to make it similar age. probably have done a better job of as- easier for Americans to import through We can and must do more to educate sembling raw data about the differen- their pharmacist or by themselves all men about this disease. People with tials, and I would like to go through these prescription drugs from other diabetes are also two to four times some of the numbers on these charts. countries. My vision is that people more likely to have heart disease and Let me talk about, for example, would be able to go to their local phar- suffer from stroke. Advanced diabetes Glucophage. Glucophage is an amazing macy, and if they wanted the prescrip- can cause blindness, kidney disease and drug, and let me first of all say, I am tion filled today, they could literally severe nerve damage. The risk of get- not here tonight to beat up on the pay the American price but the phar- ting diabetes, as well as many other ill- pharmaceutical industry. They have macist would be able to say, listen, I nesses, can be reduced by lifestyle done some wonderful things. We are all can fill it today and the price for that changes such as maintaining a healthy living longer and better quality lives Coumadin would be $64.80, or I can have weight, eating a healthy diet and exer- because of the research that they have this prescription filled in Geneva, cising. done, but Glucophage is a very impor- Switzerland, and the price will be $16.80 Another public health concern that tant drug for diabetes. and it will take three days and we will can be reduced with proper health, edu- The average price for a 30-day supply ship it FedEx and then the person will cation and screening is the rate of ill- of Glucophage in the United States is have it. I think many Americans would ness and death from HIV/AIDS. Ap- $124.65. That exact same drug in Eu- choose that option. proximately 35,000 people are living rope, again made under the same FDA Let me talk about the numbers be- with HIV/AIDS in Illinois. More than approval, sells for $22. That is six times cause this is a very big number. This is three-quarters of those people are esti- as much for the same drug, and that is $1,800,000,000,000. That is $1.8 trillion. mated to live in the Chicago area. Chi- a very important drug for the millions Even in Washington that is a huge cago ranks sixth in its number of living of Americans who suffer from diabetes. number. What is $1.8 trillion? That is AIDS cases among the 100 largest U.S. Let us take another drug that is very what the Congressional Budget Office Metropolitan Statistical Areas, and Il- common, commonly prescribed par- tells us that senior citizens, people 65 linois ranks seventh among all States ticularly for older women, women who and older, will spend on prescription in the United States. Communities of are beyond menopause. Let us take drugs over the next 10 years. I am con- color are disproportionately affected Premarin. It is actually a fairly simple vinced that if we open up markets, if by HIV/AIDS in Chicago and through- drug to make. In the United States, a we allow people to buy drugs from out Illinois. More than two-thirds of 30-day supply sells for $55.42. That other countries we can save at least 35 living AIDS cases and more than three- same drug in Europe sells for $8.95, and percent. If we multiply that out, it is quarters of new cases occur among Af- we do go down the list and we see it re- $630 billion that we can save seniors. It rican Americans. peats itself. is time to open up markets. It is time Directly related to this is data from Let us take a very commonly pre- for Americans to pay their fair share of the 1999 National Household Survey on scribed drug, one that my 85-year-old the cost of developing new drugs, but it Drug Abuse showing that Illinois ranks father takes. It is Coumadin. It is a is time to say that we will stop sub- fifth in estimated numbers of people drug that is used as a blood thinner, sidizing the starving Swiss. who recently used illicit drugs. and the interesting thing, when most Heightened awareness of what men people start on these, particularly sen- f can do to protect themselves and their iors, they do not just take them for a The SPEAKER pro tempore. Under a loved ones from AIDS, heart disease, week or a month. Most of them will be previous order of the House, the gentle- preventable accidents, diabetes and on those drugs for the rest of their woman from the District of Columbia other health risks is what National lives. So we are talking about huge ex- (Ms. NORTON) is recognized for 5 min- Men’s Health Week is all about. There- penditures when people start down the utes. fore, Mr. Speaker, I would urge all men path of having to take these drugs. (Ms. NORTON addressed the House. throughout America and, quite frank- They are important drugs, but let us Her remarks will appear hereafter in ly, throughout the world to pay more take Coumadin. The price in the the Extensions of Remarks.) attention to our health so that not United States for a 30-day supply, $64.80 f only can we maintain better health but cents. That same drug in Switzerland The SPEAKER pro tempore. Under a so that we can continue to observe and sells for $15.80 on average. What a dif- previous order of the House, the gen- have far more happy Father’s Days ference. tleman from Texas (Mr. GREEN) is rec- with more fathers who are healthy, We are going to have a big debate in ognized for 5 minutes. alive and well. the next several weeks about whether (Mr. GREEN of Texas, addressed the f or not we should extend Medicare cov- House. His remarks will appear here- erage and have a new prescription drug after in the Extensions of Remarks.) PRESCRIPTION DRUGS benefit, and I think clearly if we were f The SPEAKER pro tempore (Mr. reinventing Medicare today, as they The SPEAKER pro tempore. Under a KELLER). Under a previous order of the did in 1965, we would include a Medi- House, the gentleman from Minnesota care benefit, but this is not so much previous order of the House, the gen- tleman from New York (Mr. ISRAEL) is (Mr. GUTKNECHT) is recognized for 5 shame on the pharmaceutical industry minutes. because they are doing what any com- recognized for 5 minutes. Mr. GUTKNECHT. Mr. Speaker, I rise pany would do, and that is, they are (Mr. ISRAEL addressed the House. tonight to talk about an issue that we maximizing profits. It is shame on the His remarks will appear hereafter in in Congress and most Americans are FDA for doing this to our seniors, and the Extensions of Remarks.) becoming painfully aware of, and that it is shame on us for letting it happen. f is, the differential between what we Let me show you another chart. One The SPEAKER pro tempore. Under a pay for prescription drugs in the of the things that disturbs me is how previous order of the House, the gen- United States and what people around much the price of prescription drugs tleman from California (Mr. LANTOS) is the rest of the world pay for the exact has gone up. In the last year we have recognized for 5 minutes. H3496 CONGRESSIONAL RECORD — HOUSE June 12, 2002 (Mr. LANTOS addressed the House. duce the gentleman from Illinois (Mr. and that addresses the issues of fair- His remarks will appear hereafter in WELLER) from the Committee on Ways ness in the Tax Code. the Extensions of Remarks.) and Means, because he has dedicated I would note that what we nick- f his congressional life to this issue. As named the Bush tax cut benefits over The SPEAKER pro tempore. Under a we near Father’s Day, I will call him 100 million American tax-paying house- previous order of the House, the gen- the father of marriage penalty relief, holds who have seen their taxes low- tleman from Washington (Mr. INSLEE) because he has been a pit bull and ob- ered as a result of the House Repub- is recognized for 5 minutes. sessive, thankfully on this issue, but lican majority, and signed into law by (Mr. INSLEE addressed the House. what happens is in American families, President Bush. His remarks will appear hereafter in as I mentioned earlier, we take so Mr. Speaker, 3.9 million tax-paying the Extensions of Remarks.) much of their tax monies, tax money households, low-income families, no away from them, and it forces them to longer pay Federal income taxes be- f make decisions like perhaps working cause the Bush tax cut was signed into The SPEAKER pro tempore. Under a longer hours or both parents working, law. Unfortunately, one thing we dis- previous order of the House, the gentle- when that may not be their choice. Be- covered, sometimes we find that Wash- woman from California (Ms. SOLIS) is cause they both work in our tax struc- ington works in a strange way. It is in- recognized for 5 minutes. ture, they, because they are married, teresting in Washington, we can raise (Ms. SOLIS addressed the House. Her will pay more in taxes than if they taxes permanently like Bill Clinton remarks will appear hereafter in the were single. and the Democrats did in 1993, we can Extensions of Remarks.) increase spending permanently, but b 2130 f you will find rules somewhere in the It is the marriage penalty. What is PERMANENT MARRIAGE PENALTY Congress that make it hard to perma- worse is it hits those families that earn RELIEF ACT nently cut taxes. from $20,000 to $70,000. It is not the Unfortunately, there was a rule in The SPEAKER pro tempore. Under wealthiest, who pay their share; but it the other body which prevented perma- the Speaker’s announced policy of Jan- hits the hard-working families where nency to the Bush tax cut, permanency uary 3, 2001, the gentleman from Ne- each earn between $20,000 and $70,000 to the across-the-board rate reduc- braska (Mr. TERRY) is recognized for 60 the hardest. That is just fundamentally tions, permanency to the elimination minutes as the designee of the major- unfair. That is morally wrong, to tax of the death tax, permanency to our ef- ity leader. marriage. The fact that they just forts to increase opportunities to put Mr. TERRY. Mr. Speaker, I claimed walked down the aisle and said ‘‘I do,’’ more into your IRA and 401(k) for re- this time tonight because I wanted to and now have to pay more in taxes is tirement savings, for education savings talk to America about an important just fundamentally wrong. It hits the accounts for your children’s education, bill that we have on the floor tomor- middle-class families the hardest. That and also our efforts to eliminate the row. It is H.R. 4019. It is called the Per- is fundamentally wrong. subject of tonight’s Special Order, the manent Marriage Penalty Relief Act. I Mr. Speaker, I yield to the gentleman marriage tax penalty. am proud that the 107th Congress on 22 from Illinois (Mr. WELLER). Earlier I I commend the gentleman from Ne- occasions over the last year-and-a-half mentioned that the gentleman has ex- braska and the majority of this House has passed 22 tax reduction measures. ercised dogged determination in his ca- for sharing a view that many of us I am not going to come before my reer to right this wrong. have argued over the last several years colleagues tonight and say that all Mr. WELLER. Mr. Speaker, I thank that the marriage tax penalty is essen- taxes are bad or not necessary, but I the gentleman from Nebraska, who has tially a fundamental issue of fairness. will come before my colleagues and say been a real leader in bringing about tax The most basic institution in our soci- what I strongly disapprove of, and one relief. The gentleman and I share a ety is marriage. Around marriage we of the reasons why I ran to be in this common goal, and that is bringing build our families. Unfortunately, House and fight for American families about a recognition in government under our Tax Code for almost two gen- is to free them from the burden of ex- that taxes are too high, that working erations, we taxed marriage. I felt, as I cessive taxes. Americans work too long to pay their know many of my colleagues did, that Also, though, because American fam- taxes, that we believe in the Repub- it was a legitimate argument to come ilies today are spending about 22 per- lican majority that the American peo- to this floor and say is it right, is it cent of their income, more than that, ple can better spend their hard-earned fair that under our Tax Code, that we it is the greatest percentage of income income back home taking care of their actually taxed married couples more in going to Federal taxes since World War families’ needs than we can here in taxes, higher taxes, just because they II. Our taxes have become excessive Washington. were married. In fact, on average, 23 and burdensome, and because of that, And while the government needs million married working couples on av- we are forcing more and more married some revenue to fund the activities of erage were paying about $1,400 in high- couples, more and more people into the the Federal Government, we also need er taxes last year than identical cou- workforce, to make ends meet, because to recognize that families struggle, and ples living together outside of mar- those same families are paying more we need to find ways to ease the burden riage. for taxes than they are for their hous- on working families. That is why I was Essentially our Tax Code was saying ing and their food, the daily necessities so proud just a year ago when the the only way to avoid the marriage tax of life, and I think that is wrong. President signed into law the first penalty was to get divorced or not get In that totality of taxes that I think major tax cut since Ronald Reagan was married in the first place. That is are excessive and that we need to light- President. Prior to Ronald Reagan, it wrong. We believe the Tax Code should en the burden and trust people with was John F. Kennedy, so it seems like be marriage-neutral. their own money, sometimes there are every generation has a major tax cut. I am proud to say that several times individual type of taxes that are just And now George W. Bush. But it was this House Republican majority plain wrong; just plain wrong. the commitment of the House Repub- brought legislation to the floor and we Last week, we voted to permanently lican majority that drove this debate, passed out of the House of Representa- repeal the death tax. I thought that even though we had essentially a hos- tives legislation supported by every one individually was wrong. I am tile President in the White House House Republican, and I also want to thankful that tomorrow that this body under President Clinton, who did not note that up to 62 Democrats joined has the opportunity to give working share the view that taxes were too with us. We had bipartisan support for families, mothers and fathers, perma- high. We continued to be persistent, legislation which would permanently nent tax relief on the marriage pen- and with the election of President wipe out the marriage tax penalty. alty. Bush, we found an ally in our goal in Unfortunately, when we passed into What is the marriage penalty? First bringing about across-the-board tax re- law the Bush tax cut, it was a 10-year of all, I am going to in a second intro- lief that benefits American taxpayers program which meant in the year 2010, June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3497 the marriage tax penalty relief would antimarriage. We have heard stories on and stay within the 15 percent as a sin- expire; and for a projected 45 million news programs throughout the years, gle person. There are 20 million when married working couples, they would older couples in particular, younger you take advantage of the 15 percent see almost a $42 billion tax increase be- couples that refused to married, older widening which are the itemizers. And cause their taxes were going to be couples that would get divorced be- 4 million poor families, low-income higher because the marriage tax pen- cause of the tax that they have to pay. families, benefit from the marriage tax alty was going to be reimposed. Is that If we are going to be a country that relief that we provided in adjusting the right? Is that fair? I think not. embraces family, embraces marriage, eligibility for the earned income cred- Let me explain how the marriage tax then we have to have a tax policy that it. Four million working-poor families penalty occurs. The marriage tax pen- walks the walk. I thank the gentleman who struggle, and thanks to Ronald alty occurs when a husband and wife for all the work he has done. Reagan received the earned income get married. They are both in the It has been mentioned that we passed credit. workforce and file their taxes jointly. marriage penalty relief in my two b 2145 When they do that, their combined in- terms here. Just thankfully we have a come usually pushes these married President this time that agreed with it They would lose that marriage tax couples into a higher tax bracket. That the last time around. Even in the first relief, that opportunity to have a little produces the marriage tax penalty. few months of the 107th Congress when extra income to take care of their fam- I have a couple here I would like to this was a solo vote and the Senate had ily’s needs, if this is allowed to expire. introduce to my colleagues in the not taken it up yet, 282 Members, very That is just one more reason why I be- House. Jose and Magdalene Castillo of bipartisan vote. It dropped a little bit lieve we need to make it permanent, Joliet, Illinois. They have two chil- when we had the Bush tax plan. We lost because we do not want to see a $42 bil- dren, Eduardo and Carolina. They have about 40 Members. In the Senate they lion tax increase on 45 million married a combined income of about $82,000. could only get to 58. working couples who would be forced They are a middle-class working couple The gentleman from Illinois (Mr. to pay higher taxes just because they in Joliet, Illinois. In their case, prior WELLER) mentioned this quirky rule are married. My hope is tomorrow to the successful passage into law of that they have where it takes a super- when we debate making permanent the the Marriage Tax Elimination Act this majority of 60 votes to make reduction marriage tax relief that was part of the past year, the Castillo family suffered of revenue, i.e., a tax cut, they need 60 Bush tax cut, that an overwhelming about $1,125 in higher taxes just be- votes to make it permanent over there. majority of this House will vote in a bi- cause they are married. We did the right thing and we nego- partisan way to make permanent the Now, the question before this House tiated a 10-year plan, a phase out of 10 elimination of the marriage tax pen- tomorrow, we are going to propose leg- years of a lot of these taxes. The mar- alty. islation to be voted on in the House to- riage penalty is phased in much Mr. TERRY. Mr. Speaker, we have morrow which will make permanent quicker to give these families relief. been joined by three of our good col- the elimination of the marriage tax Now we want to make sure we are leagues that have fought hard and feel penalty. Really, the question is for 45 doing the right thing for these fami- strongly on this issue. million married working couples like lies, these 45 million Americans, that it I yield to the gentleman from Min- Jose and Magdalene Castillo, do we is made permanent, because in essence nesota (Mr. KENNEDY). want to reimpose the marriage tax pen- what we are going to say to these cou- Mr. KENNEDY of Minnesota. I thank alty? I think not. ples in the year 2011 is that you are the gentleman from Nebraska for My hope is that over tomorrow’s de- going to have your taxes increased. yielding. I also thank and congratulate bate we will see an overwhelming bi- You are going to raise taxes on over 3.9 the gentleman from Illinois (Mr. partisan majority who will vote to million African American families out WELLER) for his great efforts on the make permanent the elimination of the of that. marriage penalty. marriage tax penalty, so the marriage Mr. Speaker, does the gentleman There are few issues that I feel more tax penalty will be one of those things from Illinois (Mr. WELLER) have any strongly about, and one of my main that we used to talk about that used to statistics, and my impression from goals coming here to Washington was exist in the Tax Code because the Tax some of what I have read, some of this to eliminate the marriage penalty. I Code is complicated and we are work- tax actually hits minorities harder, am very pleased that at least over the ing in this House to make the Tax Code and so I am just pleased that hard- course of the next 10 years that we simpler, and that means making the working families will get some relief, have accomplished that. It is a major Tax Code more fair. and they deserve to have it made per- goal that we have achieved, but our By eliminating the marriage tax pen- manent. work is not yet done. I do not under- alty for Jose and Magdalene Castillo, Mr. WELLER. Mr. Speaker, if the stand why we tax marriage. We as a we are not only making the Tax Code gentleman would yield briefly, I would Congress, we as a government, we as a more fair, we are simplifying the Tax note in the legislation we passed out of people should be working to strengthen Code. My hope is tomorrow an over- the House of Representatives that was marriage, to strengthen families. Fam- whelming majority in the House will signed into law by President Bush, we ilies are the foundation really for the join with us, and the Senate will follow helped an estimated 45 million married strength of our country. We should do suit, and we will send to the President working couples in a number of ways. all we can to bolster it. When we legislation which will make permanent When you are a taxpayer, you are an charge married couples an average of elimination of the marriage tax pen- itemizer, nonitemizer, if you are a low- $1,400 more just for being married, we alty. income working family, part of the are discouraging them from getting Mr. TERRY. Mr. Speaker, according working poor, earned income tax cred- married. This makes no sense. They to the 2000 census, in the gentleman’s it, only out of that 20 million married should not get that extra gift from district it is 59,536 couples that are af- couples received marriage tax relief Uncle Sam when they say ‘‘I do.’’ fected by our current Tax Code. In my through the Bush tax cut through the Something that makes this very per- district of Omaha, Nebraska, it is 58,000 doubling of the standard deduction to sonal to me is when I think about my couples that have to pay more in taxes. twice that for single people. Those who son or daughter coming to me in a few When your great couple from your dis- do not itemize their taxes use the years, maybe after this 10-year period, trict, Jose and Magdalene Castillo, got standard deduction. so I have to get this permanent, and married and said ‘‘I do,’’ I do not think And for the middle class, those in the saying, ‘‘Dad, you’ve taught us well. it was to more taxes just because they 15 percent bracket who itemize their You’ve taught us how to look at the went down the aisle together and did taxes, homeowners, those who give to numbers really well and we have no- what we hoped that they would do and their church, temple, mosque, they are ticed that it is going to cost us $1,000, formed this bond, formed this family. homeowners and itemize their taxes, $2,000, $3,000 more to be married. So Mr. Speaker, we should not have a we widened the 15 percent bracket so what we are going to do is we are just tax policy that is antifamily, they can earn twice as much in income going to live together, but we are going H3498 CONGRESSIONAL RECORD — HOUSE June 12, 2002 to put that $1,000 or $2,000 to good use I always say that if I was walking tuate party lines, that when people go and we’ll do good things with it.’’ down the street with two of the liberal and register for a marriage license, I do not want to have that conversa- Democrats from Washington and I had they do not declare a political party tion and no parent should have that $15 in my pocket and they did not have preference, they are not required to conversation and no couple should any, the two of them would vote on register as Democrats or Republicans struggle with those issues. We should who was going to pay for lunch and it or independents or libertarians or vege- be helping them to the greatest extent would end up being me, and in their tarians, they go and apply for a mar- possible. We should be making this per- view that is fair. They did not have any riage license. manent. It is a shame that we were not money and I had money, so they voted able to make this permanent before. Tomorrow, Mr. Speaker, it is my fer- and I have to pay for lunch, and that is vent hope that we will see a bipartisan We were two Senators short, unfortu- fair. We all laugh about that, but I will vote to restore rationality and com- nately, as the gentleman from Ne- tell you this. Look at it this way. Say mon sense to the peculiar situation we braska mentioned, and any of many you had a thousand people walking find because of a quirk in the rules States could have provided us those down the street or a thousand people in where we have failed to make this mar- two Senators. We will not name any the room, and of that thousand people, riage tax relief permanent. States in particular, but this is critical 999 did not have any money, but one that we get it permanent. It is also bad person had a whole lot of money. And Mr. KINGSTON. If my friend would budgeting. The budgeting after 10 years so the 999 voted and said, ‘‘You’re going yield, I just want to say that quirk is, assumes that we are going to let the to be paying a little bit more, you’re of course, there on purpose by the lib- marriage penalty go back up. I know if going to be paying extra, and you’re erals who like to collect tax dollars the group that we have in this room going to be paying for all of us.’’ They and so I just wanted to emphasize a and those that have worked so hard on would say obviously that person who point that the gentleman has made the marriage penalty have anything to had money must have done something several times in the past. do with it, we are not going to let the wrong, must have gotten real lucky, marriage penalty tax be increased and Mr. HAYWORTH. I thank my friend must have cut some corners short, and for making the point. I would appeal to brought back to life again in 10 years. so of course it is fair. That is the view I strongly encourage all my col- all who come here, when you talk of so many Washington liberals of the leagues to vote ‘‘yes’’ on tomorrow’s about tax fairness, there is nothing fair tax dollars that our constituents back resolution to back American families, about penalizing people for getting home make. to back marriage, to help the children married. I think back almost a decade One of our colleagues today said, if that will come from that and to help and a half ago now to the news that I you really want to know the truth of the strength that comes from taking took my mom, when Miss Mary and I the matter, talk to somebody who has the bonds of holy matrimony. decided to get married, she said, ‘‘Oh, I again thank the gentleman from oil on his hands or dirt on his fingers honey, I’m so excited for you. After all, Nebraska for having us here today and and his sleeves rolled up in America two can live as cheaply as one.’’ My for his leadership as well as the leader- and they can give you the view, and in mom is a wise woman, but she is not a ship of the gentleman from Illinois. about 3 seconds, the American workers certified public accountant and she was Mr. TERRY. The gentleman from back home would say the marriage tax not dealing with the Tax Code, because Minnesota (Mr. KENNEDY) has provided penalty is unfair and ridiculous, get rid we have seen in so many cases for so of it. And so the only question here to- great leadership. The citizens of Min- long when couples would stand at the night is, why are we not getting rid of nesota should be pleased with his lead- altar and say ‘‘I do,’’ they were unwit- it? It is because of this other body. The ership on this issue. Probably the 59,000 tingly saying ‘‘I do’’ to higher taxes. House has passed this over and over affected couples in his district should And now with a commonsense reform thank him. again. The gentleman from Illinois (Mr. that we have embraced on a bipartisan Mr. Speaker, I yield to the gentleman basis in this body, others on this Hill WELLER), as you pointed out earlier to- from Georgia (Mr. KINGSTON). with a clever rule differentiation seek Mr. KINGSTON. I thank the gen- night, has practically made a career in to take it away, we simply go on record tleman for yielding. It is hard to speak this. I expect he has had a very spec- tomorrow reaffirming that the Tax with so many distinguished members of tacular career, made a great contribu- Code should have real fairness, that the Committee on Ways and Means tion to the governmental process, the there should not be a penalty for mar- here because you guys, we know, are debate process up here, but the reality the tax experts. But back in our little is the folks on the other side of the riage. old briar patch, we know a thing or two Capitol love taxes and they block it Indeed, confronting the challenges we about fairness. I do not think we even every single time. confront in a society, knowing how need to debate this, and the liberal I know our good friend from Arizona beneficial it is to have healthy, happy Democrats would even admit that the is here just chomping to get at the bit. households where men and women in a marriage tax penalty is unfair because Mr. TERRY. Mr. Speaker, the 62,397 loving relationship of marriage bring in essence you cannot carry your tax married couples who have been hit by up their children, there is no reason to deduction with you. When you walk the marriage penalty in the gentleman penalize people who work hard and down the aisle, leave your deduction from Georgia’s district I am sure thank play by the rules. him for his leadership on this issue. outside the church because you are fix- And so tonight we come here to reaf- I want to bring into our discussion ing to lose it, as we would say. firm our belief that we should rescind The issue, I think, that is underlying here the gentleman from Arizona (Mr. the marriage penalty permanently and this, and I think you have covered the HAYWORTH) who, because of his leader- tomorrow this House has a chance to substance of the bill pretty well, is just ship and vote tomorrow, the 52,429 mar- go on record saying ‘‘I do’’ to lower the fact that the liberals, particularly ried couples in his district will be taxes, taking away this barrier of dis- those on the other side of the Capitol, trusted with more of their money. crimination that has affected the insti- and this is a bicameral body, this legis- I yield to the gentleman from Ari- tution of marriage and taking another lative body. It is very similar to the zona. step for true tax fairness. Georgia legislature where we had a Mr. HAYWORTH. I thank my col- House and we had a Senate. This is a league from Nebraska for yielding, my Mr. Speaker, tomorrow again we will similar institution. When the House friends from Illinois and Georgia who hear the tired old arguments of class passed something, the Senate would join us here tonight, Mr. Speaker, and warfare. Let me simply reaffirm what pass something or the Senate would I stand in the well alongside my friend we have found through the years when amend it. In this case we have got a from Nebraska, traditionally at the po- we reduce the tax burden, whether it is body who hates tax reductions. Period. dium given to our friends from the on businesses or on families or on indi- Fairness does not matter, all that mat- Democratic Party. I do so tonight to viduals. When the tax bite is reduced ters is income, so they can go out and signal the fact that our vote tomorrow and money is put to work in terms of spend more money. should be a vote that does not accen- saving and investment and spending for June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3499 those items that families need, some- the way in which we practice account- the leadership on the other side about thing very interesting happens. Reve- ing in Washington, D.C. is with a bias how it was the Republican bill, that we nues to the Federal Government actu- towards spending. We call it static were somehow deceiving the public, ally increase. So I come to this par- scoring. That is to say, we fail to take and now we are trying to come back. I ticular position in the well tonight into account the history that we have heard a lot of strange and weird stories symbolizing the fact that we appeal to seen for the better part of close to 50 last week. I am sure we are going to our friends on the left, not as a Repub- years in the United States. hear those same stories again. lican versus a Department issue, but as For example, and again I am glad to The reality is we did the right thing an American commonsense point of stand here in this portion of the well, for the American public by taking one view, to permanently rescind this pen- because we can point to a Democratic step forward. But it was not the giant alty, to make good on the efforts my chief executive, John F. Kennedy, who step that was absolutely necessary, and friend from Illinois has championed for in the 1960s cut taxes across the board. we are trying to correct it tomorrow. so long, to recognize the commonsense The Senate rule requires, if I kind of b 2200 value that there is no need to attach understand it right, is that in the Sen- an economic stigma to the institution This is an approach that was re- ate you cannot reduce revenues outside of marriage. And now as my friend, the affirmed by Ronald Reagan in the 1980s of the scope of the budget, which is a gentleman from Nebraska (Mr. TERRY) and by our own current President, 10-year budget in essence. So that is points out, if we in fact have people to- George W. Bush, just 1 year ago. The why it is a 10-year plan. morrow vote against making this per- premise, as it has turned out, and I think it is ironic that just today on manent, in essence what they are doing check the numbers, as we say in base- the House floor we had a vote to re- is calling for a tax increase on every ball, you could look it up, revenues to quire that this body, both Houses, a married couple. They are calling to add the government actually increase when constitutional amendment that would back taxes to their family budget. you cut taxes across the board. If we require a two-thirds vote to raise I understand in Washington, Mr. cut taxes on these millions of Amer- taxes. I just think it is ironic that the Speaker, that $1,400 on average, that is ican families, I have every confidence practical effect of the Senate rule is it not even in Uncle Sam’s change scoop that, in the long term, revenues to the takes a supermajority to lower taxes, on his dresser drawer. I mean we deal government will increase, because but a simple majority to raise taxes. in millions and billions of dollars, but money is being put to work on behalf Mr. WELLER. If the gentleman I would submit, as my colleague, the of these families. would yield, I think the gentleman gentleman from Illinois (Mr. WELLER), Again, it comes down to this realiza- from Nebraska is bringing up a good has made clear so many times, $1,400 is tion, Mr. Speaker: This money is not point. That is what is frustrating, and real money to a family, in terms of a money that belongs to the Federal one of the reasons I know I came to college fund, in terms of making edu- Government; it is money that belongs Congress in 1994 and one of the causes cational opportunities available, in to the American people. When that we in the House Republican majority terms of saving for the future, in terms money is put to work, through prudent have been working towards, is finding of buying clothes for the family, in spending, wise investment and making ways to help working families have some extra spending money to meet terms of orthodontia for children, in the money work for the families of the needs of every American family, to terms of real life, real budgetary deci- America, it returns to the Federal Gov- be able to afford to go to college, or sions made around the kitchen table. ernment in terms of tax revenue. Yet buy a new bicycle for the little girl The common sense of making this tax you would not know it from the cul- when she is getting old enough to ride relief permanent cannot be denied and, ture of the forecasts and the evalua- tions of the static scorers who fail to a bicycle. yes, we can have those denizens of class Mr. TERRY. We are going through let reality be taken into account in warfare come out and play this warped the same thing with our 7-year-old. game where they define fairness in a terms of their ledger sheets. That is Mr. WELLER. Or make improve- deranged way that my friend, the gen- the reality with which we deal. ments to the house. Families struggle. tleman from Georgia (Mr. KINGSTON), But in Washingtonese, what we will The gentleman from Arizona, the point pointed out, the theater of the absurd hear tomorrow is a parade of speakers he made about how when you figure so clearly to us in this body mere mo- stating flat out that the American peo- out what the amount the marriage tax ments ago, but the fact is there is no ple are not entitled to their money, penalty comes out to, it is real money reason to deprive families of money stating somehow in bizarre fashion for real people. You take Jose and that they can save, spend, and invest that the marriage penalty is a quirk, a Magdalena Castillo of Joliet, Illinois. for their own futures and in so doing curiosity, and, I dare say, coming to For the Castillo family, prior to a year help our country, because the economic the floor, speaker after speaker, as ago when the Bush tax cut was signed activity in the long run will actually prisoners of process, rather than cham- into law, the Castillo family faced increase revenues to the government pions of policy. about a $1,150 marriage tax penalty. because people are willing to put their So, again, my appeal, and I realize it Thankfully, because of the Marriage money to work in effective spending is a challenge with 100-plus days to a Tax Elimination Act, which was com- for their family or savings or invest- midterm election, and I realize it is dif- bined as part of the Bush tax cut, ment for the future, and we are not ficult for many to separate politics signed into law, they no longer pay talking about something that is a drop from policy, but I believe tomorrow, this marriage tax penalty. If we fail to in the bucket. We are talking about Mr. Speaker, there will be those on the make permanent the marriage tax pen- millions of American families here. Democratic side of the aisle who will alty relief signed into law last year, Mr. TERRY. Mr. Speaker, is the gen- join us in saying let us end the mar- they once again will have their taxes tleman from Arizona (Mr. HAYWORTH) riage penalty permanently, because it higher, raised. They will lose that telling me that it is not a cost that we is not a Republican issue, it is not a $1,150 back to Uncle Sam. For the are going to hear about, how it is cost- Democratic issue, it is an issue of con- Castillo family, in a town like Joliet, ing the government to give these fami- cern to all Americans and all American in the south suburbs of Chicago, for lies this relief? families who need to have the chance Jose and Magdalena, $1,150 is several Mr. HAYWORTH. Mr. Speaker, let to prosper and succeed and make the months of car payments, that is 2 to 3 me let the gentleman in on a little se- most of their opportunities, for them- months of child care for little Carolina, cret. The gentleman from Nebraska selves and for their children. that is a significant portion of tuition (Mr. TERRY) asks a very pertinent Mr. TERRY. Mr. Speaker, reclaiming at Joliet Junior College. The marriage question, and given the curious mathe- my time, I thank the gentleman for tax penalty is real money for real peo- matics of Washington, let us point out that great oratory. We talk about this ple like the Castillo family. That is at the outset that we could take every quirky Senate rule. We are going to what this is really all about. economist in the world, lay them end hear a lot about it. Because when we The marriage tax relief signed into to end, and still never reach a conclu- had the death tax repeal discussion last law last year, which currently is tem- sion. But part of the peculiarities of week, we kept hearing from some of porary, and my hope is this House will H3500 CONGRESSIONAL RECORD — HOUSE June 12, 2002 vote to make permanent tomorrow, is That is who is paying the burden and Carolina may be in college, a sizeable meaningful to 45 million married work- brunt of the marriage penalty. These portion of her college tuition could be ing couples, just like Jose and are hard-working Americans that we paid for during the 4 years she may go Magdalena Castillo of Joliet, Illinois. are talking about. You are taking a to the University of Illinois, my alma When you think about it, for 45 million vote so they can keep $82 million of mater, could be paid for by setting married working couples, if this mar- their own money. I just cannot imagine aside the $1,150. riage tax penalty relief is not made what that would do for your economy. Mr. TERRY. She could be a Rebel permanent, these couples, 45 million I just jotted down a few notes of what and go to the University of Nebraska. couples, will see a $42 billion tax in- it would do for an average Nebraska Mr. WELLER. Or a Bulldog and go to crease just on marriage, if we fail to family. Remember, these are couples the University of Georgia. But the bot- make permanent the marriage tax re- who are both working. Sometimes tom line is the marriage tax penalty is lief. when we talk in an esoteric or aca- a real issue for ordinary people back in Mr. KINGSTON. If the gentleman demic way about the marriage tax pen- Illinois, Georgia and Nebraska and will yield, I want to talk about that alty, we leave out that both parents throughout this country. number a little bit. Did the gentleman are working. Both parents are working. In the last few days I have heard not tell me earlier that in the First So, how about some good quality some suggestions, particularly from District of Georgia, over 65,000 people time? With both parents working, some of my friends in the left wing of would benefit? maybe both parents should take a va- the Democratic Party, who have said Mr. TERRY. I can find that again cation and take those two lovely chil- we do not need to do this now. We have here. In the First District of Georgia, dren to Disneyland. That $1,400, they got things here in Washington that we and this is 2000 census data, 62,397 cou- can have a 4-day vacation at need to spend that money on; that ples in the gentleman’s district. Disneyland or Disneyworld. They can maybe we should take that $1,150 out of Mr. KINGSTON. Okay. So then that buy for their school children a new Jose and Magdalena’s pocket and spend is $1,400 a couple. computer with a scanner, printer, soft- it on something here in Washington. Mr. TERRY. On average that they ware. They can get a pretty good piece Maybe in Washington $1,150 for the pay. of equipment for $1,400. Castillo family is no big deal, in Wash- Mr. KINGSTON. That is about $85 Talking about just keeping your fam- ington, where you think in terms of million. Now, if I as a member of the ily budget intact, in Nebraska that is millions and billions of dollars. But for Committee on Appropriations was probably 6 to 8 months of utility bills regular people, like Jose and asked by the chairman, the gentleman for the family. That is anywhere from Magdalena Castillo, $1,150, elimination from Florida (Mr. YOUNG), ‘‘Kingston, 4 to 6 months, depending on the type of of the marriage tax penalty for the you got $85 million you can spend in insurance contract they would have, to Castillo family represents a 12 percent your district,’’ how would you do it? pay their health insurance costs. Or, as reduction in their taxes. So if we fail to Would you go out and buy a bridge, all of us have said, just maybe invest make permanent the marriage tax pen- would you build something for the gov- or save in your children’s future. Or alty relief in what we nicknamed the ernment, a new monument? Heck, no. use another provision of the tax bill Bush tax cut, they will see a 12 percent What you would do is spread it out as that we passed last year that we need increase in their taxes so that Wash- much as possible to the middle class to make permanent, and that is edu- ington can better spend it, as some on working families in your district, and cational savings accounts. They can in- the left side of the aisle view. that would be one of the greatest ap- vest that money in their children’s fu- My hope is that we will see an over- propriations I could bring home to the ture. These are all things that we trust whelming bipartisan vote tomorrow to First District. their families to make their own deci- eliminate the marriage tax penalty So this vote tomorrow I will have the sions on. permanently. I was proud to say that opportunity to return to my district By the way, the money that these almost 280 members of this body voted $85 million for the local economy, for families save by us not taking their to move a stand-alone bill which would the local jobs, for the taxpayers. As the money, married families will return to permanently eliminate the marriage gentleman from Illinois (Mr. WELLER) paying in 10 years, paying the Federal tax penalty almost 2 years ago. Unfor- has pointed out, tuition, new tires, Government more than $100 a month tunately, that bill was vetoed by Presi- home mortgages. That is a lot of just to be married. That is $3.88 every dent Clinton at that time, and we came money. I can only think of what $85 day just because you said ‘‘I do.’’ Every back later with what was in the Bush million will mean to coastal Georgia. hour you will owe 16 cents just because tax cut, signed into law, a temporary Also, I will feel a lot better that they you have a spouse. If your marriage measure to eliminate the marriage tax are spending that money, rather than lasts 50 years, and, by the way, I just penalty. the United States Congress spending it. wrote a letter to a nice couple on their My hope is all 62 of those Democrats Mr. TERRY. That is the point. The 50th anniversary, the love of your life will once again vote with us, and that gentleman is correct. That is the point will have cost you $70,000 in extra more Democrats will join with every of this, is that we are trusting people taxes. $70,000 extra. House Republican in voting to perma- with their own money, to make their So tomorrow we have the oppor- nently eliminate the marriage tax pen- own decisions about what is best for tunity to make this permanent. alty. Because of that overwhelming them and their family. Mr. WELLER. If the gentleman will vote, I hope that our friends in the Now, we in Congress, I hear this all yield, my hope is that everyone will Senate, many of whom have resisted the time, ‘‘what have you brought back join with my colleagues from Georgia permanent elimination of the marriage for the district?’’ This is something we and Arizona and Nebraska in voting to tax penalty, will follow suit, and we get as representatives asked by some of make permanent the marriage tax re- can put on the President’s desk by this our business leaders or constituents, lief. I think as this discussion we have fall legislation which permanently and sometimes you brag about a bridge had here in this House Chamber shows, eliminates the marriage tax penalty. or helping with the bridge. regarding the marriage tax penalty, But there is no better appropriation, what it means in real terms for real b 2215 there is no better gift that we can give people, about how you have a husband Think what that will mean to 45 mil- our constituents, than their own and wife, both in the workforce, strug- lion married working couples; good money, letting them keep their own gling to make ends meet, who, prior to people, good, hard-working people like hard-earned dollars. a year ago, paid higher taxes just be- Jose and Magdelene Castillo and little Let us go back to one of the things cause they were married. Eduardo and Carolina, who would have we talked about at the beginning here. In the case of Jose and Magdalena a little extra spending money to meet This marriage penalty hits hardest the Castillo, they paid $1,150 more in high- their needs rather than sending it to lower and middle income families, er taxes. As the gentleman from Ne- Washington. It is an issue of fairness. those that earn on an average, a single braska pointed out, if they could save Our Tax Code should be neutral regard- income, combined, $20,000 to $70,000. that, in a period of 20 years, when little ing marriage. We believe that the Tax June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3501 Code should not punish society’s most nounced policy of January 3, 2001, the nanced by the Federal Government, is basic institution; and of course, mar- gentleman from New Jersey (Mr. a very successful program that pro- riage is our society’s most basic insti- PALLONE) is recognized for 60 minutes vides seniors with their hospitalization tution. as the designee of the minority leader. and with their doctor bills. Under part Let us eliminate the marriage tax Mr. PALLONE. Mr. Speaker, I want B of Medicare, a senior has the option, penalty and let us eliminate the mar- to take this opportunity this evening, and 99 percent of seniors exercise it, of riage tax penalty permanently so it is which I have done many times over the paying a fairly low premium every one of those things that we talk about last couple of months, actually, to dis- month; and as a result of paying that that once used to exist, but it is his- cuss the need for a Medicare prescrip- premium, they get 80 percent of the tory. Let us make the marriage tax tion drug benefit. I am particularly cost of their doctor bills paid for by penalty history by permanently elimi- happy to be here tonight because I Medicare, by the Federal Government. nating the marriage tax penalty. know that tomorrow the Democrats in They have a very low deductible, $100 a I am happy to yield back to the gen- the House will be announcing our Medi- year; and basically, the program has tleman from Nebraska, and I want to care prescription drug proposal at a been tremendously successful. Most thank the gentleman from Nebraska press conference at, I think, approxi- seniors participate in it. Their doctor for his leadership in organizing to- mately 11 a.m. on the steps of the Cap- bills are paid 80 percent by the Federal night’s discussion of the importance of itol. Government, up to a certain amount; eliminating the marriage tax penalty I know that for a number of weeks and we hear very few complaints. Most and what it means to real people like now I have been highly critical of the people seem to be satisfied with the the Castillo family of Joliet, Illinois. Republican leadership in the House, be- Medicare program in terms of the cov- Mr. TERRY. Well, it is because of the cause even though they are the major- erage for hospitalization and for their opportunity that we have here in the ity party, they have failed to address doctor bills. However, Medicare does House of Representatives, why I want- the concern, I think the number one not have a benefit for prescription ed to be here was to help families like concern of the American people, which drugs. them and the 58,000 like them in the is for a prescription drug plan under What the Democrats have been say- Second Congressional District in Ne- Medicare. ing is very simple: that we should have braska. Just think of the opportunities When I go home and I have a town a guaranteed benefit under Medicare that those two children would have if meeting or I talk to my constituents, for all seniors, all those who are eligi- they put the nearly $600 for each child the issue that most frequently comes ble for Medicare. It is not hard to com- in an educational savings account for up is the fact that it is very difficult prehend. We set up a new part, maybe college, what a wonderful opportunity for all Americans, but particularly for call it part D, we model it after the that this body will give those families. seniors, to afford prescription drugs, to part B program that pays for doctor Mr. Speaker, I would like to give the afford their prescription medicine. bills. We again have a very low pre- gentleman from Georgia (Mr. KING- Prices have gone up by double-digit in- mium, say $25 a month, a very low de- STON) the last word, if he would close flation over the last 6 years; and in- ductible, $100 a year; we have 80 per- the discussion tonight. cent of the cost paid for by the Federal Mr. KINGSTON. Mr. Speaker, let me creasingly, most Americans, particu- Government, a 20 percent copay and, thank the gentleman from Nebraska larly seniors, find that they are not after a certain level, we suggest $2,000, and the gentleman from Illinois and able to afford the drugs, the prescrip- the gentleman from Arizona and the tion drugs or medicine that their doc- after you have paid out of pocket or gentleman from Minnesota earlier to- tors prescribe that the doctors think your bills have come to more than night for their leadership on it. Be- are necessary for them to continue to $2,000, the Federal Government would cause right now we could be home and live a quality life. pay for everything at a sort of cata- in bed and watching the baseball game. The House Republican leadership, I strophic level at which the Federal Somewhere I am sure the Braves are guess about 2 months ago, announced Government pays for everything under out beating somebody. But the reality with much fanfare that they intended Medicare. Well, the Democrats are saying that is, we are doing this because we care. I to bring up and write a bill that would am a little bit senior to both of these provide for prescription drug coverage is what we should do. We will be talk- gentlemen, and I have served in the mi- for seniors, and then they said that the ing about it in a lot more detail tomor- nority; and I can tell my colleagues bill would be available and would go to row at the press conference. Most im- that it was no fun. Because when the committee sometime before the Memo- portant, we address the issue of price. Republicans were in the minority, we rial Day recess and then be passed in We understand very strongly that we were always fighting more spending the final week before the Memorial can expand Medicare to include pre- that the Democrat majority kept push- Day recess. Now, we know that did not scription drugs and provide a guaran- ing on us. Here is an opportunity for all happen. They came back from Memo- teed benefit for every senior and every- Members of Congress tomorrow to go rial Day recess, about 2 weeks ago now, one eligible for Medicare, but that it in and vote for lower taxes, less spend- and again with much fanfare said that would be difficult to do that if we do ing, and more fairness for American they were going to bring up the bill the not control the costs in some way. couples. first week, which would have been last When I talk to seniors or any Amer- So I certainly appreciate my col- week, and then we heard this week ican, any of my constituents, they talk leagues for doing what they are doing they were going to bring it up this about how the price of prescription and standing tall for America’s fami- week; and now we hear that they may drugs is too costly. So we have to do lies. I look forward to casting yet an- bring it up next week and that they are something at the Federal level to bring other vote with the gentleman from Il- definitely going to bring it up before the cost down. The easy way to do linois (Mr. WELLER). And I thank the the July recess. that, and this is what the Democrats gentleman from Nebraska (Mr. TERRY) Well, I have my doubts because I will propose, is to say that the Sec- for his leadership in organizing this to- have been hearing this so many times. retary of Health and Human Services night. But more than the question of when has the obligation, has the mandate to Mr. TERRY. Mr. Speaker, I thank they are going to bring it up is what negotiate prices for prescription drugs the gentleman for participating and they are going to bring up. Everything that would be significantly less than using his time when he could be watch- that we hear about the House Repub- what most seniors are paying now, per- ing the Braves. Tune in to the college lican proposal is that it is not a pro- haps a reduction of as much as 30 per- world series this weekend, though. posal that will actually provide cov- cent or more. I think that is very pos- f erage for most seniors under Medicare. sible to do, since the Secretary will I think that most of my colleagues have 30 or 40 million seniors, Medicare DEMOCRAT MEDICARE know that Medicare has been in exist- beneficiaries, that he represents; and PRESCRIPTION DRUG PROPOSAL ence now for over 30 years; and Medi- he has the ability to go out and basi- The SPEAKER pro tempore (Mr. care, which is a government program, cally force the drug companies to lower KELLER). Under the Speaker’s an- run by the Federal Government and fi- prices because of the bargaining power H3502 CONGRESSIONAL RECORD — HOUSE June 12, 2002 that he would have with so many Seniors: Private Health Plans Provide I am particularly pleased that my Americans, 30, 40 million American Inadequate Prescription Drug Cov- colleague, the gentleman from Arkan- seniors. erage.’’ Basically what this report says sas (Mr. ROSS), is here tonight because This is all very simple. I have talked very dramatically is that if you simply he is a pharmacist, and he knows more about it before. We will be unveiling it rely on HMOs, or the private insurance about this issue than I do and probably tomorrow, but there is really no magic market in this case, to provide insur- any other Member of Congress. to it. We have been talking about this ance prescription drug coverage, you Mr. Speaker, I yield to the gentleman proposal and how it is modeled after are going to have this very uneven sit- from Arkansas (Mr. ROSS). part B of Medicare which pays for your uation. In a lot of States, there is not Mr. ROSS. Mr. Speaker, I thank the doctor bills. We have been talking any HMO, and in other States they do gentleman for yielding to me. I am not about that for several months now here not provide coverage for prescription a pharmacist, a lot of people make that on the floor, myself and many of my drugs; and there is absolutely no ques- mistake, and I thank the gentleman for colleagues. So there is no magic to tion that we would get the same thing the compliment. But my wife is a phar- what needs to be done. But we have ab- happening with the prescription drug macist, and together we own a small solutely no indication that the Repub- program that the Republican leader- town family pharmacy in my home- lican leadership is willing to support ship is talking about getting around to, town of Prescott, Arkansas, my home- anything like what I have just de- if they ever get around to it over the town of 3,400 people. That is why I am scribed. next couple of weeks or the next couple so passionate about the need for a First of all, it is abundantly clear of months. truly modernized Medicare to include medicine for our seniors. that they do not want to provide a pre- b 2230 scription drug benefit under Medicare. Both sides of this aisle, Democrats Oh, sure, they will say that it is a In fact, the trade association for the and Republicans alike, have talked a Medicare program because the people health insurance companies has testi- lot about the need to provide our sen- fied many times before committees in who will be eligible will be those same iors with a prescription drug benefit, the House, the Committee on Com- seniors who will be eligible for Medi- and yet we continue to see no action. merce, the Committee on Ways and care. But they are not putting the pre- This should not be a bipartisan issue. Means, that they do not want to pro- scription drug program under Medicare It is time for this Congress to unite be- vide this drug-only insurance, that hind the need to truly modernize Medi- in the sense that it is run by Medicare, they are not going to sell it. care to include medicine for our sen- part of the government program, and So I am very fearful that what we iors, just as we have united in a bipar- will guarantee a benefit. have here is the Republican leadership What they are saying is that we will tisan fashion on this war against ter- basically propagating a scam. They give some money, the Republican lead- rorism. know that the American people, par- This is especially an important issue ership is saying that we will give some ticularly seniors, want a prescription for me because, as a small town family money, almost like a voucher, to pri- drug program, and that they want a pharmacy owner, I have seen seniors vate insurance companies; and we will program similar to Medicare. They are before coming to Congress. Day in and ask them to provide drug policies to very much aware of that. They are day out in that small town family cover seniors, and we will estimate by very much aware of the fact that prices pharmacy, I would see seniors who lit- the amount of money that we are going are too high, and prices need to come erally had to choose between buying to throw the private insurance compa- down. their medicine, buying their groceries, nies what kind of coverage might be But rather than provide a prescrip- paying their utilities, and paying their provided. But what the Republicans tion drug program under Medicare that rent. This is America, and we are talk- fail to point out, what the leadership in guarantees benefits for every senior ing about the greatest generation. I be- the House fails to point out is that and every Medicare-eligible con- lieve we can do better than that by our there is no guarantee that a senior in a stituent that we have, they are going seniors. particular area or any area, for that to opt for another effort to throw If we think about it, health insurance matter, will be able to buy a drug-only money towards private insurance com- companies are in the business of mak- policy that provides the kind of bene- panies that, just like the HMOs, will ing a profit. Yet, they cover the cost of fits that they would like it to provide. not work and will not guarantee a real prescription drugs. Why? Because they The perfect example, the perfect ex- benefit package to the average senior. know it holds down the cost of needless ample for this is what the Republicans In addition to that, the Republican doctor visits, the cost of needless hos- did and how they continue to tout the leadership refuses to address the cost pital stays, the cost of needless sur- Medicare+Choice, or the HMO program. issue, the pricing issue. They do not geries. I do not believe anyone in this A few years ago, they decided that a want to. In fact, there was something Congress has fairly or adequately put a great way to provide prescription drug in Congress Daily today, which is a pen to the paper and determined the coverage was to give some money to publication that is put out about what true amount of savings that we will re- HMOs in the hope that they would Congress does, that says that there is a alize by providing our seniors with a agree to provide prescription drugs or push within the Republican leadership prescription drug benefit. to cover prescription drugs. But what that when they bring up their prescrip- As I travel my district, and I have we have found over the last few years tion drug bill, that they will specifi- driven some 83,000 miles in my district in this HMO program is, first of all, cally say in language in the bill that listening to the needs of my constitu- that in many States, I think it is up to there cannot be any price controls or ents over the last 17 months, as I do nine or 10 now, there is no HMO avail- any effort to control prices in any way that I hear story after story about sen- able. In another 15 or so States, there as part of that prescription drug pro- ior after senior who is trying to get by may be an HMO available, but they do gram. on a $500 a month Social Security not provide any drug coverage, and in So there is absolutely no doubt in my check, and yet faces a drug bill some- those States that I mentioned, 10, 25, in mind that they do not intend to ad- times as high as $300 a month, some- those 25 States where you can find an dress the price issue at all, and try to times as high as $400 a month, some- HMO program that provides prescrip- bring prices down. That is another times as much as $600, and yet, even tion drug coverage, you will not find thing that will doom their program, be- $1,200 a month. that that HMO coverage is available in cause if they do not address the pricing I have had a senior tell me about how every part of the State; and you will issue, they will never be able to provide her son, who is in his 40s or 50s, has a find tremendous deficiencies, if I could enough money to pay for a real pre- drug benefit through his employer or say, in what kind of prescription drug scription drug benefit. health insurance to work, and they program they cover, they provide. I see that a couple of my colleagues happen to take the same medicine, and Mr. Speaker, this is not something I on the Democratic side have joined me he thinks he is healthier than his mom am making up. There was a report that this evening. They have been here be- so he gets the medicine and gives it to was put out by Families USA last fore. I certainly would like to have her, which is going to cause him to month entitled ‘‘Failing America’S them participate. have health problems. June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3503 There are estimates that as much as scription drug plan. Why? Because we cost, nobody ever calculates the fact $170 billion is wasted every year in our have the courage to take on the big that concerning some of the people the health care delivery system because drug manufacturers. gentleman mentioned who cannot get people simply cannot afford to take Some studies show that $360 million prescription drugs now because they their medicine, or cannot afford to was spent by the big drug manufactur- cannot afford it, we would prevent take it properly. ers in the year 2000 on political dona- them from going to a hospital, we I was recently in a small town, Glen- tions, lobbying, and advertising. In would prevent them from having to go wood, Arkansas, in Pike County, and fact, some drug manufacturers as re- to any kind of institution, and that ran across a retired pharmacist, prob- cently as last year spent more money saves the Federal Government a lot of ably in her 80s. She just happened to on TV ads marketing their products money. have been a relief pharmacist at the than they did on research and develop- Obviously, if the Federal Government pharmacy my parents used when I was ment. has to pay $100 or $200 for a drug, but if a small child growing up in Prescott, The ads that come on TV and look that means somebody does not incur a Arkansas. real fancy, and they try to tell us $10,000 or $20,000 hospital bill, that is a She told me something that really which drug we need to tell our doctor savings to the Federal Government be- stuck with me. She said, you know, we need, have Members ever thought cause Medicare is paying for that hos- back as recent as the 1970s I would fill about that? It is time that we held the pitalization. Instead of that, they pay a prescription, and if it cost in excess big drug manufacturers accountable. It for a couple hundred dollars for a pre- of $5, I would go ahead and fill the next is time we stood up to them and said, scription drug. person’s prescription while I tried to enough is enough. If governments, I think it is important, because we, a get enough confidence built up to walk small governments like Canada and lot of times, forget about how preven- out there and let the patient know that Mexico, can stand up to the big drug tive measures, whether it is home it was going to cost $5. Now to see pre- manufacturers and demand lower health care or prescription drugs or scriptions that cost $100 is not uncom- prices, why cannot we? whatever, nutrition, these things save mon. It is time we developed a plan that the government money. That has to be The bottom line is this: Today’s takes on the big drug manufacturers. factored in in terms of what we do. Medicare was designed for yesterday’s Why? Because 83 cents out of every dol- Mr. ROSS. Mr. Speaker, if the gen- medical care. Today’s Medicare was de- lar that we spend on a prescription tleman will continue to yield, I would signed for yesterday’s medical care. drug is 83 cents that is a result of the just tell the gentleman that I think There has been a lot of debate and a cost of the big drug manufacturer. Sev- this is a good example of why we need lot of talk about how we do this, how enteen cents out of every dollar that an overhaul in Medicare, why today’s we provide a meaningful prescription Medicare is designed for yesterday’s we pay for a prescription drug is the drug benefit to our seniors. The Repub- medical care. cost that it takes for the hometown licans first offered a plan that simply There are very few drugs, few drugs provided a discount card, like it was family pharmacy to do business: to fill that Medicare pays for. One is when some kind of new concept. Prescription that prescription, to buy liability in- one has a kidney transplant. They will discount cards have been around for- surance, to pay their utilities, and yes, pay for drugs that keeps one from re- ever. Watch any cable TV channel late oftentimes to deliver that medicine to jecting that kidney for up to 3 years. at night and you will see them adver- the front door, because the patient is a Here is what Medicare says today. tised for $7.95 a month. My dad got one senior who can no longer get out, a They say, if you go to the doctor be- in the mail a few months ago for free. senior who can no longer travel, a sen- cause you are ill, they will pay for it. Why is that? Because the prescription ior who lives in a town like Prescott, If that doctor determines that you are benefit managers, which play a huge Arkansas, where I am from, where we ill because you need a new kidney, they role in the Republican plan, do what? do not have mass transit. will pay for the transplant and the hos- They make huge profits off the rebates, This is a very important issue. It is pital stay. Then they say they will pay profits that exceed those that are made important to our seniors, and it ought for the medicine up to 36 months, 3 by the hometown family pharmacy. to be important to every one of us, be- years, to keep you from rejecting that That is why they give us these cards cause some day all of us will be on kidney. for free, because they get rebates on Medicare, and we, too, will want to In month 37, do Members know what the preferred drugs that are included. have a meaningful prescription drug Medicare says? Under today’s rules and Where the discounts come from, they benefit. regulations, they say, I’m sorry if you do not cost the big drug manufacturers This is a very, very important issue cannot afford the medicine, which can a single dime. Studies show that the to our seniors. I hope it is an impor- cost more than $500 a month to keep savings range from 50 cents to $3. If a tant issue to all of us. I look forward to one from rejecting that kidney, we are senior who faces a $500 a month pre- continuing to discuss the need to truly sorry but we cannot pay for that any- scription drug bill is taking six medi- modernize Medicare to include medi- more. But here is what can be done: cations a month, let us say they can cine for our seniors as this debate con- Let your body reject that kidney, and save $3 per prescription, that is a total tinues. we will pay for you to go back to the savings of $18 a month, $18 savings on a If another day passes without our doctor, we will pay for you to go back $500 drug bill. That does not help our seniors getting a prescription drug ben- to the hospital, we will pay for you to seniors choose between buying their efit, that is one day too many. have another surgery, we will pay for medicine, buying their groceries, pay- Mr. PALLONE. Mr. Speaker, I want you to have another kidney transplant, ing their light bill, and paying their to thank the gentleman from Arkan- and then we will cover the medicine for rent. sas. I know he said he is not a phar- another 3 years, another 36 months. Thank God that when we created macist, but because he owns a phar- Again, that is just one example of Medicare, we did not say, here is a dis- macy and because he deals with the how Medicare today does not make count card, go cut a deal for your sur- public on a regular basis, he knows sense. Again, today’s Medicare is de- gery. Here is a discount card, go cut a about the preventive nature of pre- signed for yesterday’s medical care. deal at the doctor’s office. We provided scription drugs. Mr. PALLONE. The point is that we a meaningful benefit under Medicare. I always like to bring that up, and I may find that when we do, and hope- We provided meaningful health insur- am pleased that the gentleman did, be- fully certainly if the Democrats have ance for our seniors. It is time that we cause we always, or I tend to forget, their choice in the matter, we will have do the right thing by all seniors by pro- and I think a lot of my colleagues tend prescription drugs under Medicare, and viding a voluntary but a guaranteed to forget that because prescription we probably will find that there is a prescription drug benefit that is just drugs really are preventive in nature, tremendous savings to Medicare on the like going to the doctor or just like they actually save a lot of money. hospital side and on the doctor side, going to the hospital. In all these calculations that we have and to the Federal Government be- The big drug manufacturers, they are to deal with in trying to figure out how cause of a prescription drug benefit. I not going to like the Democratic pre- much a prescription drug plan would have no doubt about it. H3504 CONGRESSIONAL RECORD — HOUSE June 12, 2002 Mr. ROSS. If the gentleman will which as I say to my colleagues we all say, here is a discount card to go to the yield further, I will tell him that as a know what it is, but it is a publication doctor and go to the hospital with. small town family pharmacy owner, I that is put out about what Congress is Now apparently they will come with cannot tell him the countless stories, doing. It says, In a briefing document a program where they will cover this and I can put faces to these stories and prepared by staff members of the Re- much of your drug bill if you make this names to these stories but patient con- publican Study Committee, which is a much money. And they will cover this fidentiality prevents me from doing House Republican research group, sug- much of your drug bill if you make this that, thank goodness, but I can tell the gests that Republican members would much money. And it is so complicated gentleman, faces stick in my mind of like provisions to prohibit drug price that every senior is going to need to seniors who cannot afford their medi- controls, cap general fund contribu- hire a CPA to figure out what their in- cine. tions to Medicare at 40 percent of the come is that month to figure out what I live in a small town of 3,400 people. total, and require means testing for the benefit they qualify for. Before coming to Congress, when I was drug benefit to be considered for inclu- This does not have to be complicated. actively involved in the management sion in the drug bill. A Medicare benefit that allows you to of our small town family pharmacy, I Now, I do not want to get into all of go to the doctor and that allows you to would see seniors who could not afford those, but the point is the fact that go to the hospital is not complicated. their medicine. They would leave the they would actually try to build some- Everyone understands it. And it bene- pharmacy without it, and a week or 10 thing into the legislation that says fits those seniors who need it. days later we would learn, because it is they cannot deal with price is incred- Mr. PALLONE. Mr. Speaker, the a small town, that they were 16 miles ible to me because, again, if we are other thing the gentleman said which I down the road in Hope, Arkansas in the going to have this be a meaningful ben- thought was very significant is we hospital running up a $10,000 or $20,000 efit under Medicare, there has to be know that the prescription drug manu- hospital Medicare bill that could have some effort to bring down the prices. I facturers spend all this money on ad- been avoidable, could have been avoid- will say we will specifically say what vertising trying to promote their ed had they simply been able to afford the price is and control the price, but brand-name drugs, and it is amazing to their medicine or been able to afford to we want the Secretary to have the abil- me what goes on and why it contrib- take it properly. ity to negotiate a good price. utes to the escalating prices of drugs. Diabetics, I have seen diabetics that The gentleman knows how that Obviously, they spend a lot of money lose legs needlessly simply because works, being in the pharmacy business on advertising. That causes prices to they could not afford their medicine. and how HMOs and the VA and other escalate. Then they try to make sure Do Members know what it costs to am- systems that have a lot of seniors that that people only buy the brand name putate a leg? Do Members know the they negotiate for have the ability to which costs more and try to exclude or drain that has on the Medicare system bring down the costs. So it makes discourage the use of generics, which is and on a senior who no longer has a leg sense to do that and not suggest that one way to bring costs down. And then simply because they could not afford we pass legislation that would prohibit they come to Congress and use their their medicine, or kidney dialysis? it. lobbying power by financing campaigns Mr. Speaker, I yield to the gen- and trying to get these patent exten- b 2245 tleman. sions. The patent expires at the end of Medicare pays for kidney dialysis. If Mr. ROSS. Mr. Speaker, I wrote a so many years and they get an exten- you cannot afford the medicine, Medi- bill. It is H.R. 3626. It is a bill that will sion for another 3 years or another 5 care says that is okay. We will pay for truly modernize Medicare to include years, which makes it impossible to kidney dialysis. As much as a quarter medicine for our seniors. In that bill bring up the generic drug or use of a of a million dollars Medicare will pay we hold the big drug manufacturers ac- generic alternative. out. But no, they will not pay for the countable. In that bill we demand the They are constantly exercising their $40 or $50 or $60 prescription that the same kind of rebates from the big drug political clout, if you will, and adver- senior needed to avoid that horrible, manufacturers that State Medicaid tising and then they get tax breaks for horrible experience that in many cases programs, that the Veterans Adminis- advertising as well. And all of this eventually had a great role to play in tration and that big HMOs have been drives up the cost. And the worst of it their eventual death. demanding for years. And we do that that we have had in the last month or Mr. PALLONE. The other thing you because it is time that we held the big so is this drug industry-funded media have mentioned too, because we are drug manufacturers accountable, and campaign to promote the Republican now talking about the cost issue, is we can do that in a way that State prescription drug plan. If I could give how the Republicans, the only thing Medicaid programs do it, a way that you a little flavor of it here, because I that we are hearing from President most privately held health insurance am reading a press document that says Bush and the Republican leadership is companies do it, the way most big that the drug industry is funding this the drug discount card, which obvi- HMOs do it, by demanding the same front group called the United Seniors ously is already available and if there kind of rebates that they receive to Association to launch a multi-million is a discount, you can take advantage help offset the cost for a meaningful dollar advertising campaign to pro- of it now. There is certainly nothing drug benefit for our seniors. mote the Republican Party’s prescrip- that the Federal Government is going Let me say this. Those who know me tion drug proposal. to do or promote that will make a dif- know I am a Democrat, I am a conserv- The whole point of this thing is to ference. ative Democrat, and I probably cross try to confuse the public and try to act I maintain that the way we save party lines and vote with the Repub- like what the Republicans are pro- money is through prevention. If we do licans just about as much as anybody posing is Medicare, it is a guaranteed not bring costs down for medicine, it on the Democratic side. And when they benefit and it will bring down costs. would make it a lot more difficult for are right, I stand with them. But I can They are spending something like 3, 4, a prescription drug program on the tell you, I am a small-town family $5 million to try to make that point Federal level to work. And that is why pharmacy owner. I understand this when it is not true. the Democrats are saying not only do issue, and they are dead wrong with I do not know how much longer the we want this prescription drug pro- this issue. First, they come up with public can take it, the constant adver- gram to be part of Medicare, but we this crazy idea of a prescription dis- tising for name-brand drugs, the con- want the Secretary, in this case, of count drug card. Again, they have been stant effort to try to prevent generics Health and Human Services to have the around forever. Seniors have paid for to come to market, and, now, the effort power and mandate to go out and nego- them. They have gone to their phar- to promote and spend money to say tiate lower drug prices. macy. They have learned there is no how the Republican bill is a good alter- I was just amazed to read, I men- meaningful savings to a so-called pre- native. We have to get up here every tioned before, I am actually going to scription drug card. And thank God night and as much as we can expose all read this from Congress Daily today, when we created Medicare, we did not of this. June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3505 Mr. Speaker, I just want to thank my that thought that Medicare was not We had a $5.6 trillion surplus just a colleague, the gentleman from Arkan- going to work; it was going to collapse year ago and tragically we were hit on sas (Mr. ROSS), for coming down and the system. How in the world are you September 11. And because we did not making the point. Because since he is going to have a government system to have restraint in the administration in the business, or at least he was, or pay physicians? There was a great fear and proceeded with an enormous tax still is with his wife, he has an under- and debate about Medicare. cut, we have a crisis. But in that crisis, standing of what we face. So I thank Now we find out that Medicare has let me say, that I am willing not only the gentleman again. extended the lives of seniors. And when to confront the crisis but to take a Mr. Speaker, my other colleague is it works right for the purpose our phy- risk. here, the gentlewoman from Texas (Ms. sicians, it is a system that provides b 2300 JACKSON-LEE), who is also a part of our better health care and the opportunity health care task force who has been for our physicians to treat the elderly Let me show my colleague that the here many times to point out the need in a way that gives them a longer life. American public is prepared to take a for a prescription drug program and Now we talk about reforming Medi- risk. Medicare prescription drug program. I care in a way that is long overdue, and A question was raised in a survey, yield to the gentlewoman at this time. I want to refresh my colleagues’ mem- Medicare does not currently pay for Ms. JACKSON-LEE of Texas. Mr. ory, if we could, and refer back to the prescription drugs and do you think Speaker, I thank the distinguished gen- State of the Union in 1999. Now we have the Federal Government should expand tleman. been talking about this for a very long Medicare to pay for part of the drug Mr. Speaker, I was listening to my time, but usually when things get ele- costs? The survey showed, as my col- colleague and friend from Arkansas vated to the level of the State of the league will see, 67 percent of those sur- (Mr. ROSS) and my friend and leader on Union, then the Congress takes its veyed believe that we should do that. this issue from New Jersey (Mr. lead, begins to formulate policies in a They are asking the Federal Govern- PALLONE). Let me say to my good bipartisan manner. And it was in Janu- ment to act. Only 6 percent said Medi- friend from Arkansas (Mr. ROSS), I am ary 1999 when President Clinton an- care should not pay for drugs and only from the fourth largest city in the Na- nounced an initiative to create a Medi- 26 percent of our seniors believe it tion and when it comes to the crisis in care prescription drug benefit in his should be a private system. prescription drug benefits, take a rural State of the Union. When they asked would you support area with 3,400 people and no mass This was declaring to the Nation that or oppose rolling back the tax cut, this transit and take an urban center, and this was not only a crisis, but it was is the debate we had here today about that is the nature of the crisis, and utmost important. When he delivered this two-thirds super majority on rais- that is what it is all over this country. his State of the Union address in 1999, ing taxes, and I will tell anyone I have What I would like to say to my friend he laid out that one of the key goals of not announced any position on raising as well, I am a supporter of family the year was creating an affordable taxes. pharmacies and family pharmacists be- prescription drug benefit under the What I have suggested and what we cause we have a few in our community Medicare program. have suggested, what colleagues in the and I thank the gentleman very much. Mr. Speaker, I would say to my Democratic Caucus have suggested is a I had the opportunity to visit with a friend, the gentleman from New Jersey rollback or a moratorium but a rec- number of pharmacists who have come (Mr. PALLONE), we had the opportunity. ognition that we cannot pay these up to try and discuss various issues, We had the President. We had two taxes that give this high percentage of and I say pharmacists who open these Houses of Congress that should have tax cuts to just 1 percent of the Amer- local family pharmacies, and they have seen the crisis and the writing on the ican public, but we find here in a sur- been very sensitive to the plight of our wall. The gentleman asks the question vey just recently, March 28 to May 1, seniors to the extent that I know. And why? We had legislation, as I recall. I 2002, when we asked the American pub- I know that my good friend, the gen- remember we had a partnership with lic would you support or oppose rolling tleman from Arkansas (Mr. ROSS), has some legislation that was bipartisan as back the tax cut that Congress passed probably yielded a little to some of the I recall, and that the Democrats and last year and using that money to pro- seniors who have come into his store Republicans, at least Members who vide a prescription drug benefit under and probably had their request or their were on this particular legislative ini- Medicare for seniors, a whopping 64 prescription drugs on credit for a while tiative, were prepared to move forward percent of the American public that so that they could manage to keep in the Committee on Energy and Com- are in this survey have indicated that their health where they did not find merce. And all of the sudden because of they are willing to do that. themselves in hospitals. So my hat is what I shamefully have to admit, that Why are they willing to do that? Be- off to the gentleman and off to the the devil was in the details, we began cause they realize that we are coming family pharmacies around the Nation. seeing certain industries feel that their to a point of no return. We have Medi- I want people to know that this is particular stake in this was going to be care that extends the life or has ex- not an issue of your family drug store diminished. tended the life of our senior popu- or your neighborhood drug store where What that did to me and if I may lation, but we are cutting it off at the you go into the pharmacists who try to selfishly say is have me day after day door because to extend the life through do the best they can with the prescrip- go back to my district and day after access to health care, then the pre- tion that the senior has. It is a na- day be asked by my seniors, I thought scriptions that have been prescribed tional crisis that we have, and that is you were going to pass that Medicare must be utilized. We are talking about why I thought it was important that prescription drug benefit. I had town seniors who have up to 18 drugs that we again raise our voices and speak to hall meetings. I had national figures in they have to take on average and, this question of why we have not been my district. I was speaking to seniors. therefore, are in need of these re- able to make headway on this. I was hearing their stories of sadness, sources. I wanted to refresh our memory and plights of individuals, two couples. Let me just share with my good I am also reminded of the idea of When I say two couples, a husband and friend and colleague why I have a prob- changing Medicare for these times. Let wife, struggling to pay both his drug lem with what the Republicans are pro- me say that whenever Medicare is dis- prescriptions that he needed and hers, posing, and I am very glad that the cussed, we do not make friends. I be- two seniors living together, living gentleman is yielding. lieve in 1965, whatever the time frame longer because of Medicare. Mr. PALLONE. Mr. Speaker, if I when Medicare first was established So the frightening thing about this is could just interrupt, I wanted my col- under President Johnson, there were a we are now in 2002. I have said this be- league to reiterate that point again lot of people in the health care indus- fore on the floor of the House, we are about how many different drugs the av- try, good friends of ours, of course, spending $1 billion a day in the war erage senior takes in the course of the that is senior to me, but in any event, against terrorism which all of us have year. I think a lot of the people, par- individuals in the medical profession united behind the President on that. ticularly younger people, have no idea H3506 CONGRESSIONAL RECORD — HOUSE June 12, 2002 how things have developed, as my col- benefit of which the Democrats are are my colleagues going to respond to league said, over the last 20 or 30 years proposing a voluntary effort because, the issue? Those seniors are still going since Medicare started out. as I understand it, as I heard the gen- to physicians. Those physicians are Probably when Medicare started out tleman speak before, a lot of the re- still prescribing drugs and they still in the 1960s, it would probably be un- search is funded by the FDA initially need to pay for them. usual for a senior to be taking any and covers the research that the phar- Why not cover them? They are 100 kind of prescription drug, but now the maceutical companies are doing. percent on the hook under the Repub- gentlewoman said the average is 18 dif- Mr. PALLONE. Mr. Speaker, I want- lican plan for drug costs in that win- ferent? ed to point out there is no crisis in dow. That is a lot of our constituents. Ms. JACKSON-LEE of Texas. Mr. terms of the profit the prescription It could be large cities. It could be Speaker, 18 different kinds of drugs, drug industry is making. The gentle- rural areas. It could be suburban areas. and we have heard that through the re- woman knows my home State of New A lot of seniors are living on a fixed in- search of some of our colleagues in the Jersey is the headquarters for many of come. A lot of them have drug costs other body, and as well I am going to these, of the major drug companies, and cannot afford that amount. bring our attention to this legislation and let me tell my colleague, they are Mr. PALLONE. Mr. Speaker, reclaim- about Canada and the reason why that doing very well. Their stocks have been ing my time, I think the gentlewoman is even being proposed. But out of doing well, even in the last couple of is pointing out a very important point. doing a survey in various communities, years where the stock market has not I have not stressed it so much because yes, that was determined that there been generally doing that well. I know that the Republican plan does are multiple prescription drugs for I, for the life of me, cannot under- not have any kind of guaranteed ben- multiple ailments. The senior is func- stand why they do not see a financial efit. tioning. That same senior is at the benefit in a Medicare prescription drug In the other words, what the gentle- neighborhood community center on program because, if we think about it, woman is basically referencing is when Monday through Friday, but they need we have all seniors, millions of seniors the Republicans put out their proposal, that amount of drugs. that are not covered, not buying pre- they suggest that I think for the first Mr. PALLONE. If I could just reclaim scription drugs. If we add the entire $1,000 they will pay 70 percent of the the time, I know that statistic is accu- senior population, if the entire senior costs for the next thousand. Up to rate. I have seen it many times, but I population, most of which does not $2,000, they will pay 50 percent of the think a lot of times people do not real- have a meaningful drug insurance pro- costs, and then from $2,000 to $4,500, ize, because of the fact that so much gram now, it is now included under they will pay none of the costs, but the research has been done and all these Medicare, we have to be talking about reason I think that that proposal is ab- miracle drugs have been created, and it an additional maybe 20 million Ameri- surd, as my colleague pointed out, is, is all great, it is true now that seniors cans who would now be eligible and and why they do not have any hesi- are taking that many drugs, and that have most of their drugs paid for by tancy of talking about it that way is is why the costs are so high. Even 5 the Federal Government. How is it that because it really is not any benefit. years ago, the costs were not as high as these drug companies would not benefit In other words, what they have done they are now, and that is why this is from that? essentially, from the way I understand such a crisis. I think it is the fear of the unknown. it, they have said we are going to I did not mean to interrupt, but I In other words, they are doing well throw a certain amount of money out think that statistic is interesting be- now. Their stocks are doing well. Their for these drug-only insurance policies, cause I am not sure a lot of younger CEOs are making a lot of money, and and in order to fit that in for what we people realize that. they just figure, well, things are pretty would like to see for a benefit, we will Ms. JACKSON-LEE of Texas. Mr. good, so let us not change it. But I structure it this way, and they have Speaker, I think that is extremely im- think once this program is put into structured it with that hole because portant. The gentleman from New Jer- place the way the Democrats have pro- there is not enough money to pay for a sey is right in emphasizing that point. posed, I seriously doubt that there is real benefit that would be meaningful. My colleague made a point earlier that any way that they are not going to The problem is that since this is just he may want to elaborate on, and my make more money because they are being thrown out to the private insur- good friend from Arkansas. I am con- going to be selling more prescription ance sector, we do not even know what cerned. It is also reputation, or they medicine. I think it is just the fear of these drug-only policies will provide, attempt to stigmatize Democrats, and the unknown and the realization that and they are probably not even going I am glad that the gentleman from Ar- maybe things are going to change, we to be available in large parts of the kansas did indicate that we have had are not going to benefit in some way, country. So I think the reason they do support across the aisle and, in fact, we but the notion that their profits are not have any problem suggesting what are encouraging bipartisan support on going to be diminished by expanding my colleague suggests is actually ab- a fair Medicare prescription drug ben- Medicare, to me, is nonsense. surd is because they do not really have efit. I yield back to the gentlewoman. a guaranteed benefit at all. So they This door is not closed to anyone who Ms. JACKSON-LEE of Texas. Mr. create this hole in order to fit it in agrees with our position, but I take Speaker, I am glad the gentleman with their budget, what they think issue with being stigmatized as being clarified my confusion, and might I they are going to throw out there in opposed to business. In fact, let me emphasize again, that is why I take terms of the total amount. compliment some of the pharma- issue with any suggestion that Demo- Ms. JACKSON-LEE of Texas. Mr. ceutical companies who worked with us crats are against business and have not Speaker, I think the gentleman has ar- on this issue of HIV/AIDS in Africa and been supportive. That is my analysis, ticulated it extremely well. That is have done some enormous work on this and I am quite surprised at the rep- why I wanted to make sure that my question. Certainly there have been resentations and the fear that has been chart was clear, that the consensus of some challenges on costs of drugs even put forward by our good friends in the the American people would be, one, there, but I will give credit where cred- pharmaceutical industry to the extent they recognize this would be expensive. it is due. of this major advertising campaign. I do not think that we should hide from I am aghast that anyone would say First of all, do they understand that that concept, but we need to frame that there is a crisis in the profit mar- our Republican friends are putting for- what we are saying. gin of these pharmaceutical companies, ward a bill that has a huge hole? Be- What we are suggesting is that the and I welcome, I know the gentleman cause it fails to cover seniors that have investment is well worth the honest sits on the Committee on Energy and costs between $2,000 and $5,600. Now, cost and that is to ensure that the av- Commerce, any hearings that could be most of us would think that is a lot of erage senior, which is obvious the aver- held to say that there is a crisis in money to spend on drugs during the age senior could not pay $1,000 because profit, and therefore they cannot come year, that is, low income seniors, and if we might say that that would be easy to an agreement on a prescription drug we leave that large gaping hole, how to almost come up with. June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3507 b 2310 this legislative initiative. I applaud it Ms. JACKSON-LEE of Texas. Mr. But they are usually in this ballpark. and support it because I need help for Speaker, just quickly, one of the com- Certainly over 2,000 would be left with my seniors. But cannot America and ments made in this evening’s discus- 100 percent of the bill. The question is this Congress turn its attention to sion is we need an overhaul of Medicare whether we make the calculated, intel- what seniors are facing across the with the various health components ligent judgment to invest in this kind land? This is not a New Jersey problem that are part of the Medicare system of plan that Democrats are offering or Minnesota or Michigan problem. It brought to the table. that in fact puts a minimum of a $25-a- is across the land. I actually believe points made by the month premium, I know things are sort I have been saddened by having to gentleman from New Jersey (Mr. of meshing and forming, but has a de- meet with seniors time after time and PALLONE) could be discussed and re- ductible, has a co-insurance, but re- have them raise their hand for a ques- solved in a meaningful, coming to- sponds to those low-income seniors and tion asking about the prescription drug gether in discussion, not in an adver- others. That is what we are suggesting, benefit, as if I am coming home with- sarial, way. I would hope that the voluntary and universal. out what I promised. I cannot imagine major entities, hospitals, pharma- This way we are not precluding, we that we can go any further without ceutical companies, the medical profes- are not indicting anyone, or seg- doing this, and recognizing we have a sion, we need some reform with nurs- menting one economic group versus an- valid plan and we have a crisis. We ing. Why do we not bill nursing serv- other. What we are suggesting is that have the evidence that our country is ices? We have a nursing shortage, hos- gaping hole between $2,000 and $5,600, willing to address this by sacrificing a pitals cannot pay nurses, nurses are we would be doing nothing if we did not tax cut and providing a prescription not getting compensated, and that is a pass legislation that respond to that. drug benefit. suggestion that we bill nurses as we Mr. PALLONE. Mr. Speaker, reclaim- Mr. PALLONE. Mr. Speaker, I thank bill physicians. And my point is, if we ing my time, the Democratic proposal, the gentlewoman for her points. The do not do this in anger or anguish, which is like part B, which is the part gentlewoman’s last point spoke about pricing questions need to be resolved. of Medicare that pays for the doctors’ the fact that many seniors are forced, We might be better for it if we begin to bills, there is a premium, low deduct- particularly if they are in the border look at ways that we can even out the ible, and 80 percent of your doctors’ States, to go to Canada where they can cost. If we get to the point that the bills are paid for under part B, and al- find the lower drug prices. That should cost is so insurmountable that hos- most everyone signs up for it because not be the answer. I agree with the pitals close, nurses are not available, it is a good deal. gentlewoman 100 percent, but it makes pharmaceutical companies are not We are suggesting we do the same me point to one other thing which we making money because the enterprises thing with prescription drugs. What I have not really stressed that much to- are not in business any more, I think think is important, particularly for night but needs to be stressed, and that that is common sense. poorer people or people who do not is as Democrats we want a prescription Mr. PALLONE. Mr. Speaker, I will have the money to pay for the pre- drug plan. just say one more time as Democrats, mium, just like under part B for your We are going to lay that plan out to- we are determined first to address the doctors’ bills, if you are below a cer- morrow at a press conference at 11 on issue of drug prices; and, secondly, to tain income, we pay for that premium. the steps of the Capitol, but the issue provide a Medicare benefit, a guaran- If you are a little above that, we pay of prices for drugs is not just some- teed Medicare benefit for all seniors. for part of the premium. We would be thing that seniors face. All Americans We are going to be unveiling our Medi- doing the same thing under the Demo- face it. This prescription drug plan care prescription drug proposal tomor- cratic proposal for prescription drugs. under Medicare will solve the problem row. I know it is a good one. I hope That $25 premium that you would pay for seniors, but the pricing issue is still that the Republicans will seriously per month for the prescription drug a problem for everyone else. take a look at it and not go down this benefit under Medicare, would be to- We need to look at that as well. We privatization plan that they have been tally paid for by the Federal Govern- need to, if the option is for some people talking about. because they are close to the border to ment if you are below a certain in- f come; and if you are just above that, it be able to go to Canada and buy cheap- would be partially paid for by the Fed- er drugs, let them do it. We need to INTEGRITY AND HONESTY IN THE eral Government. So no one would not plug up these patent extensions. We CORPORATE WORLD be able to get the Medicare benefit be- should not allow companies with brand The SPEAKER pro tempore (Mr. cause they could not afford the pre- names to get patent extensions just be- KELLER). Under the Speaker’s an- mium. cause they have some money that they nounced policy of January 3, 2001, the Ms. JACKSON-LEE of Texas. Mr. are throwing around this place because gentleman from Michigan (Mr. HOEK- Speaker, that is an excellent point. As that prevents generics which are a low- STRA) is recognized for half the time re- well, I think it is important to note, cost competitor to these brand-name maining until midnight, or approxi- and again this is not a time to speak to products from coming to market. mately 20 minutes. the condemnation of any HMOs or I think we should also plug up this Mr. HOEKSTRA. Mr. Speaker, last plans, but you will not have to be in an advertising loophole where they get night I came to the floor, and I talked HMO, as I understand it, to receive this these tax breaks for the advertising about an issue that I have a passion coverage. I think that is a key element that they do. I can understand a tax for. It is about integrity and honesty in as well. break for research, but why a tax break the corporate and business world. As I close, let me also say to the gen- to advertise brand-name drugs? There tleman, and I started out by saying are a lot of things that need to be done b 2320 this is a crisis, and I just wanted to in a larger sense that do not just relate I talked a little bit about some of the note that some of our good friends are to seniors to try to bring drug prices revelations that have gone on in the recognizing this, have proposed legisla- down, because this is a crisis for every last few months, really beginning with tion to deal with the importation of American, but particularly for seniors the scandal at Enron, Arthur Andersen drugs from Canada. This is not a com- who are so dependent on some of the and those types of things. And I want mentary, but this suggests to the drugs and the cost for them is so pro- to talk a little bit more about that to- American public that this is serious, hibitive. night because the stories in the papers that we have been without any redress But it is a problem in general. The today just keep building on this issue. and without any ability to address this Republican leadership does not even Today, USA Today: ‘‘Stock Markets crisis. We have had to go to the point want to address the price issue in the Sink to New Lows for 02.’’ The bottom of seeking an opportunity for seniors context of Medicare, let alone if we line is that this lack of integrity and to get drugs in Canada. talk about it in the larger context of this breaking of the public trust by I just ask the question to the gen- all Americans. We need to bring prices corporate business and business leaders tleman, can we not do better? I applaud down for everyone. has had a real and a dramatic impact H3508 CONGRESSIONAL RECORD — HOUSE June 12, 2002 in our economy. The public is losing year, I just cannot afford to pay sales ing, the last 2 years of financial state- faith and trust in our corporations be- taxes. ments, we can’t vouch for those any- cause of these many examples. The question to this individual, Mr. more. And, by the way, the company Why is this? Let us go back and take Kozlowski, if this is an accurate por- has admitted that it has engaged in a a look at what our system is based on. trayal, when is enough enough or when bunch of bogus trades to inflate the I have quoted a former boss of mine at does it simply become greed? health and the vitality of its business. Herman Miller Corporation who has You just go on. Software provider And people are fidgety. written a number of books talking MicroStrategy, trading at $333 per They have a right to be fidgety. The about leadership. One of his latest share. Today, it is trading at $1.15. The leaders of this company broke the pub- books, ‘‘Leading Without Power,’’ Max CEO, Michael Saylor, and other execu- lic trust. The auditors did not do their De Pree, a Fortune 500 CEO, wrote tives later paid $350,000 in fines to set- job and people are fidgety. I would about the importance of people having tle SEC allegations of accounting fraud guess so. Because their stock has trust and confidence in the American and paid $10 million to settle share- dropped by 35 percent, and my guess is economic system in order for it to holder lawsuits. that the executives of this company work. He states: ‘‘When you stop to I am not sure exactly what the CEO are going to walk away with a bundle think about it, it is astounding that walked away with, but I would guess of money. anything as complex as the trading of that he walked away with a lot more Just a few more examples. This is stocks, bonds, commodities and futures than the $350,000 that he paid in fines. what happens when the companies go ultimately depends on trust, a value, Enron executives sold millions. The down, employees and shareholders and not a statute, not an SEC regulation, real tragedy and the real shame here in customers are hurt. What happens to not even a government mandate. The America is that as these executives the executives? Enron, Ken Lay. Ken system works on trust.’’ lead their companies down a road of Lay is doing all right. He sold $1.8 mil- Where are we today? Again, USA shady dealings, activities to deceive lion shares for $101 million. Jeff Today, front page of their money sec- and hide the true viability of their Skilling, he sold 1.1 million shares for tion, the top headline is’’ ‘‘Wait for business from their customers, their $66.9 million. They sold those shares Verdict Raises Fear of Hung Jury,’’ but shareholders and their employees, it for around $50 to $60 a share. Rebecca here is a story that really just builds seems that for some of these as their Mark. She only walked away with about $80 million. She sold her shares on exactly what I was talking about employees and shareholders face finan- at about $60 a share. Robert Belfer, he last night, and actually they say it cial ruin, for these few executives it is a director. He only made $51 million. much better than I do. Their cover has come to mean a golden parachute. story on their money section is ‘‘How In this kind of world, lower standards b 2330 did Business get so Darn Dirty? Ex- prevail. Honor and trust continue to He sold 1 million shares for $51 mil- perts blame greed. Reforms come slow- falter elsewhere, but they are really lion, $51 a share. If any of you want to ly.’’ faltering in the business community. buy Enron, I bought some a while back. Double dealing Wall Street analysts. Slea- I want to just highlight one other ex- I just wanted to see how these people zy accounting. Cooking the books to goose ample. This is from our State of Michi- explained their behavior to their share- corporate profits. Bogus stock trades. Greed gan. This impacts and shows how again holders. I think I bought 50 shares. I and corruption have always lingered at the edges of corporate America, from Civil War individuals, shareholders and employ- did not pay $51. I did not pay $60. I did profiteers to inside-trading scandals of the ees get hurt when leadership breaks not pay $70. I paid exactly what you ’80’s. Yet the new millennium has ushered in the public trust. can do if you call your broker, unless a wave of fraud, corporate malfeasance, in- CMS Energy shares drop. Suspect trades maybe the stock has doubled. I bought vestment scams, ethical lapses and conflicts help drag Detroit-based firm’s stock down it for about 20 cents a share. If I made of interest unprecedented in scope.’’ more than 35 percent since January. a good investment, you may have to The end result: a lack of public trust, CMS Energy Corporation’s stock fell 10 pay 40 cents a share. I am not sure shareholders, customers and employees percent Tuesday after its former accounting what happened to the stock price. But feeling devastating financial con- firm said its opinions on the energy com- these guys walked away with a bundle pany’s financial results for the last 2 years sequences, and stock markets sink to can’t be relied on. of money. new lows for 2002. Mr. Kozlowski, the individual from Excuse me? It can’t be relied on. The fallout is a prime reason stocks con- Tyco, $100 million a year was not tinue to flounder. And despite calls among Here is something that I find really enough. He did not want to pay sales politicians, regulators, and Wall Street for ironic: ‘‘Last month CMS fired Ander- tax. Under Mr. Kozlowski’s leadership, sweeping reforms, little is being done to sen because of the accounting firm’s quote, unquote, Tyco lost $86 billion in change rules for corporate conduct. link to the Enron Corporation scan- market value. According to Reuters, That has to change. dal.’’ What is the problem with CMS? ‘‘A pattern of lucrative payouts to What are some of the examples out CMS simultaneously sold power to and board members and top executives at there as to why the American public is bought electricity from other energy the troubled manufacturer raises ques- losing their confidence in the corporate companies to artificially boost the vol- tions about whether they had incen- business world? Here are some exam- ume of its deals. CMS, this is like the tives to keep tabs on the spending of ples: Baltimore currency trader John pot calling the kettle black. They are disgraced former chairman Dennis Rusnak indicted for bank fraud for al- doing bogus sales to boost the volume, Kozlowski. The question is now wheth- legedly hiding nearly $700 million in deceive their employees, their share- er he will receive less than $135 million losses. Alan Bond, former regular on holders and their customers; and at the in a severance package than if he had ‘‘Wall Street Week’’ with Louis same time they are firing Arthur An- been fired.’’ Rukeyser, convicted Monday of de- dersen because of the accounting firm’s Mr. Kozlowski has been indicted and frauding clients of $56 million. link to the Enron Corporation scandal. the question is whether it will trigger There is a nuttiness that we’re seeing. And here is now a response from an a wider probe into Tyco. Boost performance by any means. The temp- analyst. They have engaged in bogus CEO, Lucent Technologies. Mr. tation to cash in grabbed lots of people. trades, their auditing company says we McGinn, former CEO, will receive $5.5 Here is an interesting one: Dennis cannot really support the opinions for million in cash. They are going to pay Kozlowski, think about it. Here is a the last 2 years on our audits, and here off a personal loan of $4.3 million. His guy that over 3 years made over $300 is one analyst’s response: ‘‘The market performance at Lucent, the Securities million as compensation as Tyco CEO, is overreacting to Andersen’s state- and Exchange Commission is inves- forced out over an indictment for tax ment. People are really fidgety these tigating possible fraudulent accounting evasion. $300 million, over $100 million days.’’ practices while Lucent employees are a year, and the guy appears to be un- No kidding. What would you think suing the company for a breach of fidu- willing to pay sales tax. Let the rest of they would be? Let us see, they have ciary responsibility by inappropriately the American people pay sales taxes, invested a ton of money, the stock is allowing employees to add company because $300 million, $100 million a down 35 percent, the auditors are say- stock to their retirement plans. June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3509 WorldCom. Mr. Ebbers will receive my colleague’s support. What we have bureaucratic perspective. We fought $1.5 million a year for life. His perform- said is in some ways these people are too hard to come here to Congress to ance, WorldCom is being investigated accomplishing, these business leaders, allow that to happen. by the SEC for possible fraudulent ac- because of their failure to exercise true So I want to commend the gentleman counting practices. Its credit rating leadership, are accomplishing what the for raising this issue. These organiza- has been reduced to junk status and terrorists could not. tions, Tyco, CMS Energy, Enron, has been removed from the Standard & We bounced back after September 11, Lucent and others you mentioned, Poors 500 index. Good job. Congratula- believing that we could rebuild Amer- there are board members elected by tions under your $1.5 million per year. ica, and we are. They put the final stockholders. Their job is to make sure It is a disgrace. I hope that the busi- piece back on the front of the Pen- the stockholders’ interests are pro- ness community steps up, because the tagon, I think, this week. We are tected, not those few privileged that bottom line is that millions of Amer- strong and we are going to overcome end up running away selling what is ican businesses who practice honesty that and are going to know we can the moral equivalent, I suppose, of and really do lead with integrity and move forward in the face of this ter- sweets on the Titanic. It is their job to maintain the public trust and recog- rorist attack. But people are ques- make sure that American industry is nize that it is a public trust, will most tioning the strength of our system, and preserved at a level of integrity that likely pay the penalty for the failed stocks are down, not because of the Americans deserve and Americans have leadership of these executives. These terrorist attack on September 11, but come to expect. people walked away with golden para- because of the scandals in the business I would suggest maybe one other chutes, and many of them left their community. thing. What business schools are pro- companies in shambles and left their Mr. SCHAFFER. I do not think that ducing these individuals, these scoun- employees’ and shareholders’ financial the magnitude of this tragedy can be drels trying to get away with these conditions in shambles. They walked overestimated. It is quite serious. The kinds of crimes? Where do they come away with a golden parachute. Their gentleman is right, there are many from? Those business schools and col- legacy to American business is this people in this Congress and in this leges ought to be held accountable as Congress and the business community country who have rebelled against cap- well, not only for producing these is now going to have to face a mandate italism for years and years, who think scumbags, but also for perhaps sug- and a multitude of new business regu- our capitalist way of life in America gesting, maybe telling Congress as to lation. ought to be thrown out; that we ought what kinds of changes in the cur- The problem is, let us not forget that to, I guess, go the way of some of the riculum they are making to improve in the end, this is about integrity, it is socialist nations of Europe and perhaps the quality of business ethics within about trust, it is about common sense, even the communist nations in experi- their colleges and universities. and it is about decency, all leadership ments that have been tried and failed b 2340 qualities that cannot be legislated, and around the country. in many cases leadership qualities that We, as conservatives, free-market- Maybe we ought to hold them ac- were expected of these individuals, be- oriented legislators, we vigorously de- countable, bring them here in front of cause they hold the public trust and fend and put our political capital on hearings, in front of Congress and ask they walked away from it. the line in the notion of free markets. them to provide some solutions so that I yield to my colleague from Colo- It has served this country well. It has the captains of industry of the future rado. led us to a point of prosperity in this perhaps have a little higher integrity Mr. SCHAFFER. I appreciate the Nation that was beyond imagination than these few bad actors are dem- gentleman yielding. for our forefathers and those who have onstrating. Mr. Speaker, I have heard my col- been the pioneers before us here in The SPEAKER pro tempore (Mr. league from Michigan now speak two America and those who have served KELLER). The gentleman from Michi- nights in a row on this very topic, and prior to us here in Congress fighting to gan (Mr. HOEKSTRA) is recognized for I want to commend him, because it is preserve free market capitalism in the the balance of the time until midnight. late here tonight. I was in my office country. Mr. HOEKSTRA. Mr. Speaker, I and I heard the gentleman begin on the These individuals who are cheating thank the Chair, and I thank my col- subject, and I ran over here to join him and lying and resorting to deception league for joining me. and to encourage him on this topic. and betrayal, I will tell you what, they I just want to close on this issue, be- I do not care how late it is, and I do are the scumbags of American indus- cause I know we want to talk about an- not care how many times we have to try. I am fed up with it. I think Repub- other issue that the gentleman and I hear it, but this is something that we licans ought to be leading the charge both have a passion for but, like I said, need to speak about more often. Let to try to suggest that American indus- I really thank the gentleman for being me be a little critical of our own party, try ought to really rise up to try to po- down here. This is an issue that Repub- if I can. We are Republicans, we are lice itself, because it is these few bad licans need to take head on. We recog- conservatives. We share a passion for actors who are trying to get away with nize how important this private sector free market capitalism together. You stealing millions, sometimes billions of is; we also recognize how fragile it is. know, this is a subject on which Repub- dollars, that give the entire business Our system is based on trust. And when licans ought to be vocal, as the gen- community just a black eye that is these folks break the trust and they tleman has been, and we ought to see very damaging. It threatens investor walk away with millions or billions more of us from our side of the aisle confidence. and are not held accountable, they here. I think this is a point at which inves- weaken the entire system, and we are I will tell you why, because these in- tors and consumers ought to really going to need to put in place, and I dividuals in corporate society in Amer- rally the cause, not to look to govern- hope it happens in the private sector ica who are betraying their investors, ment for solutions, though I think because we really cannot do it very ef- betraying the employees of these com- there are some places where we have a fectively through Congress; but the panies and trying to get away with out- legitimate role to play, but this needs boards of directors need to stand up right theft, are threatening our very to be policed where it matters the and recognize their accountability to existence as Americans. They are most, and that is with Americans the shareholders, to their customers, threatening our way of life and tradi- themselves, free Americans who under- to their employees; not to their col- tions of free market economics, driving stand the importance and power of a leagues on the board and not to senior what historically and traditionally has free market system and the importance management. They have to get a re- been the most powerful economic force of capitalism and believe very firmly in newed appreciation for their role, and I on the planet, and that is the United it. think it is our job to point out what is States of America. Failure to address it at the serious going on here. Mr. HOEKSTRA. The gentleman and level it warrants really empowers those Mr. SCHAFFER. Mr. Speaker, if I I have talked about this. I appreciate who want to destroy capitalism from a could amplify that, I want to be frank H3510 CONGRESSIONAL RECORD — HOUSE June 12, 2002 and open and honest with respect to mean think about it. Companies that our business schools, it is okay, as long the political realities of this. Repub- are involved in bogus trades, auditing as you do not get caught. No harm, no licans and conservatives around the companies that do not audit, sales that foul. I sell you $1 billion worth of en- country cannot afford to stand by and are not there, profits that are not ergy, you sell me $1 billion back, im- abandon the field to our friends on the there, excessive salaries, and the rest mediately after that, we are now both left on this topic. We cannot stand si- of the business community has basi- a $1 billion company. If we do it twice, lent and allow those who are the advo- cally been quiet. As this one analyst we are each a $2 billion company. If we cates, the Democrats in America, the said, well, people are fidgety. Yes, be- do it 4 times, we are a big company liberals in America, the advocates of cause for many of our constituents, for now. We have not created any profit, greater government control, greater many of my constituents who work at we have not created anything, and no bureaucracy, a government-managed CMS probably have some kind of a harm, no foul, but we have now just economy; we cannot allow those advo- profit-sharing plan or have some of the presented to the American public that cates to somehow gain the upper hand retirement put into CMS stock. Since we are both a $4 billion company. in controlling America’s economy January 1, the stock is down 35 per- That is what these folks did, and for predicated upon the crimes of just a cent. one of these companies, it was 80 per- few. These are very, very serious inci- Yes, those people are fidgety, because cent of one of their division’s volume, dents that have occurred throughout their company had bogus sales, the bogus trades, just trading it back and the country, and we need to take the company deceived their employees, got forth and 2 companies saying, wow, moral high ground as the Republican them to invest in that stock on a false look how big we are. Party. premise, and they have now lost 35 per- Somewhere in the business schools, I would really urge all of our col- cent. Yes, I would be fidgety too, be- they said, well, as long as you are not leagues to come duplicate this Special cause these are people who are near re- breaking any laws, it is okay. Game Order and hold their own, to hold more tirement, some of them maybe are on the system, and do not worry whether hearings here in Congress. I think we retirement, and they have looked at it is really not right, but game the sys- desperately need that. I would encour- their nest egg just kind of shrink and tem and you are okay as long as you do age our friends throughout the country evaporate, and now people are saying, not get caught. And the bottom line is, who care about these issues and who well, they are just fidgety, they are for many of these people, it has gotten believe a conservative viewpoint in overreacting. No, they are reacting ex- to be an issue of greed. America is essential and is superior of actly the way we would expect them to This head of the TYCO, and I have a that of the left, to write letters, to get act, when the leadership of their com- passion about this TYCO company. on radio talk shows, to be as forceful pany has failed them and lied to them They came into my district a few years and vocal as they possibly can within and when the leadership of their com- ago and they bought a nice little small the political context of America. pany walks away with millions and company, 400, 500 employees, and they This is an issue that conservatives they have lost 35 percent. That is not said, we are going to keep it the same, ought to resolve. We owe this as our right. we are going to keep it the same, we legacy to the country and our philos- Mr. SCHAFFER. Mr. Speaker, when are going to keep it the same. They fin- ophy and our belief to take the moral it is predicated on fraud, when it is ished the sale and the next day, they high ground and to manage this situa- predicated on deliberate acts of deceit, locked the doors. Now we know what tion in a way that corrects these atroc- those people who committed those kind of man was running that com- ities and brings us back to what is ex- crimes ought to be in jail and they pany. He did not care about the em- pected and customary in American so- ought to serve a long, long time before ployees, because he let them go the day ciety in business. Because our failure they ever see the light of day again. I after. He did not care about the busi- to be forceful and vocal will abandon firmly believe that. ness. He walked away with $334 mil- the floor to the wrong people who, in Not only that, I just want to reit- lion, and the biggest insult of all was the end, have a much more dangerous erate what I said before. Who is pro- when it came to paying sales tax, he and pernicious agenda for America’s ducing these clowns? What business said, I am not going to pay sales tax, economy and America’s industry, and schools are they coming from? Let us because you know what I can do? I can that is, quite frankly, government con- find out what business schools, what buy something through the company, I trol. college professors train people to be- can buy it in New York City, but if I Mr. HOEKSTRA. Mr. Speaker, that is lieve that they can lie and cheat and ship it to Connecticut or somewhere exactly right. If corporate America steal here in America and somehow else and then they can ship it back to does not step up and deal with these live in lavish houses and get away with me in New York because I shipped it to abuses, or if we do not stand up here on it. Connecticut, I do not have to pay any the floor of the House and highlight The message needs to be sent that sales tax. these abuses and push the business anybody who trains these kinds of community to come up with solutions clowns needs to be exposed right along b 2350 through the private sector, the end re- with the perpetrators. The perpetrators And it is kind of like, when is enough sult will be massive new government need to go to jail. My goodness, we enough? It was $334 million. If he regulations, which will not have much ought to have a review of the cur- worked 7 days a week, 24 hours a day, of an impact, except putting many riculum in business schools to find out he made about $10,000 an hour every more costs on our businesses, driving what kinds of ethics classes that they waking hour. By January 1, at 6 away jobs, driving away creativity and are exposing American students to, be- o’clock in the morning, he had made productivity. This is about honesty, de- cause it is not good enough, and we $60,000 already, much more than most cency, and it is about the survival of just have to bring this to an end as Americans will make in a year, and the free market system, the capital- quickly as possible. It will destroy probably within the first 2 weeks of a istic system, based on trust and us American society as we know it. This year would have made more money standing up and acknowledging that is a huge threat. The magnitude of this than most Americans would make in a this is based on trust, it is not based on just cannot be overestimated and over- lifetime, and it appears that he was un- government regulation, and we need to stated. willing to pay a sales tax. It is kind of move forward and we need to put pres- Mr. HOEKSTRA. Mr. Speaker, it is like, whoa. And that is the leadership sure on the business sector to step up kind of interesting, when I come back of our, at least in this case, of one of and deal with this. and we do our next Special Order on our major corporations. He is leaving I have been absolutely amazed. I this topic, I will bring along a copy of the company in ruins. The market lost came out of the business community. I an op-ed piece written by Jack Colson, $86 billion. worked for a Fortune 500 company. But because that is exactly the question We ought to talk about the other I have been amazed by the deafening si- that he asked, which is who is training issue that the gentleman and I both lence of the business community these clowns? Because the message have a passion for, which is education. speaking out on these kinds of issues. I that clearly is being taught in many of The gentleman and I both serve on the June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3511 Committee on Education and the school of their choice, a public school The U.S. Treasury Department, the Workforce. We have spent a lot of time in the neighborhood, or maybe a schol- Congress, the U.S. Department of Edu- going around America taking a look at arship organization that provides cation. Those dollars are distributed what works. scholarship funds to low-income stu- through the States, through State leg- We have analyzed the bureaucracy dents so they can attend the school of islators, the politicians, the State here in Washington, recognizing that their choice. board of education, the school district, in many cases the Department of Edu- In order to actually increase the the politicians and to the school. By cation could not give us a clean set of amount of money invested in education the time the dollar makes it through books. That has now improved with the in America, this tax credit is a 50 per- this rigid process, there is scarcely 60 Bush administration. They are on cent credit. We will give $250 back from cents left of every dollar. What we are track to give us a clean audit, we hope, the government if they will send that proposing is bypassing this nonsense this year. plus another $250, $500 total, to a and getting the money directly to chil- But we have a system that funds school. That is the proposal. dren through a choice mechanism and about $40 billion through the Wash- It works very simply. If you make a more of a free market approach to ington bureaucracy, and what the gen- $500 investment, total, to a public schools. tleman and I are advocating for is a school or a private school, or a scholar- Mr. HOEKSTRA. Mr. Speaker, I want system that allows people to directly ship fund so kids can go to private to really reinforce the point my col- invest in their schools at home through schools, we will change the Tax Code so league made, which is that this system an education tax credit based on what you will get $250 of it back out of the shrinks the taxpayers’ dollar; that many of the States have done. It is tax bill. It is a beautiful proposal. Six when we put a dollar at the top of that really a unique and an exciting way to States are using it today. It has made funnel, by the time it gets down to the get more money into all of our schools a remarkable difference in the edu- student, that dollar has shrunk from $1 for all of our kids, where the decisions cation opportunity for poor children in to something like 65 cents. to contribute and where the decisions those States, and we want to do it for In the education tax credit model, as to how that money will be spent are the country. with the tax credit model, we actually made by people at the local level. Mr. HOEKSTRA. Mr. Speaker, as the grow the dollar. The person puts in $2, Maybe the gentleman just wants to gentleman indicated, there are six but it only costs, or the reduction in expand a little on that. States that are using some type of var- Federal income taxes is only $1, so we Mr. SCHAFFER. Mr. Speaker, I iation of this, whether it is Arizona, actually grow it. So if we invest $1 thank the gentleman for yielding. The Minnesota, Pennsylvania, I think Flor- there, we end up with 60 cents in the education tax credit proposal, in my ida, and they are all working on some classroom. If we invest $1 here, we end mind, is one of the most exciting re- type of plan like this. up with $2 directly going to the student forms we have seen here in Congress But the exciting thing here, this is in local communities with, in this case, here in a long, long time. Its appeal is kind of like a voluntary decision by the local school board deciding how that it fosters school choice and more people at the local level that says I this money is going to be spent. In that flexibility, really a market approach to want to put more money into my local case—— American education, and it does so in a school, and they have the option of Mr. SCHAFFER. There are about 10 way that appeals more broadly across doing it. It builds that trust between a different steps. Mr. HOEKSTRA. There are about 10 the political spectrum here in Wash- local parent, a local constituent, and different steps, and a Washington bu- ington and among the traditional edu- their local school system. reaucrat telling us how to spend the cation organizations than anything we If the school system can come up money. Quite often when we go with a compelling need that says, hey, have seen before. through that process they tell us what It is better than vouchers because it in Michigan we get money on a formula to do and it is going to cost $2 million, is not a voucher at all. It does not rep- basis, and some of my school districts $3 million, but they do not give all the resent the kind of strategy vouchers have some special needs, and they are money to do it. This is a much more ef- represent, but at the same time, it does saying, the money we are getting from ficient and a much more effective sys- promote school choice by focusing on Lansing just is not enough, and they tem. students rather than institutions, and have no alternative way to get some As the gentleman and I point out it is nondiscriminatory in its treat- additional dollars, under this plan, consistently, we are not talking about ment of American school children. It is they could go to the constituents in doing away with that system. We more fair than what we do today with Holland and say, you know, we really would love to reform it, to make it conventional public education. It is far want to keep this school open. This is more efficient, but we recognize that more fair than what would be proposed in one of our target neighborhoods. We there is a lot of built-in support for with something like vouchers, for ex- really think it is important. We know that system. It is going to stay. We are ample. that this is not the most efficient way going to keep increasing funding. Here is how it works. It starts with to run the school, but this is not nec- What we are trying to do is to de- the premise and the reality that every essarily always about efficiency. We velop a complementary, a companion American is going to send a certain want the best results. We think the system that allows for more local con- amount of cash, assuming they are tax- best result is by leaving this school trol and local flexibility in terms of payers, to Washington, D.C. open. Are you willing to contribute a raising and spending money. Mr. HOEKSTRA. And assuming they little bit to our school system to make Mr. SCHAFFER. And we are going to are not trying to evade their taxes. that happen? start out small with the proposal just Mr. SCHAFFER. That is right. And Under this system, there is an incen- to prove that it works first, before we the benefit in our bill, let me just start tive for people to contribute and help move further. with the dollar amounts and some of build their school system to be one of As we draw to a close here in the the specifics, it is a $250 benefit to the best school systems in the State, if next couple of minutes, I just want to every individual taxpayer in the coun- not the country. commend our President. President try. Mr. SCHAFFER. The current edu- George W. Bush laid out a very bold Well, $250 is a certain dollar amount cation funding formula at the Federal and ambitious plan for American that every American is going to send level is a very rigid, bureaucratic schools. He campaigned on it, and once to Washington under the current law. structure. he got elected it was the first order of What we want to do is take $250 of peo- Mr. HOEKSTRA. It is very much that business of his administration. His goal ple’s current tax obligation and give way at the State level. was to and is to improve American edu- them a choice on how to spend it. They Mr. SCHAFFER. This chart to my cation and reduce the achievement gap can continue to send it to Washington, right explains how Federal education that exists between underserved chil- as they do today, or if the bill passes, funds get from a taxpayer to a student dren, poor children, minority children, they would have a choice to continue here at the bottom. It is funneled and those who are of more robust fi- to do that or to send $250 to a local through all of these different agencies: nancial means. H3512 CONGRESSIONAL RECORD — HOUSE June 12, 2002 He proposed accomplishing this tend their remarks and include extra- San Joaquin Valley Unified Air Pollution through accountability, through more neous material:) Control District [CA 261–0337c; FRL–7171–5] school choice, and through flexibility, Mr. FILNER, for 5 minutes, today. received May 3, 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on Energy and and I regret to say that the Congress Ms. KAPTUR, for 5 minutes, today. Commerce. really denied the President two of Mr. DAVIS of Illinois, for 5 minutes, 7345. A letter from the Principal Deputy those three objectives in the education today. Associate Administrator, Environmental bill that the President proposed. All we Ms. NORTON, for 5 minutes, today. Protection Agency, transmitting the Agen- passed was the accountability, or the Mr. GREEN of Texas, for 5 minutes, cy’s final rule— Approval and Promulgation national testing provisions. The Presi- today. of Implementation Plans South Carolina: dent is committed to continue fighting Mr. ISRAEL, for 5 minutes, today. Approval of Miscellaneous Revisions to the South Carolina State Implementation Plan and moving forward on the school Mr. LANTOS, for 5 minutes, today. [SC 42–200220(b); FRL–7207–2] received May 3, choice components of his education vi- Mr. INSLEE, for 5 minutes, today. 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the sion. Ms. SOLIS, for 5 minutes, today. Committee on Energy and Commerce. This tax credit proposal is really the (The following Members (at the re- 7346. A letter from the Principal Deputy next step in accomplishing that for the quest of Mr. TIAHRT) to revise and ex- Associate Administrator, Environmental President, so I am grateful for his pas- tend their remarks and include extra- Protection Agency, transmitting the Agen- sion and commitment to these children neous material:) cy’s final rule— Approval and Promulgation in America. I am grateful for his com- Mr. GOSS, for 5 minutes, today. of Air Quality Implementation Plans; West Virginia; Nitrogen Oxides Budget Program mitment to the education tax credit Mr. TIAHRT, for 5 minutes, today. [WV 060–6019a; FRL–7288–4] received May 9, proposal that we have developed. I am Mr. GUTKNECHT, for 5 minutes, today. 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the grateful for our Speaker and our ma- f Committee on Energy and Commerce. jority leader, and our leadership here 7347. A letter from the Principal Deputy in the House, and the chairman of the ADJOURNMENT Associate Administrator, Environmental Committee on Ways and Means and the Mr. HOEKSTRA. Mr. Speaker, I move Protection Agency, transmitting the Agen- cy’s final rule— Approval and Promulgation chairman of the Committee on Edu- that the House do now adjourn. cation and the Workforce for all of of Implementation Plans; Minnesota [MN63– The motion was agreed to; accord- 01–7288a; FRL–7165–7] received May 9, 2002, their help and support in making this ingly (at 12 o’clock midnight), the pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- tax credit proposal a reality, because it House adjourned until tomorrow, mittee on Energy and Commerce. will allow us to bypass this bureauc- Thursday, June 13, 2002, at 10 a.m. 7348. A letter from the Principal Deputy racy with just a small amount of Associate Administrator, Environmental money to begin to show in America f Protection Agency, transmitting the Agen- how making the connection between EXECUTIVE COMMUNICATIONS, cy’s final rule— Revisions to the California State Implementation Plan, Tehama County taxpayer and school child will improve ETC. education dramatically throughout the Air Pollution Control District [CA 260–0339a; Under clause 8 of rule XII, executive FRL–7174–5] received May 9, 2002, pursuant to country and begin to treat children communications were taken from the 5 U.S.C. 801(a)(1)(A); to the Committee on like they matter, and also begin to ex- Speaker’s table and referred as follows: Energy and Commerce. pose American education to more of a 7349. A letter from the Principal Deputy free market approach. 7339. A letter from the Principal Deputy Associate Administrator, Environmental Associate Administrator, Environmental Mr. HOEKSTRA. Mr. Speaker, the Protection Agency, transmitting the Agen- Protection Agency, transmitting the Agen- cy’s final rule— Approval and Promulgation end result is the shared vision that we cy’s final rule—Silica, Amorphous, Fumed have with the President, that we have of Implementation Plans; Illinois Emission (Crystalline Free); Exemption from the Re- Reporting [IL214–1a; FRL–7164–4] received with our Speaker, and with the chair- quirement of a Tolerance [OPP–2002–0031; May 9, 2002, pursuant to 5 U.S.C. 801(a)(1)(A); man of the Committee on Education FRL–6835–5](RIN: 2070–AB78) received May 9, to the Committee on Energy and Commerce. and the Workforce to make sure we 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the 7350. A letter from the Assistant Secretary leave no child behind; that every child Committee on Agriculture. for Legislative Affairs, Department of State, in America gets a first class education, 7340. A letter from the Principal Deputy transmitting certification of a proposed li- Associate Administrator, Environmental cense for the export of defense articles or de- and that they can compete on a world- Protection Agency, transmitting the Agen- wide basis. fense services sold commercially under a cy’s final rule—Pesticides; Removal of Dupli- contract to India [Transmittal No. DTC 08– f cative or Expired Time-limited Tolerances 02], pursuant to 22 U.S.C. 2776(c); to the Com- for Emergency Exemptions [OPP–2002–0037; LEAVE OF ABSENCE mittee on International Relations. FRL–6835–7] (RIN: 2070–AB78) received May 9, 7351. A letter from the Assistant Secretary By unanimous consent, leave of ab- 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the for Legislative Affairs, Department of State, sence was granted to: Committee on Agriculture. transmitting certification of a proposed li- Mrs. JONES of Ohio (at the request of 7341. A letter from the Under Secretary, cense for the export of defense articles or de- Mr. GEPHARDT) for today after 5:30 p.m. Department of Defense, transmitting the De- fense services sold commercially under a and the balance of the week on account partment’s report on the Defense Environ- contract to India [Transmittal No. DTC 09– mental Technology Program; to the Com- of her son’s graduation. 02], pursuant to 22 U.S.C. 2776(c); to the Com- mittee on Armed Services. mittee on International Relations. Mr. LYNCH (at the request of Mr. GEP- 7342. A letter from the Principal Deputy 7352. A letter from the Assistant Secretary HARDT) for today on account of family Associate Administrator, Environmental for Legislative Affairs, Department of State, matters. Protection Agency, transmitting the Agen- transmitting certification of a proposed li- Mr. MENENDEZ (at the request of Mr. cy’s final rule—Revisions to the California cense for the export of defense articles or de- GEPHARDT) for today after 1:30 p.m. on State Implementation Plan, San Joaquin fense services sold commercially under a account of being Democratic County Valley Air Pollution Control District [CA contract to India [Transmittal No. DTC 50– Chair, State statute obligates him to 261–0337a; FRL–7171–3] received May 3, 2002, 02], pursuant to 22 U.S.C. 2776(c); to the Com- pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- conduct reorganizational meeting in mittee on International Relations. mittee on Energy and Commerce. 7353. A letter from the Assistant Secretary which a new Chair is chosen. 7343. A letter from the Principal Deputy for Legislative Affairs, Department of State, Mr. OWENS (at the request of Mr. Associate Administrator, Environmental transmitting certification of a proposed li- GEPHARDT) for today and June 13 on ac- Protection Agency, transmitting the Agen- cense for the export of defense articles or de- count of a family emergency. cy’s final rule—OMB Approvals Under the fense services sold commercially under a f Paperwork Reduction Act; Technical Amend- contract to India [Transmittal No. DTC 02– ment [FRL–7173–6] received May 3, 2002, pur- 02], pursuant to 22 U.S.C. 2776(c); to the Com- SPECIAL ORDERS GRANTED suant to 5 U.S.C. 801(a)(1)(A); to the Com- mittee on International Relations. By unanimous consent, permission to mittee on Energy and Commerce. 7354. A letter from the Chair, Railroad Re- address the House, following the legis- 7344. A letter from the Principal Deputy tirement Board, transmitting the semi- Associate Administrator, Environmental annual report on activities of the Office of lative program and any special orders Protection Agency, transmitting the Agen- Inspector General for the period October 1, heretofore entered, was granted to: cy’s final rule— Interim Final Determina- 2001, through March 31, 2002, pursuant to 5 (The following Members (at the re- tion that State has Corrected a Deficiency in U.S.C. app. (Insp. Gen. Act) section 5(b); to quest of Mr. PALLONE) to revise and ex- the California State Implementation Plan, the Committee on Government Reform. June 12, 2002 CONGRESSIONAL RECORD — HOUSE H3513 7355. A letter from the Secretary, Depart- REPORTS OF COMMITTEES ON District of California to eliminate private ment of the Treasury, transmitting two PUBLIC BILLS AND RESOLUTIONS inholdings in the Los Padres National For- Semiannual Reports which were prepared est, and for other purposes; to the Com- separately by Treasury’s Office of Inspector Under clause 2 of rule XIII, reports of mittee on Resources. General (OIG) and the Treasury Inspector committees were delivered to the Clerk By Mr. GUTIERREZ (for himself, Mr. General for Tax Administration (TIGTA) for for printing and reference to the proper FARR of California, Mr. FILNER, Ms. the period ended March 31, 2002, pursuant to calendar, as follows: SCHAKOWSKY, Mr. PASTOR, Mrs. 5 U.S.C. app. (Insp. Gen. Act) section 5(b); to Mr. BOEHLERT: Committee on Science. NAPOLITANO, Ms. SOLIS, Mr. BACA, the Committee on Government Reform. H.R. 3130. A bill to provide for increasing the Ms. ROYBAL-ALLARD, Mr. SERRANO, 7356. A letter from the Assistant Secretary technically trained workforce in the United Mr. MCGOVERN, Mr. RODRIGUEZ, Mr. of the Army, Department of Defense, trans- States; with an amendment (Rept. 107–505 Pt. FRANK, Mr. MENENDEZ, Ms. mitting a report on the Army’s Annual Fi- 1). Referred to the Committee of the Whole MILLENDER-MCDONALD, Mr. GON- nancial Statement for FY 2001; to the Com- House on the State of the Union. ZALEZ, Mr. ORTIZ, Ms. VELAZQUEZ, mittee on Government Reform. Mr. HANSEN: Committee on Resources. Mr. ACEVEDO-VILA, Mr. REYES, Mr. 7357. A letter from the General Counsel, H.R. 3936. A bill to designate and provide for LIPINSKI, Mr. BECERRA, Ms. MCKIN- Department of Housing and Urban Develop- the management of the Shoshone National NEY, Mr. DAVIS of Illinois, and Mr. ment, transmitting a report pursuant to the Recreation Trail, and for other purposes; BERMAN): Federal Vacancies Reform Act of 1998; to the with amendments (Rept. 107–506). Referred to H.R. 4918. A bill to waive certain defenses Committee on Government Reform. the Committee of the Whole House on the to legal claims brought by workers partici- pating in the bracero program between 1942 7358. A letter from the Attorney General, State of the Union. and 1969; to the Committee on the Judiciary. Department of Justice, transmitting the DISCHARGE OF COMMITTEE By Mr. HAYWORTH (for himself and Semiannual Management Report to Con- Pursuant to clause 2 of rule XII the Mr. STUMP): gress: October 1, 2001 to March 31, 2002, and H.R. 4919. A bill to provide for the ex- the Inspector General’s Semiannual Report Committee on Education and the change of certain lands in the Coconino and for the same period, pursuant to 5 U.S.C. app. Workforce discharged from further Tonto National Forests in Arizona, and for (Insp. Gen. Act) section 5(b); to the Com- consideration. H.R. 3130 referred to the other purposes; to the Committee on Re- mittee on Government Reform. Committee of the Whole House on the sources. State of the Union. 7359. A letter from the Acting Chairman, By Ms. LEE (for herself, Mr. KUCINICH, National Endowment For The Arts, trans- f and Ms. WOOLSEY): mitting the FY 2003 Performance Plan and TIME LIMITATION OF REFERRED H.R. 4920. A bill to provide for the contin- the FY 1999, FY 2000, and FY 2001 Perform- ued applicability of the requirements of the ance Reports; to the Committee on Govern- BILL ABM Treaty to the United States; to the ment Reform. Pursuant to clause 2 of rule XII the Committee on International Relations. 7360. A letter from the Secretary, Depart- following action was taken by the By Mr. JEFF MILLER of Florida: ment of State, transmitting a letter to cer- Speaker: H.R. 4921. A bill to amend title 10, United tify that the Department has developed and States Code, to authorize transportation on implemented a worldwide watchlist of H.R. 3130. Referral to the Committee on military aircraft on a space-available basis known or suspected money launderers, for Education and the Workforce extended for a for veterans with a service-connected dis- the purposes of enforcing the new money period ending not later than June 12, 2002. ability rated 100 percent; to the Committee laundering inadmissibility, pursuant to Sec- f on Armed Services. tion 1006(b) of the USA Patriot Act; to the By Mr. PAUL: Committee on the Judiciary. PUBLIC BILLS AND RESOLUTIONS H.R. 4922. A bill to restore first amendment 7361. A letter from the Director, Federal Under clause 2 of rule XII, public protections of religion and speech; to the Emergency Management Agency, transmit- bills and resolutions were introduced Committee on the Judiciary. ting notification that funding under title V and severally referred, as follows: By Mr. PICKERING: of the Robert T. Stafford Disaster Relief and H.R. 4923. A bill to amend the 2005 base clo- By Mr. HORN (for himself, Mr. LEWIS Emergency Assistance Act, as amended, will sure round authorized by the Defense Base of California, Mr. MURTHA, and Mr. exceed $5 million for the response to the Closure and Realignment Act of 1990 to pro- WELDON of Pennsylvania): emergency declared on December 31, 2001, for hibit the closure or adverse realignment of H.R. 4914. A bill to authorize the Secretary the State of New York as a result of the any military installation used for under- of Transportation and the Secretary of De- record/near record snow, pursuant to 42 graduate pilot training; to the Committee on fense to carry out a cooperative research and U.S.C. 5193; to the Committee on Transpor- Armed Services. development program of dual use transpor- tation and Infrastructure. By Mr. SIMMONS: tation technologies for certain commercial H.R. 4924. A bill to amend title 37, United 7362. A letter from the Paralegal Spe- and military applications, and for other pur- cialist, FAA, Department of Transportation, States Code, to remove the prohibition on poses; to the Committee on Armed Services, the ability of qualified dental officers in the transmitting the Department’s final rule— and in addition to the Committee on Trans- Airworthiness Directives; McDonnell Doug- uniformed services to receive additional spe- portation and Infrastructure, for a period to cial pay while undergoing dental internship las Model DC–10–10, DC–10–10F, DC–10–15, DC– be subsequently determined by the Speaker, 10–30, DC–10–30F, and DC–10–30F (KC10A and or residency training; to the Committee on in each case for consideration of such provi- Armed Services. KDC–10) Airplanes [Docket No. 2002–NM–110– sions as fall within the jurisdiction of the AD; Amendment 39–12729; AD 2002–08–17] By Mr. SIMMONS (for himself, Mrs. committee concerned. JOHNSON of Connecticut, and Mr. (RIN: 2120–AA64) received May 31, 2002, pur- By Mr. ACEVEDO-VILA: suant to 5 U.S.C. 801(a)(1)(A); to the Com- SHAYS): H.R. 4915. A bill to eliminate the waitout H.R. 4925. A bill to amend title 23, United mittee on Transportation and Infrastruc- period for Hispanic-serving institutions States Code, to provide an exemption from ture. under section 504 of the Higher Education Interstate System weight limitations for 7363. A letter from the Administrator, Act of 1965; to the Committee on Education milk hauling vehicles in the State of Con- FAA, Department of Transportation, trans- and the Workforce. necticut; to the Committee on Transpor- mitting the Federal Aviation Administra- By Mrs. CAPPS (for herself, Mr. tation and Infrastructure. tion’s report required by Section 757 of Pub- LATOURETTE, Mr. ENGLISH, Mr. WAX- By Mr. THOMPSON of California (for lic Law 106–181, the Wendell H. Ford Aviation MAN, Ms. NORTON, Mr. MCGOVERN, himself, Ms. WOOLSEY, Mr. GEORGE Investment and Reform Act for the 21st Cen- Ms. SLAUGHTER, Mr. FROST, Ms. MILLER of California, Ms. PELOSI, tury; to the Committee on Transportation MILLENDER-MCDONALD, Mr. MCNUL- Mrs. TAUSCHER, Mr. FARR of Cali- and Infrastructure. TY, Mr. WEXLER, Ms. SANCHEZ, Mr. fornia, Ms. LOFGREN, Mr. LANTOS, Ms. 7364. A letter from the Principal Deputy BLAGOJEVICH, Ms. SCHAKOWSKY, Ms. LEE, Ms. ESHOO, and Mr. STARK): Associate Administrator, Environmental BROWN of Florida, Mr. BLUMENAUER, H.R. 4926. A bill to authorize the Secretary Protection Agency, transmitting the Agen- Mr. OWENS, Ms. CARSON of Indiana, of the Army to participate in ecosystem res- cy’s final rule—Ocean Dumping; Site Modi- Mrs. CLAYTON, Mrs. NAPOLITANO, Mr. toration of the San Francisco Bay estuary, fication [FRL–7207–5] received May 3, 2002, BACA, Ms. WOOLSEY, and Mrs. and for other purposes; to the Committee on pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- CHRISTENSEN): Transportation and Infrastructure. mittee on Transportation and Infrastruc- H.R. 4916. A bill to amend the Public By Mr. UPTON: ture. Health Service Act to provide services for H.R. 4927. A bill to amend title XVIII of the 7365. A letter from the Chairman, Inter- the prevention of family violence; to the Social Security Act to make a technical cor- national Trade Commission, transmitting Committee on Energy and Commerce. rection in the definition of outpatient the Commission’s report on investigation By Mr. GALLEGLY: speech-language pathology services; to the No. TA–204–6, entitled, ‘‘Certain Steel Wire H.R. 4917. A bill to provide for an exchange Committee on Energy and Commerce, and in Rod’’; to the Committee on Ways and Means. of lands with the United Water Conservation addition to the Committee on Ways and H3514 CONGRESSIONAL RECORD — HOUSE June 12, 2002

Means, for a period to be subsequently deter- H.R. 2953: Mr. BERMAN, Mr. GARY G. MIL- H.R. 4654: Mr. OTTER. mined by the Speaker, in each case for con- LER of California, and Mr. ISSA. H.R. 4665: Mr. UNDERWOOD and Mr. JONES of sideration of such provisions as fall within H.R. 3130: Mr. LAMPSON. North Carolina. the jurisdiction of the committee concerned. H.R. 3132: Mrs. JONES of Ohio, Mr. DIAZ- H.R. 4668: Mr. CUNNINGHAM, Mr. By Ms. VELAZQUEZ: BALART, and Ms. LEE. MCDERMOTT, Mr. HINCHEY, and Ms. MCCOL- H.R. 4928. A bill to amend the Higher Edu- H.R. 3139: Mr. WILSON of South Carolina LUM. cation Act of 1965 to expand and extend the and Mr. HAYWORTH. H.R. 4669: Ms. JACKSON-LEE of Texas. eligibility of Hispanic-serving institutions H.R. 3238: Mr. LARSEN of Washington. H.R. 4680: Mr. CRAMER, Mr. ETHERIDGE, Ms. for assistance under title V of that Act; to H.R. 3287: Mr. BARTLETT of Maryland, Mr. MILLENDER-MCDONALD, Ms. DELAURO, Ms. the Committee on Education and the Work- CUMMINGS, Mr. CARDIN, Mr. GILCHREST, and KILPATRICK, Ms. EDDIE BERNICE JOHNSON of force. Mr. EHRLICH. Texas, and Mrs. CHRISTENSEN. By Mr. ENGEL (for himself, Mr. LAN- H.R. 3352: Mr. LEVIN. TOS, Mr. CANTOR, Mr. GILMAN, Mr. H.R. 3382: Mr. LANGEVIN and Mr. CROWLEY. H.R. 4699: Mr. BARRETT. WEINER, Mr. SAXTON, Mr. CROWLEY, H.R. 3439: Mr. HAYWORTH. H.R. 4703: Ms. KILPATRICK, Ms. RIVERS, Mr. Mr. BERMAN, and Mrs. MALONEY of H.R. 3450: Mr. LUCAS of Kentucky and Mr. KILDEE, Mr. ROGERS of Michigan, and Mr. New York): SABO. STUPAK. H. Con. Res. 417. Concurrent resolution H.R. 3464: Mr. ISRAEL, Mr. HALL of Ohio, H.R. 4715: Mr. BERMAN. commemorating the 20th anniversary of the and Mr. WU. H.R. 4723: Mr. MCNULTY. H.R. 3491: Mr. BRYANT and Mr. BARTLETT of capture of Zachary Baumel, a United States H.R. 4728: Mr. FROST, Mr. GORDON, Mr. Maryland. citizen serving in the Israeli Defense Forces, HORN, Mr. BALDACCI, and Mr. MCDERMOTT. H.R. 3561: Mr. HASTINGS of Florida, Mr. and calling on the Governments of Syria and H.R. 4754: Mr. SIMPSON, Mr. HOLT, Mr. CON- SANDERS, and Mr. DUNCAN. Lebanon to provide an accounting for, and to YERS, Mr. OTTER, and Mr. STUMP. secure the release of, Zachary Baumel and H.R. 3580: Mr. HALL of Texas. H.R. 4777: Mrs. ROUKEMA and Mr. WEXLER. all other Israeli hostages held under Leba- H.R. 3594: Ms. NORTON. H.R. 4778: Mr. KUCINICH. nese or Syrian control; to the Committee on H.R. 3624: Mr. SMITH of New Jersey. International Relations. H.R. 3661: Mr. MANZULLO. H.R. 4785: Mrs. MORELLA, Mr. WELDON of By Mr. SULLIVAN (for himself and Ms. H.R. 3804: Ms. LOFGREN, Mr. WYNN, Mr. Pennsylvania, Mr. HAYWORTH, and Mr. MARKEY, Mr. COYNE, and Mr. GILMAN. CARSON of Indiana): GRAVES. H. Res. 442. A resolution supporting respon- H.R. 3805: Mr. SAM JOHNSON of Texas. H.R. 4789: Mr. DUNCAN. H.R. 3808: Mr. BROWN of South Carolina. sible fatherhood and encouraging greater in- H.R. 4790: Mr. DUNCAN. H.R. 3834: Mr. INSLEE. volvement of fathers in the lives of their H.R. 4792: Mr. CUNNINGHAM. H.R. 3842: Mr. BROWN of South Carolina. children, especially on Father’s Day; to the H.R. 3849: Mr. RILEY, Mr. CRAMER, Mr. H.R. 4795: Mr. PETERSON of Pennsylvania. Committee on Education and the Workforce. EVERETT, Mr. BACHUS, Mr. CALLAHAN, Mr. H.R. 4799: Ms. MCKINNEY, Mr. RAHALL, Mr. considered and agreed to. ADERHOLT, Mr. TOWNS, Ms. LEE, Mrs. CLAY- TIERNEY, Mr. OBEY, and Mr. BRADY of Penn- f TON, Ms. MCKINNEY, Mr. FRANK, Mr. MCNUL- sylvania. ADDITIONAL SPONSORS TY, Ms. ROYBAL-ALLARD, Mr. FROST, Ms. H.R. 4810: Mr. COYNE. CARSON of Indiana, Mr. MCGOVERN, Mr. H.R. 4843: Mrs. JO ANN DAVIS of Virginia, Under clause 7 of rule XII, sponsors CUMMINGS, Mr. BISHOP, Mr. THOMPSON of Mis- Ms. KAPTUR, Mr. JOHNSON of Illinois, Mr. were added to public bills and resolu- sissippi, Mr. CLAY, Mr. SCOTT, Mrs. MEEK of AKIN, and Mr. THUNE. tions as follows: Florida, Mr. RANGEL, Ms. EDDIE BERNICE H.R. 4844: Ms. DUNN. H.R. 40: Ms. SCHAKOWSKY. JOHNSON of Texas, Mrs. CHRISTENSEN, Mr. H.R. 4881: Mr. TIBERI. OWENS, Mr. RUSH, Mr. WYNN, Ms. WATSON, H.R. 116: Mr. SMITH of Washington. H.R. 4888: Mrs. ROUKEMA, Mr. NADLER, Mr. Mr. MEEKS of New York, Mr. DAVIS of Illi- H.R. 198: Mr. PAUL. OWENS, Mr. UPTON, Mr. CASTLE, Mrs. MINK of nois, Mr. WATT of North Carolina, and Mr. H.R. 257: Mr. FOSSELLA. Hawaii, and Ms. RIVERS. PAYNE. H.R. 267: Mr. WILSON of South Carolina. H.R. 4894: Mr. HOLDEN, Ms. KAPTUR, Mr. C ERMOTT H.R. 3850: Mr. RILEY, Mr. CRAMER, Mr. H.R. 292: Mr. M D . FERGUSON, Mr. BLAGOJEVICH, Mr. KENNEDY of H.R. 491: Mr. PASCRELL and Mr. KILDEE. EVERETT, Mr. BACHUS, Mr. CALLAHAN, Mr. Rhode Island, Mr. ENGLISH, Mr. FRANK, Mr. H.R. 536: Mr. PASTOR. ADERHOLT, Mr. TOWNS, Ms. LEE, Mrs. CLAY- FROST, Mr. GREEN of Texas, Mrs. JONES of H.R. 599: Mr. BERMAN. TON, Ms. MCKINNEY, Mr. FRANK, Mr. MCNUL- Ohio, Mr. COYNE, and Mr. ABERCROMBIE. H.R. 633: Mr. WAXMAN, Mr. ACEVEDO-VILA, TY, Ms. ROYBAL-ALLARD, Mr. FROST, Ms. H.R. 4907: Mr. HILLEARY. Mr. HINCHEY, Mr. HORN, and Mr. SCHIFF. CARSON of Indiana, Mr. MCGOVERN, Mr. H.R. 786: Mr. KUCINICH. CUMMINGS, Mr. BISHOP, Mr. THOMPSON of Mis- H.R. 4912: Mr. UDALL of Colorado and Mr. H.R. 822: Mr. LUCAS of Kentucky and Mr. sissippi, Mr. CLAY, Mr. SCOTT, Mrs. MEEK of HEFLEY. WOLF. Florida, Mr. RANGEL, Ms. EDDIE BERNICE H.J. Res. 96: Mr. NUSSLE and Mr. COLLINS. H.R. 922: Mr. SERRANO. JOHNSON of Texas, Mrs. CHRISTENSEN, Mr. H.J. Res. 97: Mrs. MALONEY of New York H.R. 975: Mr. BACA and Mr. SCHIFF. OWENS, Mr. RUSH, Mr. WYNN, Ms. WATSON, and Mr. HOEFFEL. H.R. 1021: Mr. HOEKSTRA and Mr. ROYCE. Mr. MEEKS of New York, Mr. DAVIS of Illi- H. Con. Res. 287: Mr. PAYNE and Ms. WOOL- H.R. 1177: Mr. LEVIN. nois, Mr. WATT of North Carolina, Mr. SEY. H.R. 1452: Ms. MCKINNEY. PAYNE, Mr. JACKSON of Illinois, and Mr. H. Con. Res. 349: Ms. JACKSON-LEE of H.R. 1489: Mr. WYNN. SANDERS. Texas, Ms. NORTON, Mr. BLAGOJEVICH, and H.R. 1532: Mr. PAUL. H.R. 3884: Ms. WATSON. Mr. KUCINICH. H.R. 1609: Mr. WOLF. H.R. 3911: Mr. CAMP. H. Con. Res. 351: Mr. TIERNEY, Mr. GREEN ORTON H.R. 1623: Mr. CARSON of Oklahoma. H.R. 3912: Ms. N . of Wisconsin, and Mr. KUCINICH. H.R. 1624: Mr. HOLT, Mr. SHIMKUS, Mr. H.R. 3961: Ms. WATERS. H. Con. Res. 359: Ms. MCKINNEY. SIMPSON, and Ms. BROWN of Florida. H.R. 3973: Mr. DUNCAN. H. Con. Res. 362: Mr. BOYD, Mr. DICKS, and H.R. 1756: Mr. SESSIONS. H.R. 3974: Mrs. CLAYTON, Mr. CAPUANO, and Mr. LANGEVIN. H.R. 1908: Mr. WAMP. Mr. DINGELL. H.R. 1943: Mr. FORD, Mr. ABERCROMBIE, and H.R. 3992: Mr. SHIMKUS. H. Con. Res. 364: Mr. GOODLATTE, Mr. Mr. PRICE of North Carolina. H.R. 4013: Mr. PRICE of North Carolina and HOSTETTLER, Mr. BUYER, Mr. ROYCE, Ms. H.R. 1950: Mr. BRADY of Texas and Mr. Mr. WOLF. JACKSON-LEE of Texas, Mr. MCGOVERN, Mr. BARTLETT of Maryland. H.R. 4027: Mr. LUCAS of Kentucky and Mr. STEARNS, Mr. HAYES, and Mr. BRYANT. H.R. 1956: Mr. GREENWOOD and Mr. POMBO. GALLEGLY. H. Con. Res. 382: Mr. SAWYER, Mr. HINCHEY, H.R. 1983: Mr. ISTOOK. H.R. 4032: Mr. RANGEL, Mr. BERMAN, and and Mr. MCDERMOTT. H.R. 2055: Mr. SMITH of Texas and Mr. Mr. WU. H. Con. Res. 403: Mr. MCHUGH. HOSTETTLER. H.R. 4043: Mr. PENCE, Mr. JONES of North H. Con. Res. 408: Mr. DAVIS of Florida and H.R. 2117: Mr. ENGLISH. Carolina, and Mrs. THURMAN. Mr. ANDREWS. H.R. 2349: Mr. HILL. H.R. 4545: Mr. CROWLEY. H. Con. Res. 416: Mr. ORTIZ, Mr. SCOTT, and H.R. 2466: Mr. UPTON. H.R. 4551: Ms. MCKINNEY. Mr. TOM DAVIS of Virginia. H.R. 2483: Mr. WU and Mr. MCDERMOTT. H.R. 4600: Ms. HART, Mr. TOM DAVIS of Vir- H. Res. 253: Mr. MCNULTY and Mr. SCHIFF. H.R. 2527: Mr. PRICE of North Carolina, Mr. ginia, Mr. FORBES, and Mr. DAN MILLER of H. Res. 355: Mr. FROST. MARKEY, Mrs. CLAYTON, Mr. FATTAH, Mr. Florida. H. Res. 393: Mrs. KELLY and Mr. LOBIONDO. BROWN of Ohio, and Mr. LEWIS of Georgia. H.R. 4614: Ms. MCKINNEY, Mr. POMEROY, H.R. 2641: Ms. NORTON. and Mr. LAFALCE. H. Res. 416: Mr. HOSTETTLER. H.R. 2712: Mr. DEAL of Georgia. H.R. 4635: Mr. AKIN. H. Res. 436: Mr. LAFALCE, Mr. FRANK, and H.R. 2874: Mr. MASCARA, Mrs. CLAYTON, Mr. H.R. 4646: Mr. ACKERMAN, Mr. BOEHLERT, Mr. SABO. TIERNEY, Mr. SHIMKUS, Mr. ABERCROMBIE, Mr. THOMPSON of Mississippi, and Mr. MEEKS H. Res. 437: Ms. NORTON, Mr. MCHUGH, Ms. Mr. BLUMENAUER, and Ms. NORTON. of New York. ESHOO, and Mr. KUCINICH. 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, WEDNESDAY, JUNE 12, 2002 No. 77 Senate The Senate met at 9:30 a.m. and was The legislative clerk read the fol- We hope to complete debate around called to order by the Honorable ZELL lowing letter: 5:30 this evening and go to some other MILLER, a Senator from the State of U.S. SENATE, legislative matter. Therefore, we ex- Georgia. PRESIDENT PRO TEMPORE, pect to complete action on the estate Washington, DC, June 12, 2002. tax legislation today. To the Senate: PRAYER f Under the provisions of rule I, paragraph 3, The Chaplain, Dr. Lloyd John of the Standing Rules of the Senate, I hereby RESERVATION OF LEADER TIME Ogilvie, offered the following prayer: appoint the Honorable ZELL MILLER, a Sen- Gracious God, You have revealed ator from the State of Georgia, to perform The ACTING PRESIDENT pro tem- that commitment is the key to opening the duties of the Chair. pore. Under the previous order, leader- the floodgate for the inflow of Your ROBERT C. BYRD, ship time is reserved. Spirit. Repeatedly, You have responded President pro tempore. f to our unreserved commitment to You Mr. MILLER thereupon assumed the MORNING BUSINESS when faced with challenges and prob- chair as Acting President pro tempore. lems. You have provided us with clar- The ACTING PRESIDENT pro tem- ity of thought and ingenious solutions. f pore. Under the previous order, there Unexpected blessings happen; ser- RECOGNITION OF THE ACTING will now be a period for the transaction endipitous events occur; people re- MAJORITY LEADER of morning business not to extend be- spond; and the tangled mess of details yond the hour of 10:40 a.m. with Sen- The ACTING PRESIDENT pro tem- is untangled. Amazed, we look back ators permitted to speak therein for up pore. The Chair recognizes the Senator and realize that it was the moment to 10 minutes each. from Nevada. when we gave up, You took over; when Under the previous order, the first we let go, You took hold; when we rest- f half of the time shall be under the con- trol of the majority leader or his des- ed in You, our strength was replen- SCHEDULE ished. ignee. Today, we prayerfully personalize the Mr. REID. Mr. President, the Chair The Senator from North Carolina is assurance of the psalmist: ‘‘We commit will announce very shortly that we will recognized. our way to You, Lord. We also trust in begin a period of morning business. f You, and You will bring Your plans to That time will extend until 10:40 a.m., with the first half of the time under REINVENTING PROBATION AND pass. We rest in You, and wait pa- PAROLE tiently for You.’’—Psalm 37:5,7. the control of the majority leader or Lord, help us to commit our lives, his designee, and the second half of the Mr. EDWARDS. Mr. President, I our work, this Senate, and our hopes time under the control of the Repub- yield myself 17 minutes. and dreams for our beloved Nation to lican leader or his designee. Today I would like to speak for a few You. Amen. At 10:40, the Senators will proceed to minutes about the fight against crime the House Chamber for the joint meet- in America. We have made tremendous f ing with the Australian Prime Min- progress over the last 10 years, largely PLEDGE OF ALLEGIANCE ister. The Senate will stand in recess by putting more police officers on the The Honorable ZELL MILLER led the at 10:40 until 12:30. street. But there are some troubling Pledge of Allegiance, as follows: At 12:30, the Senate will resume con- signs that the tide is turning against I pledge allegiance to the Flag of the sideration of the estate tax bill. We ex- us. In 2000, the drop in the national United States of America, and to the Repub- pect an amendment to be laid down at crime rate was the smallest since 1991. lic for which it stands, one nation under God, that time by Senator DORGAN. That And just yesterday, we learned that indivisible, with liberty and justice for all. will take approximately 2 hours, after crime in North Carolina actually went f which time we will vote on that up last year, for the first time since amendment and the underlying Conrad 1995. APPOINTMENT OF ACTING amendment. So now is not the time to rest on the PRESIDENT PRO TEMPORE At approximately 3 or 3:15, Senator laurels of our victories against crime. The PRESIDING OFFICER. The GRAMM is going to lay down his amend- It is time to bring the fight to the clerk will please read a communication ment, which is a duplicate of the House stubbornest pockets of criminality and to the Senate from the President pro measure, to repeal the estate tax. That the toughest problems in the justice tempore (Mr. BYRD). will be debated for 2 hours. system.

∑ 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 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.000 pfrm01 PsN: S12PT1 S5392 CONGRESSIONAL RECORD — SENATE June 12, 2002 In my view, the number one problem you’re on probation or parole. But too by the COPS program, has helped to in our criminal justice system today is often, that requirement only exists on cut crime rates across America. the early release system—sometimes paper. Drug tests are few and far be- It is time for the same revolution in called probation, sometimes parole, tween—maybe once a month and probation and parole: Officers need to sometimes intensive supervision. But maybe less, so if a guy is using, he can know the communities, not just the whatever you call it, it doesn’t work. It hide it. If he does get caught, his parole criminals. It has worked in Winston- is overburdened, understaffed, incon- officer has to negotiate with a bureauc- Salem, where teams of probation and sistent, and almost completely unsuc- racy to get the guy punished, so a lot police, working with the clergy and the cessful. of the time the officer doesn’t bother. community, helped cut juvenile vio- There are about 41⁄2 million people on And if he does bother, the judge may lence by 35 percent in the last year. probation and parole today, and most choose not to impose the only punish- That effort drew on a success in Boston of them will break the law again and ment that’s available, which may be where a team effort called Operation end up back in prison. According to a years in jail. Nightlight helped cut youth homicides Justice Department study reported in The result of all this is that drug by 65 percent. the New York Times last week, two out users on probation or parole know Getting probation officers back on of three inmates released from prison they’re not likely to get caught, and so the streets will not be easy. For one in 1994 were arrested again within 3 they use again and again and again. As thing, it will be impossible until we cut years. And that just counts the people they return to addiction, they commit the massive burdens on these officers. who got caught. People on parole make more crimes. The average probation officer had over up less than 1 percent of the American We can do better. A rational proba- five times as many cases in the late population, but they account for over tion and parole system would deter 1990s as in the early 1970s—sometimes 35 percent of the people entering prison crime before it happens, using two 200 cases. Under these conditions, even each year. basic elements. First, we would have the most dedicated public servant can- When criminals commit crime after strict supervision focused on the con- not get the job done. So we have to crime after crime, we all suffer, and duct that leads to crime. Instead of both change the bureaucratic culture the poorest among us suffer the most. just rules against drug use, we would and cut the caseloads in these depart- People leaving prison usually go back have frequent drug testing, like twice- ments. That may mean increasing the to the same tough neighborhoods they a-week testing. number of officers, it may mean hold- came from. In Winston-Salem, NC, 80 Second—and this is critical—we ing managers more accountable, it may percent of the prisoners go back to 40 would have automatic punishments for mean increasing competition for the percent of the city. And when they re- people who break the rules. Those pun- work. But it is something we have to turn home to return to crime, it’s the ishments would be swift and certain do. very last thing their struggling neigh- and graduated. You test positive for No. 3, We need to make sure offenders borhood needs. drugs, you get punished. You test posi- who are ready to turn their lives We need to put an end to this. And we tive a second time, you get punished around have a real chance to do it. can put an end to it—if we follow the more severely. Automatic, no excep- A convict’s debt to society does not example of successful efforts in states tions; simple, swift punishment. Here end with his prison term. Men who and communities across the country, in the District of Columbia, the system have left prison have a responsibility including a new effort in Winston- is moving in this direction, and re- to obey the law, stay off drugs, and Salem. I want to name three principles search shows that it is helping in the stop victimizing their community. culled from these successful efforts. fight against crime. It is time for more They have another responsibility as First, we must make it clear that pa- places to do the same. well—a responsibility to become pro- role is a simple bargain—obey the law By the way, the system ought to be ductive members of our society who or suffer the consequences. the same for other violations of proba- work hard, pay taxes, and support their Second, we need a system that has tion and parole besides drug abuse. Set children. If they are willing to fulfill the resources to monitor the enormous real rules that focus on conduct con- those responsibilities, we have to be number of offenders and the methods nected with crime. If you break those willing to help them and keep an eye to monitor them effectively. rules, you suffer the consequences. on them while they do. Finally, we need to give those offend- That simple. This is not about what society owes ers who are truly ready to become law- No. 2: We need to get probation and to prisoners, but we have to face the abiding citizens the chance to succeed. parole officers out of their offices and reality that we will never build enough Let me explain each of these prin- on the streets. Right now, a lot of pro- prisons to keep people behind bars for- ciples a little further. bation and parole officers sit in their ever, and we would not want to be a so- First and foremost, we need real pun- offices and wait for trouble to come to ciety that did. Except for a tiny minor- ishments for people who commit real them. A typical probation officer has ity, they all come back to our commu- violations of probation and parole. two 15-minute meetings with each pro- nities. Today we have the opposite. We have a bationer every month. That is no way This is about what society owes vul- system where at one extreme, people to keep tabs on anybody. nerable communities. The last thing can violate probation or parole 10 What needs to happen in probation they need is an influx of people who are times before anything actually happens and parole today is not all that dif- addicted to drugs and do not have jobs to them. Nearly half the people in the ferent from what needed to happen in and do not have supervision. Far too probation system have violated the police work 20 years ago. Twenty years often, that is what our prisons are terms of probation, but only one in five ago, cops spent their time in squad cars churning out today. gets sent back to jail for doing it. At responding to crimes. They caught We know that drug treatment helps the other extreme we have some people some bad guys, but they did not stop prisoners get straight, but the share of who miss an appointment and go back crime before it happened. prisoners receiving treatment dropped to jail for years. It just doesn’t make Some innovative police chiefs went from 25 percent at the beginning of the sense. back to the method of policing they 1990s to just 10 percent at the end. We Let me give an example. We know had learned when they first came on know that prisoners who learn to read that many people commit crimes to the force. They moved police officers and write are less likely to commit feed their drug habits. Almost half of out of the cars and back onto the beat, new crimes, but we have cut prison lit- the crimes in many big cities are com- where they got to know the neighbor- eracy programs. We know that when mitted by drug users. So if we are hood; got to know the shopkeepers, the somebody leaves jail, giving him a going to cut crime, we have to get peo- pastors, the principals; got to learn sweatsuit and sending him to the bus ple on probation and parole off of from the many good folks in every station in the dead of night is not the drugs. community who the handful of trouble- way to give him a fresh start. Too Now, it’s true that right now, we say makers were. And this kind of police often, though, that is all we do when you have to remain drug-free while work, community policing supported we release people from prison.

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.004 pfrm01 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5393 We need to recognize that enabling Here at home, we have very serious spective. And most important of all, it prisoners to reintegrate into our com- homeland security needs that the ad- is wrong from a moral perspective. munities as lawful and productive citi- ministration is struggling to meet. It Mr. President, I yield the floor. zens is good for everybody. We should is no exaggeration to say that Ameri- The ACTING PRESIDENT pro tem- support proven efforts that get former cans’ lives depend on the success of pore. The Senator from New Jersey. prisoners to beat addictions and stay those efforts. That is No. 1. Mr. CORZINE. Mr. President, I com- at work. And we should support the ef- No. 2: We have a whole raft of serious mend the Senator from North Carolina forts of community leaders, especially needs in our country. I have been talk- for his remarks with regard to his religious leaders, to keep a stern eye ing about the rising crime rate, but views on probation and the deterio- on former offenders, while also lending that is just the beginning. We have sen- rating situation with regard to how we them a helping hand. This is something iors who cannot pay for the medicine are moving and progressing with re- that is beginning to work in Winston- they need to live. We have parents who gard to crime. I am also glad to hear Salem thanks to the Center for Com- cannot afford to send their kids to col- the Senator from North Carolina speak munity Safety at Winston-Salem State lege. We have children who go to school about estate tax in the context of So- University. It is beginning to work in every day in crowded classrooms with cial Security. In fact, I will be speak- places like Maryland and Ohio. It is leaky roofs, even as this administra- ing in a minute with regard to the So- something that needs to work across tion cuts funding for education. That cial Security issue. America. list goes on and on. It seems inconceivable to me that the That is the challenge: First, develop No. 3: We have a coming challenge in roughly 3,000 people the Senator is real and automatic punishments for Social Security. We are going to have talking about in our Nation, those who real violations of probation and parole. baby boomers retiring in huge num- have benefited most from the power Second, enable probation and parole of- bers, and we are going to have to find and the success of our Nation economi- ficers to get out of their offices and a way to keep our social contract with cally and done so well, should put at onto the streets. Third, make sure of- them. jeopardy the universal program that is fenders who are ready to turn their No. 1, we have a costly war against such an important part of retirement lives around have the chance to do it. terrorism to fight abroad and at home. security for so many Americans. It Meeting that challenge will not be No. 2, we have deep problems with does not seem right in the context of easy. Every State has different proba- crime and education and health care the national security, but truly it tion and parole systems. Some States that we are not addressing. No. 3, we seems misplaced when one thinks have differences within their systems. have a coming crisis in Social Secu- about Social Security for the breadth While the truth is that a lot of these rity. of Americans. systems are not working, some of them And here is No. 4. Right now we can- So I commend the Senator for his re- are. Every reform I have described is not afford to address a lot of our seri- marks, and particularly the tying to- already working someplace in America ous needs—and in fact, our economy gether and juxtaposition of those ef- today. Our job in Washington will be to continues to sputter after a decade of forts. spread the things that work. I know extraordinary growth—because the there is legislation in conference right country has gone from a multitrillion f dollar surplus to a deficit in barely a now that will help do that in a limited SOCIAL SECURITY way. year. That is very largely because of I believe we should think bigger, on the tax cuts targeted to the wealthy Mr. CORZINE. Mr. President, as the model of the COPS Program, a pro- this Congress already passed. It is a many of my colleagues know, I have gram that not only helped police de- breathtaking fiscal turnaround. over the last few weeks been speaking partments hire over 100,000 more cops, With terrorism, with crime and edu- regularly with regard to Social Secu- but that also helped change the way cation and health care needs, with a rity and proposals to privatize Social police departments do business. We Social Security crisis, with massive Security. I think this is one of the need the same kind of effort when it fiscal hemorrhaging, what are we talk- most important debates we as the Sen- comes to transforming probation and ing about here today? ate and Americans need to have. It parole into an effective, accountable We are not talking about reforming needs to be done before elections, not system for reducing crime. the estate tax to eliminate unfair bur- afterwards, because I think we need to It may be that this administration dens on farmers and small businesses, hear from the American people about will oppose this effort. Their current something I support. I very strongly what it is they want. budget has already proposed gutting believe that farmers and small busi- To many Americans, certainly to the COPS Program. This administra- nesses have to be protected from estate whom I talk, and many of my constitu- tion seems to think that permanent taxes. ents in the State of New Jersey—and I tax cuts for the very wealthiest Ameri- We are talking about whether to certainly hear it from my colleagues, cans are more important than cutting blow another massive hole in the budg- and I feel strongly—these proposals crime in the very poorest communities. et to pay for a tax cut that mostly ben- that are circulating with regard to pri- I see it differently. efits about 3,000 of the wealthiest fami- vate takings of Social Security are not the mindset of most Americans. That f lies each year. In a country of over 275 million people, many of them strug- is particularly true when people be- ESTATE TAX gling to pay their mortgages and send come aware that they will involve deep Mr. EDWARDS. Mr. President, I also their kids to college, we are talking cuts in guaranteed benefits and that, wish to say a few words about the es- about multimillion dollar windfalls for by implication, is going to force many tate tax debate we are having right about three thousand fortunate fami- Americans to work longer, delay their now. lies. retirement, and develop a level of inse- With all due respect for my col- I have only one question. Is this real- curity in a program that was really de- leagues, I think this debate shows that ly why the American people send us signed to promote security among sen- a lot of people in Washington are to- here, to massively cut taxes on a very ior citizens in our Nation. tally out of touch with regular people fortunate few while we are fighting ter- The fact is that we have seen devel- back at home. I think we should step rorism and Social Security is in trou- oping an undermining of retirement se- back and take stock of where we are ble and millions of middle class people curity for a whole host of reasons, right now. are struggling? I do not think that is whether it is the diminishment of the No. 1, as all of us know, we are in the why people send us here. number of Americans who are covered middle of fighting a war against ter- What my colleagues are trying to do by defined benefit programs or the in- rorism, and we do not know when that today on the estate tax is wrong from security of 401(k)s which we have seen war will end. Our young men and a national security perspective. It is in light of some of the elements that women are in harm’s way overseas as I wrong from a Social Security perspec- have come out of Enron. It is very hard speak. tive. It is wrong from an economic per- for me and for most of the people with

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.006 pfrm01 PsN: S12PT1 S5394 CONGRESSIONAL RECORD — SENATE June 12, 2002 whom I have conversations to under- Security as we basically know it— have significant transfers from the stand why we should be taking the se- there will have to be some changes but General Treasury to be able to sustain curity out of Social Security. basically as we know it—should be Social Security benefits even for those President Bush’s Social Security talking about the true nature of the groups. I think that is going to be an Commission proposed privatization kinds of cuts that are being talked increasing challenge for this body, for plans—there were three of them—that about. public policymakers in general, be- would cut guaranteed benefits for cur- A little bit of this dialogue on the cause we are running deficits. rent workers by more than 25 percent. Senate floor has developed into some Arguing that benefits are not going Those cuts would exceed 45 percent for debate, at least inside the beltway. I to be affected seems precisely the kind those who would be retiring long in the would like to take it outside the belt- of false charge for which Ms. Barnhart future. They would apply even to those way because that is where the real im- reportedly was criticizing Democrats. who choose not to invest in privatized pact will lie. But there has been a con- This is a debate we need to have. We accounts, and they would be even deep- tinuing dialogue between the Cato In- need to have it on substance. We need er for those who did not make such in- stitute and myself. A minority of mem- to make it balanced, thoughtful, very vestments. In fact, actual cuts are like- bers of the Bush Commission have re- public. I will work to that end. There is ly to be deeper still. This is an impor- sponded to some of the commentary I not a more important issue—perhaps tant part. There is a high probability have tried to make. We have both ex- prescription drugs, as the Presiding Of- the cuts will be deeper since the Com- changed long and relatively detailed ficer is articulately making the case to mission’s plans—all three of them—are treatises that are translated into ex- the American people. This gets at re- dependent on significant infusions of plaining each other’s positions, and I tirement security, things that make a general revenue funds to accomplish think that is all healthy. I think that difference in real people’s lives. I was the transition from the current system is good. Hopefully, there will be more in the chair several weeks ago when we have, the pay-as-you-go system, to debate in the future. the Presiding Officer made the case the privatized system. This is arith- This past weekend, a new player en- that he went to a diner and heard what metic. It is not something that is polit- tered the debate, at least as reported was on people’s minds. Prescription ical or partisan. by the Washington Times. The Com- drugs are on people’s minds, and mak- The only way to get from one place missioner of Social Security, Ms. Anne ing sure that Social Security is there to the other is by taking roughly a tril- Barnhart, went on the record to criti- as people have expected, as they have lion dollars from general revenues to cize Democrats—at least one Demo- paid into the system. It is right in the make it supportable, if the same ben- crat—for using false charges and for gut to most Americans, at least those efit payment schedule is going to be what the article calls incendiary rhet- diners I go to in New Jersey. This is held to that which we have now for oric. I hope people do not presume the something we have to be attentive to, most future retiring American citizens. kind of language I am using today is we need to debate, we need to come to It is hard to understand how we can incendiary. It is trying to get to a a conclusion, and get on with the proc- talk about taking funding from general healthy debate about how Social Secu- ess. revenues in the current circumstance rity should work and how it will im- I am hopeful Ms. Barnhart was mis- when we passed a debt ceiling limit pact seniors, survivors, and disability quoted in the Washington Times. I yesterday of another $450 billion, and beneficiaries in America. have been misquoted once in a while, that is only expected to take us for 18 The article quotes Ms. Barnhart as as I am sure all Members have. I do not months. We have a growing deficit stating: think engaging in incendiary com- problem in this country. Put that to- The most important message I want to mentary is helpful, nor do I think gether with a need to be able to provide send out is that benefits are not going to be many of my colleagues do. I hope she affected. general revenues to support this initia- will write to the editor of the paper tive towards privatization and I think Let me repeat, ‘‘benefits are not and clear up the matter. I would love we have a real problem. We have a going to be affected,’’ according to Ms. to get into a very serious debate about train wreck coming. To me, that is not Barnhart. the substance of how we will finance the direction in which we should go. Ms. Barnhart then seemed to back off Social Security as we go forward. That So I hope we will look at these in a in the article—again, I did not see the is an important element of our nec- serious way. The Commission’s report full text of her remarks—and adopt a essary debate to get to long-term solu- itself talks about these 25-percent cuts little less absolute approach. That is tions that make a difference in people’s and 45-percent cuts. The Social Secu- hopeful because that cannot be an ab- lives. rity actuaries are the ones who present solute condition of the interpretation I hope she will review the facts in- them. While they did not speak to it di- of the President’s proposals, offering volved in the President’s commission’s rectly, those cuts will even be more se- assurances only to retirees, current re- report when we are talking about these rious and more immediate for sur- tirees, near-term retirees. deep cuts in guaranteed benefits. They In any event, I was very disappointed viving beneficiaries and disabled bene- are there in black and white. by these reported statements which, in ficiaries from the Social Security Pro- I ask unanimous consent a copy of fact, I have tried to respond to in a gram. the Washington Times article and my We are basically taking a program number of venues, which I believe are response to Ms. Barnhart be printed in that has worked, has reduced the pov- highly inaccurate in themselves. The the RECORD. erty level for senior citizens in Amer- truth is, as I said before, President There being no objection, the mate- ica, and really putting it at great jeop- Bush’s Social Security Commission rial was ordered to be printed in the ardy. That is why I feel so strongly proposed privatization plans that call RECORD, as follows: about speaking out on a repeated basis for deep cuts in guaranteeing benefits. to develop this debate. This is by the Social Security actu- [From the Washington Times, June 8, 2002] Despite the very clear proposals de- aries themselves. I do not happen to SOCIAL SECURITY REFORM DEFENDED veloped by the Bush Commission, my have the pages, but I can cite it in the (By Donald Lambro) fear is that few Americans have any report that the Commission put for- The head of the Social Security Adminis- real idea what is at stake in regard to ward. As I said, these cuts apply to tration criticized Democrats yesterday for what I have described. I am afraid a lot even those who do not choose to invest using false charges and ‘‘incendiary rhet- of this is not on people’s radar screens in privatized accounts. oric’’ to stir up political fears over President because there has not been a lot of de- It seems to me we ought to have this Bush’s plan to reform the retirement system. bate about it. There has not been a lot on facts at least as they are talked Jo Anne Barnhart said there is no truth to about. I do not want to go back Democratic claims that Mr. Bush’s plan will of talk about it. cut retiree benefits or that the administra- There is a point of view that this through the point, but if we are to tion was robbing the trust fund. ought to be put off until after the elec- avoid these cuts, even for near-term re- ‘‘I think the fear factor is really unfortu- tion. I think it is important that those tirees, or certainly for survivors and nate. It is important that Social Security of us who believe in protecting Social disability beneficiaries, we will have to beneficiaries be reassured,’’ said Mrs.

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.008 pfrm01 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5395 Barnhart told The Washington Times yester- dent Bush’s Social Security Commission pro- send to the Congress a proposal that day—her first interview since Mr. Bush se- posed privatization plans that call for deep would allow us to work with him in the lected her last summer to run the nation’s cuts in guaranteed benefits. The Social Secu- shaping of legislation to ultimately largest retirement program. rity Administration’s own actuaries have ‘‘The use of highly charged, incendiary create that agency. calculated that the cut for many current I saw the current Presiding Officer on rhetoric doesn’t accomplish this,’’ she said. workers would exceed 25 percent, and cuts Mrs. Barnhart spoke approvingly of Mr. would exceed 45 percent in the future (see television the other night speaking to Bush’s plan, saying it’s important to restore page 75 of the actuaries memo on the report, this issue. I was pleased that he, too, faith in the program and give people more dated January 31, 2002). These cuts would like I, agree that a time has come in control over their retirement funds. apply even to those who choose not to invest our country that we need to recognize ‘‘The most important message that I want in privatized accounts. The cuts would be the extraordinary global terrorism to send out is that benefits are not going to even deeper for those who do make such in- be affected. Regardless of what proposal you threat that has been brought to our vestments. doorstep and to the doorstep of most look at in terms of reform, I want to reas- I recognzie that, after stating simply that sure retirees and near-retirees that they will ‘‘benefits are not going to be affected’’ you American citizens, and the need to rec- not have a reduction in benefits,’’ she said. seemed to back off and provide assurances ognize that the mechanisms of our Democratic leaders have been escalating only to retirees and near-retirees. However, Government to combat this threat their attacks on Mr. Bush’s Social Security the Commission’s plan relies on significant have in part failed—or certainly the reform plan in recent weeks, believing that infusions of general revenues none of which mechanisms are not in tune with the the issue will motivate older Americans to have been provided for in the President’s vote in larger numbers against Republican current threat in a way that they can budget. If and when these revenues fail to congressional candidates this fall. effectively connect all of the dots to materialize, retiree benefits clearly could be ‘‘It is indisputable that the Bush Social Se- draw the necessary conclusions of the at risk. While, in the short-term, I hope that curity Commission’s privatization proposals Congress somehow would find the resources magnitude of the threat by those who include drastic cuts in guaranteed Social Se- to protect current retirees, over time the bring it to our doorstep. curity benefits,’’ said Sen. Jon Corzine, New threat of further benefit cuts for retirees As a result of that, the President, in Jersey Democrat, who has been leading the seems very real. In addition, based on the a very forward-looking way, having as- attacks in the Senate. Until yesterday, the White House had not text of the Commission’s report describing sumed the leadership of this great directly struck back at its critics, and Mrs. Model 1, it appears that some near-retirees country, has brought to us an oppor- Barnhart’s surprisingly strong remarks sig- would have their guaranteed benefits re- tunity to work with him to make a de- naled that the administration now believes duced if they participate in the program of cision that I think will be historic for it should respond to the Democrats’ mount- privatized accounts. our country, a decision to create a new ing political offensive. I understand that reasonable people can disagree about the merits of privatization department that I believe, when com- Mrs. Barnhart declined to compare the So- pleted and effectively run, will make cial Security benefits with what workers and believe it is importannt that the debate would get under Mr. Bush’s plan to let work- on Social Security’s future be conducted all Americans safer. It will give our ers voluntarily invest part of their payroll without excessive rhetoric on either side. I country, through this department, the taxes in stock and bond mutual funds. have tried not to engage in attack language ability to protect our borders, to col- ‘‘These are highly technical issues that our in the discussion so far, and I am hopeful late and analyze intelligence and infor- actuarial analysts can answer,’’ she said. that other parties will adopt a similar ap- mation about ongoing threats, to expe- proach. The future of Social Security is too But when asked about questions of finan- dite decisions at all government levels, cial risk and safety that Democrats are rais- important to be decided by misleading ing about Mr. Bush’s investment plan, she claims or partisan politics. and to take immediate action when the revealed that her own federal pension was Sincerely, conclusion of the event or the risk that fully invested in stocks. JON CORZINE. might occur warrants it. ‘‘I’m a federal employee. I participate in Mr. CORZINE. I hope we continue The new department eliminates what the Thrift Savings Plan. I went into the this dialog in a thoughtful, balanced has become a patchwork of agencies stock fund,’’ she said. The government’s pop- matter. and lines of authority that were de- ular Thrift Savings Plan lets federal employ- I yield the floor and suggest the ab- signed for a threat of an era ago. What ees invest their retirement funds in stock worked in cold war and post-cold-war and bond funds. sence of a quorum. Such stock funds are ‘‘widely diversified to The PRESIDING OFFICER (Mr. environments does not fit, or is appar- lower risks’’ and government bond funds BAYH). The clerk will call the roll. ently not fitting the current threat posed no risk, she said. The president’s com- The legislative clerk proceeded to that this Nation recognizes. mission on Social Security, which proposed call the roll. This department, in my opinion, is three different plans to implement Mr. Mr. CRAIG. Mr. President, I ask not a step toward big government. Big Bush’s reforms, examined the Thrift Savings unanimous consent the order for the government is when the Federal au- Plan as a possible model to follow. thorities needlessly take over func- Mrs. Barnhart said that she thinks that quorum call be rescinded. ‘‘we can look at the Thrift Savings Plan’’ as The PRESIDING OFFICER. Without tions better left to State and local gov- the basis for a larger retirement for the gen- objection, it is so ordered. ernments. eral public. Mr. CRAIG. Mr. President, I believe The Presiding Officer is a former ‘‘I don’t think there is any question that we are in morning business, is that not Governor. He understands so well the people, particularly younger people, would correct? importance of State government and have more control over their investments in The PRESIDING OFFICER. That is State law enforcement authorities. the future,’’ she said of the administration’s correct. What we want to have happen is an im- proposed reforms. f provement of those relationships as they relate to the threat. U.S. SENATE, HOMELAND SECURITY Washington, DC, June 12, 2002. My Governor, Dirk Kempthorne of Hon. JO ANNE BARNHART, Mr. CRAIG. Mr. President, this Idaho, was once a U.S. Senator. As a Commissioner, Social Security Administration, morning I want to speak to a couple of Senator, he had greater clearance than Baltimore, MD. issues that I think are important to he now has as a Governor. In other DEAR COMMISSIONER BARNHART: I am writ- this body and certainly to the citizens words, he had a right to know, under ing with respect to statements attributed to of our country. First and foremost, I the law and by his title, more about you in an article published in the Wash- ington Times on June 8 on the topic of So- want to speak of a meeting that oc- the security risk in our country than cial Security. curred at the White House yesterday he does as a Governor today. That is According to the article, you ‘‘criticized that I had the good fortune to be a part wrong. Governors in the role they must Democrats for using false charges and ‘incen- of, a meeting of the President and the play as law enforcement officers within diary rhetoric’ to stir up political fears over joint leadership, Democrat and Repub- their States and directors of law en- President Bush’s plan to reform the retire- lican, of the House and Senate. We met forcement communities within their ment system.’’ The article quoted you as with President Bush, the Vice Presi- States have to know. I use as an exam- saying. ‘‘The most important message that I dent, and Governor Ridge to talk about ple the opportunity to create a seam- want to send out is that benefits are not going to be affected.’’ the President’s decision to create a less relationship between Federal intel- I am very concerned about this last state- new Cabinet-level Department of ligence and Federal law enforcement ment, which is simply not accurate. Presi- Homeland Security and his decision to and State law enforcement. In my

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.002 pfrm01 PsN: S12PT1 S5396 CONGRESSIONAL RECORD — SENATE June 12, 2002 opinion, this is not the creation of a timately step forward in determining a ing. It is in fact the law of the country bigger government. This is called get- permanent storage site for high-level and not the rules of the Senate to ting smart and getting it right at a nuclear waste. It is known here as which we are speaking. It is one of four time when our country demands it. Yucca Mountain in the State of Ne- statutes adopted since the 100th Con- This proposal, however, which I vada. It has been a high-profile issue, gress that expressly allow any Senator think the President offers is the direct one that has been given a great deal of to offer a motion to proceed to an item opposite of what some might call big debate over the last good number of of approval or disapproval. Those stat- government. Our Founding Fathers years, but one that has come again to utes are not redundant to Senate rules said it clearly when they stated within the floor of the Senate in which we and do not upset contemporary prac- the Constitution the responsibility of must make a decision to make one step tice regarding motions to proceed to the Federal Government to provide for forward in a review and licensing proc- other legislation on the Senate cal- the security of the citizens of this ess to determine whether the site of endar. country. That was the foremost charge Yucca Mountain in the State of Nevada Exercising a Senator’s right under of a Federal Government’s responsi- is capable of handling and effectively the statutory authority in the Nuclear bility under the Constitution. storing for 10,000 years the high-level Waste Policy Act should be considered I think our President has recognized nuclear waste of this country. extraordinary, and not a general as- that oh so well ever since 9–11 and now In the Nuclear Waste Policy Act of sault on the normal prerogatives of the brings to us an opportunity and a chal- 1982, we established what is known as majority leader. lenge to create this new department an expedited procedure for consider- When the Senate passed the Nuclear that, in my opinion, will not bloat gov- ation of the resolution approving the Waste Policy Act, it envisioned a cir- ernment. Personnel and offices will re- President’s selection of the nuclear cumstance in which a leader might be main relatively at current levels. In waste site. Now the President has se- unwilling to propound a motion to pro- fact, due to consolidation, it is possible lected, because the NEPA process ceed. It appears that may be what is we might even see over time a slight through the Department of Energy has happening on the floor of the Senate. reduction. The challenge is now our- determined that it is now time to go to Thus, the law expressly permits some- selves. The challenge is to set aside the Nuclear Regulatory Commission one else to act so Congress can work that which is mine or that which is for their review and their determina- its will before a statutory deadline yours—it is called turf here on Capitol tion as to whether the site ought to be passes. Hill—and to recognize that this is a licensed. So the time is at hand, as was Finally, let me say this: If a leader time to act and to act promptly. seen in 1982 under this act. will not propound a motion to proceed, I was extremely pleased to see the bi- The expedited procedure under the he cannot contend his leadership pre- partisan character and feeling of the Nuclear Waste Policy Act, as amended, rogatives will be violated if someone meeting at the White House yesterday specifically provides that once an ap- else moves the procedure. You can’t with TOM DASCHLE, TRENT LOTT, DICK proval resolution is on the calendar— contend that you have been violated if GEPHARDT, and DENNY HASTERT—all of and that means the authorizing com- in fact that is the law of the land. And these leaders talking in a bipartisan mittee has acted and sent it forward, that is the law of the land. mode about a timeline of importance. I as it has—the law says very specifi- The very procedure I have outlined is think we all recognize that Leader cally that any Senator may move to expressly stated in the Nuclear Waste GEPHARDT said: Why not 9–11–02? Why proceed to its consideration. And the Policy Act. Agreement with such a po- not on the anniversary of this tragic motion to proceed is privileged and sition gives the leader absolute and time in America when we began to nondebatable. unilateral authority to veto power over rethink and realign our efforts that we Under current practices, measures consideration of any legislation, if in should make available to the American normally reach this floor through fact that can be argued. But at times, people a new department, a new gov- agreement to a unanimous consent re- when TRENT LOTT was majority leader ernment, a new shaping of government. quest by the majority leader. It is of the Senate, that was challenged, and Well, I hope we can do 9–11–02. But if critically important for the operation a majority of the Senate stayed with we are to do it, it means we have to and the procedure of this Senate on a the leader when it dealt with contem- burn the midnight oil a bit. It clearly daily basis that the majority leader of porary legislation of the moment and means we have to roll up our sleeves the Senate set the agenda. But there is the setting of the calendar outside the and go to work. And it also means that always the provision, because we are statutes of the Federal Government the Senate and the House operate dif- all equal in the Senate under the Con- within the rules of the Senate. ferently than they are historically at stitution, that sometimes the majority I wanted to speak about that briefly least expected to operate. We have leader may not set the agenda the way this morning because I know that is done it in the past, and we can do it the majority of the Senate would want now being talked about amongst us again. And we should do it now. it set. And, of course, that can be ob- Senators as we ultimately come to a I hope Leader DASCHLE and Leader jected to and a vote to proceed. time, prior to late July, when we must LOTT, in recognizing this, can bring the But what we are talking about here address this issue for the sake of the Senate together in a way unprece- is recognition of a special procedure— country, for the sake of ratepayers, dented at least in modern times to get unprecedented, or at least certainly certainly for the sake of the future of the job done—to get it done in a quick one that does not establish the prece- the energy sources of our country, and but thorough fashion, to do the nec- dent of the normal decorum of the Sen- especially for nuclear-generated en- essary and proper reviews that bring ate. If unanimous consent cannot be ergy. about for this country a new shaping of obtained, as we know now, the Senate It is important to understand, and I government that we hope in the end has taken care of that procedure by will be to the Chamber speaking out will make us a safer, more secure simply allowing the rule or the deci- about this issue more as we develop it. place, and in that process not infringe sion to be tested. I would hope that the majority leader upon or in any way lessen the rights The Nuclear Waste Policy Act pro- or the authorizing committee chair- and the freedoms of the citizens of this vides special statutory authority to man who brought the resolution for- great country. make exceptions to the contemporary ward would act as they should under f practice to which I have just spoken. the rules to establish a time and a date Let me say that again. The Nuclear certain when this Senate can debate NUCLEAR WASTE POLICY Waste Policy Act provides a special and act responsibly on this most crit- Mr. CRAIG. Mr. President, I want to statutory authority to make exception ical national environmental issue. speak about a need of this Senate to to contemporary practice. In other I yield the floor. act and act soon. I am speaking about words, it is not to establish a prece- The PRESIDING OFFICER. The Sen- a provision within the Nuclear Waste dent. It is not to override the majority ator from Arizona. Policy Act of 1982 that required a pro- leader, as some would like to have it Mr. KYL. Mr. President, I com- cedure by which this country would ul- thought today and are certainly argu- pliment the Senator from Idaho for

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.012 pfrm01 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5397 making this last point. He is abso- business. Think of an insurance pre- Well, businesses are the same. They lutely right. Under the law that we mium of $58,000 a year. don’t pay cash for the land and the passed, we have to consider what we What does the Government do right buildings; they get a loan from the are going to do with nuclear waste be- now? The policy before we repealed the bank so they can buy the property. fore the middle of July. And there is death tax was, the day he dies, his es- They get a loan from the bank to buy only one procedure under which it can tate—that is to say, the people who their trucks, just as you buy a car on be done. If the majority leader does not would inherit the money the father time, and you pay a Ford or GMC cred- bring it up, then the statute provides owns and would inherit the business— itor or whoever it might be. The same anybody else can. That is what will has to pay half of that to Uncle Sam— with lumber, you get a bank loan to happen. half, 50 percent. buy the lumber. Then you sell it and The Senator from Idaho is exactly There is an exemption of a few hun- pay back the bank. correct. I compliment him on his lead- dred thousand dollars. I don’t know So these small businesses are highly ership on this issue. how much this lumber company is leveraged in the sense they have al- f worth, but let’s say it is worth $5 mil- ready gotten all the credit they could lion, just to pick a figure. I could be get out of the bank. They can’t go to PERMANENT REPEAL OF THE way off. About $4.5 million is now sub- the bank and borrow $2.5 million to pay DEATH TAX ject to the estate tax when the father the estate tax. Mr. KYL. Mr. President, I rise this dies. There is another reason, too, and morning to talk about the issue that So how do people pay the estate tax? that is there is an exemption. Today will be before us as soon as we resume This is the perversity of this tax. This you get a $1 million exemption—and business, and that is the permanent re- lumber company has an inventory of some people are proposing the exemp- peal of the death tax. This Senate has lumber. They buy lumber from dif- tion be more than that—but you can’t already repealed the death tax. The ferent companies that chop down trees qualify for the exemption. President has already signed it into and make it for them. So they have a The National Federation of Inde- law. But most Americans are now real- bunch of warehouses full of lumber. pendent Businesses, which knows a lot izing there was a catch. And they have trucks that deliver the about this because it represents a lot of Under the special procedures that the lumber. They have forklifts that enable these businesses, has testified, as have Senate operates, that bill came before them to move that lumber around. other experts, before the House Ways the Senate with a 10-year sunset. So all They have a little office. They have and Means Committee, which consid- we could do was pass a law that was in some other things; I am sure they sell ered this, that the provision under effect for 10 years and in the 11th year, hammers and nails and things such as which you can theoretically get an ex- we are right back to where we were in that. emption is way too complicated and the year 2001, meaning that while we When this business is valued at, let’s does not work. The ABA, as a matter of fact—the repealed the death tax, it is back in the say, $5 million, they don’t have a draw- American Bar Association—has advised year 2010. That is not something we in- er that says: If you need $2.5 million to its lawyers of being very careful of try- tended when we voted to repeal it. pay Uncle Sam, here is $2.5 million. No ing to help anybody to qualify for this I don’t think anybody could argue business has that. What they have is a exemption because they likely will be that they intended only that it be re- value in the inventory, the lumber, the committing malpractice. So it does not pealed for 1 year. That is extraor- trucks, the forklifts, the warehouses, dinarily bad tax policy and a cruel work either. and so on. That is what is worth $5 mil- So the bottom line is, hundreds of hoax on the American people, who lion. thousands of small businesses around thought we were repealing it perma- So, in effect, Uncle Sam wants to this country face what Brad Eiffert nently. Obviously, we need to repeal it come in and say: We want half of that faces. When his dad dies and Uncle Sam permanently, and that is what the value. If you have 10 forklifts, we want says pay us half of the value of every- Gramm-Kyl amendment will do. 5 of them. If you have 10 lumber thing in this business, he does not have I want to speak this morning about trucks, we want 5 of them. We want the cash. He is not going to be able to why this is so important, to bring it half of the inventory. In effect, just put borrow the cash. He has one choice: down to simple, personal terms. it on a railroad car and send it to Sell the Boone County Lumber Com- In the Mansfield Room, just a few Washington. We want half of your pany. feet from the Senate Chamber in which warehouses. I will give you another company. The we are right now, Mr. President, there There isn’t money to pay Uncle Sam. idea of the death tax was to prevent is a small businessman, the owner of a We are talking about the value of the the accumulation of wealth. I had a lumber company. Actually, his dad business. Remember, they have paid good friend in Arizona. His name was owns the lumber company. He is help- their income taxes. We are now talking Jerry Witsosky. He died. He created a ing to run it now. His name is Brad about the value of the estate. It is printing company, Imperial Litho- Eiffert, from Columbia, MO. And it is called an estate tax. graph. He started with one employee, the Boone County Lumber Company. What is the estate? The estate is the himself. He gradually built it up. He His problem is this. When his father Boone County Lumber Company, with had about 150 employees, somewhere in dies, the U.S. Government says: We its forklifts and trucks and lumber. If that neighborhood when he died. It was want half of the value of everything that is worth $5 million, Uncle Sam a very successful business in Phoenix. you own with this lumber company. says: I want half of it. How do you keep He contributed more money to char- Let’s explore what that means. They the business going by sending Uncle ities in Phoenix than anybody I have have been paying income tax on their Sam half of the forklifts and half the ever known—a wonderful man. He died. corporate income. They have been pay- trucks and half the lumber? That is ob- His family could not pay half the value ing individual income tax on the salary viously not what happens. You have to of that printing company to Uncle they take out of the company. They sell it to generate cash to write a Sam, and they eventually had to sell pay the payroll tax. They pay the So- check to Uncle Sam. You cannot just the business. cial Security tax. They generate a lot sell half your business. You end up sell- Who did they sell it to? They sold it of taxes for Boone County and for the ing the whole business. to a great big corporation. So much for State of Missouri. And they have cre- Somebody said maybe they could get preventing the accumulation of wealth. ated 30 jobs. a loan to pay the taxes. Wrong. Any- Here you had a family business, a going This has been a successful, now sec- body who knows anything about small concern, a wonderful contributor to the ond-generation company. The children business knows two things: One, you community, and it had to be sold to a of the father who owns the company have financed the purchase of your big corporation just to generate the now pay $58,000 a year in insurance pre- equipment. You have financed the pur- cash to pay the estate tax. miums so that when their father dies, chase of the land. Who buys a house for Is this right? No. It is bad tax policy. they will be able to inherit the busi- cash? You go get a home mortgage It is unfair. It destroys all of the incen- ness and have the money to run the loan. tive. We talk about the American

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.015 pfrm01 PsN: S12PT1 S5398 CONGRESSIONAL RECORD — SENATE June 12, 2002 dream: save, invest, and hope that your Senator from Florida (Mr. NELSON), the SECTION 1. ESTATE TAX WITH FULL TAX DEDUC- TION FOR FAMILY-OWNED BUSINESS kids can have a better opportunity Senator from Mississippi (Mr. LOTT), INTERESTS. than you had. That is the American the Senator from Oklahoma (Mr. NICK- (a) ELIMINATION OF ESTATE TAX REPEAL.— dream. And the estate tax, or the death LES), the Senator from Texas (Mrs. (1) IN GENERAL.—Subtitle A of title V, sec- tax, just cuts that right to the quick HUTCHISON), the Senator from Idaho tions 511(d), 511(e), and 521(b)(2), and subtitle and says: We want half of everything (Mr. CRAIG), and the Senator from Indi- E of title V of the Economic Growth and Tax you earned during your lifetime. And, ana (Mr. LUGAR). Relief Reconciliation Act of 2001 are re- by the way, if you have to sell your Without objection, in accordance pealed. business to pay us the money, that is with the previous notice, the Senate (2) CONFORMING AMENDMENTS.— (A) The table contained in section tough. We want to spend it back in will now stand in recess for the purpose 2001(c)(2)(B) of the Internal Revenue Code of Washington. of attending a joint meeting with the 1986 is amended by striking ‘‘2007, 2008, and This is a perverse tax policy. The House of Representatives to hear the 2009’’ and inserting ‘‘2007 and thereafter’’. good thing about the version of the re- very distinguished Prime Minister of (B) The table contained in section 2010(c) of peal that Senator GRAMM and I have Australia, John Howard. such Code is amended by striking ‘‘2009’’ and proposed is that it does not let any- Thereupon, the Senate, at 10:46 a.m., inserting ‘‘2009 and thereafter’’. body off the hook in terms of paying took a recess and the Senate, preceded (C) Section 901 of the Economic Growth taxes to Uncle Sam. They already paid by its Secretary, Jeri Thomson, pro- and Tax Relief Reconciliation Act of 2001 is amended— the taxes on the income. What we say ceeded to the Hall of the House of Rep- (i) by striking ‘‘this Act’’ and all that fol- is when Brad Eiffert inherits his fa- resentatives to hear an address deliv- lows through ‘‘2010.’’ in subsection (a) and in- ther’s business, the Boone County ered by the Honorable John Howard, serting ‘‘this Act (other than title V) shall Lumber Company, he does not pay a Prime Minister of Australia. not apply to taxable, plan, or limitation tax when his dad dies—that is per- (For the address delivered by the years beginning after December 31, 2010.’’, verse—but if he ever sells the Boone Prime Minister of Australia, see to- and County Lumber Company, then he pays day’s proceedings of the House of Rep- (ii) by striking ‘‘, estates, gifts, and trans- a capital gains tax, and he pays it resentatives.) fers’’ in subsection (b). (b) INCREASE IN EXCLUSION AMOUNT.—The based on what his dad paid for the At 12:30 p.m., the Senate, having re- table contained in section 2010(c) of the In- original company. turned to its Chamber, reassembled ternal Revenue Code of 1986 (relating to ap- So Uncle Sam is going to get the full and was called to order by the Pre- plicable credit amount), as amended by sub- take. We will get all the money we siding Officer (Mrs. CLINTON). section (a)(2)(B), is amended by striking need here to spend in Washington, but f ‘‘$3,500,000’’ and inserting ‘‘$4,000,000’’. it is when he decides to sell the busi- (c) FULL TAX DEDUCTION FOR FAMILY- DEATH TAX ELIMINATION ACT OF ness; that is the taxable event. Death OWNED BUSINESS INTERESTS.— 2001 (1) IN GENERAL.—Section 2057(a) (relating should not be a taxable event. to deduction for family-owned business in- So I hope my colleagues will join The PRESIDING OFFICER. Under terests) is amended— Senator GRAMM and me later today the previous order, the Senate will now (A) by striking paragraphs (2) and (3), and when we have an opportunity to finally resume consideration of H.R. 8, which (B) by striking ‘‘GENERAL RULE.—’’ and all repeal this perverse tax and replace it the clerk will report. that follows through ‘‘For purposes’’ and in- with a capital gains tax. We are not The legislative clerk read as follows: serting ‘‘ALLOWANCE OF DEDUCTION.—For letting anybody off the hook. We are A bill (H.R. 8) to amend the Internal Rev- purposes’’. substituting one tax for the other, but enue Code of 1986 to phaseout the estate gift (2) PERMANENT DEDUCTION.—Section 2057 is we are substituting a tax that is fair taxes over a 10-year period, and for other amended by striking subsection (j). purposes. (d) EFFECTIVE DATE.—The amendments because it says if you make a decision, made by this section shall apply to the es- knowing the tax consequences, to sell Pending: tates of decedents dying, and gifts made, the asset, you pay Uncle Sam. If you Conrad amendment No. 3831, in the nature after December 31, 2002. don’t, you don’t. But that is your deci- of a substitute. The PRESIDING OFFICER. Who sion. It replaces a tax on the event of AMENDMENT NO. 3831 yields time? If no one yields time, time death which is more perverse and un- The PRESIDING OFFICER. The Sen- shall be charged equally to both sides. fair. ator from Nevada. Mr. REID. Madam President, I sug- The U.S. Government should not Mr. REID. Madam President, what is gest the absence of a quorum and I ask have that as a policy for the people of the issue before the Senate? unanimous consent that time be the United States of America. I urge The PRESIDING OFFICER. The charged equally against both sides. my colleagues to reject the alter- Conrad amendment No. 3831. The PRESIDING OFFICER. Without natives. There is only one real repeal, AMENDMENT NO. 3832 TO AMENDMENT NO. 3831 objection, it is so ordered. The clerk and that is the Gramm-Kyl repeal of Mr. REID. Madam President, on be- will call the roll. the death tax. half of Senator DORGAN, I send an The legislative clerk proceeded to I yield the floor. amendment to the desk. call the roll. Mr. President, I suggest the absence The PRESIDING OFFICER. Without Mr. GRAMM. Madam President, I ask of a quorum. objection, the clerk will report. unanimous consent that the order for The PRESIDING OFFICER. The The legislative clerk read as follows: the quorum call be rescinded. clerk will call the roll. The PRESIDING OFFICER. Without The Senator from Nevada [Mr. REID], for The assistant legislative clerk pro- objection, it is so ordered. Mr. DORGAN, for himself, Mr. DURBIN, Mrs. Mr. GRAMM. Madam President, let ceeded to call the roll. CARNAHAN, and Mr. CORZINE, proposes an Mr. GRASSLEY. Mr. President, I ask amendment numbered 3832 to amendment me remind my colleagues where we are unanimous consent that the order for No. 3831. and what we are doing. Last year, we the quorum call be rescinded. Mr. REID. Madam President, I ask adopted a repeal of the death tax. The PRESIDING OFFICER. Without unanimous consent that the reading of Under that repeal, we phased up the ex- objection, it is so ordered. the amendment be dispensed with. emption. We will soon start phasing f The PRESIDING OFFICER. Without down the rates, and in 2010 we will ac- tually repeal the death tax. But be- JOINT MEETING OF THE TWO objection, it is so ordered. The amendment is as follows: cause of a quirk in the rules of the Sen- HOUSES—ADDRESS BY THE ate and the budget process, this death PRIME MINISTER OF AUSTRALIA (Purpose: To amend the Internal Revenue Code of 1986 to make permanent the estate tax snaps back into full force in 2011. The PRESIDING OFFICER. Pursuant tax in effect on December 31, 2009, to in- Members of the Senate voted to re- to the order of the Senate, the fol- crease the exclusion amount to $4,000,000 in peal the death tax. They proclaimed lowing Senators are appointed to es- 2009, and to provide a full family-owned they were repealing the death tax. We cort the Prime Minister of Australia business interest deduction in 2003) are here today to really finish that into the House Chamber: The Senator In lieu of the matter proposed to be in- work by simply taking the provisions from South Dakota (Mr. DASCHLE), the serted, insert the following: of law that are in place and in 2010—a

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.017 pfrm01 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5399 year when according to the Congres- and farms prematurely to try to plan the floor of the Senate or in the Budget sional Budget Office March estimate for this tax, we have lowered the effi- Committee to add new spending that, we will have a surplus of over $300 bil- ciency of the economy. The study by when it is added up, is some 15 times lion—we would eliminate the death tax our Joint Economic Committee con- more expensive than repealing the forever rather than having the death cludes that the level of capital in death tax permanently, and yet our tax come back from the grave to prey America is $50 billion lower than it colleagues who voted for each and on working families. That is the provi- would be without the death tax. The every one of these increases in spend- sion we are here to debate. study by the Institute for Policy Inno- ing now say, well, we could afford to We have had offered an amendment vation concludes that by disrupting spend all of this money but we cannot which is really not about protecting economic activity and lowering effi- afford to stop forcing families to sell family farmers. It is not about pro- ciency, this tax actually collects no off their farms and their businesses and tecting small businesses. It is about net new revenue. the accumulated value of the life work protecting politicians. It is an amend- Our colleagues say, and we are going of their parents. ment that makes a nominal change in to hear it throughout the day in the de- That represents misplaced priorities. existing law that still allows the death bate, that, well, we would make it per- We have colleagues who could name 100 tax to continue but it claims to give an manent but we cannot afford it; we taxes that ought to be increased, who unlimited exemption to small busi- cannot afford to make it permanent. could name 40 tax reductions that nesses and to small farmers under a I remind my colleagues that the should be taken back, but they cannot section of law called section 2057. This amendment I will offer, which is the name a single Government program is a provision that was proposed last permanent repeal amendment that that we could live without or we could year by the opponents of the death tax passed the House, does not go into ef- reduce. At its root, this issue boils down to repeal as an alternative when we voted fect until 2010. As I noted earlier, in one simple choice. We will hear many on repealing the death tax. It is in law 2010 we are projected to have a surplus arguments today, but it comes down to today but at a lower level of protec- of some $300 billion. What those who a simple choice. The people who do not tion. oppose permanent repeal of the death want to make the repeal of the death The point I want to make is, section tax are really saying is they want to tax permanent believe it is worth forc- 2057—which this amendment claims spend that money. ing people, at the death of their par- would be expanded to shelter more There is an interesting paradox here. ents, to sell off their life’s work to give value in small business and family Despite all the talk we had yesterday over half of it to the Government, even farms—and all the other special exemp- and will likely hear again today that though it is all aftertax income. They tions put together have been used by we simply cannot afford to make the have already paid taxes on it once. only 33 taxpayers in the time they have repeal of the death tax permanent and we have to force families to sell off the The opponents of making the death been in effect. In other words, these tax repeal permanent believe it is provisions that supposedly shelter and family business and sell off the family farm and give government 55 cents out worth forcing businesses to liquidate give small business and family farms farms, to shut down, equipment to be special protection are so convoluted, so of every dollar people have accumu- lated in their working lifetime in sold, jobs to be destroyed, because they burdensome, so inefficient that only 33 believe that having that money in taxpayers in the years since these pro- aftertax dollars, that we have to do that because we need the money, I find Washington so they can spend it is visions have been in effect have found worth it. Those who want to make the it possible to use this section 2057 to it interesting that in five different in- stances over the last 9 months where death tax repeal permanent do not be- gain the promised relief. lieve that. Those who want to make So the reality is, if this amendment this Senate has voted to spend more money than we would lose in revenues the repeal of the death tax permanent were adopted, it would provide assist- believe we would be better off as a na- ance to 33 known taxpayers but it next year if we made the repeal of the death tax permanent. We spent $14 bil- tion—we would be richer, freer, would provide a figleaf to 40 Senators happier, and the world would be fair- by allowing them to vote against the lion on nonemergency items in the emergency supplemental appropriation er—if, when families work and save and repeal of the death tax once and for all. sacrifice and pay taxes on every dollar My colleague and cosponsor on this that the President did not ask for and that over the next 2 years is some four they earn in their lifetime and they bill is a distinguished attorney, and I build up a business, farm, or estate, want to give him an opportunity to times as much as repealing the death tax would save families if they got to that their death should not be a tax- talk about this provision in some de- able event. tail, but let me basically sum up the keep the money. The farm bill next year costs seven We will hear a discussion today that arguments we have heard thus far and times as much as letting people keep says, OK, we are willing to do this for that we are certainly going to hear the family farm or keep their small some. We know it is bad for some peo- today. ple, but we want to pick and choose as The first argument we are going to business. The energy bill was more expensive to who has to pay this death tax. The hear is that repealing the death tax is than the cost of letting people keep position of those who want to repeal going to cost money, is going to drive their family farms. the death tax permanently is a position up the deficit, and is going to increase The trade bill added new entitle- that we believe the tax is immoral. We debt. I remind my colleagues that ments that cost more over the next 3 believe it is wrong. We think, whether under the latest estimates we have, the years than letting people keep what somebody’s estate is worth $700,000, or death tax collects less than 1 percent of they have accumulated over a lifetime. whether they built a business that has the revenues that we collect in the Railroad retirement costs 15 times as 200 employees and that has tools and Federal Government. much next year. capital and land and trucks and equip- Yesterday, I made reference to two The stimulus package that was ment worth $10 million, we believe, if studies, one by our own Joint Eco- adopted, the parts that were not asked they built a business worth $10 million, nomic Committee titled ‘‘The Econom- for by the President, cost more than that destroying that business to bring ics of the Estate Tax,’’ and the other making the repeal of the death tax per- $5.5 million of that to Washington so by the Institute for Policy Innovation manent next year. we can spend it does not represent a titled ‘‘The Case For Burying the Es- Finally, the budget reported on a good choice in public policy. After all, tate Tax.’’ Both of these studies make straight party line vote out of the it is their money. They built it. They a very strong case that by forcing Budget Committee adds new spending— accumulated it. They sweated and small business and family farmers who not requested by the President, not de- saved and sacrificed for it. are trying to protect their families fense related, not related to our secu- That ultimately is the issue. We be- from the death tax to pay these big in- rity needs in fighting terrorism—of lieve it is wrong to tax death. We be- surance policies, to hire all these law- $105.8 billion. lieve it is wrong when people build up yers, to hire all these accountants, and In short, on five different occasions assets and build a business for govern- by forcing people to sell off businesses in the last 9 months we have voted on ment to then destroy it.

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.022 pfrm01 PsN: S12PT1 S5400 CONGRESSIONAL RECORD — SENATE June 12, 2002 I showed data yesterday indicating the category of entertainers. But, re- methods for small business people and more than 70 percent of small busi- member, those entertainers pay a lot of family farms to get an exemption from nesses that are founded by a family income tax, too. And the second largest the estate tax. The exemption today is member do not survive into the second group of males is schoolteachers, li- $1 million. It is going to go up in the generation; 87 percent do not survive brarians, and guidance counselors. future. The Senator from North Da- into the third generation. According to Do we want to punish these people kota would make it an unlimited ex- the NFIB, the No. 1 reason is the death because they have been lucky enough emption. But the problem is even un- tax. to have been born into a family in limited exemptions are worth exactly It is time to fix this provision of the which their father or mother was able nothing if you cannot qualify. In other Tax Code. We are going to have an op- to accumulate some kind of an estate? words, there is a door you have to get portunity to do that. There will only This is perverse tax policy. through. There is a gate you have to be one real amendment. There are two As I said this morning, the primary get through. You have to stay on the amendments that give political cover. problem is that the businesses that other side of that or none of this mat- There is one amendment I will offer have the value are not easily liquidated ters, and that is the problem with the that is exactly the same language the to generate the money to pay the tax. amendment of the Senator from North House passed, and if we adopt it, it will It is not as if when someone dies there Dakota. go to the President and he will sign it is a lot of money in a shoe box and In the business, people referred to it into law. That is the issue. There is one Uncle Sam taps you, as the heir, on the as QFOBI, and I am going to do that for real repeal, as my colleague from Ari- shoulder and says, I would like half of the purposes of brevity here, but it is zona says. that, 50 percent. That is not what hap- technically the family-owned business I yield the floor. pens. exclusion. That is the provision of the The PRESIDING OFFICER. The Sen- Ordinarily what happens is there is a existing law. There are actually two ator from Arizona. business. We talked this morning about different sections under which people Mr. KYL. Just so we know where we the Boone County Lumber Company in who have a small business or farm and are, I know there was time during the Columbia, MO. They have a lot of who want to be exempted for part of quorum attributed to both sides. How money tied up in lumber that they the estate tax will try to qualify. But much time remains on both sides? bought that they hope to sell—in as I said, if you can’t qualify under this The PRESIDING OFFICER. Forty- trucks, in forklifts, in warehouses, and provision, it doesn’t matter how big one minutes remain in opposition and so on. That is equipment that enables the exemption is, you are out of luck. 561⁄2 minutes remain for the pro- 30 people to have a job. When the owner The problem with this QFOBI is it is ponents. of that business dies, his family is much too difficult and too complex for Mr. KYL. Madam President, let me going to have to make a decision. They most people to be able to qualify. I will make two quick points. The first has to do not have the money to pay half of give you an idea. do with the question of who pays the the value of that business to Uncle For the calendar year 2000, 108,322 es- estate tax or the death tax. We know it Sam. The salaries that people take out tate tax returns will be filed. Of course, is not the person who died. We know it are $48,000, $60,000, some approaching only 1,470 made the QFOBI election; in is the people who have the estate and $100,000, and in some cases more than other words, about 1 percent of the who are required, therefore, to, in that, but most are the salaries of any total. many cases, actually sell a business in other small business. And bear in mind, By the way, that number is actually order to generate the cash to pay the half the small businesses in this coun- a little higher than in some previous tax. try are women owned. These salaries years. In 1999, for example, the total Who are the estate tax filers and do not generate a whole lot of capital number of estate tax returns for which what occupations do they hold? I am by which you can pay an estate tax. the exemption was requested was 173. going to quote from official Internal The only way you can get the money to In 1998, that number was 889. My col- Revenue Service reports. In the last pay the estate tax is by selling the league from Texas pointed out that analysis of the IRS of people’s occupa- business on which the estate tax is only 32 people have ever qualified for a tion and sex in filing estate tax re- based. The estate tax doesn’t say, How combination of both. But even take the turns, published in the Statistics of In- much money did you have left over at larger number we have for the tax year come Bulletin, summer of 1999, pages 72 the time of death? The estate tax says, 2000; that is 1,470, and that represents to 76, the IRS reports: What is the value of the company or about 1 percent of the total of the es- For males, the largest group of filers at the business or the farm that you are tate tax returns filed. 27.7 percent were administrators, upper man- running? The value of that business is If the percentage of people filing es- agement and business owners. The second based on the value of the equipment tate tax returns is as low as our Demo- largest group at 12.3 percent were school- teachers, librarians, and guidance coun- and the land, and so on, most of which cratic colleagues for the most part say selors. For females, the largest group of es- are probably going to be financed and it is—and although I will contest it, tate tax filers at 14.1 percent were educators. therefore probably already heavily le- let’s assume for the moment they are The next largest group at 9.6 percent were in veraged. But that value determines right—it is maybe about 2 percent of clerical and administrator support occupa- what has to be paid to Uncle Sam—half all taxpayers; and if of that 2 percent tions. of it. That is why the estate tax is par- only 1 percent of them qualify for this A significant number of the total of ticularly perverse, especially because small business or farm exemption, then estate tax filers were scientists, sales you have to do the liquidation right the amendment of the Senator from people, entertainers, airline pilots, after the time of death. North Dakota helps a grand total of military officers, and mechanics. That There is an effort by our colleague two one-hundredths of 1 percent of peo- is according to the IRS. from North Dakota, who has laid down ple filing tax returns—two one-hun- There is a vision of some fat cat sit- a second-degree amendment here—to dredths of 1 percent. The fact is, it ting on a yacht someplace that we are ‘‘improve on the existing law’’ would doesn’t even help that many people be- going to stick and get a lot of money be the way I think he would charac- cause QFOBI is recognized as very from to run the Federal Government. terize it. He does this by providing that treacherous for somebody to get in- We know the Federal Government’s the exemption we provide in the law, volved in. collections of estate taxes are only 1 that goes to $3.5 million, would go to $4 A representative of the American Bar percent, slightly more than 1 percent million, as I understand it; and for Association testified before the Ways of total revenue collections. Who is small businesses and farms it would be- and Means Committee that the provi- that money coming from? The largest come an unlimited exemption. sion was simply too complicated to be group of women were educators. The Certainly the sentiment behind that effective. A professor of law at Temple next largest were clerical and adminis- is laudable. The problem is it simply noted that very few people would try to trator support people. They are airline will not work. How do we know that? meet the qualification because of its pilots, scientists, salespeople, military Because we know it currently does not complexity. The NFIB, which rep- officers, mechanics. I can understand work. The law currently provides resents a lot of these people, testified

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.024 pfrm01 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5401 that qualifying for the family-owned you now that you have qualified? Are The PRESIDING OFFICER. The Sen- exclusion currently is difficult, costly, you home free? Not exactly. There is a ator from North Dakota controls 561⁄2 and complex. Studies by numerous or- 10-year period of time in which the IRS minutes and the time in opposition is ganizations and scholars routinely find can—and I love this term—‘‘reach 25 minutes. that family businesses spend exorbi- back’’ and collect the tax from you. Mr. DORGAN. Madam President, my tant amounts of revenue on lawyers, There is a lot that can happen that amendment is cosponsored by Senators accountants, and financial planners in could cause that to occur. If you have DURBIN, CARNAHAN, CORZINE, and order to try to do this. trouble in your business, for example, STABENOW. The reason I say even two one-hun- and go bankrupt, that is tough; as far Let me respond to some of the discus- dredths of 1 percent is a high number is as the IRS is concerned, they can go sion we just heard. I have great respect that the reality is, if you try to qualify back and collect the entire estate tax for my friend from Arizona. I have lis- for QFOBI, you are going to find your- from you. tened to him with great interest in pre- self face to face with the friendly IRS. But here is what happens even if vious debates about repealing the es- The reason is the IRS will look at things go well. The IRS, if you qual- tate tax. He believes passionately that every one of these filings. They will ify—believe me, this is the truth. It we ought to get rid of the estate tax contest a significant number of them. seems that it could not possibly be, but and makes the case for it. But I was re- As a matter of fact, in the year 2000 under the amendment of the Senator minded when I heard his discussion of there were 149 cases pending, which from North Dakota and the existing my amendment of Mark Twain who represents about 10 percent of the total law, the IRS has a lien on your prop- was asked once if he would be willing number that were filed at that time— erty, all of the estates that would be to engage in a debate. He said: Of the total number of estate tax returns subject to the estate tax, for 10 years. course, I would—as long as I can take filed at that time. There are an equal And they have a first position, which the negative side. They said: We have number of cases in the administrative means: Good luck if you want to try to not told you the subject of the debate. process. You first have to go through get financing for anything. Every small He said: It doesn’t matter. The nega- the administrative process, and then business finances its inventory, its ma- tive side will take no preparation. It is you will actually have your case taken chinery. We do not go out and buy a easy. It is inherently easy to oppose house and pay cash for it. We get a to court. things. What happens when the IRS chal- loan from the bank or from Fannie The way the opposition renders this lenges these? The IRS wins. As of the Mae, FHA or someone, and we finance amendment is almost indescribable to last time we have statistics, the IRS a home. That is the way small busi- me. I am the one offering the amend- had won 67 percent of the cases. nesses finance their operations. But, ment. But the interesting discussion good luck going to the bank when they So if you have the courage to try to that incorrectly describes this amend- know the IRS has a first lien for a pe- qualify under this QFOBI election, un- ment needs some correction. derstand you are going to have the IRS riod of 10 years and the bank only has Let me begin by talking about why question the value. It is going to be an a second position. That is a poor posi- we are here and what this debate is administrative appeal. At least 10 per- tion to be in, and the bank will tell you about. Then I will describe my amend- one of two things—either: Sorry, we cent of the cases are going to be in ment. can’t lend you the money or: We could court. And you are going to lose two- We are here because our country, a lend you the money for 2 or 3 or more thirds of the time. little more than a year ago, decided on That is why the group of lawyers percent premium. a new kind of fiscal policy. Those who In other words, if you qualify for this that works on these kinds of things, seemed to think they knew saw sur- provision, you are going to have to pay the section of the American Bar Asso- pluses for years and years ahead—sur- a lot more money if you can get financ- ciation which handles estates and ing in order to finance the continued pluses as far as the eye could see for taxes, has recommended to their law- operation of your business. Basically, the Federal budget. They said that be- yers that they not try to help people it is a set up for failure. That is why cause we have all of these surpluses qualify because it is too risky from a most people do not even try to qualify that stack up in the future, let us cut malpractice point of view. They have for it. Many of those who try cannot taxes and let us do it right now. By the recommended that this particular sec- qualify for it. It is an extraordinarily way, they said, let us cut the estate tax tion be repealed. complex and ineffective provision. sequentially so in the year 2010 it will The bottom line is that it doesn’t Therefore, with all due respect to my be completely repealed. matter whether you have a $1 million friend and colleague from North Da- It is true that the goofy kind of pro- exemption or a $3.5 million or a $4 mil- kota, his attempt to grant an unlim- posal finally offered and passed into lion exemption or an unlimited exemp- ited exemption for small businesses law takes the estate tax right up to the tion for small businesses or family and farms is fatally flawed. Very few, if repeal in 2010, and then reinstates it in farms; if you cannot qualify in the first any, of these small businesspeople or 2011. Historians will scratch their instance, it does you no good. From farmers are going to be able to qualify. heads for some while when they evalu- what we can find from IRS statistics, As a result, the amendment is, in fact, ate what was done a year ago on estate only two one-hundredths of 1 percent a nullity, and does nothing to help the tax. qualify. That doesn’t take into account very people who all of us would like to Our colleagues who want to repeal the challenges by the IRS. help. the estate tax forever because they Let me just make one last point, and I will relinquish the floor at this said we are going to have these large then I think there are others who point and hope as the debate on the and continuing budget surpluses say, would like to speak. amendment is concluded that I will although they wanted to reinstate it in I am not going to read to you the have an opportunity to talk about the 2011, they now want to make that re- page after page of complex provisions. comments that the Senator makes, and peal permanent. It is a nightmare to read and under- also to point out again that the people Of course, over a year later, things stand. I am a lawyer. I don’t under- who actually pay this tax are not the are different. We don’t see surpluses as stand it. It takes a real expert to try to kind of people you might envision but far as the eye can see. figure out how to make this work and, they are schoolteachers, airline pilots, Yesterday, the Senate had to con- as I said, the ABA itself has rec- mechanics, librarians, guidance coun- sider an increase in the debt limit. ommended to its members that they sellors, and the like, according to the Why? Because surpluses have turned to approach this with extreme caution. IRS itself. deficits. The country has an economy One of the problems with the people The PRESIDING OFFICER (Mrs. that is in some trouble. We now have who qualify is this. Let’s assume you CARNAHAN). The Senator from North deficits for some years into the future. are one of the lucky two one-hun- Dakota is recognized. Yet my friends on the other side of the dredths of 1 percent who actually qual- Mr. DORGAN. Madam President, in- aisle are coming to the Senate saying: ify and you have gotten through the form me of the time remaining on both Oh, by the way. Our urgent priority is IRS hurdles. What does this mean for sides. to permanently repeal the estate tax.

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.027 pfrm01 PsN: S12PT1 S5402 CONGRESSIONAL RECORD — SENATE June 12, 2002 Let us evaluate what these priorities the estate tax—that is, the inability to money the average worker made. That are about. pass a family farm or a small business is who is going to benefit from what Do we have a priority, for example, from the parents to the kids—let us to- the minority is proposing here today. to try to help people at the bottom of tally repeal the estate tax for the pas- In 1981, the average compensation of the economic ladder in this country— sage of a family farm or business. If it the 10 highest paid CEOs in a U.S. cor- people who are working for the min- is family owned, the parents die, and poration was $3.5 million. I come from imum wage who haven’t seen an in- the kids want to keep running it, I say a town of 300 people, a small high crease for years and have seen the don’t interrupt the transfer of that school class of nine. I happen to think value of that minimum wage eroded? business. Let us not have the kids in- $3.5 million is a lot of money. So is $3.5 Do we have an obligation to them? Is herit a business and a crippling estate million a year in compensation. That that a priority? No. It is not a priority tax. Let us allow them to inherit the was 20 years ago. Do you know what it for some. They do not want that ques- business exempt from the estate tax, if is today for the 10 highest paid CEOs in tion on the floor of the Senate. they want to keep running it. the country? It is $155 million a year. Do we have a priority to see if we This says no estate tax at all. Repeal That is who benefits from this tax can’t do something about people who it for the transfer of a business from cut. That is what this debate is all do not have health insurance—over 40 parents to children who want to keep about. They say that these folks pay million people who tonight may find running it. too much in taxes, so they want an es- their child is sick, discover they do not It is very simple. We will do it in tate tax repeal even including the high- have any money in their pocket or in 2003. I offered that amendment last est income earners in our country. And they will do that at the expense of all their bank account to help take care of year. the other priorities that exist in this their child? Do we have a priority to Those who come to the floor of the Senate and say they are persuaded to country. deal with sick children and people who I say, yes, let’s repeal the estate tax propose a permanent repeal of the es- do not have the capability of providing for the passage of family-run busi- tate tax because they care so much health insurance for their children? No. nesses and farms. Let’s provide an $8 about family businesses and the trans- That is not a priority for some. million threshold for families, below How about schools? Are schools a pri- fer of family assets to the kids who which you will pay no estate tax. But if ority? want to run the business are the ones you are fortunate enough to have tens I have spoken on the floor of the Sen- who voted against my amendment. and hundreds of millions and billions of ate many times about schools. I toured This amendment will provide that re- dollars, I think it is important to un- a school populated largely by American peal next year. Their proposal would derstand a couple things. Indians. But it is a public school dis- provide the repeal some 7 years later. One, most of that has never ever been trict. And a little girl in the third One wonders whether they care less taxed. Most of it comes from the grade named Rosie Two Bears looked about this issue and more about repeal- growth appreciation on assets and has up at me and said: Mr. Senator, will ing the estate tax for the wealthiest never been subject to a tax. And, yes, I you be able to build us a new school? Americans. Or do they really care think your descendents ought to get a Do you know why they needed a new about family businesses and family fair part of that. But I also think this school? Because there are 150 kids and farms? If so, this is the amendment to country ought to capture part of that two toilets and one water fountain. support. and use it to invest in our kids, invest They were holding classes in a base- Let me talk a little bit about privi- in education, invest in the solvency of ment room in a building that had been lege and those at the upper end of the Social Security, invest in the solvency condemned long ago. Two or three economic ladder. of Medicare, to strengthen this coun- times a week they had to evacuate that I think it is terrific that in this coun- try. That is what I think ought to hap- classroom because sewer gas was back- try people do well. In fact, we have pen. ing up in the classroom. Rosie Two some innovative geniuses in this coun- Let’s talk about compensation just Bears wanted to know if her Senator try who have done very well. One-half for a minute. I mentioned some of the could build her a new school. Incred- of the world’s billionaires live here, compensation that exists for individ- ibly, the answer is we don’t build new and good for them. uals. I have a chart that shows the 1- schools. But let me talk about the question of year compensation in the year 2000. But the question is, Is education a whether our priority at this point— These are the people, incidentally, who priority for that young girl and others given the kind of Federal budget defi- are the beneficiaries of this proposal. around the country? Not for some— cits we have and the kind of economic And I guess I don’t know of a time that is not on the floor of the Senate. problems we have—ought to be to bring when I have heard people come to the This isn’t about helping people at the to the floor of the Senate a billionaire floor of the Senate and say: I know we bottom of the economic ladder. This is tax relief package. Because that is face a big budget deficit, I know our not helping to address the issue of what this is. This is all about, let’s cut economy is in some trouble, I know we health care costs, or lack of health taxes for billionaires. And you can de- have other priorities—education, care coverage, or lack of insurance for scribe it however you want. health care, and other things—but our some American families—nearly 40 You can put all kinds of seasoning in priority is to provide a tax cut for the million of them. This is not about im- it. You can stir it up, boil it; you can wealthiest Americans. These figures— proving American schools. No. This do whatever you want with it. Just $290 million, $225 million, $157 million— issue is different than that. This issue strip it away, it is a tax cut for billion- these are individual compensation is saying, let us permanently repeal aires, when we have very big Federal numbers in the year 2000 for people who the estate tax. deficits and when we have other prior- ran America’s corporations. These are How narrow is this? Let me describe ities that some in this Chamber want the people who will ultimately benefit the amendment I am offering and that to ignore. from repealing the estate tax. I offered last year which got 43 votes. Let me talk about some of these We have a lot of folks out there in Those who now speak loudly about the issues. Here shown on this chart are this country who are working hard, need to repeal the estate tax voted people who are going to benefit from trying to do the best job they can. against my amendment last year. the proposal on the floor of the Senate Look, they are never going to pay an My amendment said the following: It to permanently repeal the estate tax. estate tax. They are not going to have said, let us have a $4 million exemption That is why I want to amend it, so we $8 million, as provided under my per estate—$8 million for husband and don’t repeal the estate tax for every- amendment. But their proposal today wife. If you have fewer assets than $8 body. is to say $8 million isn’t enough of a million, you pay no estate tax under The chief executive officers of our threshold; we need to be able to exempt any circumstance. corporations in this country, in 1980, those who have $20 billion, those who My amendment also said, by the way, made 42 times the amount of money have $2 billion, those who have $500 this issue that the other side contin- that the average worker made. Twenty million in assets, so none of those as- ually says persuaded them to deal with years later, they made 531 times the sets can ever be used to help America’s

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.032 pfrm01 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5403 children, to invest in America’s next year, then vote against our When the Senator from Arizona was schools, to strengthen Social Security, amendment, but don’t you go home and present, he said this issue called to strengthen Medicare, and to do the say you stood for family businesses and QFOBI, which is the method by which other things we also know are nec- family farms. Don’t you dare do that, you value the assets of family-owned essary. because voting against this amend- businesses, is totally unworkable. The So my amendment, as indicated, is ment, just as many of you did last Center on Budget and Policy Priorities very simple. It was described in a tor- year—we got 43 votes in favor—voting says that businesses can easily qualify tured way by my colleague from Ari- against it is to say to folks back home: for this special status as long as the zona. He said: Well, you know, if you No, I want you to wait 7 or 8 years for family owns and operates the business try to exempt family businesses and the relief that was offered permanently and intends to continue to do so. family farms, you run into this web of in this amendment for family busi- Let’s say you have a $200 million complexity. A web of complexity, he nesses and family farms. family business, a big one. In my judg- calls it. So the result is, we have to ex- Ms. STABENOW. Will my friend from ment, if it is family owned, it goes to empt from the estate tax billionaires North Dakota yield? the lineal descendants. If they want to in order to solve the issue of family Mr. DORGAN. I am happy to yield. continue to operate it, no tax. We re- farms and family businesses? I don’t Ms. STABENOW. I thank the Sen- peal the estate tax for that transfer. If, think so. I think if you go into any ator. however, there are not lineal descend- store in the county, they call that a I rise to thank my colleague for this ants who want to operate it—one lives bait and switch. amendment. And I join him. I am very in California and one in Florida, one in You come out to the floor of the Sen- proud to be a cosponsor of this amend- Texas—and they want to sell the as- ate and say: Look, our mission is very ment. I appreciate very much what he sets, they have the same $8 million ex- simple. Our mission is in support of is doing. emption that we would provide in this family farms and small businesses. It seems to me, as we have looked at amendment. That is what we are trying to do, to get this issue to find the right balance, The Senator from Michigan is cor- rid of the crippling estate tax that ex- that this amendment is in fact the rect. This affects very few estates. right balance. It says that we will say ists on the transfer of a business or a They are only the largest estates, and to our family farmers and family- farm from the parents to the kids. I that is what we are fighting about. owned businesses—of whom we have say, if that is your mission, then I am We have people here saying: That is many in Michigan—that we want to with you. our priority, tax exemption, tax relief Let’s repeal the estate tax for the make sure, after you have worked hard for the highest income earners in our transfer of that property. The kids and your family has been able to de- country at a time when we have so want to run the business? It is fine velop a good business or family farm, many other priorities. that if you want to pass that along to with me. I don’t think we ought to shut Ms. STABENOW. If I might again say your children, you will be able to do the business down. I don’t think we to the Senator from North Dakota, I that and that it not be jeopardized in ought to load the business with an es- thank him on behalf of Michigan fam- any way. That makes perfect sense to tate tax debt. I think the parents ought ily farmers and small family-owned me. I support repeal for family-owned to be able to move that business to the businesses, as well as large family- enterprises. owned businesses, for putting forward kids upon the death of the parents with I think it also says that we are going no estate tax obligation at all. And what I believe is, in fact, just the right to set a limit, we are going to set prior- balance. We say to our family-owned that is what my amendment does. ities for the country, so when we are No amount of arm waving in this enterprises, we want you, if you have talking about a billionaire versus hav- Chamber can obscure the fact that we worked hard all your life, to be able to ing the resources for seniors or families pass on that business, that farm to have an exemption that is workable. It to be able to afford prescription drug has only been in existence since 1997, I your family. We want to make sure you coverage—which is also a tax, I would are not paying the inheritance tax. But might say. It was described as QFOBI, argue a significant tax, on our seniors which is an acronym. We use too many at the same time we say to middle- and our families—or whether it is look- class families and seniors and every- acronyms in this town. The fact is, if ing at the priority of educating our you have spent the last couple of years body else in the country that we are children, we are going to have a bal- going to make sure your priorities, of your career talking about protecting ance, and those who are the top billion- small businesses and family farms, and those that affect the majority of Amer- aires in this country ought to con- icans, will be funded before we, in fact, its passage to the kids, then don’t vote tribute to national defense and the war against this amendment and say to give a tax cut again to the top half a on terrorism and education and health percent of the public, the top billion- folks back home: Oh, by the way, it care, and so on. was too complicated. aires of the country. So I wonder. I would just ask my It is the right balance. It is the right This amendment I offer does two friend from North Dakota a question. things. It provides an $8 million unified set of priorities. I thank my friend. I It is my understanding that our appreciate the opportunity to join with credit threshold for a husband and amendment would in fact exempt 99.5 wife, below which there is no estate him in his amendment. percent of all of those who might pay How much time remains on my side? tax. It is repealed for everybody below the estate tax. Is that correct? The PRESIDING OFFICER. The Sen- $8 million in assets, husband and wife. Mr. DORGAN. The Senator from ator has 351⁄2 minutes. And second, and most important to me, Michigan is correct. Well over 99.5 per- Mr. DORGAN. I reserve the remain- is that family businesses, regardless of cent will no longer have to pay an es- der of my time. size, if transferred to the kids—and if tate tax. But even that is not enough Mr. GRAMM. Madam President, how those kids continue to run those family for those who insist on complete re- much time do we have? businesses—will be exempt from the es- peal. Those who insist on complete re- The PRESIDING OFFICER. The Sen- tate tax; and, no, not in 2010, but in peal are saying—during a tough time, ator has 25 minutes. 2003. where we have Federal budget deficits Mr. GRAMM. Let me take 5 minutes You see, the problem with the pro- and other priorities that we can’t of it. Then I will yield to the Senator posal offered by the other side, first of fund—they are saying: This is our pri- from Colorado. all, is they propose a complete repeal, ority. The top of the heap. Those at the The PRESIDING OFFICER. The Sen- but it just kind of dribbles along, as very top, the billionaires, the $100 mil- ator from Texas is recognized. with most of their proposal; they just lion per year executives, that is our Mr. GRAMM. Madam President, facts dribble it out over a period of time. If priority. We believe that our priority is are persistent things. The good thing it is worthy to say, let’s not interrupt to exempt those estates from an obliga- about fiction is you can always have it the transfer of a family business, so the tion. the way you want it. If you make it up, kids can continue to operate it without The Senator from Michigan is right. it can always be good, if you are for it. an estate tax obligation—let’s do it Over 99.5 percent of estates will not be It can always be bad, if you are against next year. If you don’t want to do it subject to an estate tax. it. But facts are persistent things.

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.035 pfrm01 PsN: S12PT1 S5404 CONGRESSIONAL RECORD — SENATE June 12, 2002 In 1997, recognizing that we had con- people who are going to vote to sustain to Washington. So I truly understand fiscatory taxes on small businesses and this point of order so that even though the concerns of those who live in fear family farms upon death but not being we have a majority who want to repeal of the impact that this tax will have on willing to repeal the death tax, which the death tax, we won’t be able to do it their legacy to their children. our Democrat colleagues are not will- today. But they are going to vote for The estate tax has resulted in the ing to do—the only vote we are going these proposals where only 33 farmers loss of family farms and family busi- to have today that would repeal the and ranchers in 5 years have qualified, nesses across the Nation. Many people death tax or would change the death and they are not outside the 10-year work their entire lives to build a busi- tax, the only one that would go to the window. They may not end up quali- ness that they can pass on to their President to be signed today is the one fying. children. When these hard-working I will offer—wanting to get credit for They are going to go back home and businessmen and farmers pass away, helping without helping, we adopted a say: Look, I wasn’t against repealing their families are often forced to sell provision called 2057. That is the close- the death tax. I just was against their off the business to pay the estate tax. ly held family business exemption. repeal of the death tax. I see this as an affront to those who Our colleague says: We will expand it There is only one real repeal, and try to pass on the fruits of their life’s so it will cover every small business, that is the one that passed the House. work to their children. America was every family farm. I yield 5 minutes to the Senator from founded on entrepreneurship and hard It has been in effect for 5 years. How Colorado. work, and a high death tax serves to many farmers and ranchers do you The PRESIDING OFFICER. The Sen- stifle both. think have qualified for this protection ator from Colorado. The people affected by this tax are in 5 years? In 5 years that this provi- Mr. ALLARD. Madam President, I not necessarily wealthy. Many small sion of law has been in effect, only 33 thank my colleague, the Senator from businesspeople are cash poor but asset farm and ranch families have qualified. Texas, Mr. GRAMM, and my colleague rich. For example, the owner of a small This bill that is being offered as an from Arizona, Senator KYL, for their restaurant might have $800,000 of assets alternative to the real repeal of the tremendous effort in working on elimi- but not much cash on hand. Her chil- death tax is not about 33 families. It is nating the death tax. dren will still have to pay an excessive about protecting 40 Senators by giving I rise in opposition to the Dorgan tax on the assets. them a fig leaf when they vote against amendment and in support of the The produce wholesaler, who has in- repeal of the death tax. Gramm amendment which is the provi- vested all of his revenue in trucks and The plain truth is in 5 years of being sion that was passed out of the House storage, might have more than $700,000 in effect, this provision has afforded re- of Representatives last week. Fun- in assets. That does not make him a lief to 33 farmers and ranchers. And damentally, if we want to help farmers cash-wealthy man. Yet he is still sub- why? It is 17 pages of single-spaced re- and ranchers, if we want to help small ject to this so-called ‘‘tax on the quirements. It gives the government a businesspeople, we need to kill the wealthy.’’ In too many situations the lien against your property for 10 years. death tax. It is a sham to put in quali- heirs must dismantle or sell a family It sets up requirements like ownership fiers and provisions so that such a business simply to pay the taxes. This of assets for at least 8 years, when if small number of small businesspeople isn’t right. you are growing chickens, they don’t can qualify instead of eliminating the The death tax also impacts employ- live 8 years. tax altogether. ment and the economy. When a family- The bottom line is, this is absolutely What we need to do is to kill the owned farm or a small business closes, unworkable and meaningless except for death tax. This unfair tax has been a the workers lose their jobs. Conversely, fewer taxpayers than we are going to concern of mine for some time. I have leaving resources in the economy can have Senators vote against repeal of previously introduced my own legisla- create jobs. In fact, in a 1995 Gallup the death tax. tion to eliminate the death tax. I was Poll, 60 percent of business owners re- I go back and make my point: Our pleased to support the repeal of the ported that they would add more jobs colleagues know this is an issue that death tax as part of last year’s tax re- over the coming year if the death tax Americans care about. They des- lief package. But those cuts simply do were eliminated. perately want to spend the money we not go far enough. Additionally, the estate tax is a dis- are collecting by making people sell One of the tenets of a fair tax system incentive for Americans to save their their farms, sell their businesses upon is that income is taxed only once. I earnings. The government has created the death of the founder in order to know this argument has been made a a number of tax breaks and other in- give the government 55 cents out of number of times by my colleagues. centives for those who save their every dollar they have accumulated in These small businesspeople, farmers money: 401(k)s and IRAs—to name a their lifetime. But rather than repeal and ranchers, families are subjected to few. Yet the estate tax sends a con- the tax so that this absolute tragedy a tax that is initiated at the time of tradictory message. Basically, it says, and theft could stop, this outrage could tragedy in the family, an event when ‘‘If you don’t spend all your savings by end, they are offering basically a pro- somebody passes away. This is money the time you die, the government will posal that has proven to be unwork- on which the taxpayer has already paid penalize you.’’ This tax is no small pen- able. taxes. Income should be taxed when it alty, either. We are talking about some When it gets down to the bottom is first earned or realized. It should not very high tax rates. line, the question before us is a very be repeatedly taxed by the government. The death tax also represents an un- simple one: Do you think it is worth The death tax simply violates this just double taxation. The savings were making people sell their business, sell tenet. The way I see it, it comes down taxed initially when they were earned. their farm, sell off the product of their to one question: Should death be a tax- Then, when the saver passes away, the life’s work to give government 55 cents able event? I emphatically believe the government comes along and takes a out of every dollar they have accumu- answer is no. second cut. There is no good reason for lated, even though every dollar they People who work hard and save the current system—other than the have accumulated they have paid taxes throughout their lifetime should be government’s desire to make a profit. on, so that Government can spend that able to expect that the products of The current death tax law has a money? Or do you think it would be their labor will go on to help their fam- greater effect on the lower end of the better to let people keep the money ily, not go on to fund some politician’s scale than the higher. Wealthy people and eliminate the situation where pet project. can afford lawyers and planners to help death is a taxable event? That is the This issue of the death tax really hits them plan their estate. Those at the question before us. home for me. Family farms and small lower end of the estate tax scale are There is only one real repeal. I have businesses are two of the groups most often unable to afford sophisticated es- been around the track before. I have affected by the estate tax. I grew up on tate planning. So the current law also seen it. I know what is going to happen my family’s ranch in Colorado, and I makes the tax somewhat regressive, here. We are going to have a bunch of owned a small business before I came which is not fair. This is particularly

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.038 pfrm01 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5405 true given the uncertainty of the tax how you do it, but can you help me pay nois—just one example—of a farm fam- due to phase in and sunset dates. for health insurance for my wife, my- ily who lost their farm because of the Planning and compliance with the es- self, and my employees? It is killing Federal estate tax? No; none, zero; not tate tax can consume substantial re- me, going up 25, 30 percent a year. one example. Senator DORGAN and I sources. The National Association of There is another interesting idea for came together with Senator CARNAHAN Manufacturers has reported that more tax relief. and said: Let’s go after real estate tax than 40 percent of its members have Then you go to the other corner and reform that solves any problems we spent at least $100,000 on death tax stop by a senior citizen gathering and can envision. I salute Senator DORGAN planning. For three out of five mem- say: Do you have any ideas for some- for his leadership because he said: Why bers the annual compliance costs are thing we can do by way of tax relief? don’t we just flat out exempt any farm, more than $25,000. This is money that They will probably say: Senator, can any business that is going to be trans- could have been better spent to expand you do something about the high cost ferred from one family member to the the business and create new jobs—rath- of prescription drugs in this country? next? Let’s just say they will not pay er than dealing with the death tax. We cannot afford to fill the prescrip- any estate tax. That puts it into the The estate tax only raises 1 percent tions the doctors give us. argument that this is confiscating of Federal revenue, yet it costs farms, There you have it—three proposals businesses and farms. businesses, and jobs. No American fam- you are likely to find in any city or The amendment is very simple. It is ily should lose their farm or business town in America to deal with real very straightforward. Guess what. It because of the Federal government. I American family problems, such as takes effect next year. It is immediate. support full permanent repeal of the paying for a college education, paying So all of those who vote against the Federal estate tax. for health insurance, affording pre- Dorgan amendment are saying, post- I urge my colleagues to end this un- scription drugs. You might ask your- pone this and for 7 years, leave busi- fair system and join me in supporting self, of all the possibilities, why is Con- nesses and farms in the lurch, if there permanent repeal of the death tax. gress focusing instead on tax relief for is one, when it comes to estate tax li- Mr. DORGAN. Madam President, I the wealthiest people in the country ability. yield 10 minutes to the Senator from and ignoring the tax relief that the av- Illinois. erage person in America would like to Senator DORGAN put together this The PRESIDING OFFICER. The Sen- see us enact? The reason is because the amendment, which I cosponsored, ator from Illinois is recognized. special interest groups have been at which says farms and businesses which Mr. DURBIN. Madam President, I am work. pass to lineal heirs—children—are not happy to stand as a cosponsor of the First, they hired the pollster who de- going to pay any estate tax. That is as amendment by Senator DORGAN and cided to stop calling it ‘‘estate’’ tax clear as it can be, and it goes into ef- Senator CARNAHAN of Missouri. People and start calling it a ‘‘death’’ tax. Peo- fect immediately. who are following this debate in our ple think that is terrible that you are Then he says: Let us increase the ex- Chamber and by C–SPAN must wonder going to tax someone for dying. Well, emption for other estates from what what we are doing today. We are talk- look at the Senate floor here. Look at will be about $1 million to $4 million ing about tax cuts, tax breaks, tax re- the other side. The poster says: ‘‘repeal for individuals, $8 million for married lief. the death tax.’’ So they caught on. people. What would that cover? Can you think of a more popular From now on it is no longer the estate Let’s assume you bought a home that issue or subject for us to entertain on tax, it is the death tax. has dramatically appreciated in value. the floor of the U.S. Senate? Forget for And then they said you have to con- I have seen it in Illinois, Washington, a moment that we are in deficit, that vince everybody in America that this is California, you name it, and you have we are taking billions of dollars out of a tax they have to worry about. Forget an estate that is left over that has a the Social Security trust fund because for a moment that it is only a handful value of over $1 million. The Dorgan- of our last tax decision and events that of people who ever pay the Federal es- Durbin-Carnahan amendment will ex- have intervened. Forget that for a mo- tate tax. I went to O’Hare Airport a few empt your estate from paying any Fed- ment and just concentrate on tax relief months ago when we were in the mid- eral taxes, $4 million for an individual, for America. dle of an earlier debate on this issue. $8 million for a couple. If you would go out on the street cor- This is a true story. The baggage han- Yet the Republicans have said that is ner in Springfield, IL, or in Chicago, dler for United Airlines who took my not nearly enough. Madam President, which I represent, or in Texas or in bags at the sidewalk said to me: Sen- you know who they are protecting? It North Dakota, and say to the first five ator, would you do something about is not a farmer. It is not a people walking by: If Congress is going this death tax? I almost said to him: businessperson. It is not a person who to consider tax relief and tax cuts, Sir, there is no way in your lifetime, has really done pretty well in life. It is what do you think they ought to con- even if you win the lottery, that you the superrich. centrate on? I guarantee you not a sin- are likely to ever pay the Federal es- gle soul will come up to you and say: tate tax. What you ought to think The Senator from Texas called the What they ought to concentrate on are about is getting your kids through col- estate tax an absolute tragedy and the multimillionaires who may pass lege, health insurance, prescription theft—theft. The Senator from Colo- away and owe some money to the Fed- drugs for your mom and dad. Those are rado then said: Why should death be a eral Government; that is the thing that the things that will affect your life. taxable event? Let me ask a question: keeps my family up at night. We are They have done very well here. They Why should work be a taxable event? worried about that possibility—that have convinced the average person in People who get up every morning and someone who is worth millions of dol- the street that the Government is struggle in the workplace at their job lars may end up paying some money to standing by the funeral home waiting pay income taxes. We pay taxes on the Government. to slap a lien on the car of the widow. sales, on income, and other items in No. Most people would say: I will tell It just is not true. our society so we will have enough you what bothers me, Senator. I cannot Let me tell you something else they money to make sure the Department of figure out how to pay for my kids’ col- are arguing. They are arguing that this Defense can defend America, so there lege education expenses. Why don’t you is a tax that is destroying farmers and are hospitals, highways, and schools make that deductible? That would help small businesspeople, that they are that add to the quality of life of our my family and would help our country. taking away a farm that has been in a country. That makes sense, doesn’t it? family for generations because of the I will tell my colleagues what we are If you went into the store on the cor- estate tax. going to do: If the Republicans have ner and said to the businessperson at I wrote a letter to the Illinois Farm their way and eliminate the estate tax the store: What do you think is a good Bureau and the Farmers Union last for the superrich in America, they are tax relief measure for Congress to con- year and said: Can you give me one ex- going to put a greater burden on taxing sider? They might say: I am not sure ample of a farm in the State of Illi- work in America. They will push more

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.004 pfrm01 PsN: S12PT1 S5406 CONGRESSIONAL RECORD — SENATE June 12, 2002 of that burden right down to the work- sibility? My sympathy goes with the the accountants get the money, and ing person, the average working fam- working families, and my support goes they hope that the Federal Treasury ily. That is not fair. It is totally un- for this amendment. will not get the money. They have to fair. I yield the floor. spend a lot of money, that they should If this Senate is going to address real The PRESIDING OFFICER. Who be putting back in their farm, to figure tax reform, we should at least be fair in yields time? out how to avoid this tax. the way we address it and not make Mr. GRAMM. Madam President, I So what they avoid does not come to certain that the wealthiest people in yield 5 minutes to the Senator from the Treasury, but there is a heavy this country are always the first to Missouri. planning cost on how to get away from benefit from tax relief. This debate ig- The PRESIDING OFFICER. The Sen- paying the estate tax that is paid by nores the average person, the average ator from Missouri. small businesses and farmers. family, and the average business and Mr. BOND. Madam President, I thank Before us we have an amendment farm in America. my good friend from Texas. I say to my which says we are going to expand sec- This debate is about protecting the colleague from Illinois, if the wealthi- tion 2057 of the Internal Revenue Code, superrich who have their voices on the est people say not to bother repealing the Qualified Family-Owned Business floor of the Senate and in the hallways the death tax, it is probably because it Interest exclusion, QFOBI, I guess is right outside all lined up. They come does not bother them. A lot of the what it is called. My colleagues pro- here in their Gucci loafers and their wealthiest people do not really worry pose to make it bigger, better, longer, fine tailored suits, and they put in about the death tax. If you have and stronger, but in 2000 only 1.3 per- these amendments to protect the enough money, it does not matter what cent of family-owned businesses ap- superrich. you would pay. Most of them can spend plied for this 2057 exemption. Meanwhile, day in and day out, the hundreds of thousands and millions of There are people saying we are going average person, the average family in dollars to avoid the death tax. to allow you to save small businesses America works hard and worries about By and large, the people who are pay- and farms from the estate tax through paying the bills. Why in the world are ing the death tax are not the very this provision, but the provision does we doing this? wealthy. They are hard-working peo- not work. In short, a flat tire cannot be To call this an absolute tragedy and ple, many of them educators, as my made to roll simply by making it big- theft is to ignore the fact that elimi- colleague from Arizona has pointed ger. This 2057 exclusion is too com- nating the estate tax on the wealthiest out. But there are an awful lot of farm- plicated to provide widespread relief to people in America will create a theft ers and small businesses. estates harmed by the death tax. on our Treasury, it will create a theft I have spent a good deal of my time As my colleague from Arizona has on the working families of this coun- in my service in the Senate listening to pointed out, it is so complex that the try. farmers and owners of small busi- American Bar Association urges its tax Do my colleagues want to know what nesses. In fact, that is where I get most lawyers not even to try it because it is the highest tax priority ought to be in of my ideas. That is where we got the so filled with traps and so many Catch- our country? The highest tax priority idea to strengthen the regulatory relief 22s that they can get sued for mal- ought to be on working families, and for small businesses and to provide the practice if they try to use it. we are not doing that today. We are ig- assistance we give to farmers to open In order to qualify, the business must noring working families. We are trying up markets abroad. constitute at least 50 percent of the es- our best to preserve the very best for We have talked about regulatory re- tate’s value. The decedent must have the wealthiest of our country. lief, and we have provided a number of owned and been actively involved in I am happy to support this amend- areas of tax relief, but one of the issues the family business for at least 5 of the ment. I also want to indicate, we took that is the top priority for the farmers 8 years leading up to his or her death. a little survey since 1990 of all the and the small businesses in my State is Following the death of the owner, the times the estate tax issue has come to getting rid of the death tax. These are heirs must continue to participate in the floor of the Senate. It goes on for not the wealthiest people. These are the business for at least 10 years. hundreds and hundreds of occasions. people who fear that what they have But once the business is transferred, We have a chance today with the worked hard to save, to put away, to the estate tax deferred by receiving Dorgan amendment to do something leave to their children, is going to be this designation hangs over the busi- that finally puts this to rest. We do it taken away by the tax collector. ness for at least 10 years, and the IRS in a sensible way. We do not raid the This morning we had a news con- has a first position lien on the prop- Treasury and we do not say 10 years ference. We were joined by Brad Eiffert erty. So the small business cannot bor- from now we are going to jeopardize of Columbia, MO. He owns Boone Coun- row money without going to a loan the Social Security trust funds so we ty Lumber Company. He and his broth- with a secondary position, if they can can give a favor to the wealthiest peo- er work in a business that their father even get one. Moreover, such loans cost ple in this country. started. They have a very successful them more. It is interesting, when this debate business with 30 employees. They have If the business goes bankrupt and got underway, some of the wealthiest worked hard, and they have a great they cannot continue it, then the IRS people said: Stop, I don’t need your tax deal of equipment used in their busi- goes back and gets the entire estate relief; I am doing just fine, thank you. ness. tax. One hundred percent could become That does not dissuade those on the They want to continue the business due with interest. Not surprisingly, Republican side of the aisle from push- after their father passes on, but they there are not many people who are ing this idea and saying: If we are have found that, because of the invest- willing to play this kind of Russian going to give any kind of break in ment in the equipment, they will have roulette. America, it should go to those well off. to pay a tremendous estate tax. So now If this amendment were to become I have been reading what has been each year they take out of that busi- law, I can only imagine the insurance going on in terms of corporate CEOs ness almost $60,000 for insurance pre- premiums that would be required. who are waltzing away with millions of miums to pay the tax man. This is The PRESIDING OFFICER. The Sen- dollars from these corporations even money that could be going to the em- ator’s time has expired. when the corporations are failing. ployees, it could be going to buy new Mr. BOND. We need to kill the estate These are people worth tens of mil- equipment, or it could be going to build tax and keep it dead and not let it lions, hundreds of millions of dollars, the business in many ways. They really spring back. That is what farmers and the very people the repeal of the estate want to get rid of the death tax. small businesses in my State want. tax is designed to protect. Do you have Farmers I have talked with have told The PRESIDING OFFICER (Mr. a lot of sympathy in your heart for me that they have spent over $100,000 REED). Who yields time? some of these CEOs who have falsified in lawyers fees and accountants fees Mr. DORGAN. Mr. President, I yield their business records, who have been trying to figure out how to get around 10 minutes to the Senator from Mis- guilty of the worst corporate irrespon- the tax. The lawyers get the money, souri.

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.041 pfrm01 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5407 Mrs. CARNAHAN. Mr. President, I to support these programs. At a time fair amount. It is fairly new, but it is am pleased to offer this amendment when we are running budget deficits interesting to me that the proposal by along with my good friends, Senators and Social Security and Medicare the Senator from Texas and others last DURBIN and DORGAN. Our amendment funds are being used to pay for other year to repeal the estate tax also re- will, as of January 2003, permanently programs, it is not wise to take any ac- pealed in their legislation the family- exempt all small businesses and fam- tion that would threaten the solvency owned business deduction in 2004. They ily-owned farms from the estate tax. of these programs. are the ones who decided that they Let me repeat that because I do not Who would the Gramm amendment were going to repeal the family-owned want there to be any confusion. The benefit? The tax cut passed last year, business deduction in 2004. Dorgan-Durbin-Carnahan amendment which I supported, eliminating the tax What they also came up with last will eliminate the estate tax burden on on estates of less than $3.5 million, and year, I suspect we will not hear anyone all small businesses and family-owned our amendment would extend this pro- defend because it is almost the sort of farms effective January 2003. vision permanently. By 2009, estates thing that you are going to put in ma- The estate tax is having an impact worth less than $4 million would owe terial for comedians. that was never intended when it was no estate tax. There are very few They came up with a tax plan that first enacted. Those in line to inherit American families who have to worry says, We will gradually repeal the es- family-owned businesses and farms are about having estates of more than $4 tate tax from now until the year 2010, having to sell them to pay the estate million. I only wish there were more of at which point it is repealed. In 2011, tax. That is not right. Parents who my constituents who had this problem. we will reinstate it. They are saying to work hard for their whole lives build- In reality, the very wealthiest Amer- the American people, by the way, if ing up a business want to pass the icans would benefit from the Gramm anyone has a notion of planning your fruits of their labor on to their chil- amendment, but the programs that death, make sure you die in 2010 be- dren. The same is true of farmers. We middle Americans rely on for their re- cause that is the only year in the next want family farms to be passed tirement security would be harmed, as 10 or so years when there is a complete through the generations. We want chil- would our ability to provide a much- repeal of the estate tax. dren to be able to farm the land farmed needed prescription drug benefit for I don’t know what pencils they used. by their parents and possibly their seniors. I don’t know what assistance they had grandparents before them. So the choice is clear. If we want to or consulting advice they received The amendment that Senator DOR- make sure that parents will be able to when in a closed and dark room some- GAN, Senator DURBIN, and I are offering pass their businesses and farms down place they decided to repeal the estate today would allow just that. It would to their children and we want to pro- tax gradually over 10 years and then ensure no family-owned business would vide this relief right now, not in 2011, bring it back in the 11th year. And, by ever have to be sold to cover estate and we want to do this in a way that the way, in doing so, we will in 3 taxes. So perhaps one is asking: What does not threaten the long-term sol- years—— is the difference between our amend- vency of Social Security and Medicare, Mr. KYL. I say to the Senator from ment and Senator GRAMM’s amend- we should vote for the Dorgan-Durbin- North Dakota—— ment? Well, there are big ones. First, Carnahan amendment and against the The PRESIDING OFFICER. The Sen- Senator GRAMM’s amendment does Gramm amendment. ator from North Dakota has the floor. nothing for family-owned enterprises I yield the floor. Mr. KYL. The Senator from North until 2011. Under the Gramm amend- The PRESIDING OFFICER. Who Dakota suggested this was done in a ment, they will have to continue to yields time? dark room. pay estate taxes for the next 7 years. Mr. DORGAN. Mr. President, how The PRESIDING OFFICER. Does the Our amendment would end estate much time remains on each side? Senator yield? taxes on family-owned farms and busi- The PRESIDING OFFICER. The Sen- Mr. DORGAN. Let me say by unani- nesses beginning next year. We have ator from North Dakota has 191⁄2 min- mous consent, the room was not dark. heard today concerns that the exclu- utes. The Senator from Texas has 6 The room was not dark. sion for family businesses is complex. I minutes 20 seconds. In addition to creating this comedic am more than willing to work with my Mr. DORGAN. Mr. President, let me approach to tax relief, they decided in colleagues to improve the family busi- make a couple of additional observa- 2004 they will repeal the family-owned ness exclusion, and I welcome their tions, and I suspect the Senator from business deduction. Those who say support for our proposal to truly pro- Texas will wish to conclude his com- they are on the floor of the Senate to tect family farms and businesses. ments after which I will conclude mine. help family businesses and family Our amendment would also relieve The Senator from Texas said a while farms are the very ones who stuck in family-owned enterprises from the bur- ago that facts are stubborn, and that is their bill last year a repeal of the fam- den of estate planning. Since there true. Facts are also sticky. They tend ily-owned business deduction in 2004. would be no estate tax, there would be to hang around a fair amount. You can make one of two points, but no need for estate planning. Under Sen- Let me describe a few facts about not all at the same time. You can say, ator GRAMM’s amendment, the full es- this debate, and this issue. Despite all as they say incorrectly, that the fam- tate tax will remain in effect until 2010. of the tap dancing around this issue, ily-owned business deduction does not So family-owned enterprises would our amendment would say to farms and work. If that is the case, they probably still have to pay a lawyer and an ac- businesses in this country that if you should have repealed immediately. But countant to prepare for the possibility are passed to the kids who will keep they are saying it does not work so we that they may be subject to the tax. running it following the death of the will let it continue not to work and re- The other key difference is that Sen- parents, we will repeal the estate tax peal it later. I suppose this is also ator GRAMM’s amendment would per- for that transfer effective next year. great material for comedy but a pretty manently eliminate the estate tax for My colleagues have said we would poor excuse, in my judgment, for sound multibillionaires. I do not believe this like to repeal it as well, and repeal a tax policy. is good policy. The Gramm amendment lot more for that matter, but we will Strip away all of the leaves and ask would cost approximately $740 billion do that 7 years from now. We will start the question, What are the issues? Sim- over 10 years and trillions of dollars in 7 years from now with our complete re- ply, they are these: the decades after that. peal. I propose an $8 million unified estate Ironically, the amendment would go If it is, in fact, a priority, why would tax exemption for a husband and wife. into effect at the time the baby they not do it effective January 1 of If you do not have assets equalling $8 boomers will start to retire. So as the next year? million, do not worry, you will never number of people drawing on Social Se- In addition, we have heard some dis- have an estate tax obligation. That is curity and Medicare starts to increase cussion about the fact that this family- No. 1. dramatically, the Gramm amendment owned business exclusion does not No. 2, I propose a total repeal of the would be draining the funds necessary work. The fact is, it has been used a estate tax in 2003 for the passage of a

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.045 pfrm01 PsN: S12PT1 S5408 CONGRESSIONAL RECORD — SENATE June 12, 2002 family business or a farm to the kids Mr. REID. I ask unanimous consent Mr. GRAMM. I am going to yield 3 who want to continue to run it. If the that the quorum call I am about to ask minutes 20 seconds to my colleague parents die, and the kids want to run for not be charged against either side. from Arizona, and then I would like that operation, I say good for them. The PRESIDING OFFICER. Without Senator DORGAN to use his time and The last thing in the world we want to objection, it is so ordered. then I will conclude. do is interrupt that with an estate tax Mr. REID. I suggest the absence of a Mr. KYL. Mr. President, I agree with obligation. It is repealed for such busi- quorum. the Senator from Nevada, except for nesses, regardless of size. We do that The PRESIDING OFFICER. The some recent comments made by the January 1, 2003. clerk will call the roll. Senator from North Dakota when he The proposal to repeal the entire es- The assistant bill clerk proceeded to talked about a comedic approach and a tate tax means we are fighting over call the roll. bait-and-switch approach and asked what is left, No. 1; and, No. 2, we are Mr. REID. Mr. President, I ask unan- the question: Why would we repeal the fighting over when we will give relief imous consent that the order for the death tax and then reinstate it? The to family-owned businesses and family- quorum call be rescinded. Senator knows full well why that was owned farms. The PRESIDING OFFICER. Without done. We did not do it. Those on his Last year, they decided to take away objection, it is so ordered. side of the aisle were responsible for in 2004 the family-owned business de- Mr. REID. Mr. President, I ask unan- that. duction. Now they are saying they are imous consent that upon the disposi- The American people need to under- fighting to help family businesses. tion of the Dorgan amendment, which stand the reason is that, under the rule A strange fight, I would say: Try to should be in the next 15 or 20 minutes, under which the Tax Reform Act of take away their deduction; you did, in the Conrad amendment be set aside and 1991 was taken up, we could only act fact, in law, in 2004; and now you want that Senator GRAMM or his designee be for a 10-year period after which our ac- to stage this so they get relief 7 years recognized to offer his first-degree tions were sunsetted. We didn’t want from today. If it is important, how amendment, as provided under the pa- that. We wanted to make the death tax about relief immediately? How about rameters of the agreement governing repeal permanent, but it was not pos- saying if it is important for businesses H.R. 8; that upon the conclusion of the sible because of opposition from the and farms to stand up and do it now? debate with respect to the Gramm or other side. That is the answer to the That is what my amendment does. designee amendment, the amendment question posed by the Senator from This is bait and switch. We all under- be set aside, and the Senate resume North Dakota. stand bait and switch and have seen it consideration of the Conrad amend- When he asked us, why did you repeal in stores from time to time. This is ment No. 3831, and there be 5 minutes the death tax and then allow it to be bait and switch in legislation. of debate equally divided and con- reinstated, the answer is: We did not; I will speak at the end about prior- trolled in the usual form; that upon the you did. Now you have a chance to fix ities because we have people saying use of time, the Senate vote in relation it. We all have a chance now to repeal this is the most important thing for us. to the amendment; that upon disposi- the death tax permanently. This is the Yes, we have a big deficit. Yes, we have tion of the Conrad amendment, the time for people to stand up. Do we real- economic trouble. But our most impor- Senate resume consideration of the ly want it repealed? Do we want it re- tant priority at this point is providing Gramm amendment, and there be 5 pealed permanently? Or were we just a repeal of the estate tax for the larg- minutes of debate equally divided and kidding when this was done last year? est estates in the country? I am talk- controlled in the usual form; that upon A lot of Democrats and a lot of Re- ing about estates worth $500 million, $1 the use of time, the Senate proceed to publicans voted, not in a dark room billion, $2 billion, $20 billion. That is vote in relation to the amendment but in this Chamber, a year ago to re- the biggest priority? That is the high- without further intervening action or peal the death tax. They wanted it re- est priority we have in this country? debate; and provided further that no pealed permanently. Only because of a We have Social Security issues, Medi- other second-degree amendment be in parliamentary rule was that not pos- care issues, education issues, a whole order. sible. Now it is possible. This is our series of things we ought to attend to, The PRESIDING OFFICER. Without chance, and the only real repeal is the but the highest priority is providing a objection, it is so ordered. Gramm-Kyl repeal. repeal of the estate tax for the top es- Mr. REID. Mr. President, for the in- The amendment of the Senator from tates in the country? formation of Members, we are going to North Dakota that we will be voting on I think not. One of the priority ought have a vote very shortly. Then we will in just a moment is fatally flawed be- to be to do what I do in this amend- have an approximately 2-hour debate cause, while it makes an unlimited ex- ment: Have a thoughtful exemption, $8 on the Gramm amendment. Then we emption, you have to walk through a million, husband and wife, below which will have two votes following that. gate—in order to get that unlimited ex- there will be no estate tax obligation That should end the debate on this emption—that is closed. Very few, if any longer, under any circumstance, matter, I hope, for the day—and for the any, small businesses or farms will be and allow almost immediately, on Jan- year, maybe. able to qualify. How do we know this? uary 1 of next year, the passage or I have nothing more to say at this Because the Senator from North Da- transfer of a family business or family time. I think this is how debate should kota uses the very same qualifying lan- farm to the descendants who want to take place. I have been very satisfied, guage that is in the existing law. run the business or farm without an es- and I think everyone should be, with From the IRS itself we have the tate tax obligation. That is my amend- the tenor of the debate. The issue has numbers of people who qualify out of ment. been, and will for the next 2 hours, put the over 100,000 estate tax filers. Only a Do not vote against this amendment at issue, and I wish we had more de- little over 1,000 qualified, even in the and go home and say, by the way, I am bates such as this in the Senate. This year with the largest number. In the the champion of the business and farm is very high class. first year in 1999, it was 173 people. In that is family owned. This is the way The PRESIDING OFFICER. Who that year, 173 estates would get this to champion their interests if you want yields time? wonderful relief proposed by the Sen- to repeal the estate tax obligation of The Senator from Texas. ator from North Dakota. In 1998, it was the transfers, effective January 1. Mr. GRAMM. How much time do we 899 people. In the biggest year, 1,400 How much time remains? have remaining? people would qualify. Of those, IRS is The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The Sen- winning two-thirds of the cases with ator from North Dakota has 11 min- ator from Texas has 6 minutes 20 sec- respect to the valuation of the assets. utes. onds. This is an amendment which has Mr. DORGAN. I reserve the remain- Mr. GRAMM. And Senator DORGAN? great promise and zero production. As der of my time. The PRESIDING OFFICER. The Sen- the Senator from Missouri said, you The PRESIDING OFFICER. The Sen- ator from North Dakota has 111⁄2 min- can’t make a flat tire roll just by mak- ator from Nevada. utes. ing it bigger. The Dorgan amendment

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.047 pfrm01 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5409 should be defeated because it cannot which the entity is a member) was readily cite.) IRS Economist Jacob Mikow docu- provide relief to anybody. tradable on an established securities market ments in a letter that for filing year 2000 a Mr. President, I ask unanimous con- or secondary market at any time within 3 total of 108,322 estate tax returns were filed. years of the date of the decedent’s death. A mere, 1,470 of those returns made the sent to have printed in the RECORD a Any interest in a trade or business (exclud- QFOBI election. paper on interest deductions. ing banks and domestic building and loan as- Tax lien. For 10 years the IRS has a first There being no objection, the mate- sociations) if more than 35 percent of its ad- position lien on all of the business/farm as- rial was ordered to be printed in the justed ordinary gross income for the taxable sets, which means when the family applies RECORD, as follows: year that includes the date of the decedent’s for an operating loan so it can ‘‘materially QUALIFIED FAMILY-OWNED BUSINESS INTEREST death would qualify as personal holding com- participate’’, the bank has to take a second DEDUCTION pany income if such trade or business was a position. A second position is considered an Under section 2057, certain ‘‘qualified corporation. ‘‘at risk’’ loan and the family then has to The portion of an interest in a trade or heirs’’ may make an election to deduct the pay 2 to 3 points higher on their operating business that is attributable to: value of certain family-owned business inter- loan every year for 10 years. This is probably Cash and/or marketable securities in ex- est from the gross estate. Currently this de- the biggest impediment to facilitating li- cess of the reasonably expected day-to-day duction is $1.3 million. That means if the fair quidity during the consideration. working capital needs, and QFOBI does not exempt ‘‘generation skip- market value of the estate is $10 million, Any other assets (other than assets held in ping tax’’ (GST). So a decedent can utilize subject to a 50 percent death tax, the QFOBI the active conduct of a bank or domestic QFOBI to leave his family business/farm to would reduce the taxable portion of the es- building and loan) that produce or are held his grandson (subject to all of the QFOBI tate to $8.7 million subject to the same 50 for the production of personal holding com- constraints and limitations) and not pay the percent tax. pany income and most types of foreign per- There is a period of up to 12 years in which death taxes, but the decedent’s estate would sonal holding company income. the IRS can disqualify a QFOBI and impose still have to pay GST tax of 50 percent. Ef- 3. To be a ‘‘qualified heir’’: estate tax plus accrued interest, from the fectively this prevents taxpayers from uti- A person is a ‘‘qualified heir’’ of property if lizing QFOBI to turn over the family busi- date of death until the recapture event be- he or she is a member of the decedent’s fam- comes due and owing immediately. ness/farm to any one but their sons and ily and acquired or received the interest daughters, who may not be the best suited In general, QFOBI’s problems can be sim- form the decedent. ply stated. It is unfair (and impractical) for for the job. The qualified heir must continue to mate- Ownership requirement is the last 5 out of Congress to draw an artificial line as to who rially participate in the family business for 8 years prior to death. There is not an excep- will or will not be subject to the death tax. next 10 years. In other words, QFOBI attempts to draw a tion for normal course of business turn over, 4. To ‘‘materially participate’’ such as estates with heavy crops or livestock line so that some small businesses and farms The existence of material participation is qualify for a complete exemption from the or inventory values. This severely com- a factual determination (in other words open plicates farm planning. For example, the life death tax but others will not be able to avail to aggressive challenges by IRS and almost themselves of any death tax relief. In many expectancy of a chicken is probably less then certain litigation), and the types of activi- 8 years much less the life expectancy of a po- cases, those businesses that can spend the ties and financial risks that will support a most money on death tax planning will be tato crop—So there is no ability to lose a finding of material participation will vary chicken and to replace a chicken and to be more likely to choose this exemption (that with the mode of ownership. No single factor is, in truth, simply a giant loophole). able to substitute the ownership period. is determinative of the presence of material Sales in the ordinary course of business SUMMARY OF QFOBI participation, but physical work and partici- create a recapture event as there is not a 1. To qualify (and stay qualified) for this pation in management decisions are the safe harbor on the sale of a crop-inventory or deduction is difficult. principal factors to be considered. Passively of livestock during the 10 material participa- The decedent was a citizen or resident of collecting rents, salaries, draws, dividends, tion requirement. So if you sold a widget or the United States at the date of death. or other income from the trade or business a chicken or an ear of corn you would owe The business interests are includible in the does not constitute material participation. not only income tax but estate tax. gross estate. Neither does merely advancing capital and 50 percent ownership requirement has a The business interests must have passed to reviewing business plans and financial re- lookback period which includes gifts to or been acquired by a qualified heir from the ports each business year. spouses—so if you balanced an estate to get decedent. 5. Forfeiture of QFOBI status and 10-year both unified credits you could lose the The adjusted value of the qualified family- Recapture Period: QFOBI. owned business interests must exceed 50% of Section 2057 imposes an additional estate Recapture provision for over 10 years can the value of the adjusted gross estate (con- tax when there is a taxable event. A taxable disproportionately hurt those businesses and sidered the most complicated requirement of event occurs if, within 10 years of the dece- farms that suffer during an economic down- Section 2057 in comments by Professors dent’s death and before the qualified heir’s turn. For example, in year one, the business Roger A. McEowen and Neil E. Hart) death, one of the following events occurs: might be doing well, but seven years later The business interest must be in a trade or The qualified heir disposes of any portion must file for bankruptcy protection, despite business that has its principal place of busi- of his or her interest in the qualified family- the fact that it plans to reorganize and con- ness in the United States. owned business, other than by a disposition tinue operations in the future. In that event, The business interest was owned by the de- to a member of the qualified heir’s family or the QFOBI would terminate and the death cedent during 5 of the 8 years before the de- through a qualified conservation contribu- tax, plus interest accrued for the past seven cedent’s death. tion under section 170(h); years would be due and owing immediately. For 5 of the 8 years before the decedent’s The qualified heir ceases to meet material That fact alone might prevent the company death, there was material participation by participation requirements (i.e., if neither from successfully recovering from bank- the decedent in the business. the qualified heir nor any member of his or ruptcy. 2. To qualify for the deduction, the ‘‘busi- her family has materially participated in the Cost, expense and uncertainty of setting up ness interest’’ must be either an interest as trade or business for at least 10 year period; an QFOBI is very high and never ending. The a proprietor in an entity which: The principal place of business of the tax code is complicated enough and we At least 50 percent of the entity is owned qualified family-owned business ceases to be should work to reduce its complexity, not by the decedent or members of the dece- located in the United States (This includes pursue winners and loser type death tax re- dent’s family; bankruptcy or foreclosure!!!); form. At least 70 percent of the entity is owned The qualified heir loses United States citi- ABA and many other non partisan institu- by members of two families, and at least 30 zenship and neither a qualified trust was cre- tions have urged repeal of this provision and percent is owned by the decedent or members ated nor was a security arrangement made. cautioned against its use, suggesting that it of the decedent’s family; or As under section 2032A, the 10-year recap- may border on the line of legal malpractice. At least 90 percent of the entity is owned ture period may be extended for a period of Look at how hard it had been for the oppo- by members of three families, and at least 30 up to 2 years if the qualified heir does not nents of repeal to devise workable QFOBI percent is owned by the decedent or members begin to use the property for a period of up legislation. No bills have been introduced of the decedent’s family. to 2 years after the decedent’s death. and we only today saw their proposal to try However, there are additional limitations 6. Criticisms of QFOBI to convince the American people that we can to the general rules regarding a ‘‘qualified Currently, we have a $1 million exemption fix the unfixable. family-owned business interest’’: that can not be combined with the $1.3 mil- The PRESIDING OFFICER. Who (QFOBI) shall not include the following: lion QFOBI deduction. Confronted with all of Any interest in a trade or business if its QFOBI’s complexities and pitfalls, taxpayers yields time? principal place of business is located outside simply choose to submit themselves to it in The Senator from Texas. the United States. order to obtain an additional $300,000 deduc- Mr. GRAMM. Mr. President, let me Any interest in an entity if the stock or tion. Less than three percent of eligible repeat those facts very briefly because debt of the entity (or a controlled group of small businesses have used it (don’t have facts are persistent things. In 1999,

VerDate 11-MAY-2000 03:18 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.049 pfrm12 PsN: S12PT1 S5410 CONGRESSIONAL RECORD — SENATE June 12, 2002 104,000 American families filed a death about an amendment offered by U.S. Senator (v) Subtract any personal holding com- tax return, with 45,000 of them ended Byron Dorgan (N.D.) that would not provide pany-type assets owned by the business. up paying a death tax. Only 889 quali- a full and permanent death-tax repeal: (vi) Subtract any of the indebtedness of the ‘‘Senator Dorgan’s amendment does not fied for the exemption that would be decedent on property that is included in the meet the one requirement that NFIB mem- decedent’s gross estate, except expanded by this amendment. bers have demanded on this issue: a full re- (a) qualified acquisition indebtedness for In the last 5 years, of the people who peal of this onerous tax. The only proposal personal residences; would have qualified for this and all on the table that will permanently and fully (b) debt if the proceeds were used to pay the other exemptions, only 33 of them fix this problem is the Gramm-Kyl amend- education or medical expenses of the dece- have been farmers and ranchers. ment. dent, the decedent’s spouse, or the decedent’s So as I said earlier, this amendment ‘‘Senator Dorgan’s approach operates on a dependents; and provides a political figleaf for Senators false assumption—that small-business own- (c) debt up to $10,000 used for any purpose. ers can easily plan for the death tax. History who are going to vote against a perma- b. Denominator. has proven that exemptions, half-measures (i) Determine the value of the decedent’s nent repeal of the death tax and who and carve outs just do not help real-world gross estate without regard to Section 2057. are using this to cover themselves. It is small businesses. The existing ‘small busi- (ii) Subtract any indebtedness of decedent going to provide political protection ness’ exemption that was enacted in 1997 has on property that is included in the dece- for more Senators than it is going to only helped 3 percent of those it was in- dent’s gross estate. provide tax relief for farmers and tended to help. Senator Dorgan’s amend- (iii) Add the amount of adjusted taxable ranchers in America. Some 40 Senators ment, which is based on this same idea, will gifts and annual exclusion gifts of QFOBIs will get the figleaf of protection. Some only bring us back to the same roadblocks given to family members if such interests again.’’ 33 farmers and ranchers in 5 years have are continuously held by the family member from the date of the gift to the date of death. gotten relief from all of these provi- The PRESIDING OFFICER. The time of the Senator has expired. (iv) Subtract gifts of QFOBIs included in sions. the decedent’s gross estate. I think this is a clear choice. The Mr. KYL. Mr. President, if I can have the attention of the Senator from (v) Add other gifts not included in c above Senator complains that the tax cut is and made by the decedent to the decedent’s temporary. Why? Because we did not North Dakota, I ask unanimous con- spouse within 10 years of decedent’s death. have 60 votes; because the Democrats sent to have printed in the RECORD a (vi) Add the amount of other gifts not in- opposed the President’s tax cut in over- compilation of provisions of the so- cluded under c or e above made by the dece- whelming numbers. They had the abil- called QFOBI tax provision that illus- dent within 3 years of death. In other words, trate how that is calculated and ad- add gifts covered by the annual gift tax ex- ity to filibuster. The only way we could clusion and any other non-taxable gifts made get the tax cut adopted was to use a ministered. There being no objection, the mate- by decedent within 3 years of death. procedure that required that the tax rial was ordered to be printed in the (vii) Subtract the amount of gifts other- cut expire after 10 years. Now the Sen- wise includible in the decedent’s gross es- RECORD, as follows: ator from North Dakota is attacking tate. us for a provision that exists because SECTION 2057—QUALIFIED FAMILY-OWNED c. The numerator divided by the denomi- BUSINESS INTERESTS DEDUCTIONS 1 the Democrats would have filibustered nator must exceed ⁄2 in order for Section (Prepared by Sirote & Permutt, May 9, 2002) the tax cut. 2057 to apply. 4. Material Participation Exists When we voted, I assumed we meant I. ESTATES TO WHICH SECTION 2057 APPLIES Section 2057 applies to an estate if: a. The decedent of a ‘‘member of the dece- to repeal the death tax. People said 1. The decedent, at the time of death, was dent’s family’’ must have owned the quali- they did. Now we have come down to a citizen or resident of the United States; fied business interests and have ‘‘materially doing it. There is only one real repeal. 2. The executor makes an election and files participated’’ in the operation of the busi- That is the amendment I am going to an agreement consenting to the imposition ness to which such interests relate for 5 of offer with Senator KYL. We are going of recapture tax; the 8 years prior to decedent’s death. to raise a budget point of order against 3. The sum of the QFOBIs passing to quali- b. ‘‘Material participation’’ is determined this amendment. It will require 60 fied heirs, plus the amount of includible gifts on a factual case-by-case basis that exam- of QFOBIs exceed 50 percent of the dece- ines the type of activities in which that per- votes to overcome it. The same point of dent’s adjusted gross estate. In other words, son was involved, the financial risks associ- order will be raised against our amend- the following numerator divided by the fol- ated with these activities, and the mode of ment. I urge those who voted for the lowing denominator must exceed 1⁄2. ownership of the property itself. tax cut to vote to sustain this point of a. Numerator. c. A ‘‘member of the decedent’s family’’ in- order so we can have a real repeal, (i) Aggregate the value of all QFOBIs that cludes (a) an ancestor of the decedent, (b) the something for which they voted. are included in the decedent’s gross estate spouse of the decedent, (c) lineal descendants Second, I urge people who did not and that are acquired by a ‘‘qualified heir’’ of the decedent, the decedent’s spouse, or the from, or passed to a ‘‘qualified heir’’ from, vote for the tax cut to look at the ab- decedent’s parents, or (d) the spouse of any the decedent. descendent in (c). surdity of having a situation where 11 (a) A ‘‘qualified heir’’ is a ‘‘member of the d. If the decedent becomes disabled or years from now this death tax is going decedent’s family’’ and also includes any em- starts receiving social security benefits, the to come out of the grave and prey on ployee who has been active in the trade or 8 year period is the 8 years immediately pre- family businesses and force people to business to which the family owned business ceding the date of disability or the date of sell off the life work of their family to interests relates for ten (10) years prior to the receipt of the first social security check. decedent’s death. (Note that this definition give the Government a 55-percent tax II. ADDITIONAL TAX IMPOSED IF DECEDENTS does not require that the employee be em- on everything they have accumulated HEIRS CEASE TO MATERIALLY PARTICIPATE IN ployed by the family business itself.) THE QUALIFIED FAMILY-OWNED BUSINESS OR in their lives. (b) A ‘‘member of the decedent’s family’’ DISPOSE OF THEIR INTEREST THEREIN The National Federation of Inde- includes (a) an ancestor of the decedent, (b) pendent Business is faxing me a letter the spouse of the decedent, (c) lineal de- 1. Section 2057 imposes an additional estate right now opposing this amendment, scendants of the decedent, the decedent’s tax if, within 10 years after the date of the saying it does not solve the problem. I spouse, or the decedent’s parents, or (d) the decedent’s death, any one of certain recap- ture events occurs, as follows: (1) an heir re- will have that letter printed in the spouse of any descendant described in (c). (ii) Add ‘‘adjusted taxable gifts’’ and an- ceiving a QFOBI does not continue to mate- RECORD. I have the letter before me. I nual exclusion gifts of QFOBIs given to fam- rially participate in the business for 5 or ask unanimous consent it be printed in ily members, if such interests are continu- more years of any 8 year period in the 10 the RECORD. ously held by the family member (other than years following the decedent’s death; (2) the There being no objection, the mate- the decedent’s spouse) between the date of qualified heir disposes of his or her interest rial was ordered to be printed in the the gift and the date of decedent’s death. to anyone other than other than members of RECORD, as follows: (a) ‘‘Adjusted taxable gifts’’ are taxable his or her family or through a qualified con- gifts made by the decedent after 1976 that servation contribution; (3) the qualified heir NATIONAL FEDERATION are includible in the decedent’s gross estate. loses United States citizenship and does not OF INDEPENDENT BUSINESS, (iii) Subtract the amount of gifts of hold his or her interest through a domestic Washington, DC, June 12, 2002. QFOBIs included in the decedent’s estate. trust having at least one United States NFIB RELEASES STATEMENT ON DORGAN (iv) Subtract the cash or marketable secu- trustee, or (4) the principal place of business DEATH-TAX AMENDMENT rities that exceed the reasonably expected ceases to be located in the United States. NFIB Senior Vice President Dan Danner day-to-day working capital needs of the busi- With respect to a qualified heir, ‘‘material today released the following statement ness. participation’’ will be met if the qualified

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.050 pfrm01 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5411 heir is a surviving spouse, minor child, stu- devil made us do it.’’ That doesn’t your business? Are those our prior- dent or disabled heir who actively manages quite fit. ities? No. the business. Furthermore, a qualified heir C. Northcote Parkinson wrote Par- My colleagues say that is not a pri- will not be treated as disposing of an interest kinson’s law that I studied when I was ority of ours. Those priorities must by reason of ceasing to be engaged in a trade or business so long as the QFOBI interest is in graduate school. It is a fascinating take a backseat to the priority of pro- used in a trade or business by any member of set of laws. viding estate tax relief for the very the qualified heir’s family. He said at one point that in every or- wealthiest in America. 2. This additional estate tax is equal to the ganization there is at least one person This isn’t about being opposed to applicable percentage of the adjusted tax dif- who is invariably 100 percent wrong. He those who are wealthy. In my proposal ference attribute to the QFOBI, plus interest said someone like that can be valuable in this amendment, there is a very sub- at the underpayment rate for the period be- because then you will always know stantial estate tax exemption of $8 mil- ginning when the estate tax liability was who will give you the wrong advice. lion. If you are trying to pass a family originally due and ending on the date the ad- I am not going to suggest anything ditional estate tax is due. The adjusted tax business or farm on to the kids who are difference attributable to the QFOBI is cal- about my colleagues with that except going to run it, you are not going to culated as the difference between the estate to say this: There are occasions on the pay an estate tax. That repeal is effec- tax which would have been due but for the floor of the Senate when the advice we tive next January 1. election to deduct the family owned business receive is just flat wrong. My colleagues say: No. We support interest under 2057 and the actual estate tax This question of trying to help busi- this issue of helping farms and busi- paid. The applicable percentage is deter- nesses and farms that are owned by nesses, but we support helping them 7 mined with reference to the year in which families to be passed on to the descend- years from now. We have used that as the recapture event occurred, as follows: ants—to the kids—to be able to con- the pole-vaulting contest to get to the Applicable Percentage tinue operating them is an interesting point where we can repeal the estate Number of years after date of death: 1 through 6 ...... 100 one. tax, but it is not so important to us 7 ...... 80 The only way we are going to imme- that we believe on January 1 of next 8 ...... 60 diately repeal the estate tax on passage year businesses and farms passed on to 9 ...... 40 of a family farm or business to the kids the kids ought to have the estate tax 10 ...... 20 upon the parents’ death is if we pass repealed. a. The additional estate tax is a personal the amendment I offered today. That is It is not that important to them. It is liability of each qualified heir to the extent the only circumstance in which that is important to me. And I believe very of the portion of additional tax that is im- going to happen, on January 1, 2003. much that we ought to pass this posed with respect to his or her interest in My colleague from Texas will offer the QFOBI. amendment. We voted on this amend- b. For example, Brother and Sister each in- his proposal which will make it happen ment last year. Times have changed, as herited 50 percent of the qualified family- over the next 7 years, but not now. you know. Things are quite different. owned business from their mother. Their It is interesting. My colleague from My amendment last year got 43 votes. mother’s estate saved $400,000 in estate tax Illinois talked about who the bene- Last year, just prior to this time, we using 2057. Brother did not materially par- ficiaries are. After all, we say no hus- were on the floor of the Senate, and we ticipate in the business, but Sister did, band and wife with assets of less than had estimated budget surpluses as far thereby meeting the material participation $8 million will ever pay an estate tax. as the eye could see. We had people on test to qualify under 2057. During year 8, Sis- That is in my amendment. And no fam- ter sold her interest in the business to some- the floor of the Senate saying: We will one other than a member of her family, caus- ily business passed on to kids will pay have budget surpluses year after year. ing a recapture event to occur. Of the $400,000 an estate tax at all if the kids continue Let us provide very large tax cuts. tax savings, 60 percent or $240,000 must be re- to run it. That is in my amendment. Some of us said: Maybe we ought not captured with interest. Brother and Sister The question is, Who will benefit by de- do that. Maybe we ought to be a bit each owes half of the additional estate tax feating my amendment and embracing conservative. What if something hap- due. the proposal by my colleagues from pens? The PRESIDING OFFICER. The Sen- Texas and Arizona? Who will benefit? Guess what happened. In a matter of ator from North Dakota. My colleague from Texas has no 7 or 8 months we ran into a recession, Mr. DORGAN. Mr. President, we are doubt heard me from time to time refer and then we had a war. The result is now told that this circumstance of hav- to Bob Wills and the Texas Playboys, that our economy faltered. These big ing an estate tax repeal, engineered by the famous Texas band in the 1930s. In surpluses turned into big deficits. my colleague from Texas and others the lyrics in their song, the little guy But it didn’t mean a thing to those last year, that steps up a repeal over 10 picks the cotton and the big guy gets who are marching towards estate tax years, repeals the estate tax, then the honey; the little honeybee sucks repeal. They are back here on the floor brings it back into force in 2011, is the blossom and the big bee gets the of the Senate as if nothing happened. It something that the Democrats made honey. is just as if they have missed the last them do. This is about honey and money. And year and our priority remains to try to It reminds me of Flip Wilson; remem- it is about the way it always works lift the burden of taxes from those who ber that? ‘‘The Devil made me do it.’’ somehow on the floor of the Senate. are at the top end of the income ladder The reason we have this comical cir- Guess who benefits. It is not in most in this country. If you have $1 billion, cumstance of a bill last year, proposed cases folks at the bottom of the eco- our priority remains that we believe in by my colleagues over there, that in- nomic ladder, or even in the middle of tax cuts for you, and we are here to tends to repeal on a graduated basis the economic ladder, who are the bene- fight for you. the estate tax to a final repeal in 2010, ficiaries. It somehow always seems to Is there anybody here who is willing and then bring it back into force in me that the proposals here—especially to fight for the people at the bottom of 2011, is not because someone on this this type of proposal—offer the cir- the economic ladder? Is anybody pro- side of the aisle made them do it. It is cumstance where we say, Let us pro- posing a tax cut this afternoon for mid- because their numbers didn’t add up vide a tax cut for the wealthiest Amer- dle-income taxpayers trying to send and they knew they didn’t add up. That icans. there kids to school? I don’t think so. is why it exists. What are our priorities? Are our pri- That is not the priority. After that bill was passed, people orities education, strengthening Amer- That is why I hope we will pass our were asking the question: What kind of ica’s schools, investing in Social Secu- amendment. This amendment says, a Congress passes a piece of legislation rity? Are our priorities strengthening yes, let us provide dramatic increases that says, oh, by the way, there is only Medicare? Are they providing a tax cut in the exemption for the estate tax, 1 year in which you can die in the next for middle-income taxpayers. Are our and let us exempt the tax in the trans- decade or so and be exempt from the priorities providing a tax cut and de- fer of the family farms and businesses estate tax; that is, 2010? If it is 2009, duction for being able to send your kid to the kids who want to run them; but you are taxable. If it is 2011, you are to college or providing health care ben- let us not give up the opportunity for a taxable. Now we hear this old, ‘‘The efits for you and your workers and couple hundred billion dollars in the

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.015 pfrm01 PsN: S12PT1 S5412 CONGRESSIONAL RECORD — SENATE June 12, 2002 second 10 years that might be used to Cantwell Harkin Mikulski an understanding that Senator LOTT Carnahan Hollings Nelson (FL) help America’s kids and schools, help Collins Inouye Reed just noted. I had been told there was strengthen Social Security, help Conrad Jeffords Reid some interest in filing cloture on the strengthen Medicare, and do the things Corzine Johnson Rockefeller motion to proceed on defense. Senator that will also make this a better coun- Daschle Kennedy Sarbanes LOTT has indicated to me that is not Dayton Kerry Schumer try. Dodd Kohl Snowe the case. So I will not propound these I hope my colleagues will understand Dorgan Landrieu Specter requests with that understanding. that the only way to address this issue Durbin Leahy Stabenow I yield the floor. Edwards Levin Torricelli The PRESIDING OFFICER. The Re- of family farms and businesses that we Feinstein Lieberman Wellstone have heard so much about is this Graham McCain publican leader is recognized. amendment. Mr. LOTT. Mr. President, I have been NAYS—54 One final point: My colleagues have working with the interested Senators Allard Ensign Miller on this issue of cloning, trying to see if talked about the family-owned busi- Allen Enzi Murkowski ness deduction not working. It is inter- Baucus Feingold Murray we can get a unanimous consent agree- esting to me. In fact, they repealed it Bennett Fitzgerald Nelson (NE) ment. We are continuing to do that. in law last year. They said, let us re- Bingaman Frist Nickles With regard to the terrorism insur- Bond Gramm Roberts ance bill, if we don’t get an agreement peal the family-owned business deduc- Brownback Grassley Santorum tion. That was their bill last year. Bunning Gregg Sessions on cloning, it is my hope that we can They did it in 2004, which is a complete Burns Hagel Shelby get an agreement to proceed with the Campbell Hatch Smith (NH) terrorism issue. There are a couple of contradiction. If it didn’t work, why Carper Hutchinson Smith (OR) wouldn’t you repeal it immediately? If Chafee Hutchison Stevens points that need to be clarified, and we it does work, why do you repeal it in Cleland Inhofe Thomas are discussing those now. We will, 2004? It does work, and they know it. Clinton Kyl Thompson hopefully, get an agreement on one, or Cochran Lincoln Thurmond perhaps both, of those issues. We will They simply allege that it doesn’t Craig Lott Voinovich work so they can try to defeat this DeWine Lugar Warner continue to work on that. amendment and provide relief for the Domenici McConnell Wyden Mr. DASCHLE. Mr. President, I may people with the highest incomes at a NOT VOTING—2 have misspoke. I indicated there are going to be two votes at the end of two time when this country is in debt and Crapo Helms is going deeper in debt. Their proposal hours. That will complete the debate The PRESIDING OFFICER. On this doesn’t have as a priority to help on on the estate tax issue: the completion vote, the yeas are 44, the nays are 54. the other things that are important— of the debate on the amendment now to Three-fifths of the Senators duly cho- health care, Social Security, edu- be offered by Senator GRAMM, and then sen and sworn not having voted in the cation, and much more. We will get to the vote on the amendment offered by affirmative, the motion is rejected. those things by casting some sensible Senator CONRAD. We will determine The point of order is sustained and the votes this afternoon on this amend- what the course of business will be sub- amendment falls. ment. ject to the discussions underway on The majority leader is recognized. Support this amendment, oppose the both terrorism insurance and the stem Mr. DASCHLE. Mr. President, I ap- Gramm amendment, and do the right cell cloning debate as well. preciate the work that is being done. In thing. I yield the floor. the interest of all colleagues, let me The PRESIDING OFFICER. The Sen- I yield the remainder of the time. simply make sure that people under- ator from Texas is recognized. The PRESIDING OFFICER. All time stand that we have a debate on another AMENDMENT NO. 3833 has expired. amendment. Under the unanimous con- Mr. GRAMM. Mr. President, I send Mr. GRAMM. Mr. President, as pro- sent agreement, the debate can last up an amendment to the desk on behalf of vided for in the unanimous consent to 2 hours. It would be my expectation, myself, Senator KYL, Senator agreement, I make a point of order after completion of the debate on the BROWNBACK, Senator NICKLES, and Sen- under section 311 of the Budget Act next amendment, the Gramm amend- ator HUTCHISON. against the pending Dorgan amend- ment, we will then vote on the Conrad The PRESIDING OFFICER. The ment. amendment and the Gramm amend- clerk will report. Mr. DORGAN. Mr. President, pursu- ment back to back. It is then my hope The assistant legislative clerk read ant to section 904 of the Congressional that we can have a vote on a point of as follows: Budget Act of 1974, I move to waive the order that will take place either imme- The Senator from Texas [Mr. applicable sections of that act for the diately or shortly thereafter. GRAMM], for himself, Mr. KYL, Mr. purposes of the pending amendment, In the meantime, we are still dis- BROWNBACK, Mr. NICKLES, and Mrs. and I ask for the yeas and nays. cussing the matter of stem cell re- HUTCHISON, proposes an amendment The PRESIDING OFFICER. Is there a search and cloning and a unanimous numbered 3833. sufficient second? consent request there, as well as a hope There is a sufficient second. Mr. GRAMM. Mr. President, I ask that I have that we can move to ter- unanimous consent that further read- The question is on agreeing to the rorism insurance legislation. I just in- motion. The clerk will call the roll. ing of the amendment be dispensed dicated to Senator LOTT that it would with. The senior assistant bill clerk called be my desire to move to the terrorism the roll. The PRESIDING OFFICER. Without insurance legislation immediately fol- objection, it is so ordered. Mr. NICKLES. I announce that the lowing either the debate on stem cell The amendment is as follows: Senator from North Carolina (Mr. or the debate on the estate tax legisla- (Purpose: To permanently repeal the death HELMS) and the Senator from Idaho tion. tax) (Mr. CRAPO) are necessarily absent. So it is my intention to ask unani- Strike all after the enacting clause and in- I further announce that if present mous consent to move forward on both sert the following: and voting the Senator from North of those issues. It is my understanding SECTION 1. SHORT TITLE. Carolina (Mr. HELMS) would vote ‘‘no.’’ that some of my colleagues wish to This Act may be cited as the ‘‘Permanent The PRESIDING OFFICER. Are there have a little additional time. So before Death Tax Repeal Act of 2002’’. any other Senators in the Chamber de- I propound a request on either one of SEC. 2. ESTATE TAX REPEAL MADE PERMANENT. siring to vote? those issues, we will certainly be happy (a) IN GENERAL.—Section 901 of the Eco- The yeas and nays resulted—yeas 44, to accommodate the request of our col- nomic Growth and Tax Relief Reconciliation nays 54, as follows: leagues. But I want people to be on no- Act of 2001 is amended— (1) in subsection (a) by striking ‘‘shall not [Rollcall Vote No. 149 Leg.] tice that it is our intention to file a apply—’’ and all that follows and inserting YEAS—44 unanimous consent request on ter- ‘‘(other than title V) shall not apply to tax- Akaka Biden Breaux rorism insurance, as well as on the able, plan, or limitation years beginning Bayh Boxer Byrd stem cell cloning debate. That is with after December 31, 2010.’’, and

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.054 pfrm01 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5413 (2) in subsection (b) by striking ‘‘, estates, that ought to be increased, 41 different they worked hard to earn in order to gifts, and transfers’’. tax cuts that ought to be taken back, build a more secure future for their (b) EFFECTIVE DATE.—The amendments but they do not have one single idea children. made by subsection (a) shall take effect as if included in section 901 of the Economic about how we could control spending. There is an old saying that the key Growth and Tax Relief Reconciliation Act of In reality, this is a very simple de- to wealth is not how much you earn 2001. bate. When you cut through to the bot- but how much you do not spend. These Mr. GRAMM. Mr. President, I have tom line, it is a debate about priorities. people chose savings over consumption. sent to the desk the real repeal of the Those who are opposed to making the This is something we should encourage death tax. This amendment is identical tax cut permanent are basically say- and support, but with the death tax, to the language that was adopted in ing: We are willing to force people to when they die, the Government takes the House of Representatives last sell their business and sell their farm, up to 55 percent of what they saved. week. tax a family at the moment of death This is wrong, and Americans know it. Current law phases in the elimi- and take away the life work of their Three out of four voters would like to nation of the death tax and then, due parents so that Government can spend see the estate tax eliminated. This to the limitations of the Budget Act, more money. That is what this is overwhelming support exists because the death tax rises up out of the grave about. the American people understand this in 2011 and starts destroying family Are you willing to take away some- tax is unfair, inefficient, and bad pol- businesses, family farms, and family body’s farm, somebody’s business, icy. More important, the people of our dreams in 2011. What our amendment somebody’s dream so Government can country seek the American dream of does is makes the repeal of the death go on spending as usual? I am not. This improving their lives and the lives of tax permanent. is a clear-cut issue, and it is a question their children, and they know this tax I want to touch on a couple of issues, of right and wrong. It is not right for works against that. and then I want to yield to some of my people to work a lifetime, pay taxes on People who want to keep the death colleagues who want to speak. every dollar they earn, scrimp, save, tax argue that it only affects a small I remind my colleagues that when we sacrifice, plow that money into a busi- percentage of the population, but they passed the tax bill, we had 58 votes. It ness, plow it into a farm, work 12 or 14 miss the point. It is not a matter of would have taken 60 votes to have hours a day, and then when they die how many are affected but whether it made the tax cut permanent by their children have to sell their life’s is right or wrong, and the death tax is waiving the provisions of the Budget work to pay a tax on income that has clearly wrong. Act. We only had 58 votes. We have this already been taxed. It is fundamentally I told a story a few years ago about anomaly that the death tax rises out of wrong. This is a moral issue, not just a the family of David Langford of San the grave because we only had 58 peo- tax issue or an economic issue. Antonio. It is not a story; it is true. ple who supported the tax cut. I urge my colleagues to vote to make Mr. Langford’s mother passed away in I believe everybody who voted for the death tax repeal permanent. If the 1993 and, as a result, he faced a tax li- that tax cut was committed to the people who voted for the tax cut and if ability of more than $400,000 because principle that we were repealing the the people who voted for the sense-of- two of the ranches that had been in death tax. Today we have an oppor- the-Senate resolution earlier this year their family for over five generations tunity—the first real opportunity—to are saying we ought to make the death had, of course, increased in value. achieve that goal. tax repeal permanent voted for this They had been in the family for over I remind my colleagues that in the amendment, we would succeed. 100 years. year that the repeal would go into ef- I urge my colleagues to take away One happens to be in the hill country fect, which would be 2011, we are pro- this tax on farms, ranches, businesses, of Texas, which Texans know is one of jected by the latest Congressional and dreams by making the repeal of the most beautiful parts of our State Budget Office estimate to have a $450 the death tax permanent. and the prices have gone out of sight. billion surplus. Our Democrat col- I yield 5 minutes to the Senator from In order to pay the taxes and keep leagues say they would like to make it Texas, Mrs. HUTCHISON. the ranches for his family, Mr. permanent, but we cannot afford it. I The PRESIDING OFFICER (Mr. CAR- Langford had to sell his mother’s remind my colleagues, when it would PER). The Senator from Texas is recog- house, his own house, and many per- go into effect, under current estimates, nized. sonal assets, as well as move into a we would have a $450 billion surplus. Mrs. HUTCHISON. I thank the Chair. small condominium and borrow What they are really saying is they Mr. President, I thank the senior $190,000. But that was not the end. The want to spend the money rather than Senator from Texas for sponsoring this Langfords spent 5 years trying to reach letting people keep their farm, keep amendment. The Senate has passed the an agreement with the IRS that would their business, keep their dream. death tax repeal. We are trying to bring down the fair market value of the We have heard throughout this de- make it permanent. In fact, it was a properties. They settled with the IRS bate Member after Member get up and year ago this month that we passed the for $415,000. The Langfords had spent say that this repeal will take money bill that would provide urgently needed $70,000 in attorney’s fees associated away from the Treasury and that they tax relief for Americans, but now we with dealing with the IRS. are very worried about the debt and want to finish this job and make it per- So in 2001, to cover the costs, Mr. the deficit. Not once, twice, three, four, manent so people can plan for their fu- Langford had to sell the condo and one or five times, but six times in the last tures. of the farms in McMullen County, a 9 months we have increased spending Why is it important to permanently ranch that had been in his family for many times more than would be re- repeal this tax? Because it punishes five generations. quired to pay for the repeal of the people for saving. Everyone pays taxes Now the Langfords wonder if they death tax. on the money they earn, but then we will be able to pass the Kendall County In nonrequested, nonemergency fund- all have a choice: We can spend the property, the other farm which has ing in the emergency appropriations money or we can save it. Some may been in the family for seven genera- bill, items the President did not ask choose to take a vacation or buy a new tions, to his children. He jokes that if for, we spent four times as much as it car. There is nothing wrong with that. he dies in 2010 his family can keep the would take to fund the repeal of the That is their choice. It is their money. ranch, but they will not be able to keep death tax next year. But others will invest it for retire- it if he lives past 2010. In total, in the last 9 months, the ment, plow it into their family farm or This is not a joke. This is a situation same people who are saying we cannot ranch, or invest it in the family busi- families across America will face. We afford to make this repeal permanent ness, creating new jobs and keeping our must eliminate the death tax so that have voted for 15 times more spending economy going. regular people, such as David Langford, next year than the cost of repealing All of these people want to pass their can pass on their treasures from their the death tax. These are the same col- savings to their children. In the end, families to their children. I think his leagues who have 100 different taxes they have put off enjoying the money family has more than paid their fair

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.007 pfrm01 PsN: S12PT1 S5414 CONGRESSIONAL RECORD — SENATE June 12, 2002 share to the U.S. Government, having efforts to fund worthy programs that have to sell the farm to pay the taxes to sell a farm that had been in the fam- are supported on both sides. First, of or sell the small business to pay the ily for over 100 years. course, is national security, homeland taxes. Then there is Debbie Gillan, who defense, but also an educational pro- One thing that is important to note, struggled to keep her family’s ranch posal that the President championed. a great deal of an estate is made up of after her uncle and father passed away, Yet at this time, we are considering unrealized capital gains. The deceased and now she wants to try to keep it for the total repeal of the estate tax. bought property 50 years ago very inex- her two sons. A great deal of the discussion is rhe- pensively. Today that property is Afton Pumps employs 60 people in torical. I think it is useful to point out worth a great deal. Under the current Houston, TX. It is a small family- some of the facts with respect to the system, the heirs get that property owned business, but it does not gen- estate tax. First, no estate less than $1 with a stepped-up basis and so if they erate enough cash to cover the poten- million is taxed at all today, which ex- choose to sell the property after they tial death tax liability to make it to cludes the vast majority of Americans. have paid the estate tax or after they the next generation. In fact, it is said In fact, if most Americans are asked have been exempt from the estate tax, that less than 50 percent of family what they are worried about at the end they really pay no capital gains what- businesses can survive the second gen- of their days, it is not the estate tax. It soever because significant portions of eration, and less than 20 percent the is paying for long-term care. It is af- the property are unrealized capital third generation. fording a nursing home without having gains on which no capital gains tax has I ask the Senator from Texas if I to sell their home or dig deeply into ever been assessed against the prop- could have an additional 2 minutes? their savings. That is what most Amer- erty. Mr. GRAMM. I yield the Senator an There is another argument that is icans worry about. They are not wor- additional 2 minutes. made by proponents, and that argu- ried about the estate tax. Ninety-eight The PRESIDING OFFICER. The Sen- ment is the fact that repealing of cap- percent of estates pay no estate taxes ator has an additional 2 minutes. ital gains will stimulate economic at all. Mrs. HUTCHISON. If we are going to growth in America, will increase sav- eliminate these family-owned busi- In 1999, fewer than 49,000 out of 2.3 million estates—that is only 2.1 per- ings, will increase our overall growth. nesses, it does not affect only the fam- A new report from the Joint Economic cent—paid any estate taxes whatso- ily, it also affects the people who work Committee and the Democratic staff ever. This percentage is projected to at places such as Afton Pumps because points out that these claims are exag- drop as the exemption rises from if they have to sell to pay for death gerated at best. taxes or they have to sell the property, $650,000 in 1999 to $3.5 million in the Repeal would affect very few families there is a good chance those jobs are year 2009. Now, the estate tax repeal and have very little impact on total going to be eliminated, assuming they will benefit some Americans, very few capital accumulation in the United can sell it at all. Americans, and the wealthiest Ameri- States. The tax is very small itself, rel- In fact, one of the really sad things is cans. Estates larger than $5 million ative to family net worth. The gross the death tax is really a tax on asset- paid half of all estate taxes, and if we value of taxable estates comprised only heavy, low-producing properties be- look at the 467 largest estates, worth at 0.3 percent of the total net worth of the cause many times these heavy assets least $20 million, they paid nearly one- household sector, and the estate tax have to be sold. They have to be sold at quarter of the estate taxes paid. So itself claimed less than 0.06 percent. fire sale prices so the true value is not this is a benefit that will not be fairly That is what the estate tax claims in gained from the property, and then one shared by all Americans. It will be sig- terms of the household sector of Amer- has to come up with the money to pay nificantly shared by very wealthy ica. Repeal would have a small, uncer- the inheritance tax. It really is not a Americans. tain effect on individuals’ private sav- fair tax. It affects a lot of regular peo- Now it should be pointed out, too, ing. There is no real indication that ple, people in a situation where some- that no estate tax is paid if a spouse saving will increase. In fact, it is likely thing was purchased at very low cost, survives. That spouse does not have to or possible that consumption could in- but they have built it or their families pay estate taxes. Currently, as I indi- crease as people took estimated estate have built it. They have a right to keep cated, an individual can pass along up tax payments and decided they were it. It was earned with the hard labor of to $1 million without estate taxes, and not due any longer under the proposed their family, and they should be able to that increases to $3.5 million in the regime, they would be spent. pass it to their children. year 2009, and a couple can pass along It is unclear whether this proposal I think this tax really came into twice that amount because of the will increase national saving. Without being as extra income in time of war, spousal rules. increased national saving, we will not but it was never repealed because the Furthermore, only a small fraction of have the kind of economic growth we Government got hungry for more and taxable estates consisting primarily of want. more social programs. This is not a fair family-owned small businesses or farm This repeal, if enacted, will dramati- tax and we need to eliminate it so the assets pay estate taxes. This is a topic cally and definitely affect the revenues people of our country can plan for their that receives a lot of rhetorical atten- going not just to the Federal Govern- children’s futures, so they will not tion, but the reality is this: In 1999, ment but to State governments. The have to do crazy things to try to pro- only 1.4 percent of taxable estates were Joint Committee on Taxation esti- tect property or businesses or assets farm estates, and only 1.1 percent were mates permanent repeal would cost, in that have been in their families for small businesses. There are already 2012 alone, $56 billion. Others suggest generations. This is not the American special provisions that are provided for that estimate is rather conservative. way. these farms and for these small busi- There would also be comparable losses I yield the floor. nesses, such as allowing additional at the State level. At a time when we Mr. REED. Mr. President, I yield my- sums to be bequeathed tax free and are seeing a deficit situation in the self 10 minutes of the opposition time. also deferring payments on taxes for up United States, that deficit will be com- The PRESIDING OFFICER. Without to 14 years. pounded by the loss of the estate tax. objection, it is so ordered. The Senator Farm estates in 1999 pay only 0.7 per- It will result in a decrease in public is recognized for 10 minutes. cent of all Federal estate taxes col- and national saving. As a result, we Mr. REED. Mr. President, this is a lected, and so this is not a crisis of will not be stimulating the kind of very auspicious moment in our history, sweeping proportions that is engulfing growth we want, for many reasons, in- not just this debate in the Senate but every farm in America—only very few cluding the fact that the purported the fact that we are in the midst of a farms, very wealthy estates. Even savings from compliance costs might war with extraordinary demands, fiscal among these family-owned farms and not be realized either, since most es- demands as well as demands of patriot- small businesses that might actually tates, most investors, most people with ism, on the country. pay estate taxes, there is scant evi- property will continue, regardless of Yesterday we raised the debt limit. dence the tax has a real impact on the estate tax, to plan for the disposi- We are in a situation where there are their operations; that, in fact, they tion of their assets and engage legal

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.058 pfrm01 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5415 counsel. The notion that we will save the debt ceiling by $450 billion dollars. public in light of everything else that and streamline the cost of providing We are no longer retiring debt and re- has occurred, is truly dumbfounding. for the future is not substantiated by ducing our indebtedness, we are in- My State, the State that Senator the reality of what people do every creasing it. The surplus is gone. The LIEBERMAN and I represent, is often re- day. President’s own budget advisors ferred to as one of the most affluent Now, can we afford to repeal the es- project deficits for the foreseeable fu- States in America on a per capita in- tate tax? I don’t think we can, particu- ture. And yet, the President is calling come basis. One might think in this larly in a situation where we are seeing on the Congress to permanently repeal particular case that I was probably the the cost likely in the second decade to a particular tax. recipient of a large volume of mail or balloon to $750 billion. The cost of repealing the estate tax e-mails, conversations, asking me to We are considering in the next few is not inconsiderable. The cost is $99 vote for the total repeal of an estate weeks legislation both sides support. billion over the next 10 years. In the tax. First, a pharmaceutical benefit for sen- decade after, the repeal would cost $740 In light of the fact that the people iors. Will that cost billions of dollars? billion. How are we going to pay for who will benefit the most, the largest Yes, it will. Where will that money this? How is this massive new cost number of people as a percentage of the come from? Right now, it is coming going to be paid for? Are we going to people, would come from the State I from the Social Security fund and Fed- run deeper deficits? Are we going to represent—I represent 3.5 million peo- eral debt if we propose it and pass it. take it out of the Social Security trust ple in the State of Connecticut. Out of This will make our proposals much fund? And if so is it wise to drain this 3.5 million people whom I represent in more difficult to enact and fund. It is fund at the precise time that the baby the State of Connecticut, 980 people easier to enact than to fund a pharma- boom generation is expected to reach would actually have gross estates that ceutical benefit. The Department of retirement age? Defense is proposing a missile defense There is a war in case anyone has not would subject them to the estate tax as system supported by both sides. They noticed. It is going to cost money to it is presently written. My colleagues are reluctant to tell us what the life wage it. And yet we are told that we are certainly aware, I hope the Amer- cycle cost will be over 20 years. Why? must repeal the estate tax for the good ican public is, that we have essentially Because those costs are likely to be in of the country. reformed the estate tax in this country the hundreds of billions of dollars. Every day we are getting reports that to the point that it only now touches a Where do we get that money? We are in there will be cut backs on essential very tiny percentage of the American a deficit now. We will be in a worse sit- services. In places like DC, South Da- public. uation if we pass the permanent repeal kota, and many other States children’s So here in one of the most affluent of the estate tax. school days have been shortened. Sum- States in the United States on a per We have to recognize that each day mer school classes are being cancelled capita basis—the State I represent— we wake up, we encounter a new threat and after school programs are being with a population of 3.5 million peo- to our national security. Two days ago, cancelled. And yet there are those that ple—there are only 980 estates that the FBI announced they seized a ter- think that the most important thing have gross incomes that would subject rorist who was plotting to detonate a we can do as a country, an absolute them to this tax. radioactive device in the United priority that should prevail over all When you factor in the exemptions— States, causing us to ask fundamental other priorities, is permanently repeal- for spouses, who do not pay estate tax, questions: Are all of our university lab- ing a tax that is payed by billionaires for family-owned farms and busi- oratories with isotopes fully protected? and multimillionaires. nesses—the number in Connecticut Are all of our reactors, academic and At a time when we are tying to com- comes down to 73—73. You start out utility reactors, fully protected against bat terrorism and we are struggling to with 980, but if you take in the exemp- theft? That is not an inconsequential educate our children and provide senior tions that we have written in we are cost, but it is a cost we cannot avoid. citizens with security in their retire- talking about 73 estates, in the If we pass this, we will be in a more dif- ment, when we are trying to maintain wealthiest State in the Union. And the ficult position to meet those respon- budget discipline that is so vitally im- pricetag, over 20 years, is almost $800 sibilities. portant to our countries long term eco- billion. I urge we reject this approach and nomic growth. People want to give, Maybe people find the word ‘‘dumb- adopt the approach suggested by Sen- they do not want to take from their ator CONRAD that raises the exemption founding’’ to be a little harsh, but I do country at a time like this. not know what other word you could level, making it quite clear and obvi- Rarely do Members of the Senate find use than that one, when you consider ous we are not going to penalize those themselves so short of anything to say. how much wealth they are going to re- smaller estates, we are not going to pe- I find myself dumbfound by this sug- move when we need so much. Here we nalize the proverbial and somewhat, in gestion that we totally repeal the es- are, a year after the accumulation of many cases, elusive family farms that tate tax. At other times I might have great surpluses, already talking about are threatened by this estate tax. I understood the motivation. Just a year a deficit this year in the neighborhood hope we can do that. I hope we reject ago, we were talking about close to $6 of $100 to $120 billion, maybe more be- this proposal and adopt the Conrad pro- trillion in surplus over the next 10 fore we are done. posal. years, and if this proposal were I yield the floor. brought before the Senate I might have Right now no one argues with those The PRESIDING OFFICER. Who disagreed or objected to it, but perhaps numbers. That is this year. The Presi- yields time? a case could be made with $6 trillion of dent has already announced there will Mr. DODD. I suggest the absence of a surplus, the days of a national debt be- be deficits in every year of his Presi- quorum. dency over the next 3. In fact, many The PRESIDING OFFICER. The hind us, annual deficits no longer a de- bate, no longer an issue. With $6 tril- suggest that deficits will now continue clerk will call the roll. for at least 10 years. The legislative clerk proceeded to lion of accumulated surplus, there call the roll. might be room within that surplus for So here we are back where we were at Mr. DODD. Mr. President, I ask unan- $740 billion of tax expenditures. the beginning of the 1990s, building up imous consent that the order for the In light of everything that has oc- that national debt with annual deficits. quorum call be rescinded. curred in the last year, I am truly In the midst of all of that, 9–11, where The PRESIDING OFFICER. Without dumbfounded that we would suggest we must now respond, as has been said objection, it is so ordered. today that this would even be a close so often by every Member of this Mr. DODD. Mr. President, I rise in vote. That we would be talking about Chamber, by the President and others, opposition to the Gramm amendment, removing from the wealth of our Na- the world has changed for us fun- total repeal of the estate tax. tion over the next 20 years close to $800 damentally. It will never be the same Just yesterday, the Senate responded billion to satisfy a tiny fraction—I again because of what happened on to the President’s request to increase mean a tiny fraction—of the American that date.

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.060 pfrm01 PsN: S12PT1 S5416 CONGRESSIONAL RECORD — SENATE June 12, 2002 We are taking steps now, investing of the most affluent constituents who to make contributions to our estate resources to make our country strong- are represented in this body at all— tax revenues. I urge Members to pause er, to see to it that we have better pro- saying we ought to totally repeal the and think carefully here before com- tections here at home and abroad. It is estate tax. Even the wealthiest people mitting our country to this kind of fi- an expensive undertaking to do so. In in this country, who would be the bene- nancial obligation, which we will spend the midst of this expensive under- ficiaries of this, are asking us not to do years trying to recover from, in my taking—while simultaneously we also this. This is fiscally unwise. It is going view. want to invest in the educational needs to cost us dearly. In the 1990s, of course, when we came of our Nation, provide for prescription I was elected to this body 21 years up with a balanced budget proposal, drug benefits, do what we can to make ago. I remember what it was like in the there were those who predicted dire sure Social Security and Medicare will early 1980s. I remember what David consequences. We saw a nation elimi- be there when people need them, invest Stockman said after he left office. nate the national debt, eliminate the in the transportation infrastructure David Stockman, for those who have deficits. A lot of people can claim re- which is critically important, a farm forgotten who he was, was the Director sponsibility for participating in that bill which we were told was absolutely of the Office of Management and Budg- result: certainly the private sector, the essential, you go down the list of the et under Ronald Reagan. He argued for technology sector particularly; cer- things we know we need to invest in to significant tax cuts in the early 1980s. tainly Alan Greenspan, the Federal Re- make this country strong and viable— They passed, of course. We all know serve Chairman who managed the Fed- along comes a proposal that will take what economic havoc was caused dur- eral Reserve Bank with such brilliance; 3,500 estates in this country and allow ing the 1980s when we had mounting certainly President Clinton for being them to get a tax break at the expense deficits and a national debt that al- the Chief Executive Officer of the coun- of everyone else in America. And the most quadrupled in the space of 10 try and promoting a balanced budget cost is roughly $99 billion in the first 10 years. David Stockman, to his credit, approach that carried the thinnest of years or so, and after that, according wrote a book called ‘‘The Triumph Of margins in both this Chamber and the to the estimates I have seen, $740 bil- Politics.’’ I don’t have it with me other. lion. Add the two and the price tag is today, but I urge the younger genera- Nonetheless, we found ourselves with in the $800 billion range. I find it inter- tion to read it. Remember the admoni- a financial footing that people only esting that moments ago we had an op- tion, if you want to avoid repeating dreamed about a decade earlier. What a portunity to pass an amendment that mistakes, read a little bit about pre- great gift was given to this new admin- would have provided relief to small vious mistakes, study history. David istration. In fact, the President himself family farms and businesses for a price Stockman recites chapter and verse talked about it when he gave his State tag that is substantially less than a about the mistakes made with a pro- of the Union Message. In his first State full repeal, and yet many of the Sen- posal we couldn’t afford. of the Union Message, he spoke about ators who argue that they would like Pat Moynihan, then-chairman of the why we are going to be doing the to provide estate tax relief to families Finance Committee, argued for years things we can do, it was because we and businesses voted no on the amend- that what was done was basically to had accumulated a sufficient surplus in ment. manufacture a deficit. I suspect this is this country. What a wonderful legacy I do not know how we can go home to more about doing that than it is about it was going to be to invest in the our constituencies at a time like this, providing tax relief; more about manu- things we needed to do. when we are worried about whether or facturing a deficit, regardless of the Now, because the recession lasted not we are going to have an intel- consequences of that. Then, when peo- longer, because of 9–11, obviously, be- ligence agency, a domestic policing op- ple pay higher interest rates on their cause of an unwise tax cut last year eration, and a reorganization of Gov- home mortgage rates, student loan that went into place, we now find our- ernment. We are debating in these very rates, car payment rates, and every- selves in a situation where we are hours how we are going to do that, thing else you can think of where an going to have deficits every year of knowing full well it will cost us dearly interest rate is involved, then that is this administration’s duration, and we to do that right—seeing that we have considered irrelevant. If we can build are going to compound that by taking defense structures, seeing that first re- up enough of a deficit, then we will not $840 billion off the table over the next sponders have what they need, God for- be able to invest in education, in 20 years at a time when we could be in- bid we have another tragedy like we health care. Forget about arguing vesting that money to make this a did on September 11. And in the face of whether or not we ought to do it, we stronger and better country—just to all that, I have to explain why it is we will not be able to afford to do it. take care of a small handful of people. are going to provide a total repeal of a I suspect that may be the motivation What I would like to know is why are proposal—offered by Teddy Roosevelt, here and not providing a tax break for we not here talking about a tax cut by the way. This was not an idea that 980 of my constituents under the best that would say to working families, if came out of Franklin Roosevelt, it of circumstances. I am told there are you are sending your kid to college you came out of his cousin, Theodore Roo- actually 73 estates, when you get ought to get some breaks on doing sevelt, the great Republican Progres- through with all the exemptions, 73 es- that, to make it easier for you to in- sive President, who argued an estate tates that would actually be affected vest in your son’s or daughter’s edu- tax was not only a viable and intel- by this proposal. cational future? Why aren’t we talking ligent revenue source but also had I join with those who urge our col- about some relief there? Why aren’t we some social benefits. leagues today that, if we are reorga- talking about some relief from the I don’t think it ought to go without nizing our Government differently to FICA taxes for people? Here we are mention that some of the wealthiest respond to what has happened here in down here spending 6 hours debating people in this country are arguing the last year, if we have seen our sur- whether or not 3,500 estates nationally, strongly against the Gramm amend- plus evaporate because of events that are going to get total repeal of an es- ment, strongly against the total re- have occurred, investments we have tate tax. peal. People such as Warren Buffett, had to make, if we must think dif- I think it is unwise. I don’t think it one of the brightest financial minds in ferently about everything else we are is warranted at all. this country, argued strongly against doing, should we not pause and think I will end where I started. I am this. John Kluge, who built one of the differently about this? We should take dumbfounded that this Chamber would great fortunes in this country, who was steps to protect the family farms and even consider this proposal in light of a wonderful genius, argued against this small businesses from an estate tax the challenges, the risk, and the dan- particular proposal. You go down the that overreached, but just a few mo- gers we face as a nation—that we list. The Gates family argued against ments ago an amendment that would would make this kind of a judgment at this proposal. have done that was defeated. But what a time when we are going to need all I have received five letters—five, out we are talking about now are just a the resources we can provide for the of 3.5 million people in my state, some handful of estates that would be asked well-being of our own people.

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.062 pfrm01 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5417 The PRESIDING OFFICER. The Sen- keep their own money but believe the brarians are the people who pay the es- ator from Arizona. Federal Government needs that money, tate tax. Mr. KYL. Mr. President, while the on the one hand, and those of us who Maybe their dad was fortunate in life Senator from Connecticut is here, let believe this is an unfair tax and the to be able to work hard, save money, me respond to the concern, or his ex- Federal Government can get along and accumulate some wealth. But their pression that he is dumbfounded that without the money. dad’s dream probably was that they we would even be considering this There is another point. I have made would have a better opportunity in life amendment. it before. Most of us appreciate the fact than he did. He probably sacrificed a We passed this repeal already. I know that when we cut taxes, in the long run lot to be able to leave them some the Senator from Connecticut didn’t it actually improves the fiscal picture money. vote for it but a majority of us did— for the Government because more taxes These are the people we are penal- Democrats and Republicans. It passed are generated by a more vital economy. izing. We are not penalizing, by and in the House of Representatives, and I cited yesterday the economists who large, some fat cat out on a yacht the President signed it. This is not made the case that reducing taxes will somewhere. According to the IRS, we something extraordinarily odd that we allow more job creation, more capital are penalizing schoolteachers, airline are doing. This has already passed. formation, and a better economy. In pilots, and guidance counselors. That is The problem, as the Senator knows, fact, there would be about $40 billion of whom we are penalizing. is that under the rule in which it was growth in the economy if we were able The Senator from Rhode Island made considered, everything we did in the to repeal the tax today. a point on which I really want to focus. tax reform bill sunsets at the end of 10 The other point made was that very He was absolutely half right. Unreal- years. As a result, the repeal of the es- few estates pay the tax, that it is only ized capital gains, the appreciation in tate tax comes in 10 years. The ques- for the rich. value of an asset which is not taxed as tion for those of us who helped pass This morning I read—and I will just income, because you don’t sell the this legislation—the majority in the briefly reiterate—who it is who pays property and, therefore, have to file an House and Senate, and the President— the tax. Estates don’t pay the tax, peo- income tax return—you bought some is, Did we really mean to repeal the es- ple pay the tax. Who are these people? stock, and over the years you keep it, tate tax? This isn’t the opinion of the Senator and it gains in value, significantly un- What I understand the Senator to be from Arizona, this is the IRS. They realized capital gains. Until you sell it, saying when he says he is dumbfounded have the statistics on who actually you don’t pay any tax. is that at a time when he says we need pays. Under the current law, a billionaire the money, we would be making perma- In the most recent report entitled got rich by investing in some stock. He nent that which we intended to make ‘‘Statistics Of Income Bulletins, Sum- never sold any of it. It acquired great permanent but wouldn’t make it per- mer of 1999’’—pages 72–76, if you want value. He dies. His wife inherits that. manent before. to look it up—here is what the IRS The way it works today is, because I suppose it is a legitimate question, says. Here is who pays. It is divided be- there is an exemption for spouses, she if he is saying we should revisit what tween males and females. The largest pays no estate tax on it. The next day, we did before. I take it that is what he group of filers of estate tax—27.7 per- she sells it. Do you know what her cap- means. He just voted, as did the Sen- cent—were men, administrators, upper ital gains tax is? Zero. Do you know ator from Rhode Island, who spoke ear- management, and business owners. You why? Under current law, there is what lier, for an amendment that costs more could assume that. But the second big- we call a step-up in basis. That prop- than the Gramm-Kyl amendment. The gest group—12.3 percent of filers—were erty acquires an original basis as if it Dorgan amendment, according to the schoolteachers, librarians, and guid- were the day of death rather than 20 Joint Tax Committee’s calculation, ance counselors. These are these filthy years ago when the dead person bought costs $110 billion in the 10 years, which rich people from whom we have to take the asset. When it is sold, there is no is substantially higher than the money—school guidance counselors, gain because the value begins with this Gramm-Kyl legislation. schoolteachers, and librarians. much higher value—the stepped-up I am a little confused about the point How about the female estate tax fil- basis. If you sell it the next day, there with respect to fiscal demand. There ers? The largest number—14.3 percent— is essentially a 1-day gain on it. In are fiscal demands. The ones men- were educators. other words, there is virtually no cap- tioned by the Senator from Rhode Is- If I were a member of the teachers ital gains tax. That is the current law. land—drug benefits, missile defense, union, I would be down here supporting That is what opponents are defend- and so on—are all in the Bush budget. the Gramm-Kyl amendment to make ing. That is why I say the Senator from Those are things we are paying for; repeal of the death tax permanent be- Rhode Island was right. This is wrong. they are provided for in the budget. cause the largest group of women who But does the proposal of the Senator The budget was established on the file estate taxes are educators. These from North Dakota, which we will vote basis that we had repealed the estate are the people who actually pay the es- on next, do anything about that? No. tax. The question was, Would it be tate tax. The first person who accumu- Does the existing law, if we don’t make made permanent? It is not as if great lated the wealth is dead. He hasn’t paid it permanent, do anything about that? circumstances have changed. We do the estate tax. His heirs paid the estate No. It is the Gramm-Kyl amendment have the war on terror, that is true. I tax. Who are these people? Among that fixes that problem. don’t think any of us is going to deny women, the second largest group, of 9.6 This is what isn’t understood by that if we need to fund the war on ter- percent, are in clerical and administra- many of our colleagues. We don’t sim- ror, we will. We have already passed a tive support occupations. ply repeal the death tax. We substitute supplemental appropriations bill to do When you put it all together, here is for the death tax the capital gains tax. exactly that. what the IRS says: A significant num- And we eliminate the step-up in basis, It is odd to argue that the 1 percent ber of estate tax filers were scientists. except for an amount which would be of Federal revenues that are collected We really ought to penalize those sci- equivalent to the exemption today, by the estate tax are critical to the entists. They do not do us any good. which is about $5.6 million. Nobody functioning of the U.S. Government in Salespeople, airline pilots, military of- would pay a capital gains tax who light of the trillions of dollars that we ficers, and mechanics. The last cat- would also be exempt from the estate spend—that somehow or other we can’t egory I can understand—entertainers. tax. get along without this so-called estate Of course, we get a lot of money from But except for that amount of tax. entertainers. And we should. I don’t stepped-up basis, there is no step-up in That is the real question. I think know why they should be penalized any basis. If the person who died and Senator GRAMM was right earlier when more than anyone else. bought the stock years ago bought it he said what it really boils down to is Scientists, sales people, airline pi- for, let us say, $1,000, that is the origi- a philosophical debate between those lots, military officers, mechanics, nal basis. Let us say it is now worth $1 who do not want to allow people to teachers, guidance counselors, and li- billion. All right. Subtract $1,000 from

VerDate 11-MAY-2000 00:13 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.064 pfrm01 PsN: S12PT1 S5418 CONGRESSIONAL RECORD — SENATE June 12, 2002 $1 billion, and that is the gain. That is worry about that; that only affects a they will vote for the Gramm-Kyl on what they pay the capital gains tax. few people. Well, when something is amendment, which is the real repeal. It This is the proper way to tax unreal- unfair, and seriously wrong, it doesn’t makes the repeal of 1 year into a per- ized capital gains. That is why our pro- matter how many people it affects; we manent repeal. That is what the Amer- posal really does not cost that much need to do something about it. ican taxpayers and American people more, if you calculate it properly, than The interesting thing to me is that 60 thought we did. It is what we intended the existing law. percent—this is a Gallup poll, and to do. And today it is what we can do. When you eliminate the death tax there are some polls that go up to 80 I urge my colleagues to support the and replace it with a capital gains tax, percent—at least 60 percent of the Gramm-Kyl amendment. you have substituted good tax policy American people agree the death tax I now yield 5 minutes to my col- for the current bad tax policy. should be repealed—not reduced, not league from the State of Arkansas. Death should not be a taxable event. have the exclusions made larger, but The PRESIDING OFFICER (Mr. We do not plan on that. We do not like should be repealed. And the interesting CORZINE). The Senator from Arkansas. that. It is not something that we cause thing to me about that number is two- Mr. HUTCHINSON. Mr. President, I to happen. It is like having your house thirds of those people believe it should compliment my colleague from Arizona burn down and collecting an insurance be repealed even though it will never for his outstanding leadership on this payment. We don’t treat that as ordi- have any affect on them. issue. And he has been the leader on nary income because we realize you did In other words, they recognize it is this. I was struck by one statement the not want your house to burn down. not a large percentage of people who Senator from Arizona made in which Even though you got an insurance pay- are adversely affected by the death tax he said the American people, according ment for it, you should not have to pay directly, but they recognize it is un- to all the polls—and we all know this— that tax on that as ordinary income. fair. overwhelmingly support the elimi- It should be the same with what your To me, that says more about the nation of the death tax, even though father leaves you when he dies. You American people than just about any- most of them realize they will never be should not pay a death tax on that. thing I can think of, when they say: impacted by it. It does say a lot about What you should do is, when you sell Even though you have more wealth the American people. It also says an that property, pay a capital gains tax than I do, it is not fair for the Govern- awful lot about the unfairness of this on it, going back to its original value. ment to take half of it from your kids tax; that is, the underlying tax. That is how you tax unrealized capital when you die. Therefore, even though That is the basic issue at stake in the gains. it doesn’t help me any, I am going to debate we are having. Is this the way Now, just two final points. stand up for your right to be treated we want to tax or not? It is not about The Senator from Connecticut said fairly. And I support the permanent re- whether or not we are going to lose only a small percentage of people are peal of the death tax. money for the Federal Treasury or not. affected. That is not really true. There To me, that is a very good indication We may or may not. It is not about is truly a very large percentage of peo- of the fact that the American people whether we can reduce the number of ple affected, even though the number of have a sense of fairness. And even people impacted by this unfair tax by people who actually pay the estate tax though they are not directly benefitted expanding exclusions and lowering is relatively small. by something, they are willing to sup- rates. Let’s take the average small busi- port the elimination of that unfairness. It is fundamentally about, Is this the ness. I don’t know what the size of the Final point. The suggestion we have right kind of tax to impose on the average small business is, but let’s say already taken care of the small busi- American people? The American people it employs 50 people, just to use a num- nesses and family farmers and, there- realize and recognize it is unfair for a ber. Let’s say you have an average fam- fore, we don’t need to permanently re- person, a small businessperson, a farm- ily of four, plus other indirect bene- peal the death tax. We have been er, for any American to work decade ficiaries, and so on. So instead of say- through that in debate earlier today. after decade, saving and investing, ing one person pays the estate tax, it We have not taken care of the small making decisions that reward their affects all of the members of the fam- businesses and family farmers. Unfor- family, building something for the fu- ily, and it affects all of the people in tunately, as I said, something like two ture, building something for future the business. There are twice as many one-hundredths of 1 percent of tax- generations—someone, a businessman, people adversely affected as to who ac- payers have ever qualified for the ex- a farmer, an individual paying property tually pays the tax. And in addition to clusion that would take care of them taxes, paying sales taxes, paying in- the tax collected by the Government, under this provision. And even then, come taxes, year after year, and decade an almost equal amount of money is the IRS is going to come after you. after decade—and then, at the point of paid by people to lawyers and account- And the IRS wins two-thirds of the death, at the event of death, you see ants and for insurance to try to mini- cases that are brought. It is not a fact the Federal Government reach into the mize their estate tax liability. So it is that small businesses and farms have grave and take half of everything that actually twice as much as people be- been taken care of and excluded from person worked for. I think the Amer- lieve it is. the impact of the estate tax. ican people, rightly, have concluded I wonder. The bill that we considered So who pays? Average Americans be- that is unfair. before this bill had to do with hate cause the wealthier person, remember, As the Senator from Arizona also crimes. Proponents of changing the died. And the question is, Is it fair to pointed out, the decision about the un- hate crimes law acknowledged it af- make them pay? fairness and about the need to elimi- fected a very few number of people. But Do we need the money? The things nate this tax was already made. It was the effect on them was significant, that have been discussed are in the made by this body. It was made by the they said, and it was unfair that they budget. We can always find more House. It was made by the President would be treated as they were treated things to spend money on. The ques- over a year ago—a year ago June 7. The and, therefore, we needed to do some- tion is, Should you leave money in the decision was: It is unfair. Let’s repeal thing about this. In other words, this is hands of Americans who can build our it. Let’s eliminate it. a minority of people who are treated economy, create jobs and wealth, or Because of arcane Senate rules, it unfairly, and we need to have the Fed- should we make the decisions for them could not be permanently eliminated. eral Government step in and do some- by spending the money here in the We could not do that last year. But we thing about that. Government? can do that now. The decision then So, on the one hand, my colleagues I think it boils down to that, and that it was the right thing to do to on the Democratic side of the aisle are when we have this vote, we are going eliminate it—that was made last very concerned about a very small to be asking one simple question: For year—we need now to say we really number of people, but when we bring to those who voted for the bill last year meant that. the floor the question of the death tax to repeal the estate tax, did they mean It has already been very rightly and its unfairness: Oh, we don’t need to it or not? If they meant what they said, pointed out that this is not a tax that

VerDate 11-MAY-2000 01:11 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.065 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5419 affects only a few. It is not just a few is it fair? Is it right? A bigger exemp- Theodore Roosevelt, himself a product fat cats we are talking about. We are tion does not solve the basic unfair- of the gilded age, who understood intu- talking about literally millions of ness. A greater exclusion, lowering itively that our country, founded on Americans. rates, none of that really deals with principles of equality, could not afford According to the Treasury Depart- the underlying issue. It is an unfair to see vast disparities in wealth occur. ment, more than 120,000 individuals tax. It taxes success. It taxes accom- Therefore, President Roosevelt, a Re- filed death tax returns in the year 2000 plishment. It taxes that which is the publican, proposed the estate tax, be- alone. But that does not tell near the American dream. For that reason, we cause he recognized the threat that story because not only are there em- need to get rid of it. greater and greater accumulation of ployees and family members who are We don’t need a mirage for the Amer- wealth that separated the few from the impacted, but it is also the case that ican people. We need it to be real. We many posed to our Nation. about twice as many people sell their can make it real by supporting the Mr. Murray goes on to say that ‘‘the businesses or sell their property early, Gramm-Kyl amendment. 10 most highly compensated corporate before they die, so the death tax is not I thank my colleague for the time chief executives earned a total of $3.5 going to be a burden on their family. and the opportunity to speak in favor million in 1981,’’ 21 years ago. You take So instead of 120,000 individuals, you of his amendment. the 10 top CEOs in America. Were they literally have doubled that, and sud- The PRESIDING OFFICER. The Sen- doing a good job in 1981? They were denly you are talking about half a mil- ator from New York. doing a good job. But now 21 years lion people, plus their families and Mrs. CLINTON. Mr. President, I yield later, the 10 most highly compensated their employees who are impacted. myself such time as I may consume. CEOs in our country make $155 million, This is not a tax that just touches a The PRESIDING OFFICER. The Sen- almost 45 times the 1981 figure. Are few people. ator is recognized. they doing a job 45 times better than In addition, even more Americans are Mrs. CLINTON. Mr. President, I have they did 20 years ago? The argument forced to pay this tax, not to the Fed- a great deal of respect for my col- would be hard to make. eral Government, but to lawyers, to ac- leagues who are arguing this point Secondly, we are currently in a situa- countants, and to life insurance agents. with extraordinary vigor and zeal. I tion where our market, the engine of Privately held businesses get involved have no doubt they absolutely believe economic growth, has been shaken by in estate planning because if they that the wealth tax is wrong and revelations about the behavior and don’t, all they have worked for will be should be abolished. conduct among these same highly paid We ought to take a step back and put eliminated. To ignore the death tax corporate executives. We know, just to this debate into a bit of a reality check statute is suicide for a family business. take one example, Mr. Skilling, the again, since there has been a lot said Frankly, while the death tax is a ter- former CEO of Enron, would benefit to on the floor which may be good argu- ribly ineffective way to redistribute the tune of $55 million if the estate tax ment points, good advocacy positions, wealth, it is a very effective way to were repealed. How would that be paid but is not necessarily connected to the create and maintain an industry geared for because the money is not fungible? reality that we face today as we are at avoidance. If you do away with the estate tax, This tax generates very little real in- about to vote on this decision. then you will have to eliminate or cut I don’t usually come to the floor and come for the Federal Treasury. My col- something. There are a lot of things quote the Wall Street Journal, but I league has already pointed out that the that probably could be looked at to be will today because if one were to look Gramm-Kyl amendment, because of the cut. How about the Social Security tax for a source that probably views this way it handles untaxed capital gains payments of Americans? It would take issue more favorably to the position of and the way it changes the step-up pro- 30,000 Americans earning $30,000 a year, my colleagues, they probably couldn’t visions in current law, any impact paying their taxes, to make up for the find a publication that would be more upon Federal revenues will be far more $55 million that Mr. Skilling would inclined to support it. Certainly the minimal than that which has been esti- benefit. I don’t think that passes the editorial pages have done so, and there mated. fairness test. I don’t think that is real- are columnists and others who make In addition, the death tax is a very ly the kind of choice we should be mak- the argument. inefficient way of gaining Federal rev- ing in this body. I will enter into the RECORD a col- enue, for 65 cents of every dollar gained Third, as Mr. Murray points out, umn that was written by one of the is paid out in collection enforcement every single day we are told our Nation Wall Street Journal’s leading writers, a costs. Other studies have found not is at war. I believe that. I represent gentleman by the name of Alan Mur- only are thousands of dollars going to New York. We were attacked when ray, no friend of taxation, who wrote attorneys and accountants and finan- America was attacked. I have spent an article, dated May 28, 2002, entitled cial agents, but the average minority- more time than I ever wish to recall ‘‘Senate Needs Reality Check Before owned business will spend nearly working and being with the victims of Refunding Estate Tax.’’ $28,000 a year on life insurance pre- If one reads this, they will get a bet- that horrific attack. In the past, whenever our country miums to prepare for the death tax, ter context than the sort of disem- has been at war, we have been called and $9,000 on death tax planning. bodied one that occurs on the floor of upon to sacrifice. Particularly, the af- Frankly, the 1.5 percent of Federal the Senate where abstractions and gen- fluent have been called upon to sac- income that currently is generated by eralities can be made for the sake of rifice because, as Theodore Roosevelt the death tax is so small that it would, argument without really looking at pointed out, you are so fortunate to to a great extent, offset the cost of ad- what it is we are being asked to vote live in America; there is not a place ministering and collecting and enforc- on. better devised in the entire history of ing the tax. Mr. Murray starts by saying: Beyond all of that, I return to the the world to be successful, to become Marie Antoinette had nothing over the point with which I began. There are the U.S. Senate. In its rush to permanently rich. And the rich, God bless all of us, practicalities that it generates little eliminate the estate tax, the nation’s ‘‘delib- they actually take more advantage of income, and a whole avoidance indus- erative body’’ has apparently forgotten to our system than anybody else. They try has developed because of the estate deliberate on the surging social trends of our are really lucky, fortunate, blessed to tax. time. be in this country. The PRESIDING OFFICER. The Sen- Mr. Murray goes on to make the fol- The inheritance tax was created to fi- ator has used his 5 minutes. lowing point: nance the wars of the 19th century. The Mr. KYL. I yield the Senator 1 addi- The last two decades have led to a con- notion of repealing it, when we are tional minute. centration of wealth and income among the under constant threat, when we have to The PRESIDING OFFICER. The Sen- fortunate few in this country that hasn’t spend billions of dollars to protect our- ator is recognized. been seen since the gilded age. selves in ways we never had to think Mr. HUTCHINSON. Beyond the When was the estate tax first pro- about before, strikes me as bizarre. We practicalities, the underlying issue is, posed and who proposed it? President have voted on the floor of the Senate

VerDate 11-MAY-2000 01:11 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.083 pfrm12 PsN: S12PT1 S5420 CONGRESSIONAL RECORD — SENATE June 12, 2002 for billions of dollars to protect our that reform is significantly possible There is a lot of mythology and ide- borders, our ports, our airports, our without repeal. Responsible, affordable ology that is being discussed in terms food, to be prepared against bioter- reform could save money, as well as of the repeal of the estate tax, but I rorism. I went to the White House this continue both the principle and reality guess it really does come down to what morning for the President’s signing of of providing a check on the kind of es- are our priorities. If our priority is the bioterrorism bill. It costs money to tates that Theodore Roosevelt and his eliminating billions of dollars of tax get the vaccines and do everything we relative Franklin Roosevelt warned us obligations from the very richest peo- need to do to protect ourselves and our about. ple, then this is the vote for us. But if children. If one looks at all of the issues that it is to protect our Nation’s fiscal con- The idea that, instead of calling upon we are confronting right now, I just dition and get back on a path of fiscal the most fortunate among us, we would hope we are going to take a deep responsibility, get back to where we at this point in our Nation’s history, breath and stop and say: Cir- are paying down our debt, not increas- rather than reform, repeal the estate cumstances have changed since last ing the debt limit as was voted for yes- tax flies in the face of what we have spring. We don’t have a surplus any- terday, getting out of deficits, putting historically done. Why aren’t we on the more. We are back into deficits. We are the money back into the Social Secu- floor of the Senate asking that we bleeding red ink. We have been at- rity trust fund, making sure we are close the loophole for the corporations tacked on our own shores. We have to prepared for the retirement of the baby that take advantage of the good times fund our defense. We have to make sure boomers, dealing with health care, pre- of being in our Nation and move their our men and women in uniform, who scription drug benefits, the needs that headquarters offshore so they don’t are fighting for us in Afghanistan and both underinsured and uninsured peo- have to pay any taxes? Unlike every- elsewhere, are given every single piece ple face to ensure they have health body else who works for a living, they of equipment and new technology that care when they need it, paying for that want to avoid taxation. Yet they are they deserve. We have to make sure prescription drug benefit we promised more than happy to take advantage of our frontline soldiers, our police offi- our seniors, making sure we continue our country’s protection, security, and cers, our firefighters, the first respond- to fund our education policy so that we markets. ers, get the resources they need. have the qualified teachers in every What is wrong with this picture? And then we have longer term issues. classroom, we have the equipment and Well, I agreed with Mr. Murray that we We have all kinds of infrastructure the resources that every schoolchild have to look at this and inject some re- problems we have to deal with that an deserves to have, then this vote is not ality into it. I have not even gotten to individual cannot pay for on his or her for us. the budget deficit. Last year we had a own. We have to make sure our bridges There are a lot of priorities at which budget surplus, and I listened to the and tunnels are safe. we have to be looking. Repealing the debate and, honest to goodness, you In a few weeks, we are going to de- estate tax would cost about $100 billion can take transcripts from 1981 and put bate what to do with nuclear waste. this decade, but in the next decade them right next to transcripts from There is going to be a big issue about when people like me are starting to re- 2002; it is the same rhetoric: slash the the safety of transporting it on our tire, then we are looking at a cost of taxes and you will see more revenues barges, along our waterways, on our $740 billion. It is hard to imagine from coming in. That is what we were told railcars, and on our trucks. I am get- where the money to provide for Social in 1981. And in 12 years we quadrupled ting letters from rural parts of my Security and Medicare will come. the debt of our Nation. Last year we State saying their bridges are not in The Jeff Skillings of the world and were told again to slash taxes and we good shape. So how can we do that? the other corporate executives who will have even greater surpluses. Now In our cities, our sewer systems and have a lot of money to start with— we are back into deficits, we are spend- our wastewater treatment systems are much more than any limit on the es- ing the Social Security surplus, and we not up to the kind of standards they tate tax that we could imagine—why, are spending the Medicare trust fund should for ordinary treatment of waste they would be laughing all the way to surplus. and the provision of clean water, and the bank. It is pretty hard to explain how we now we have to worry about terrorism. I know a lot of Americans think they are in debt and in deficit and we want So there is a list of pressing needs that fall under the estate tax, and I give to make it even worse, which of course will make us safer and stronger in the credit to the repealers who have turned shifts the burden not on the rich but on future. Repealing the estate tax is not Teddy Roosevelt on his head, have ig- everybody else. If we were going to be on that list. nored the manifesto signed by several talking about repealing taxes, there Let me also say a few words about hundred of our wealthiest Americans, are taxes that affect far more Ameri- who it actually affects. I know my col- people such as William Gates, David cans and really have an impact on the league from Connecticut was on the Rockefeller, George Soros. They all kind of lives that Americans lead. We floor because he looked at the same said: Don’t repeal it; reform it, but could make the expanded childcare tax statistics that are available to all of don’t repeal it; it is bad for our coun- credit permanent. We could make the us. As he pointed out, he has 73 filers try. I heard Warren Buffett, one of new 10-percent tax bracket permanent. who were affected by the estate tax. We America’s richest businessmen, say: It We could pass the college tuition tax hear a lot about what happens to fam- is bad for my family. I had to go out deductibility, which would be a huge ily farms, and I looked for any evidence and earn my money the old-fashioned benefit for most Americans—particu- I could find, and I know the Farm Bu- way. I do not want the kind of idle rich larly middle-income Americans. reau was asked to provide such evi- that has never been part of the Amer- Instead, we are debating the wealth dence of any farm, anywhere, that had ican scene. That is something we did tax. It is hard to understand why we been lost because of estate taxes. not want to have, and we turned away are having this debate, except, with all Neil Harl, an Iowa State University from it. due respect, my colleagues believe it is economist, conducted that search and The truth is, we do not have a death absolutely the most important issue we is quoted in an article in the New York tax in America. There is no such thing can be discussing at this time. Times last year. He said it is a myth. as a death tax. People do not pay taxes Now, to be sure, the uncertainty Since most farms in New York are at death. We have an estate tax, which posed by the tax cuts that were passed worth less than a million dollars, even is really a wealth tax that is based on last year is a problem. But the reason under the current law they are not people having a certain level of assets. they were passed in the form that they going to have to pay estate taxes; and Currently, it is $1 million. Many of us were passed is because the numbers when we reform it and raise the limits, want to increase it significantly. At would not work any other way and we they certainly are not going to do so. the present time, it affects less than 2 were hoping to defy the laws of arith- I talked to one farmer and he said: I percent of the estates in our country. If metic. dream for the chance to have a farm we raised it to $3 million for an indi- Many of us believe that raising the worth enough that anybody would vidual and $6 million for a couple and taxable limit is a good idea. We believe think I had to pay the estate tax. then in 2009 took it to $3.5 million for

VerDate 11-MAY-2000 01:11 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.086 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5421 an individual and $7 million for a cou- manent extension of the new 10% tax brack- reau Federation, said it could not cite a sin- ple, we would have three-tenths of 1 et ($79 billion), an expanded child tax credit gle example of a farm lost because of estate percent of estates subjected to any tax. ($35 billion), or various forms of assistance to taxes. The estate tax does, of course, have a bite. I also support setting a maximum people trying to pay the high cost of higher education ($5 billion)? All those tax cuts go But the reality of that bite is different from rate of 50 percent. Then we really to ordinary Americans struggling to raise the mythology, in which family farmers have would be aiming at the Gateses and the families and educate their kids. become icons for the campaign to abolish the Soroses and the Rockefellers and the The Senate’s answer? Let them eat cake. tax. In fact, the overwhelming majority of people who have inherited a lot of This is not a partisan matter. If estate-tax beneficiaries are the heirs of people who wealth with an estate tax, and they repeal didn’t have substantial support among made their fortunes through their businesses still would have tens of millions of dol- Democratic Senators, it wouldn’t have a and investments in securities and real es- chance, given the need for 60 votes to over- tate. lars. come a filibuster. There are already eight or The effort to end the estate tax—which Mr. President, I thank my colleagues nine Democrats, including Senate Finance critics call the death tax—gained ground for the opportunity to speak. I ask Committee Chairman Max Baucus, who have when the House of Representatives voted unanimous consent that the Wall indicated their support. Estate-tax lobbying Wednesday to reduce the tax and then abol- Street Journal and New York Times groups are working fervently over the holi- ish it in 2011. The bill faces an uncertain fate articles to which I referred be printed day to win a few more. in the Senate. The estate tax is central in the debate over in the RECORD. Also, this isn’t an ideological matter. The taxes, not only because the sums involved There being no objection, the mate- House Republicans are the ideologues; they’ll vote for any tax cut that comes down are huge but also because to both sides it is rial was ordered to be printed in the the pike. Senators, in their pragmatism, a touchstone of national values. To those RECORD, as follows: bear the burden of explaining why they have seeking to abolish it, the estate tax is a pen- [From the Wall Street Journal, May 28, 2002] chosen this tax cut above all others. alty for success, an abomination that blocks the deeply human desire to leave a life’s SENATE NEEDS REALITY CHECK BEFORE To be sure, the estate tax cut enacted by work as a legacy for the children. It is also REFUNDING ESTATE TAX Congress last year is, in its current form, an atrocity. It would repeal the tax for one year a complicated burden that enriches the law- (By Alan Murray) at the end of the decade, and then, to satisfy yers, accountants and life insurance compa- Marie Antoinette had nothing over the Senate budget rules, reinstate it in 2011. This nies that help people reduce their tax bills. U.S. Senate. In its rush to permanently would lead to some ghoulish estate planning, To its supporters, on the other hand, the eliminate the estate tax, the nation’s ‘‘delib- creating an incentive for heirs to keep dad estate tax is a symbol of American equality, erative body’’ has apparently forgotten to alive until 2010, and then pull the plug by a mechanism to democratize society and to deliberate on the surging social trends of our New Year’s Eve. encourage economic success based on merit time. But that is hardly a good argument for per- rather than birthright. So let me provide a refresher course: manent repeal. Nor is the oft-heard refrain Yet for all the passion in the debate, the (1) The past two decades have led to a con- that this helps farmers and small-business estate tax does not always seem broadly un- centration of wealth and income among the people who want to keep their enterprises in derstood. fortunate few in this country that hasn’t the family. Those folks account for less than While 17 percent of Americans in a recent Gallup survey think they will owe estate been seen since the gilded age. Kevin Phil- 10% of total estate-tax revenue, and could be taxes, in fact only the richest 2 percent of lips, whose new book ‘‘Wealth and Democ- accommodated with measures falling far Americans do. That amounted to 49,870 racy’’ puts all this in a historical context short of total repeal. that should chill the spines of senators pre- The only good news here is that Senate Americans in 1999. And nearly half the estate paring to vote ‘‘yes,’’ notes that the top 10 Majority Leader Tom Daschle still has a tax is paid by the 3,000 or so people who each most highly compensated corporate chief ex- good chance of holding enough of the Demo- year leave taxable estates of more than $5 ecutives earned a total of $3.5 million in 1981. crats to keep the measure from getting 60 million. In fact, the primary beneficiaries of the That rose to $155 million in 2001—almost 45 votes. If he succeeds, he’ll be accused, again, move to abolish the estate tax look less like times the 1981 figure. of obstructionism. But this time, he’ll be the Riekenas and more like Frank A. (2) The nation is now experiencing a crisis saving Senators of both parties from exces- of confidence in these same highly paid cor- Blethen, a Seattle newspaper publisher sive catering to big campaign contributors, whose family owns eight newspapers worth porate executives. Americans tolerated sky- and from putting themselves squarely on the perhaps a billion dollars. high CEO pay because they thought it re- wrong side of history. ‘‘Being ever bloodthirsty, the I.R.S. will flected the market value of talented man- start with the highest value it can on my es- [From the New York Times] agers—just as Michael Jordan’s pay reflected tate,’’ said Mr. Blethen, the 55-year-old pa- his draw at the box office. But recently, the FOCUS ON FARMS MASKS ESTATES TAX triarch of the publishing family. The figures public has gotten graphic evidence that, in CONFUSION for his share will probably be several hun- some cases at least, CEO compensation had (By David Cay Johnston) dred million dollars, more than half of which more to do with greed, deception and even WELLSBURG, IOWA.—Harlyn Riekena wor- would go to the government. Mr. Blethen is downright fraud. The proliferation of stock ried that his success would cost him when he trying to avoid almost all those taxes options, which accounts for most of the huge died. Thirty-seven years ago he quit teaching through a plan also used by other wealthy increase, was supposed to align the interests to farm and over the years bought more and families, but if he does not succeed his sons’ of corporate managers with those of the more of the rich black soil here in central interest in the business will be wiped out, he shareholders. It did, it seems, but in the Iowa. Now he and his wife, Karen, own 950 said. wrong direction. Instead of working to make gently rolling acres planted in soybeans and Estate taxes are paid by few Americans be- shareholders rich, some executives were ma- corn. cause they are not assessed on the first $1.35 nipulating their shareholders in order to The farmland alone is worth more than $2.5 million of net worth left by a couple. make themselves rich. million, and so Mr. Riekena, 61, fretted that Amounts above this are taxed at rates that (3) The nation is at war. And in this coun- estate taxes would take a big chunk of his begin at 43 percent and rise to 55 percent on try, wars always have been times of sac- three grown daughters’ inheritance. amounts greater than $3 million. As the rifice, particularly among the affluent. The That might seem a reasonable assumption, Riekenas and the Blethens have learned, inheritance tax was created to finance the what with all the talk in Washington about there are many legal ways to reduce the wars of the 19th century. The notion of sin- the need to repeal the estate tax to save the value of one’s wealth for estate tax purposes. gling it out for elimination in the midst of family farm. ‘‘To keep farms in the family, So even for the largest estates, the tax aver- the current effort goes against more than 150 we are going to get rid of the death tax,’’ ages 25 percent. years of American history. President Bush vowed a month ago; he and Family farmers are often cited as victims. Notice that I haven’t mentioned the budg- many others have made the point repeatedly. As Senator Charles E. Grassley, an Iowa hog et deficit. That’s because on this score, at But in fact the Riekenas will owe nothing farmer and chairman of the Senate Finance least, the Senate deserves some credit. They in estate taxes. Almost no working farmers Committee, put it, ‘‘The product of a life’s are talking about singling out the estate tax, do, according to data from an Internal Rev- work leaches away like seeds in poor soil.’’ at a cost of $99 billion from 2002 to 2012, in enue Service analysis of 1999 returns that Yet tax return data show that very few order to avoid the whopping $373 billion price has not yet been published. farmers pay estate taxes. Only 6,216 taxable tag of the House bill that would make all the Neil Harl, an Iowa State University econo- estates in 1999 included any agricultural land provision in the president’s tax cut perma- mist whose tax advice has made him a house- and equipment, the I.R.S. report shows. The nent. hold name among Midwest farmers, said he average value of these farm assets was But in making this choice, the Senate had searched far and wide but had never $440,000, only about a third of the amount should justify it. Why deepen the deficit to found a farm lost because of estate taxes. that any married couple could leave untaxed pay for permanent repeal of the estate tax, if ‘‘It’s a myth,’’ he said. to heirs. What is more, a farm couple can you aren’t willing to pay for permanent re- Even one of the leading advocates for re- pass $4.1 million untaxed, so long as the peal of marriage tax relief ($16 billion), a per- peal of estate taxes, the American Farm Bu- heirs continue farming for 10 years.

VerDate 11-MAY-2000 01:11 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.088 pfrm12 PsN: S12PT1 S5422 CONGRESSIONAL RECORD — SENATE June 12, 2002 In Iowa, the average farm has a net worth march toward corporatism is not healthy orities that we need to get about the of $1.2 million. Loyd A. Brown, president of and we lost innovation, jobs and charitable business of addressing. I thank the Hertz Farm Management in Iowa, which runs giving.’’ Chair. I yield the floor. more than 400 farms in 10 states, said that Mr. Blethen said the estate tax also dis- The PRESIDING OFFICER. Who while he didn’t know of anyone who had lost couraged major new investments in family yields time? The Senator from Arizona. a farm because of the estate tax, he thought businesses late in the life of the primary Mr. KYL. Mr. President, before yield- Congress should either eliminate the tax or owner because such investments consumed increase the amount that could be inherited cash that might be needed at any time to ing, I ask unanimous consent to have untaxed. pay estate taxes. printed in the RECORD two editorials Just 1,222 estates in 1999 had enough in He said the estate tax also ‘‘forces you into from the Wall Street Journal, dated farm assets to make the farm property alone irresponsible gift making’’ to heirs. He felt June 10, 2002, and February 22, 2001, subject to estate taxes. But these farm as- compelled to give half the future growth of both of which demonstrate support for sets amounted to one-tenth of these estates, his fortune to his two sons when they were the permanent repeal of the death tax. suggesting that the tax applies mostly to not yet kindergartners even though he had There being no objection, the mate- gentleman farmers and ranchers, rather than no way of telling whether the boys would rial was ordered to be printed in the to working farmers like the Riekenas, whose turn out to be industrious, as they did, or RECORD, as follows: fortunes are tied up in their farms. scalawags. As the Riekenas were surprised to dis- Despite his fierce opposition to the estate [From the Wall Street Journal, June 10, 2002] cover, avoiding the estate tax was easy. tax, Mr. Blethen does not support President THE DEATH TAX SENATORS Their lawyer developed a simple plan that Bush’s current plan to repeal the tax because We are about to find out how many of the involved making gifts to their daughters and it would also exempt from capital gains 12 Senate Democrats who voted for tax cuts buying life insurance to offset any estate taxes the profits on assets passed to heirs last year really meant it. They’ll get the taxes that might be due if the parents died when those assets are sold. ‘‘That’s not fair,’’ chance to provide their sincerity when the before most of the farm had been turned over Mr. Blethen said. Senate takes up a vote to make repeal of the to their daughters. He said Mr. Bush’s proposal would have the death tax permanent, perhaps this month. There is a real cost, of course—payments perverse effect of encouraging the sale of Last Thursday, 41 of their Democratic coun- to the lawyer and for the insurance. And in family-owned businesses, because heirs terparts in the House joined the 256–171 vote any case the paucity of affected farmers does would see death as their chance to sell tax- to make this punitive tax disappear forever. not end the debate. Patricia A. Wolff, the free and to diversify their portfolios, instead Majority Leader Tom Daschle first tried to Farm Bureau’s chief lobbyist, said the orga- of continuing to bear the risks of holding a forestall a Senate vote, because he knows a nization made estate tax repeal its top pri- single enterprise. clear majority favors passage there too. But ority because, while it has not surveyed its Mr. Blethen thinks that rather than taxing he was forced to give in recently in return members, she was confident ‘‘the majority of an estate, taxes should apply when a busi- for some concessions on the energy bill. So farmers and ranchers believe that death ness is sold. ‘‘YOu want to defer those cap- now he’s trying to hold off Senate passage taxes are wrong and that it is wrong to tax ital gains and let them grow so large that with a filibuster that requires 60 votes before people twice on what they earn.’’ the family will keep the business to avoid it can get to President Bush’s desk. Sup- But Mr. Riekena and all two dozen other the capital gains taxes,’’ he said. porters of permanent repeal figure they have farmers interviewed across central Iowa— The debate does not divide neatly among at least 58 votes, and Mr. Daschle has been every one a Republican—said that while they rich and poor. Since February more than 800 twisting arms to block what is the will of favored increasing the amount that could be wealthy Americans have joined in a public many even within his own party. passed to heirs untaxed, they did not support appeal to keep the estate tax. They argue Almost every Republican voted for repeal the repeal proposed by President Bush and that repealing the tax would further enrich the first time around, though Vim Jeffords other leaders of his party. A few snickered or the wealthiest Americans and hurt strug- has since sold his vote for dairy subsidies. laughed when asked whether the estate tax gling families. They also argue that finan- Liberal Rhode Island Republican Lincoln should be repealed to save the family farm. cial success should be based on merit rather Chafee, is also in doubt, as is John McCain, But Senator Grassley himself opposes the than on inheritance. who voted against President Bush’s original estate tax, in large part because he thinks Warren E. Buffett, George Soros, Paul tax cut and moves further let by the month; that while a decision to keep or sell an asset Newman and William H. Gates Sr., father of maybe the Arizonan should consider truth- is an appropriate trigger for a tax, death Microsoft’s chairman, William H. Gates III, in-advertising and jump to Team Daschle. The complete gang of 12 Democrats who should not be. are among the most prominent in that voted for the tax cut last year is listed in the He added another reason: ‘‘I do not think group, which also includes many people with table nearby. Six are up for re-election this that the function of government is to redis- holdings of just a million dollars. November, and to their credit three of those tribute wealth.’’ Mr. Buffett said the estate tax fosters eco- Indeed, that seems to be the fault line in running have already said they’ll vote for re- nomic growth by encouraging Americans to the debate: should the government play peal. It’s probably no coincidence that all rise based on merit, not inheritance. ‘‘If you Robin Hood with estates? three are running in conservative states car- take the C.E.O.’s of the Fortune 500,’’ he said ‘‘If you worked hard and put your money ried by Mr. Bush in 2000 and all of them face in an interview, ‘‘and put in the eldest son of away, you paid tax on it as you went along, more than token competition this year. every one of those who ran the place in 1975, so it’s yours and you should be able to pass Two others running in November, New Jer- the American economy would not run as well it on to your children without the govern- sey’s Bob Torricelli and Louisiana’s Mary as letting the Jack Welches, who started out ment penalizing you,’’ said R. Elaine Landrieu, have already flip-flopped and an- with nothing, rise to the top of General Elec- Gunland, who grows grapes in Fresno, Calif., nounced intentions to vote against perma- tric.’’ and whose family may owe estate taxes when nent repeal. Their excuse is that things are Back in central Iowa, Mr. Riekena had an- she dies. different now that the country is facing other reason. He said Washington was fo- Mr. Blethen, the fourth-generation pub- budget deficits and wartime expenses. But cused on the wrong issue when it came to lisher of a newspaper started in 1896 with it’s far more likely that they’ve changed be- saving family farms. $3,000, says he speaks for many others in sup- cause their re-election opposition has since ‘‘For most farmers around here, the estate porting repeal of the tax in the name of pre- all but collapsed. Mr. Torricelli was espe- tax is not high in their minds,’’ Mr. Riekena serving family businesses. cially fond of just about any tax cut in his said. ‘‘What we need are better crop prices.’’ ‘‘I firmly believe that family-owned busi- taxophobic state, until Justice declined to nesses are the heart and soul of the coun- Mrs. CLINTON. Mr. President, rather indict him for accepting illegal gifts and he try,’’ said Mr. Blethen, who has created a than one day raising the debt limit concluded the New Jersey GOP couldn’t mus- Web site called deathtax.com. without any plan to get us out of debt, ter serious opposition. Mr. Blethen says the estate tax benefits except continuing to believe in the god One vote still in the balance is Missouri’s publicly traded companies at the expense of of supply-side economics, which did not Jean Carnahan. She faces a strong challenge family-owned businesses. The reason is that this fall from Republican Jim Talent, who the public companies can often buy family work so well 20 years ago, and instead has made the death tax a central issue in his businesses at a discount because the owners of repealing the wealth tax without campaign. She’s doing a remarkable dodge did not raise the cash to pay estate taxes and any plan for dealing with our problems, and weave, claiming to favor repeal for small must sell quickly at fire sale prices. like a war and Social Security and businesses and farms but she is undecided on Mr. Blethen said some of the seven smaller other significant issues we confront, I the repeal that passed the House. Sounds to papers his family bought in Washington and hope we will opt for the more respon- us as if she’s waiting for orders from Mr. Maine came from families that had not sible way of reforming the estate tax Daschle; if he doesn’t need her for his fili- planned carefully for the estate tax and de- and make it clear that the reality buster, he’ll give her a pass to vote yes and cided it was easier to cash out. remove the issue for November. ‘‘If you like corporate culture, and think check in this body demonstrates clear- One virtue of this death-tax debate is that America needs more of it, then you love the ly we cannot afford it. It would be the is reveals what’s really at stake in this No- estate tax,’’ Mr. Blethen said. ‘‘I think this wrong decision, and we have other pri- vember’s Senate races. If Mr. Daschle retains

VerDate 11-MAY-2000 01:11 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.020 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5423 his Democratic majority, further tax cutting saved well and in most cases have already deprive him of victory and foster a reputa- is dead. But if Republicans pick up a mere paid taxes on their wealth at least once and tion as a tinkerer rather than a reformer. one seat, for a 50–50 split, they’ll be able to probably twice. ‘‘The only way to eliminate the unfairness of organize the Senate with the help of Vice It is also responsible for a whole tax-avoid- the death tax,’’ says Rep. Jennifer Dunn, President Cheney’s vote and tax-cutting be- ance industry, which takes in millions itself sponsor of last year’s legislation, ‘‘is to end comes possible again. from the 200 well-heeled individuals in Sun- it once and for all.’’ Mr. Daschle gave his Bush-state Democrats day’s ad. Put simply, if you really are rich enough you can have your cake and pass it The PRESIDING OFFICER. Who a tax-cut pass last year, but the perversity of yields time? The Senator from Okla- Senate budget rules meant the tax cuts end along to your heirs too. But if you can’t af- after 10 years. This is crazy tax policy, since ford to pay the legions of estate lawyers, homa. it increases uncertainty and would amount trust fund accountants and life insurance un- Mr. NICKLES. Mr. President, let me to the largest tax increase in history in 2010 derwriters, your heirs will be forced to sell make a couple comments before the if the law isn’t changed. off what you’ve worked so hard to build up to Senator from New York leaves. We It is absolutely insane in the case of the es- pay off the IRS man waiting outside your fu- passed legislation recently to help the tate-tax repeal; the death tax declines slowly neral for his take. So if the death tax really isn’t all that sig- victims of terrorism, including New over the next seven years, disappears en- York City and Oklahoma City, and we tirely in 2009, but then snaps back to its con- nificant for the government, why the opposi- fiscatory 55% pre-Bush rate on January 1, tion to getting rid of it? the answer is that reduced their estate tax. I think we ex- 2010. So forget about rational estate plan- the death tax was never about money. It is empted estates basically under $8 mil- ning. Far from the tax on the uberrich that about envy and the corrosive philosophy it lion and said if they have an estate Dems claim it is, only 5,200 of the 116,500 tax feeds. This is the philosophy Senator Tom over $8 million, it would be 18 to 20 per- returns filed in 1999 were for estates worth Daschle invokes when he talks about Ameri- cent which, in my opinion, is what the more than $5 million. In any case, the main cans in terms of those whose tax cuts will let maximum death tax should be. argument for repealing the death tax isn’t them buy a Lexus and those who supposedly will get no more than a muffler. The death I heard my colleague say there is not economic, but moral. It’s unjust for the gov- a taxable event on death. I happen to ernment to double tax away, at death, the tax is their favorite, the name of the game fruits of a life of work and thrift. being to stoke the flames of resentment disagree. If someone dies, it is a tax- The death-tax repeal vote is also about among the 98% of Americans who don’t pay able event under current code. Some of truth in politics. A year ago these Senators this tax against the 2% who do. us are trying to say a taxable event voted to repeal the death tax, but only with Their problem is that the public isn’t buy- should not be when somebody dies, but a wink and an asterisk that it would all ing. No matter how they are worded, polls when the assets are sold and sold vol- show Americans instinctively understand come back after 10 years. No wonder voters untarily, that means the people initi- are cynical about politicians. The next death there is something rotten about a govern- ment that would confiscate half of what ated a transaction and know what the tax vote will separate the cynical from the tax will be. sincere. you’ve worked hard to build up. This month a McLaughlin & Associates poll reported Current law is when someone dies, it THE GANG OF 12 88.5% of Americans saying the death tax is is a taxable event. They tax the estate A dozen Democratic Senators voted last unfair, and nearly as many favoring its abo- up to 50 percent. My colleagues want to year for the temporary repeal of the death lition. A Zogby/O’Leary report clocked in exempt estates of $3 million or $4 mil- tax. with 86% declaring the tax is unfair. A Por- lion, maybe $7 million if it is a couple Against trait of America survey from last July even had 59% of Gore supporters wanting the tax and they both die at the same time, John Breaux (La.) but we want half of it after that. The *Mary Landrieu (La.) killed. Given that the vast majority of *Robert Torricelli (N.J.) Americans know that the death tax won’t af- Conrad amendment is not 50 percent, it fect them personally, opposition to the tax is is 55 percent, if you have a taxable es- For a pretty strong statement about ideas of tate between $10 million and $17 mil- *Max Baucus (Mont.) fairness and morality. *Max Cleland (Ga.) lion. Within the Bush Administration there are Fifty-five percent is over half; 50 per- Dianne Feinstein (Calif.) murmurs about giving up on abolishing the *Tim Johnson (S.D.) estate tax in the hopes of getting the Presi- cent is half. That is a lot. Why should Herb Kohl (Wis.) dent’s other cuts through, and there have al- the Federal Government be entitled to Blanche Lincoln (Ark.) ready been some defections in the GOP take half of somebody’s property if Ben Nelson (Neb.) ranks. This would be a grave miscalculation. they happen to have an estate of $20 Zell Miller (Ga.) In his acceptance speech in Philadelphia in million? Undecided August, George W. Bush said that his own How is it right to say to New York *Jean Carnahan (Mo.) position was based on the ‘‘principle’’ that City and Oklahoma City—your tax *Up for re-election this year ‘‘every family, every farmer and small rates should be 20 percent for victims, businessperson should be free to pass on but everybody else has to pay 50 per- [From the Wall Street Journal, Feb. 22, 2001] their life’s work to those they love.’’ In the next breath Mr. Bush stated that ‘‘on prin- cent? If somebody has three or four res- A TAX ON VIRTUE ciple’’ he also couldn’t see why anyone ‘‘in taurants or they have a very large Maybe you have to be a billionaire to ap- America should have to pay more than a ranch or a nice successful real estate preciate the argument for keeping the estate third of their income to the federal govern- business they are building and growing tax. ment.’’ and their kids want to continue it and A newspaper ad signed by Bill Gates Sr., These are good, sturdy principles for Presi- we fail to pass the Gramm amendment, George Soros, David Rockefeller and more dent Bush to stand on. In the election one of we are basically saying that a tax $3 than 200 other money-bags has just warned the defining differences between George that repealing the estate tax ‘‘would have a Bush and Al Gore was that the former under- million is enough and maybe $7 million devastating impact on public charities.’’ We stood you don’t make poor people better off if combined. We are asking the Federal live in strange times indeed when the ethical by making rich people poorer. You help poor Government to come in and take half. case for keeping a tax rests upon a collection people by giving them a stake in the system This family exclusion proposal, which of fat cats talking about the things they will that makes rich people wealthy. In the past was not adopted earlier, would not do to avoid paying it. only the wealthiest Americans have really work. Of course, they don’t really have an eco- been in a position to give their children and I am embarrassed for my colleagues nomic argument. Anyone who looks at the grandchildren advantages by transferring to say they believe in free enterprise numbers knows that the death tax amounts wealth. But a booming stock market and the to only about 1% of all federal revenues. But growth of 401k plans means that American but free enterprise up to an estate of $3 that figure doesn’t begin to get at the actual families of even modest incomes might leave million, and above that the Federal and opportunity costs involved in collecting a legacy for their children. Billionaires Government gets half; that the Federal it. When the Joint Committee on Taxation might not understand this, but ordinary Government should confiscate half the looked into the issue two years back, it Americans clearly do. property because somebody passes found these costs staggering: punishing sav- Within this context the death tax should away. ings, encouraging consumption and costing be seen for what it really is: the flag of con- We are saying: No, let’s not have a almost as much in compliance as it takes in. venience for the Beltway’s class warfare bri- What about the moral argument? Everyone gade. They know all too well that if they taxable event at death; rather, let’s knows about sin taxes—taxes on cigarettes, can’t sell envy on an inheritance tax, they have a taxable event when the property alcohol, etc. Well, a death tax is a tax on vir- can’t sell it at all. The real danger for the is sold. And when the property is sold, tue. It’s tax on those who’ve worked hard, President is a halfway measure that would you pay the 20 percent capital gains

VerDate 11-MAY-2000 03:18 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.022 pfrm12 PsN: S12PT1 S5424 CONGRESSIONAL RECORD — SENATE June 12, 2002 tax. This eliminates lots of legal time where main street businesses are still want to take more then half of a fam- and expenses trying to avoid this un- family owned. It is important to Mon- ily’s assets because someone has died. necessary tax. tanans to be able to pass on their busi- The Democrat leaders just want to Somebody said: What about the nesses, their farms, their ranches, to spend your money. Well, folks, that is Rockefellers? They do not pay the their sons and to their daughters. not right. Death is not a taxable event. taxes; they set up foundations. That is I support the Gramm-Kyl amendment We have the chance today to make what Mr. Gates is doing. That is what to eliminate the sunset of the estate death tax repeal permanent. We have the very wealthy people do. They do tax, to permanently repeal the estate heard from the brave men and women not pay this tax. The people who pay it tax, to free up money to help families, who fought World War II, they fought are the people who have the farm, the family-owned businesses, farms, and for democracy and then came home to ranch, the small business and some- ranches. Permanent repeal of the es- help fuel the economy that created this body dies unexpectedly—I know be- tate tax will allow families to better wealth. They are dying by the thou- cause it happened to my dad—and Gov- plan particularly for the continuity of sands everyday, now they want the ernment comes in and says: We want their estates. death tax to die forever. That means half. Our family-owned businesses, farms, for the first time, American taxpayers, Unfortunately, if we adopt the and ranches are the backbone of my who are good Americans, who saved Conrad amendment, the Government State. I do not know another State and invested in savings accounts and will continue taking half. I think it is that is a more small business State stocks and bonds will be treated equal- unconscionable. We should reduce the than mine. It is also the backbone of ly with all other taxpayers. It means, rates, not just increase the exemption. America, I might add—small business. that for the first time, American farm This only applies to 1 or 2 percent. We Family-owned businesses are our families and the owners of small busi- should cut the rates to 20 percent, cut country’s heritage, and it is up to us to nesses will not have to jump through it to a voluntary transaction, cut it to protect that heritage. Full, permanent hoops, hold their breath, and pray they a capital gain. Then we have solved the repeal is the right thing to do for our did it right, subject to audit, in order problem; we have eliminated the prob- farmers, for our ranchers, for hard- to know they will not have to pay lem. working small business owners. It is death tax. This is a terrible tax and it is unfair. the right thing to do for the Nation, Last year we repealed the death tax, We are making countless thousands of and most certainly permanent repeal is effective for anyone dying after Decem- people not grow their business, not ex- the right thing to do for Montana. ber 31, 2009. If not for budget con- pand because they know they are going I urge the Senate to support perma- straints we would have repealed it to be compiling problems for the fu- nent repeal of the estate tax for this sooner, but at least today we can vote ture. Why build and expand if you are generation and generations to come. to make the repeal permanent. We will going to be giving half to the Govern- I yield the floor. be able to start a new decade with no ment and maybe causing all kinds of The PRESIDING OFFICER. Who death tax to burden the future genera- litigation for your children? Why dou- yields time? tions. By repealing the death tax we ble, why build, why expand, why grow? Mr. GRAMM. Mr. President, on the will save thousands of family-owned I know many people who have worked two previous amendments, we have af- businesses and in turn saving the jobs hard to made enough to get along and forded the authors of the amendments of hundreds of thousands of employees live a comfortable life. This tax should the ability to close the debate. We when family businesses are faced with not ruin these years of hard work. would like to preserve that right for death tax. We should change this tax, and do it ourselves in this debate on our amend- We have heard the American people, by adopting the Gramm-Kyl-Nickles ment. So what I would like to do is to we have reformed and repealed the amendment. I encourage my colleagues ask those on the other side who want death tax. I urge all of my fellow Sen- to vote in favor of this amendment and to come and speak to do it, so we can ators to repeal the sunset so death tax oppose increasing the exemption and take our remaining time to use at the will be dead once and for all. Beware of then sock it to them and have the Fed- end to close out the debate. all these Democratic amendments that eral Government take half the estate if There is no rule that says it has to be try to once again make the law murky it happens to be over this deductible done that way, but when we closed out and complex. Keep it simple and fair— amount. the debate on the Dorgan amendment, repeal the sunset. Make death tax re- Mr. President, I yield the floor. he had the last 11 minutes. When we peal permanent. The PRESIDING OFFICER. The Sen- concluded the debate on the amend- Mr. SMITH of New Hampshire. Mr. ator from Montana. ment of the senior Senator from North President, the estate tax, better known Mr. BAUCUS. Mr. President, I rise Dakota, he closed out that debate. So as the ‘‘death tax,’’ is an onerous tax today to support permanent repeal of if we could do it that way, we would that should be eliminated. A recent the estate tax. Permanent repeal of the like to do it. It seems reasonable to us. poll revealed that 77 percent of the vot- estate tax will help boost Montana’s If anybody objects, obviously we can ers believe that the tax is unfair. economy and will help boost America’s talk about an alternative. This tax is slowly destroying family economy, create jobs, and protect the Mr. GRASSLEY. Mr. President, as businesses by slowing growth. And it is heritage of our farmers and ranchers. you know, for as long as I have been in unfair that families who have worked As chairman of the Senate Finance Congress, my belief is that no Amer- their entire lives to build a successful Committee, I was proud to help write ican family should be forced to pay family farm or business should be pe- last year’s tax cut, which included a over half of their savings, their busi- nalized. number of good changes to the estate ness, or their family farm in taxes Individuals who look forward to leav- tax, including increasing the unified when they die. No taxpayer should be ing something behind for their children tax credit and restructuring the rates. visited by the undertaker and the tax should not be punished by confiscatory, Now it is time to go further. As the collector at the same time. anti-family taxes. law currently stands, the estate tax With the President’s support we have In fact, after years or even genera- will be fully repealed in 2010. helped those families we care about, tions, children are often forced to sell It will return to 2001 levels the next this Senate voted by a wide majority the family farm or business just to pay year, 2011. Let us use some common to help those families who are being the tax. This is both unfair and uncon- sense. Estate tax is a prime example of crushed under the expensive respon- scionable. a tax that dampens efforts to create sibilities of estate tax planning and es- However, not only is it the children more jobs in Montana and across the tate taxes. I have heard the concerns of who must suffer the loss of the family country, and that is what this is all the people in Iowa and the American business, but the workers and their about, creating more jobs. people, and this Congress voted to re- children who suffer when they lose My State is a small business State, peal the ‘‘death tax.’’ their job because the business they’ve an agricultural State, a State of fam- Now, the Democrat leadership wants been working at is liquidated to pay ily-owned farms and ranches, a place to take that all away. Once again they the death tax.

VerDate 11-MAY-2000 01:11 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.090 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5425 But it doesn’t stop there. The local strongly urge passage of this legisla- who believe there is a role Government community, particularly small towns, tion. can play when it comes to the improve- suffer as well because their customers The PRESIDING OFFICER. The Sen- ment of people’s lives and that we have can no longer afford to buy their prod- ator from North Dakota. an important challenge before us: Af- ucts after having lost their job. Mr. CONRAD. I suggest the absence fordable prescription drugs, good edu- The estate tax is outdated, it raises of a quorum. cation, investment in our schools, our little money, and it imposes a large The PRESIDING OFFICER. The children, making sure Social Security cost on the economy. clerk will call the roll. will be there for people. These are the In 1999 the estate tax generated The assistant legislative clerk pro- priorities. about $24 billion. However, it is esti- ceeded to call the roll. This proposal is very clear in what mated that administrative costs to en- Mr. CONRAD. Mr. President, I ask its ultimate goal is, which is above and force the tax are over $36 billion. unanimous consent that the order for beyond massive tax unfairness. It will A recent analysis by the Heritage the quorum call be rescinded. so erode the revenue base and will pre- Foundation found that the U.S. econ- The PRESIDING OFFICER. Without vent any initiative in these areas: Pre- omy would average nearly $11 billion objection, it is so ordered. scription drug coverage, education, per year in additional output if this tax Mr. CONRAD. Mr. President, I yield 4 health care coverage, affordable hous- were abolished. minutes to the Senator from Min- ing. By definition, it is fiscally irre- The National Association of Manu- nesota. sponsible. So on both counts, it is a facturers states that 40 percent of it’s The PRESIDING OFFICER. The Sen- massive subsidy, an inverse relation- members had spent more than $100,000 ator from Minnesota. ship to need. on attorney and consultant fees related Mr. WELLSTONE. Mr. President, All together, 36 families in Minnesota to death tax planning. In addition 3 out first let me rise to disagree with my will not be helped if we go forward with of 5 members pay at least $25,000 a year colleague, the chair of the Senate Fi- the Conrad proposal. If we had gone to prepare for the death tax. nance Committee. In the State of Min- forward with the Dorgan proposal, A 1998 study by the Joint Economic nesota, in 1999, there were 636 families every family in Minnesota but 36 fami- Committee found that if the death tax who paid the estate tax. If we pass the lies would be helped. This proposal is was repealed, as many as 240,000 jobs Conrad amendment, which says for a so skewed toward the top of the top of would be created and Americans would family we are targeting $7 million, we the top and at the same time undercuts have an additional $24.4 billion in dis- will have exactly 36 families left in our our ability to make any of the invest- posable personal income. State who will be paying this tax. ments we need to make to do better as A February 2000 study by the Na- We had the Dorgan amendment that a nation. tional Association of Women Entre- said if someone is going to be a family I hope my colleagues will vote preneurs found that the death tax has a farmer or have a small business, and against the Gramm proposal and will negative impact on female entre- they are going to pass it on, and one is vote for the Conrad amendment. preneurs. going to take over the farm and the I yield the floor. According to the study, business small business, they are exempt. That Mrs. MURRAY. Mr. President, the es- owners found that female entre- is what it is all about when it comes to tate tax is bad for businesses. It is bad preneurs spent, on average, nearly fairness. for workers and new job creation. And $60,000 on death-tax planning. Instead, what we have is a proposal it is bad for our communities who are So who pays the death tax? that I yesterday labeled win/win or watching their local, family-owned We all do. We pay it through lower lose/lose, dependent upon one’s values businesses get swallowed up by large wages and fewer jobs. In high-unem- and priorities. If one believes they corporations. Therefore, I wish I could ployment regions or rural areas such as should bleed the economy over the next have supported the estate tax repeal the North Country of New Hampshire 20 years to the tune of a trillion dol- amendment debated today. and elsewhere, the death tax destroys lars, and all of those benefits will go to For the last 7 years, I have worked to badly needed jobs before they are cre- multimillionaires and billionaires, and address the problems with the estate ated. at the same time have to raid the So- tax. I introduced legislation in 1995 to We pay it through the destruction of cial Security trust fund—we just raised reform the estate tax, and I voted for our communities. In hundreds of Amer- the debt ceiling $450 billion, and some the 1997 tax bill that made it easier for ican towns, small family-owned busi- of my colleagues who voted against it family farms and small businesses to nesses are struggling to survive against are voting for eliminating this tax. So transfer their assets to the next gen- the competition provided by large cor- if they believe the benefits should go to eration. In 2000, I cosponsored legisla- porate retailers. the top of the top of the top, and in ad- tion by Senator JON KYL and former Home Depot doesn’t pay the death dition they want to bleed this economy Senator Bob Kerrey to repeal the es- tax. The family-owned hardware store to the tune of a trillion dollars over tate tax. I voted for similar legislation does. The death tax accelerates the the next 20 years so we will not be able later that year. I believe the Kyl- transfer of wealth from the owners of to live up to our Social Security obli- Kerrey bill made a critical contribu- small businesses to the owners of large, gations, we will take it out of the So- tion to the estate tax debate. It was a public corporations. cial Security trust fund; we will not middle ground that essentially sub- And we pay it through slower growth have the money for affordable prescrip- stituted an estate tax when an asset is and less wealth. Study after study tion drug coverage; we will not make transferred at death with a capital shows the death tax reduces savings, the investment in the health and skills gains tax when an asset is sold. In my lowers investment, and restricts the and intellect and character of children; opinion, that is a fair approach. capacity of the economy to grow. The we will not invest in education; there For me, estate tax repeal is about death tax literally confiscates capital, will be nothing for affordable housing; protecting and creating jobs, strength- the lifeblood of any economy. That we will not be able to do anything ening locally owned businesses, and means lower incomes and fewer oppor- about deplorable conditions in nursing protecting the environment. When a tunities for ourselves, as well as our homes. If they believe this and believe business owner spends thousands of children. there is nothing the Government can dollars each year on estate tax plan- Death tax supporters argue we can- or should do, this is win/win. ning, that is less money the owner in- not afford to repeal this tax. All the I said it yesterday. This is lose/lose vests in employees and the business. evidence suggests just the opposite. We for the people of Minnesota. This is When family businesses are sold, they cannot afford to continue this destruc- lose/lose for probably 99.99 percent of are often purchased by large corpora- tive tax. the population. This is lose/lose for tions, not by other locally owned busi- So who’s left holding the bag, the people who believe we should have tax nesses. When timber lots or farms are middle-class. fairness, that we should target these sold, there is a good chance that land This tax is unfair and it is anti-fam- breaks to small businesses and family will be eaten up by strip malls or other ily. We must repeal this tax now. I farmers. This is lose/lose for people development, and not kept as open

VerDate 11-MAY-2000 01:11 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.093 pfrm12 PsN: S12PT1 S5426 CONGRESSIONAL RECORD — SENATE June 12, 2002 space. For the reasons I just outlined, a permanent basis. We should also in- reforming the estate tax. That is the a vote for repeal would have been the clude an indexing provision to ensure choice before us. easy road to travel today. that the unified credit does not become Let’s start with a few facts. Ninety- My constituents did not elect me to obsolete and burdensome again, as hap- eight of every 100 people who die face the Senate to take the easy road. They pened over the past several decades. no estate tax whatsoever. Only the elected me to make tough decisions. As But we should make these changes in richest 2 percent of Americans do. Es- much as I believe the estate tax is a a fiscally responsible manner. We tates worth in excess of $5 million paid bad tax, I believe passionately that we should do so without adding to the al- about 51 percent of the estate tax in have a responsibility to balance the ready enormous budget deficits that 1998. This tax does not oppress the chil- government’s books. Just as the estate were largely the result of the tax bill dren of multi-millionaires, they still tax hurts businesses and jobs, so does that was enacted last year. inherit millions. But it does provide us chronic deficit spending by the Federal Our budget position is poor, and it is with funds for investment in the public Government. getting worse. Last year, Congress good. It is completely appropriate that During the last 2 days, some of my passed a fiscally irresponsible tax cut the wealthiest estates contribute some colleagues have argued for permanent that has shoved us back into the deficit portion in taxes to help create opportu- estate tax repeal. Not one of them has ditch. Congress then added to our woes nities for others to reach their full po- told me how we will pay for it. Last by passing an unfunded stimulus pack- tential. year’s tax cut blew open the budget age filled with special interest tax Repealing the estate tax would make while not making estate tax repeal a breaks, a farm bill that unnecessarily the rich richer at a heavy cost to the high priority. Our budget problems benefits the largest and wealthiest pro- rest of us. Between 2013 through 2022, were made worse by the recession and ducers, and just last week, following permanent repeal of the estate tax September 11 terrorist attacks. Clear- the action of the House of Representa- would cost us $740 billion. That is $740 ly, we are in a different place than we tives, the Senate passed a supple- billion we could use for homeland de- were 2 years ago. mental spending bill, also unfunded, fense, investments in education and in- The country deserves a debate on and also apparently filled with special frastructure, and to provide the funds how we balance estate tax repeal—or interest provisions of questionable to save Social Security and Medicare. other aspects of last year’s tax law— value. Each of these actions will only It is true that a few small businesses with our other obligations. We must further aggravate our budget problems. and family farms are subject to the es- address our homeland security needs, Now, proponents of estate tax repeal tate tax. But of the 2.3 million people whether it is strengthening airline and are asking us to enact legislation that who died in 1998, just 1,418 of those had port security, improving operations at will add even more fuel to the deficit more than half of their estates in a our borders, or making sure our troops fires. Rather than offering a fiscally re- family-owned business or farm. We can in the field have the training and re- sponsible measure, with provisions and should exempt many of these fami- sources they need. Our constituents are that offset the cost of repeal, the pro- lies from the estate tax through re- also demanding action on issues that ponents are content to add to our budg- sponsible reform. were important prior to September 11. et deficits, and our already massive Furthermore, while the estate tax af- Health care is a crucial issue for indi- federal debt. fects a relatively small number of viduals and families, and to the busi- In effect, the proponents suggest that wealthy Americans, it can have a detri- nesses who support estate tax repeal. we should repeal the tax on the mental effect on small businesses and In addition, we cannot lose sight of wealthiest estates, and let the Social families who live in areas that have long-term investments in education, Security trust funds pick up the tab. high property values, such as Silicon job training and infrastructure. Given I regret that this is also the case Valley. Under current law, the first what is at stake, we do a disservice to with some of the alternative proposals $675,000 of one’s estate is exempted the American people if we simply tell as well—proposals much closer to the from Federal tax. In some parts of Cali- them they can have it all. We have to kind of estate tax reform I support. fornia, however, where median home make choices, and last year the admin- The choices being presented to the Sen- prices exceed $500,000, moderate-income istration and Congress chose not to ate are not acceptable. As much as I individuals must content with taxes make estate tax repeal a priority. would like to see a permanent solution paid only by the wealthiest residents in While I could not support the estate to this question, I do not support raid- other regions. tax repeal amendment offered by Sen- ing Social Security to achieve it. I strongly support helping these fam- ators GRAMM and KYL, neither could I When I was first elected in 1992, we ilies by reforming instead of repealing support the amendments by my Demo- faced an annual budget deficit of $340 the estate tax. The reform I supported cratic colleagues. While well inten- billion, and projected deficits of rough- and that Senator DORGAN introduced tioned, I believe the nation has moved ly the same size for many years to would make estates of up of $4 mil- beyond whether we should repeal the come. Thanks to the fiscal restraint we lion—and $8 million for couples—ex- tax. To me, it is not a question of if, demonstrated in the 1990s, and espe- empt from the estate tax. And it would but when we repeal the tax and how we cially to the deficit reduction package permanently repeal the estate tax for pay for it. The alternative amendments we enacted in 1993, we saw a virtuous family-owned farms and businesses. offered today would have taken us cycle of lower budget deficits and in- That is real reform that benefits those backwards. creased economic growth. The result who need the help, not another give- Today is not the last time we will de- was that we eliminated the budget defi- away to the richest among us. bate estate tax repeal. Between now cits and actually began paying down Instead of focusing our efforts on and the next estate tax vote, I believe some of the federal debt that was making the very wealthy wealthier, we Congress and the administration need racked up during the 1980s. should be working on helping hard- to reach agreement on a basic budget We need to return to the fiscal re- working Americans and investing in framework that makes room for estate straint that worked so well during the meeting their needs. tax repeal. Unless we repeal the estate 1990s. And first and foremost, that Mr. KENNEDY. Mr. President, in tax in the context of a budget agree- means paying our bills. The estate tax January 2001, the Congressional Budget ment, we will just be playing politics repeal is not funded. It digs our deep Office projected an on-budget surplus instead of making real progress budget hole even deeper, and we should of $3 trillion over the decade. One year Mr. FEINGOLD. Mr. President, I reject it. later, the projection is for a $242 billion strongly support permanent estate tax Mrs. BOXER. Mr. President, the es- on-budget deficit. The largest single reform. Though I do not support com- tate tax needs to be reformed, but it reason for that stunning change is not pletely repealing the estate tax for all should not be repealed. Repealing the the cost of the war on terrorism nor estates, I do believe that we should sig- estate tax would benefit only the ex- the recession, it is the $1.7 trillion cost nificantly expand the unified credit to tremely wealthy at an exorbitant cost of the President’s tax cut. The admin- exempt the great majority of estates to the American people. We can help istration’s proposed budget this year from taxation, and we should do so on small businesses and family farmers by would make the existing crisis far

VerDate 11-MAY-2000 01:22 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.027 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5427 worse, dramatically expanding the def- long way to securing those programs the proposals. I support it. So, in es- icit to nearly $1.5 trillion. The Social fro future generations of senior citi- sence the debate is whether the Federal Security trust fund would be used to zens. Over the next 75 years, revenue Government should tax estates larger cover an on-budget shortfall every year generated by the current estate tax than $3.5 million. Do those who have through fiscal year 2012. would be equivalent to nearly 40 per- been given the most—the heirs to these Just yesterday, at the urging of the cent of the shortfall in the Social Secu- fortunes—have a special obligation to administration, we voted to raise the rity Trust Fund. Those dollars should help the less fortunate members of the debt limit by $450 billion. That increase go where they are needed most—to pre- American community? That is the real will only carry us until next spring. serve the promise of Social Security fairness question before the Senate The Treasury Department has already for future generations of retirees. today. said that we will have to raise the ceil- While the advocates of permanent es- Mr. MCCAIN. Mr. President, I rise ing on government borrowing again tate tax repeal are reluctant to admit today to speak on H.R. 8, the Death early next year. Despite the over- it, this vote is really about the finan- Tax Elimination Act. I want to take whelming evidence, it seems that some cial future of Social Security and this opportunity to explain my opposi- of our colleagues across the aisle re- Medicare. Repeal would be a windfall tion to making permanent the repeal of main oblivious to the connection be- for the wealthiest few at the expense of the Federal estate tax. tween the larger and larger tax cuts our ability to keep Social Security and Last year, the Economic Growth and they espouse and the growing deficits Medicare strong for all seniors. Do we Tax Relief Reconciliation Act of 2001 that inevitably result. choose to commit hundreds of billions (P.L. 107–16) repealed the Federal es- Why, in this time of budgetary cri- of dollars to cover the cost of estate tate tax by 2010. It accomplished this sis—when the war on terrorism is mak- tax repeal or to maintain Social Secu- by gradually raising the ‘‘unified cred- ing making new demands on our re- rity and Medicare for future retirees? it’’ which is the amount of the estate sources, and when the enormous cost of In the year 2000, nearly 40 million exempt from taxation, from $675,000 in the retirement of the baby boom gen- Americans received Social Security re- 2001, to $1 million in 2002; $1.5 million eration is looming just over the hori- tirement benefits. With the retirement in 2004; $2 million in 2006; and $3.5 mil- zon—should we be considering another of the baby boomers, that number will lion in 2009 and finally repealed the es- large tax cut for the wealthiest tax- steadily grow. By 2010, it will exceed 50 tate tax by 2010. However, the estate payers? There is no good answer. million. In comparison, fewer than tax will be reinstated in 2011 as it ex- Permanent repeal of the estate tax is fifty thousand of the largest estates ists under current law. The Death Tax unaffordable. In the first year, full re- paid any estate tax in 2000. That was Elimination Act removes the sunset on peal will cost $56 billion. Over the dec- just 2 percent of decedents. With the repeal and makes the repeal of the es- ade beginning in 2012, the estimated increase of the estate tax exemption to tate tax permanent from 2010 onwards revenue loss to the Treasury is $740 bil- $3.5 million by 2009, the number of es- with no cap whatsoever. lion. tates paying tax will be further re- I am concerned that repeal of the es- Permanent repeal of the estate tax is duced to about 10,000 a year. Just one- tate tax would provide massive benefits unfair. While it benefits only the half of 1 percent of estates will be sub- solely to the wealthiest and highest in- wealthiest 2 percent of taxpayers, each ject to the estate tax. come taxpayers in the country. A year it will consume billions of dollars Which group needs our help more— Treasury Department study found that which are needed to finance Social Se- the 50 million men and women count- almost no estate tax has been paid by curity and Medicare benefits for mil- ing on Social Security or the heirs of lower and middle-income taxpayers. lions of retirees. the 10,000 wealthy decedents with But taxes have been paid on the estates Permanent repeal of the estate tax is multi-million dollar estates? I believe of people who were in the highest 20 unnecessary. Currently, all estates the answer to that question should be percent of the income distribution at under $1 million are exempt from the clear to all. the time of their death. It found that 91 estate tax. That exemption will rise to Those who most passionately decry percent of all estate taxes are paid by $3.5 million under existing law. At that the ‘‘unfairness’’ of taxing multi-mil- the estates of people whose annual in- point, only the largest one-half of 1 lion dollar estates are strangely silent come exceeded $190,000 around the time percent of estates will be subject to the about the unfairness of jeopardizing of their death. tax. Making that higher exemption the retirement benefits of low-wage During this time of increasing defi- level permanent will protect the vast workers or the unfairness of forcing el- cits, we should also be mindful of the majority of the family farms and fam- derly widows to choose between food very high cost of providing those bene- ily owned small businesses. Their es- and medicine. Which of these injustices fits and our ability to pay for them. tate tax will be zero. should move the Senate to action? The Joint Committee on Taxation esti- Permanently repealing the estate Many bogus claims have been made mates that removing the 2010 sunset tax, as our Republican colleagues pro- to distract attention from the real fair- and making permanent the repeal of posed, would be the triumph of reckless ness issue. Those advocating perma- the estate tax would cost $99 billion be- ideology over fiscal prudence. It would nent repeal claim it is ‘‘double tax- tween 2003 and 2012. But more than half jeopardize our ability to meet the Na- ation.’’ In fact, a major portion of the of this cost or $56 billion would occur tion’s most fundamental responsibil- assets in these multi-million dollar es- just in 2012. The long-term costs of per- ities in future years. tates are unrealized capital gains manent repeal are much larger. In the In the Bush administration’s budget, which are never taxed. Those favoring decade after 2012, permanent repeal in a section titled ‘‘The Threat to the repeal assert the Federal Government would result in a revenue loss of $740 Budget from the Impending Demo- takes more than half of all the assets billion assuming that the cost which graphic Transition,’’ it states: ‘‘In the in these estates. This too is incorrect. the Joint Tax Committee estimates for years that follow [2008], the population The Congressional Research Service 2012 will remain the same after 2012, over the age 62 will skyrocket, putting analyzed the Federal estate tax burden when measured as a share of the econ- serious strains on the budget because on estates that were subject to tax- omy. of increased expenditures for Social Se- ation in 1999 and determined that the Another concern I have is that repeal curity and for the Government’s health effective rate was just 12.4 percent. On of the estate tax will cause a signifi- programs which serve the elderly— the largest estates, those over $20 mil- cant decline in charitable giving. I fear Medicare and increasingly Medicaid.’’ lion, the effective rate was 17.6 percent. that eliminating the estate and gift tax The resources which will be lost to These are certainly not unreasonable would remove an enormous tax incen- the Treasury by repeal of the estate rates to ask the richest men and tive for the wealthy to make charitable tax are essential to financially women in the Nation to pay. gifts. The research on the effect of the strengthening Social Security and There appears to be a consensus in estate tax on charitable giving has con- Medicare. Dedicating the revenue from the Chamber to permanently exempt sistently shown that levying estate the estate tax to the Social Security estates up to $3.5 million from tax- taxes increases the amount of chari- and Medicare trust funds would go a ation. That feature is common to all table bequests. A recent study found

VerDate 11-MAY-2000 03:18 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.029 pfrm12 PsN: S12PT1 S5428 CONGRESSIONAL RECORD — SENATE June 12, 2002 that eliminating the estate tax would Mrs. FEINSTEIN. Mr. President, I to sell in order to pay the estate tax reduce charitable bequests by about 12 rise to address the Gramm/Kyl amend- bill. percent overall. ment to H.R. 8, the estate tax repeal In addition to permanently extending Taking these issues into account, in- bill. an increased unified credit of $4 million stead of repeal of the estate tax, I sup- I want to first say that I am philo- per individual and $8 million per cou- port increasing the ‘‘unified credit’’ to sophically opposed to the estate tax, ple, Senator DORGAN’s amendment pro- allow up to $5 million worth of assets and have long expressed my belief that vides relief to small business and fam- to be exempt from taxation. I believe it is an unfair tax that we should ulti- ily farm owners who suffer the most this cap is a reasonable amount. For mately do away with. under current law by providing an un- example, according to data from the In addition to threatening owners of limited exemption from the federal es- IRS, more than 93 percent of taxable small businesses and family farms, the tate tax to small business owners and estates in 1999 were valued at less than estate tax acts to stifle investment in farmers. This would ensure that this $5 million. Farm and family-owned businesses, and is a disincentive for tax no longer threatens anyone wishing business assets accounted for less than those who want to save so that they to pass on a family-owned business to three percent of the total value of can pass assets on to their children and his or her heirs. these estates in 1999. In most estates grandchildren. However, to vote in Under current law, the unified credit that are taxable and include a business favor of repeal today, under our cur- is set to increase to $3.5 million by or farm, the business or farm does not rent circumstances, runs counter to 2009, but the Qualified Family Owned even constitute the majority of the es- another of my deep philosophical be- Business Interest exemption will expire tate. In fact, the American Farm Bu- liefs: fiscal responsibility. in 2004, removing what few safeguards reau Federation has acknowledged that Last year I voted to support the are in place to protect those whose as- it could not cite a single example of a President’s tax cut package, which pro- sets are tied up in family-owned farms farm having to be sold to pay estate vides $1.3 trillion in tax cuts over the or businesses. taxes. These facts belie the argument next decade. My support for that bill I am particularly concerned about that we must repeal the estate tax to was partially determined by the estate protecting these businesses because of save family businesses and farms to as- tax relief provisions included within it. the relatively high value of California sure that they do not have to be liq- When I voted in favor of that bill, we farm land. The value of an orange uidated to pay estate taxes. were projected to benefit from some grove in Ventura, CA may be as high as Responsible estate tax reform, in- $5.6 trillion in budget surpluses over $15,000 per acre due to local develop- stead of outright repeal, would ensure the coming decade, enabling us to pro- ment pressures, compared with a price that small and family-owned busi- vide significant relief to American tax- of $1,500–2,000 per acre for corn-growing nesses and family farms will not be payers while also protecting the Social land in a mid-western state. taxed out of business in the event of Security trust fund and programs in As a result, even a medium-sized the death of an owner or when passed health, education, and numerous other California farm of 400 to 500 acres may along to the owner’s children. Respon- areas. be liable for a hefty estate tax bill, es- sible reform would alleviate individ- Needless to say, that outlook has pecially when the value of farm build- uals and businesses from being forced changed dramatically in the past ings and other capital investments are to spend time and money on estate twelve months. The economic slow- factored in. planning. down, combined with major new ex- The estate tax may make it impos- Even some of the Nation’s wealthiest penses associated with providing for sible for a family farm to be passed taxpayers such as Warren Buffet, homeland security and fighting the war down from generation to generation. Chairman of Berkshire Hathaway, and on terror, have put a major strain on No one should be forced to sell the fam- Bill Gates, Sr., father of the billionaire the federal budget, requiring Congress ily farm just to pay the estate tax. Microsoft founder, have gone on record to exercise a degree of fiscal responsi- Small business owners are equally at as opposing the effort to repeal the es- bility not seen during the late 1990’s. risk, and those who own and operate tate tax. And in calling for the inherit- Despite the threat of a budget deficit capital-intensive businesses must bear ance tax in his 1906 State of the Union of over $125 billion this year, and pro- an exceptional burden. While the issue Address, President Theodore Roosevelt jected deficits stretching through the of small business liability under the es- said, ‘‘The man of great wealth owes a end of the decade, House Republicans tate tax has often been represented as peculiar obligation to the State, be- have made clear their intent to push affecting a tiny minority of Americans, cause he derives special advantages through a permanent extension of all in fact there may be many small busi- from the mere existence of govern- of the tax cuts included in the Presi- ness owners who sell or transfer their ment.’’ dent’s bill last year. The first of those businesses in expectation of their heirs We have no idea what our financial extensions, and the one that we are having to pay the tax. or economic situation will be ten years considering today, is a permanent re- Additionally, the sale of family- from now. We may be at war. We may peal of the estate tax. owned businesses, particularly to larg- be in the process of putting Social Se- Yet there could not be a worse time er conglomerates, threatens the jobs of curity on a sound financial footing. We to consider full repeal of the estate tax thousands of Americans who are em- may want to have the flexibility to than right now. The latest estimates ployed by those businesses. Even those provide significant tax relief for lower project full repeal of the estate tax will businesses that can cover their tax li- and middle-income taxpayers. Other cost the federal government over $740 ability may have to take on a large unforeseen issues may arise. The point billion between 2011 and 2020. Although debt burden that threatens their com- is that we must think beyond the hori- it is my hope that we will be able to petitiveness and delays efforts to ex- zon. Making the repeal of the estate permanently extend the repeal at an pand or grow the business. tax permanent fails to take these new appropriate time before it is set to ex- The Dorgan amendment would have circumstances into account. pire in 2010, we are in no position today resolved this problem by uncapping the We will need resources to deal with to do that and cope with major outlays Qualified Family Owned Business In- national security, general government for defense and homeland security, as terest exemption entirely, but it also funding, the coming baby boom retire- well as threats to funding for Social would have raised the individual ex- ment and the rising costs of Social Se- Security and Medicare. emption to $4 million in 2010. By pro- curity and Medicare, and responsible Earlier today, I voted in support of viding this much-needed relief, the tax reform that benefit lower- and mid- Senator DORGAN’s amendment as a amendment would have limited estate dle-income taxpayers. But we must good compromise on this issue, and be- tax liability to a tiny fraction of fund these priorities within our con- cause it goes a long way toward ad- wealthy Americans who have large strained budget situation. Reforming dressing one of my major concern with holdings of marketable assets. the estate tax rather than committing estate tax: that it puts family-owned Regrettably, the Dorgan amendment ourselves to full repeal is the more sus- businesses and farms at risk of sale or did not pass, and we are faced with an tainable and responsible approach. closure simply because heirs are forced unfortunate choice between full repeal

VerDate 11-MAY-2000 01:22 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.068 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5429 and the limited relief passed as a part I believe history will judge this Con- The same goes for family businesses. of the President tax package last year. gress by how well we answer that ques- In the few cases where family busi- I very much look forward to a time tion. nesses are subject to the estate tax, it when the Senate can vote for full re- And I believe every action we take is usually because that business is just peal of the estate tax with a clear con- should keep those four key goals in one part of a larger estate. science, knowing that a vote to repeal mind. But just to make sure that family the estate tax is not a vote against fis- Today, we are debating, once again, farms and small businesses aren’t hurt, cal responsibility. To vote for full re- what seems to be the Republican Par- we’re proposing an alternative that peal today would be to turn a blind eye ty’s only solution to all of these prob- will exempt virtually every family to such responsibility, and to move for- lems—more tax cuts. farm and small business from the es- ward guided only by the kind of irra- Specifically, we are debating a per- tate tax. tional optimism that was so readily manent repeal of the estate tax, an Family farms and small businesses propounded only a year or two ago. idea that could not be more at odds define us as a nation. We’ve never seen Mr. DASCHLE. One year ago, Amer- with the priorities of the nation at this it demonstrated that they are being ica had a projected budget surplus of critical time. broken up by the estate tax, but, just 2.7 trillion dollars over the next 10 It is bad public policy. It is unfair. It in case, we’re going to see to it that years. will undermine Social Security, de- they never will be. The stock market was soaring. press American philanthropy, hurt Others have argued that the estate The question before us was one that state budgets, and make it more dif- tax is un-American, that it is a penalty most leaders could only dream of: ficult to meet every other challenge we for success. The history of the estate ‘‘What should we do with our pros- face. tax shows the exact opposite is true. perity?’’ And I want to be especially clear that Not only does the estate tax encour- At that time, the debate was focused there is a vast difference between fair- age economic success based on merit on tax cuts, how much, for whom, and ly protecting family farms and small rather than birthright—it is a dem- could we also provide for America’s businesses on one hand, and blindly de- onstration that those who have done unmet needs? stroying our fiscal balance on the well by this nation have a special obli- Nine months ago yesterday, more other. gation to contribute to its continued Repealing the estate tax will cost $99 than 3,000 innocent men and women success—and its defense. billion over the next decade, and $740 lost their lives to terrorism. In his 1906 State of the Union, Presi- In the months since, an anthrax at- billion in the decade after that. Most of that will come from the So- dent Theodore Roosevelt, a Republican, tack and recent disclosures have re- proposed the estate tax to help finance vealed holes in our homeland security. cial Security trust fund. If you look out over the next 75 years, the cost of the war debts of the 19th century, say- The collapse of Enron has raised ques- ing, ‘‘The man of great wealth owes a tions about our system of corporate repealing the estate tax will account for nearly 40 percent of the entire peculiar obligation to the State, be- governance and we are soon to begin cause he derives special advantages perhaps the most dramatic restruc- shortfall in the Social Security Trust Fund. from the mere existence of govern- turing of government in half a century. ment.’’ All of this has occurred against the And who benefits? The wealthiest To single out the estate tax for elimi- backdrop of massive demographic two percent of American estates. By nation in the midst of this current war changes that will transform the face of 2009, it will be the wealthiest one half goes against the intent, and the his- our nation for decades to come. of one percent of all estates. tory, of this policy. In 2008, the first of the Baby Boomers What we’re talking about is diverting Those arguments may be false. But will begin retiring. By 2015, 50 million the Social Security contributions of there are some powerful and disturbing seniors will be drawing benefits from millions of American workers to fund a truths about making the estate tax re- Social Security. Prescription drugs are massive tax cut for the most fortunate peal permanent. becoming a more and more vital part of of the fortunate few. And sometimes it’s the fraudulent In the short term, it costs $99 billion. American health care, and we need to Just yesterday, we passed an increase find a way for Medicare to help pay for few. Yesterday, Senator CONRAD had a in the debt limit in part so we could them. meet the new security demands we’re At the same time we’re facing a sen- chart here on the floor showing Jeffrey facing in an increasingly uncertain and ior boom, we’re also facing a youth Skilling, a former CEO of Enron, threatening world. boom. School enrollments are already stands to gain $55 million from the re- If giving a handful of multi-million- at record levels, and will continue to peal of the estate tax. That $55 million aires and billionaires another tax rise every year for the next 8 years. will be composed of the Social Security So here is where we are: The surplus contributions of 30,000 working Ameri- break requires a choice between more is gone. cans earning $30,000 a year. debt and less security—that should be The Treasury is borrowing money We’ve been hearing a number of argu- a clear signal that the price is simply and spending Social Security funds to ments in favor of estate tax repeal too high. pay for the daily functions of govern- from our Republican colleagues, so let In the longer term, we will feel the ment. me just take a minute and address a full brunt of this repeal at exactly the We have just passed a bill to allow couple of the issues they raise. time the baby boomers begin to retire. America to take on even greater debt. They argue that the estate tax forces We know that, 10 years from now, we The baby boomers are preparing to re- the sale of family farms and businesses. are going to need some fiscal flexibility tire. Some agriculture organizations have to start paying the retirement benefits More children than ever are moving said that it is important to repeal the to the biggest retirement population through our schools. estate tax, but when asked if they that’s ever passed through the system, Investors have had their confidence could cite when asked if they could cite and yet some want to succumb to fiscal in American business shaken. a single example of a farm lost because irresponsibility at precisely the time We are in the midst of confronting of estate taxes, they couldn’t name we can least afford it. new—and previously unimaginable one, not one. We have all heard the old saying, threats to our nation. As Neil Harl, an Iowa State Univer- ‘‘When you find yourself in a hole, stop We are at war. sity economist who has studied the digging.’’ The question facing America is no issue extensively, said simply, ‘‘It’s a Well, it is time for us to stop digging longer, ‘‘What should we do with our myth.’’ a deeper hole, and start getting serious prosperity?’’ The question now is: And here’s why: in Iowa, the average about the problems we face. ‘‘How do we protect our citizens, farm is worth $1.2 million. In South Last March, a farmer named John strengthen an ailing economy, prepare Dakota it’s just over $500,000. Family Sumpton, from Frederick, SD, came to for the future, and win this war against farms simply do not fall victim to the testify before the Senate Finance Com- terrorism?’’ estate tax. mittee.

VerDate 11-MAY-2000 01:22 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.099 pfrm12 PsN: S12PT1 S5430 CONGRESSIONAL RECORD — SENATE June 12, 2002 ‘‘Mr Chairman,’’ he said, ‘‘I am not the same time, voting to cut taxes. It The PRESIDING OFFICER. The Sen- an expert on tax law, but I know about does not add up. I do not know how to ator’s time has expired. The Senator family farmers. They are my friends stop it. from Nevada. and neighbors. They are not worried I want to put down a marker today Mr. REID. Mr. President, I ask unan- about estate taxes, because, for the and say it is something that is not a imous consent the time for debate on most part, they don’t have to pay sustainable policy, and one I hope we this matter be extended 10 minutes them. They are worried, however, will not continue. equally divided. about the prices they receive for their Mr. CONRAD. I yield 3 minutes to The PRESIDING OFFICER (Mr. crops and livestock, about good public the Senator from New Jersey. CORZINE). Without objection, it is so or- schools for their kids, about local com- The PRESIDING OFFICER (Mr. dered. munity services, paying for prescrip- WELLSTONE). The Senator from New Mr. CONRAD. Mr. President, I close tion drugs, and being able to pay their Jersey. debate on our side by pointing out that bills in retirement. And, of course, Mr. CORZINE. Mr. President, I rise we are not making these decisions in a they are always worried about the to speak strongly in opposition to the vacuum. We have to consider the fiscal weather.’’ Gramm amendment. I am in the group condition of the country when we make He continued: ‘‘I fear we may not be of folks who believe we need reform, any spending decision or any addi- able to do the things we want and need not repeal. There are some positive tional tax cuts. The fact is, last year we were told we for our communities if we repeal the things we should do with respect to the had trillions of dollars of surplus over federal estate tax. To me, it doesn’t estate tax. However, I find it terribly the next 10 years. Now we see those seem responsible to eliminate the es- difficult knowing the meritocracy of surpluses are gone. They have evapo- tate tax for everyone, including bil- America that I think provides oppor- rated. Instead, we are going to be run- lionaires, when they don’t need the tunity to all, that we are voting to cre- ning massive deficits—this year, a $320 help. A more targeted approach that ate something that is against the prin- billion deficit. helps families better address this issue ciples and buildup of aristocracy, con- trary to at least the America I under- The Senator from Oklahoma said it now, while retaining more resources would be unconscionable to keep this for other needed public investments to stand. I believe that is why we have seen tax. I think it would be unconscionable improve our future, seems a more prac- to drive this country into deeper def- tical and appropriate course of action.’’ many people who have benefited so much from our society because they icit and deeper debt. That is precisely John Sumpton is right. what the amendment of our colleagues have been able to live in a free America And I hope the Senate will heed his on the other side does. It is very clear where they had access and equal oppor- sensible advice. the cost of estate tax repeal explodes in tunity and a public educational sys- Mr. CONRAD. Mr. President, I yield 2 the second decade. Not only does it tem, infrastructure that worked posi- minutes to the Senator from Delaware. cost $100 billion in this decade, every The PRESIDING OFFICER. The Sen- tively for folks, that they feel very penny of which is coming out of the So- strongly there is a responsibility to ator from Delaware. cial Security trust fund, but in the sec- Mr. CARPER. Mr. President, I thank give back by those who have been ond 10 years, it costs $740 billion right my colleague for yielding me this time. blessed with their lives. at the time the baby boomers start to As did a number of my colleagues in Quite frankly, it is one of the things retire, right at the time there will be the Senate, I served as the Governor of that helped in my own life. I think unprecedented demands on Social Se- my State before I was privileged to about the schoolteachers in the rural curity and Medicare and, God forbid, come to the Senate. As a Governor of community in which I grew up who on the needs of the defense of this Na- my State, I was a supporter of tax cuts. gave me the access to the American tion. We cut taxes for 7 years in a row. In promise. I believe America is about This is the most irresponsible amend- fact, we eliminated the gift and inher- meritocracy, not aristocracy. It is ment offered on the floor of the Senate itance tax altogether. While we cut about community, and community- this year. It would gut the fiscal condi- taxes 7 years in a row, we also balanced wide interests—not just the interest of tion of this country when we know it is the budget 8 years in a row. We also the few. already teetering. were able to slow the growth of debt in We have heard the statistics about Instead of repeal, we ought to reform our State. We earned ourselves a AAA how narrow a slice of America benefits this tax. Yes, the estate tax bites at credit rating for the first time in Dela- from this action. This is a period of too low a level. So I recommend in my ware history. sacrifice in America, when we are ask- amendment we give an exemption of $3 Others have spoken to the equity and ing men and women to go overseas to million for an individual, $6 million for the fairness of eliminating altogether protect us. We are asking others to sac- a couple, beginning next year. For 2009 the estate tax. I will leave those argu- rifice on our investments in education and thereafter, the exemption in- ments to those who have already spo- and our protections in the environment creases to $3.5 million for an indi- ken. I simply want us to keep this in and all kinds of things that make sense vidual, $7 million for a couple. This mind. There is an old theory called a in a choice situation, to go in a direc- saves hundreds of billions in the second theory of holes. It goes something like tion where the few are benefited to the decade and saves huge amounts of this: When you find yourself in a hole, exclusion of the many. This is very dif- money in this decade, as well. By 2009, stop digging. ficult. only .3 of 1 percent of estates face any To have voted yesterday to raise the I would be remiss if I did not bring it estate tax liability under my amend- debt ceiling by another $450 billion and up in the context of something about ment. then to turn around and cut taxes in a which I deeply care; that is, protecting In this decade, there is a big dif- way that will only increase our indebt- the integrity of our Social Security ference between these two approaches, edness is a matter of concern to me and and Medicare systems. People will say the cost of the Republican proposal is ought to be to all. Our Republican there are other choices on spending. $99.4 billion; the cost of my proposal is friends are right: We cannot simply be But we have a very clear choice where $12.6 billion. opposed to cutting taxes in ways that we provide for those who benefited the Under my proposal only .3 percent of perhaps are unfair in this case and turn most from the American system to be estates in this country are subject to around and simply vote to increase able to use our Social Security funds tax. Not only is it a question of afford- spending. and Medicare funds that we raise and ability, it is also a question of fairness. I had a good long conversation with directly expend it on something that, Again, my colleague from Oklahoma one of our Republican colleagues on in a period of sacrifice, is hard to un- says it is unconscionable to ask the the phone last night about this body derstand—why our priorities and why wealthiest among us to contribute to and about our propensity to spend ever our choices are here. the fiscal health of the Nation. I don’t more money for defense, for homeland This is a moral issue about priorities think it is unreasonable. defense, more money for social pro- in this Nation, making sure we are President Theodore Roosevelt, one of grams, good social programs, and at funding special education. the greatest Republican Presidents, did

VerDate 11-MAY-2000 01:22 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.101 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5431 not think it was unreasonable. Presi- pealed it when the war was over. Fi- bequeathed only one thing in my life. dent Abraham Lincoln, one of the nally, it was imposed during World War My Great Uncle Bill, my grand- greatest Republican Presidents did not I. We had a battle between the Presi- mother’s brother, died and left me in think it was unreasonable. I think it is dent and the Congress over the League his will a cardboard suitcase. I am unreasonable to say to the American Of Nations. It ended up not being re- proud to say I still have it today. It people that we ought to give Mr. pealed, and it still plagues us today. had yellow sports clippings from the Skilling, who ran Enron, a $55 million That is the history of the death tax. 1950s in it. If they had been baseball tax cut and finance it by asking 33,000 Let me also say to my colleagues cards, I would be a rich man today. Americans, earning $30,000 a year, to that this is an old issue and it is an old If all my relatives I know of left me put all of their Social Security taxes issue between the two great political everything they own, I do not believe I into the pot so we can give Mr. Skilling parties. In 1981, when Ronald Reagan would qualify to pay the estate tax. a $55 million tax cut. came to Washington, part of his tax So why do I feel so strongly about re- I do not think that is fair. Not only cut was to raise the exemption—the pealing the death tax? For the simplest do I not think it is fair, the American amount of wealth in your business or of all reasons—it is wrong. It is wrong. people do not think it is fair. In a poll your farm or your estate you could It is not right, no matter whether released today by the Fair Estate Tax protect from taxes—from $175,000 to somebody is Bill Gates or Dicky Flatt, Coalition, they showed that 58 percent $600,000. The same arguments made by who owns a print shop in Mexia, TX, of the American people favor reform the same Democrats were made at that and who never gets that blue ink off over repeal. Mr. President, 37 percent time. They said it was wrong to raise the end of his fingers. It is wrong, when favor repeal, 58 percent favor reform. the exemption to $600,000. Had they they die, to make their children sell off It is very interesting; in this poll prevailed 20 years ago, the exemption their life’s work to give Government 55 what they found, under Federal budget would be $175,000 today. cents out of every dollar they have ac- priorities, is the people of this country Ten years ago, Congressman GEP- cumulated in their lives. They work, overwhelmingly say strengthening HARDT and Congressman WAXMAN pro- they save, they scrimp—Dicky Flatt Medicare and Social Security is No. 1, posed lowering the exemption—that is, gets up early in the morning, he works 38 percent; increasing spending for edu- the amount of your farm or your busi- on Saturday. Everything he owns he cation, 33 percent; giving seniors a pre- ness or your estate that you could pass plows back into that business. He sent scription drug benefit, 29 percent; in- to your children without it being his children to Texas A&M. They have creasing funding for children’s health, taxed—from $600,000 to $200,000. come back into the business. 18 percent; retiring the national debt, Our colleagues basically admit this is Dicky’s daddy worked there, his a cancer on the economy—but they 16 percent; cutting taxes, 16 percent. momma worked there, he works there, What tax cuts do they favor? And only want to take part of it out, not all his wife works there, his son works that is only 16 percent of the American of it out. The problem is, 10 years ago there, his son’s daughter worked there, people who say that is their priority; members of their party were trying to and they plow everything they can lower the deductible and raise the tax. eliminating the estate tax is the bot- back into their business. I do not know We want to take the whole cancer out tom of the barrel. They prefer cutting what it is worth. But I know whom it because we believe it will come back if taxes for moderate- to low-income belongs to. I know who built it. we do not. How is it right, after they have done Americans, eliminating the marriage Finally, in 1997—which is not that all that work, made all those sac- penalty, a capital gains tax cut; dead long ago—32 Democrat Members of the rifices, scrimped and saved, lived far last is eliminating the estate tax. Senate voted against raising the ex- below the level they could live if they This is a fundamental question. emption to $1 million. Presidents Abraham Lincoln, Theodore We have had a lot of talk today about chose to spend their money—why is it Roosevelt, Woodrow Wilson, and rich folks and who is rich and who is right to take it away from them just Franklin Roosevelt supported inherit- not rich. Sometimes it is awfully hard because they earned it? That is what ance taxes because without them this to tell. But I do want to use this figure. this issue is about. It is not about country would move further from de- Iowa is a farm State. They have 80,000 being rich versus being poor. It is mocracy and closer to aristocracy. farms. It is estimated that 30,000 of about right versus wrong. It is wrong This is a fundamental misunder- those farms today are valuable enough when people who pay taxes on every standing of the heritage of America. that if the owner of the farm died, dollar they earn, who have plowed it Meritocracy, not aristocracy; reform their children would have to pay a back into their businesses or farms or yes, repeal no. death tax. That is almost 40 percent of estates, to destroy all that when they The PRESIDING OFFICER. The time the farms in Iowa. die. of the Senator has expired. Look, there are some people who are Death should not be a taxable event. The Senator from Texas. bothered by the fact that some people It is hard enough to face dying, with- Mr. GRAMM. How much time do we become successful in America and out having to know that your children have, Mr. President? make money. I am not one of them. If are going to lose what you have built. The PRESIDING OFFICER. Twenty someone became very rich, started a Every day, people are spending bil- minutes, twenty-five seconds. business in College Station, had 200 lions of dollars to try to get around Mr. GRAMM. Why don’t I take 10 employees, had $10 million worth of this tax. Talented people are retiring minutes, and I will give my colleagues machines and plant and equipment and when they are 55 years old because 10 minutes. trucks, and they died—our Democrat they know the Government is going to Let me just begin by sort of straight- colleagues say they are rich. But is take the fruits of their labor away ening a little history out. The death America richer if we take $5.5 million from their children. People are selling tax started in America through a from them, make them sell the busi- off farms to try to plan their estates. Stamp Act on wills when we had an ness, sell the trucks, sell the equip- They are shutting down businesses to undeclared war with France. It was re- ment, make their children do all that divide up the assets ahead of time so pealed right after the tensions with to give the Government $5.5 million in they do not have to pay the taxes, and France ended but was reimposed during taxes? Are we not better off leaving America is poorer for it. the Civil War. Abraham Lincoln did that $5.5 million at work in College We have heard a bunch of speeches not impose a death tax because he Station than we are destroying that from my colleagues. They believe what wanted to take away people’s inherit- business and bringing it to Wash- they believe. I believe what I believe. ance in America. He imposed it, along ington? Who is to say who is right? with a lot of other taxes before we had Sure, the family is rich. But is Amer- But I will say this. Over and over, we an income tax, to try to save the ica richer or poorer by destroying it? have heard people get up on the floor Union. It too was repealed when the Can we build up one family by tearing and say we can’t afford this. I would war was over. down another? I do not think so. just like to remind my colleagues that We reimposed the death tax during I mentioned earlier in the debate—I last Thursday—I hope I am not stretch- the Spanish-American War, and re- want to mention it again—I have been ing their memory—last Thursday we

VerDate 11-MAY-2000 01:22 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.098 pfrm12 PsN: S12PT1 S5432 CONGRESSIONAL RECORD — SENATE June 12, 2002 spent $14 billion the President did not chance today to make what we did be- military officers, and mechanics. These ask for, for nonemergency matters. fore permanent. are the estate tax filers. That is four times as much, over the I submit that unless Senators want These are the people we want to pun- next 2 years, as repealing the death tax to say to their constituents, ‘‘I was ish. It is not fair. These people deserve permanently would cost. So the same just kidding when I voted to repeal the to be treated just as fairly as anybody people who say we cannot afford to death tax,’’ that those who voted to re- else in this country. make the repeal of the death tax per- peal it before are going to have to vote Again, according to the Internal Rev- manent, they could afford to spend four to repeal it again, and this time to enue Service, in 1999, 116,500 estate tax times that much last Thursday on make it permanent, or else we will per- returns were filed; 60,700 of those—in unrequested programs, but they cannot petuate this hoax. other words, more than half—were filed afford it today. I have heard a lot of talk about by estates with values of less than $1 When we passed the farm bill, they meritrocracy and aristocracy. I would million. For estates valued between $1 could afford to spend seven times as like to talk about the American dream. million and $5 million, 50,600 were filed. much as it would cost next year to re- I prefer to go back a couple of gen- That is just about all that is left. peal the death tax, but they can’t af- erations when immigrants came to this Above $5 million, there were only 5,200 ford it today. country. They brought the ethic of of those estates. On the energy bill, they could spend hard work and savings and investment. Even combined, the millionaires fil- more than enough to pay for it, but By the way, investment means job cre- ing do not exceed the nonmillionaires they can’t afford it today. ation. We all know that. But they filing. When we added all those riders to the worked very hard because they wanted The vast bulk of these, in other trade bill, they could spend more than to be able to give their kids and their words, are by people who do not have it would cost next year to repeal the grandkids a better chance and more op- these multibillion-dollar kinds of pat- death tax, but they can’t afford it portunity than they themselves had. ina, or even multimillion-dollar kinds today. That is what this country is all of patina that people would like to cre- When they wrote this budget, they about. That is why people have sac- ate. asked for $106 billion of new discre- rificed a lot—as Senator GRAMM said, What kind of people are they? What tionary nondefense spending. We have to be able to leave their kids some- is their money? The Senator from New heard all of this talk about the war and thing. That is the American dream. York talked about the salaries of all of fighting the war. When they wrote this When we talk about doing something these rich entrepreneurs. They are pay- budget, they spent $106 billion more for the rich, they are not listening to ing income taxes on those salaries, I than the President asked for. Yet the debate. The rich man died. He is might add. We are talking about the today they cannot afford to make the not rich anymore. He is not even alive estate tax, the death tax—not income death tax repeal permanent. anymore. He died. So who pays the tax. It is a matter of priorities. It is a death tax? His kids, usually. Who are I talked this morning about Brad matter of what you think is of a higher they? Are they rich people? Eiffert who with his dad owns the order. I have said this before. Let me say it Boone County Lumber Company in Co- What my Democrat colleagues, with again. This is from the Internal Rev- lumbus, MO. He doesn’t make very very few exceptions, have said indi- enue Service. These are the official sta- much in salary every year. They do not rectly, without saying it just flat out, tistics of the IRS. They answer the have any cash to speak of because they is the following: They are willing to question about who actually pays. put all of their money back into the force people to sell off their businesses They break it out by men and women. Boone County Lumber Company. They and farms to give the Government the This, by the way, is their latest statis- go to the bank and borrow money to money because they want to spend it. tics, Statistics of Income Bulletin, buy lumber which they sell. They buy They think that is more important Summer of 1999, pages 72–76. trucks and forklifts. than leaving those businesses and The largest group are men: 27.7 per- They do the same thing we do. We farms intact. cent were administrators, upper man- don’t go out and buy a house with cash. I believe they are wrong. I believe the agement, and business owners. That We go get a mortgage loan from the American people believe they are you would expect. That is only 27 per- bank. wrong. I think this is something that cent. For much of what they own they we need to do. I commend it to my col- Who is the next group? The second have borrowed the money. But they leagues. largest group of men, 12.3 percent, were make enough money to pay themselves I yield the remainder of our time to schoolteachers, librarians, and guid- a salary to live on—the dad and the my colleague from Arizona. I thank ance counselors—these filthy rich who son—and to hire 30 people whose sala- him for his leadership on this issue. deserve to be punished. Maybe their ries they pay. That is 30 more families The PRESIDING OFFICER. The Sen- dad had accumulated a lot of wealth. that benefit. When the dad dies, Brad is ator from Arizona. These are not rich people. But their concerned that he doesn’t have the Mr. KYL. Mr. President, I com- dad is maybe giving them an oppor- cash around to pay half of the value of pliment the Senator from Texas for tunity to invest some of that money, the estate. It is not his income that sponsoring this amendment and for maybe, to start a small business of gets taxed. It is the value of the entire making the arguments which I believe their own, or to do something more business; that is, all of the lumber in- will result in this body finally voting with it to create jobs and to help make ventory, trucks, forklifts, the ware- to making permanent what we voted this American dream come true. house, and the whole thing. for just a year ago. How about women? As we know, the Take that whole value and he says: I I want to remind my colleagues that majority of small businesses in this don’t have that much money to pay 48 Republicans and 12 Democrats—56 of country are owned by women. For fe- half of that to Uncle Sam when my dad us in all—voted to repeal the death tax. males, the IRS statistics say that the dies. Where am I going to get it? I can’t There were two other Republican Sen- largest group—14.1 percent—were edu- borrow. I am fully leveraged. I have ators who were not here but would cators and teachers. These are people done the financing. I will have to sell have voted to do that. That is 58 of us. who are paying the death tax. These the business to pay the tax. It passed in the House of Representa- are the women who are paying the That is what this is all about. That is tives. The President signed it into law. death tax. why it is so unfair. By now we all know, however, that The next largest group—9.6—were in Job creation—well, those jobs are because of the rules under which we op- clerical and administrative support oc- gone. I suppose if you sell it to some- erate, all of the tax relief we provided cupations. body else and the idea is to prevent the sunset at the end of 10 years. If you want to analyze all of the oc- accumulation of wealth, you usually It is for that reason only that we cupations, a significant number of the sell it to a large corporation. So in- have to come back and revisit this estate tax filers were scientists, sales stead of a family business, you have today. The good news is we have a people, entertainers, airline pilots, some large conglomerate that may let

VerDate 11-MAY-2000 01:22 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.104 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5433 people go and consolidate, or whatever. about at what income level it is wrong. lies in this country—less than 1 per- So much for the American dream. So I have never accepted the thesis that cent of all estates in this country? Or much for consolidation of wealth. what is right for one American is should we save the hundreds of billions How would you say this money ought wrong for another American based on of dollars that that tax break will to be taxed, somehow or other? My col- their income. Right is right and wrong cost—and use it to defend our country league from Texas already pointed out is wrong where I come from. better, pass tax breaks that help the that income tax has been paid on it. I want to repeal the death tax. The middle class working family, or simply But I don’t think what our colleagues Senator from North Dakota does not. pay down our huge debt? I can think of realize is, we don’t just repeal the es- That is what it all boils down to. many uses for billions of dollars better tate tax, we substitute another tax for It has been said over and over, as than passing a tax break that will ben- that, the capital gains tax, but with a many ways as you can say it, I still re- efit those that inherit $15 million but big difference. Most of us agree that main amazed that people who consist- do nothing for those who inherit death should not be a taxable event. ently vote for new spending never have $15,000, $150,000, or even $1 milllion. You did not have any choice in the money when it comes time to let peo- The choice is clear. It is time to re- matter, of the timing of it, how it hap- ple keep more of what they earn. But form the estate tax and exempt 99 per- pened, when it happened, and so on. rather than reiterate all that, let me cent of all families from any worry of You do have a choice over when you sum up and say we are going to have an taxes after death. It is not time—and I sell something or don’t sell it, and you opportunity, after we vote on Senator am not sure it ever will be—to give a know what the tax consequences are. CONRAD’s amendment, to repeal the multi-billion dollar break to a very So when your dad dies, instead of the death tax. There is only one real re- small number of very rich families. kids having to pay a tax on half of the peal, and that is the one I have offered The PRESIDING OFFICER. The Sen- value of his estate, and having to sell with Senator KYL. ator from North Dakota. assets to do it, and so on, under our I urge my colleagues to vote against Mr. CONRAD. Mr. President, we proposal the estate passes to the heirs. the Conrad amendment and to vote for should reform, not repeal, the estate They take the property. They do not the Gramm-Kyl amendment. tax because repeal is unaffordable, it is pay the tax on death day. But when I believe we will get over 51 votes. As unfair, and it is unpopular. they sell any of it, they pay a tax. you know, because a point of order will First, on the question of afford- They pay a tax on the capital gains, be raised against the amendment, we ability: The cost of eliminating the es- and it is calculated on the basis of will have to get 60. I don’t know that tate tax absolutely explodes in the sec- dad’s purchase price. So that is how we will get 60 votes today, but I believe ond decade. It costs $100 billion in this you pick up the revenue. we are taking a step toward repealing 10-year period. It costs $740 billion in Mr. President, 60 percent of the the death tax permanently. And I am the second decade, right at the time American people realize this is unfair, confident that it will be repealed. the baby boomers retire, and when we and three-fourths of them say they Mr. KOHL. Mr. President, I rise know we already are in deep deficit and favor its repeal, even though they today to support the Conrad estate tax would not benefit at all. They under- adding to the debt. reform amendment and oppose the Just yesterday we added to the na- stand the unfairness of the existing Gramm-Kyl estate tax repeal amend- tional debt by $450 billion. Our friends tax. ment. I want to compliment equally We now have an opportunity to make on the other side of the aisle would dig both sides in this debate, however. permanent what we passed before, that hole much deeper. They have brought before the Senate a which is the repeal of the estate tax, My proposal is far more affordable. and to substitute for us the very fair clear question about the direction of Instead of $99.4 billion in the next 10 capital gains tax on the original basis U.S. tax policy—a question that the years, $12.6 billion. of the property. That is what we have Senate should address. Should the very The elimination of the tax is unfair. the opportunity to do. The House of richest families in this country be able One example: Mr. Skilling, the Representatives has passed this meas- to pass their entire fortunes onto the former head of Enron, would get a $55 ure. If we pass it today, it goes to the next generation tax free? In a time of million tax cut, paid for by the Social President, and he can sign it. He has re-emerging budget deficits, urgent Security taxes of 30,000 Americans asked us to send it to him so he can homeland defense needs, and a slowly earning $30,000 a year. That is not fair. sign it, to end this unfair tax and re- recovering economy, is a tax break ex- On the question of popularity, over- place it with a fair tax. clusively for the very richest among us whelmingly, the American people say: I urge my colleagues to vote against a good idea? Reform, not repeal. By 58 percent to 37 the Conrad amendment, to vote for the That is what this debate is about. percent, they favor reform over repeal. Gramm-Kyl amendment, and to have a Unfortunately, we have heard more That is what my amendment does. It fair tax in the United States. about other issues then that very basic takes the exemption to $3 million for The PRESIDING OFFICER. Time has question of how we tax the rich and the an individual and $6 million for a cou- expired. not so rich in this country. ple next year. In 2009, it goes to $3.5 We have heard that the votes today AMENDMENT NO. 3831 million for an individual and $7 million Under the previous order, there are 5 are about repealing a tax on those who for a couple. They would pay nothing. minutes of debate evenly divided before inherit that causes the break-up of That is fair. It is affordable. And it is a vote with respect to the Conrad family businesses or farms. It is not. what the American people want. amendment. The Conrad amendment raises the I urge my colleagues to support the The Senator from Texas. amount of an estate exempt from tax Conrad amendment. Mr. GRAMM. Mr. President, I will to $3.5 million, $7 million for a couple, I thank the Chair and yield the floor. speak first because I think Senator by 2009. In Wisconsin, that will com- The PRESIDING OFFICER. All time CONRAD deserves the right to close out pletely exempt all but 0.2 percent of es- is yielded back. on his amendment. tates from any taxes at all. So we are The Senator from Texas. I think this issue has been pretty not arguing over estate taxes on the Mr. GRAMM. Mr. President, under well debated. I agree with the Demo- local dairy farm or the small business the unanimous consent agreement, I cratic floor leader, Senator REID; I operating on Main Street. We all agree raise a 311 budget point of order think it has been a good debate. they should be totally exempt, and against the Conrad amendment. The Conrad amendment does not re- under all proposals we consider today, The PRESIDING OFFICER. The Sen- peal the death tax. It improves current they are. ator from North Dakota. law by speeding up the process and No, the question today is should we Mr. CONRAD. Mr. President, pursu- making a nominal change in it, but it go further than exempting small busi- ant to section 904 of the Congressional still leaves the structure of the system nesses, medium-sized businesses, and Budget Act of 1974, I move to waive the in place where we have a tax on death. most all farms—certainly all Wisconsin applicable sections of that act for pur- I believe it is fundamentally wrong, farms—from the estate tax? Should we poses of the pending amendment, and I and I am unwilling to get into a debate enact a tax break for very richest fami- ask for the yeas and nays.

VerDate 11-MAY-2000 01:22 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.106 pfrm12 PsN: S12PT1 S5434 CONGRESSIONAL RECORD — SENATE June 12, 2002 The PRESIDING OFFICER. Is there a The PRESIDING OFFICER. Is there a emption at a reasonable level for all sufficient second? sufficient second? families, and eliminate the tax com- There appears to be. There appears to be a sufficient sec- pletely for family farmers and small The question is on agreeing to the ond. business owners. motion. The majority leader. Full repeal of the estate tax is hugely The clerk will call the roll. Mr. DASCHLE. Mr. President, I an- expensive, it will cost nearly a trillion The legislative clerk called the roll. nounce to my colleagues this is the dollars over the next 20 years, it is Mr. NICKLES. I announce that the last vote of the day. grossly unfair because it benefits only Senator from North Carolina (Mr. The PRESIDING OFFICER. The the tiny number of Americans who pay HELMS) and the Senator from Idaho question is on agreeing to the motion. the estate tax under current law. In (Mr. CRAPO) are necessarily absent. The clerk will call the roll. fact, in 1999 only 636 Minnesotans paid I further announce that if present The assistant legislative clerk called any estate tax what so ever. Only 36 of and voting the Senator from North the roll. those estates were valued at $5 million Carolina (Mr. HELMS) would vote ‘‘no.’’ Mr. NICKLES. I announce that the or more. This is simply not a burden The PRESIDING OFFICER. Are there Senator from North Carolina (Mr. that falls on many families. any other Senators in the Chamber de- HELMS) and the Senator from Idaho In contrast, many rely on Social Se- siring to vote? (Mr. CRAPO) are necessarily absent. The yeas and nays resulted—yeas 38, curity. Over 740,000 Minnesotans cur- I further announce that if present nays 60, as follows: rently receive Social Security. The and voting the Senator from North vast majority of these are retired sen- [Rollcall Vote No. 150 Leg.] Carolina (Mr. HELMS) would vote iors, others are severely disabled. For YEAS—38 ‘‘yea.’’ many it is their only source of income. Akaka Dorgan Levin The PRESIDING OFFICER (Mr. NEL- I find it outrageous that colleagues are Bayh Durbin Lieberman Biden Edwards Mikulski SON of Florida). Are there any other proposing to use the Social Security Bingaman Feinstein Nelson (FL) Senators in the Chamber desiring to surplus, which nearly a million Min- Boxer Graham Reed vote? nesotans rely upon, to give a massive Breaux Harkin Reid The result was announced—yeas 54, Byrd Inouye Rockefeller tax break to the heirs of a handful of Clinton Jeffords Sarbanes nays 44, as follows: Americans. Conrad Johnson Schumer [Rollcall Vote No. 151 Leg.] Nationally, only 1.6 percent of all es- Corzine Kennedy Stabenow Daschle Kerry Torricelli YEAS—54 tates were made up with significant Dayton Kohl Wellstone Allard Fitzgerald Nelson (FL) small business assets, and only 1.4 per- Dodd Leahy Allen Frist Nelson (NE) cent had significant farm assets. This Baucus Gramm Nickles means that virtually all the estate tax NAYS—60 Bayh Grassley Roberts Allard Enzi Miller Bennett Gregg Santorum is paid by extremely wealthy people Allen Feingold Murkowski Bond Hagel Sessions who do not own farms or small busi- Baucus Fitzgerald Murray Brownback Hatch Shelby nesses. It also means that we could Bennett Frist Nelson (NE) Bunning Hutchinson Smith (NH) eliminate the estate tax for small busi- Bond Gramm Nickles Burns Hutchison Smith (OR) Brownback Grassley Roberts Campbell Inhofe Snowe nesses and farms and not engage in a Bunning Gregg Santorum Cleland Kyl Specter massive raid on the Treasury. Burns Hagel Sessions Cochran Landrieu Stevens Proponents of last year’s massive tax Campbell Hatch Shelby Collins Lincoln Thomas Cantwell Hollings Smith (NH) Craig Lott Thompson cut portrayed the legislation as com- Carnahan Hutchinson Smith (OR) DeWine Lugar Thurmond pletely protecting small businesses and Carper Hutchison Snowe Domenici McConnell Voinovich family farms from the estate tax. But Chafee Inhofe Specter Ensign Miller Warner Cleland Kyl Stevens Enzi Murkowski Wyden as a cost saving gimmick, the law only Cochran Landrieu Thomas does so for only one year. Collins Lincoln Thompson NAYS—44 Business owners were used as pawns Craig Lott Thurmond Akaka Dodd Leahy last year, and they are again this year. DeWine Lugar Voinovich Biden Dorgan Levin Domenici McCain Warner Bingaman Durbin Lieberman Now they are frustrated trying to plan Ensign McConnell Wyden Boxer Edwards McCain for their families’ futures around this Breaux Feingold Mikulski scheme and they shouldn’t have to be. NOT VOTING—2 Byrd Feinstein Murray Crapo Helms Cantwell Graham Reed I supported a commonsense com- Carnahan Harkin Reid promise that would have capped the es- The PRESIDING OFFICER. On this Carper Hollings Rockefeller tate exemption at a reasonable level, $8 vote, the yeas are 38, the nays are 60. Chafee Inouye Sarbanes million for a married couple, lifting Three-fifths of the Senators duly cho- Clinton Jeffords Schumer the burden of the estate tax from 98 sen and sworn not having voted in the Conrad Johnson Stabenow Corzine Kennedy Torricelli percent of estates, but maintaining the affirmative, the motion is rejected. Daschle Kerry Wellstone tax for large, wealthy estates. The point of order is sustained, and the Dayton Kohl In addition, the Dorgan amendment amendment falls. NOT VOTING—2 The majority leader. would have totally exempted family- Mr. DASCHLE. Mr. President, I ask Crapo Helms owned small business and farm assets unanimous consent that the previous The PRESIDING OFFICER. On this from the estate tax if the family of the agreement for 5 minutes to explain the question, the yeas are 54, the nays are current owner wishes to continue to amendment be vitiated. 44. Three-fifths of the Senators duly operate the business or farm. Because The PRESIDING OFFICER. Without chosen and sworn, not having voted in this relief would have been permanent, objection, it is so ordered. the affirmative, the motion is rejected. business owners can plan their affairs Mr. DASCHLE. Mr. President, I ask The point of order is sustained. The with confidence and security. And this unanimous consent that Senator amendment falls. complete repeal for businesses and CONRAD be recognized to make a point f farms would be effective next year, un- of order. like the republican proposal where The PRESIDING OFFICER. Without MEASURE RETURNED TO THE family business owners would have to objection, it is so ordered. CALENDAR—H.R. 8 wait until 2010. Mr. CONRAD. Mr. President, I raise a The PRESIDING OFFICER. Under In an ideal world I would have writ- point of order that the pending amend- the previous order, H.R. 8 is returned ten the Dorgan amendment differently. ment violates section 311(a)(2)(B) of the to the calendar. I would strengthen the family-owned Congressional Budget Act of 1974. Mr. WELLSTONE. Mr. President, business provision to ensure than only Mr. GRAMM. I move to waive the today I opposed full repeal of the estate smaller business and farms, with 200 point of order, and I ask for the yeas tax, but I supported a commonsense employees or less would qualify for this and nays. compromise to cap the estate tax ex- exemption. But I voted for the Dorgan

VerDate 11-MAY-2000 01:22 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.108 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5435 amendment because it is still far bet- the Senate proceed concurrently, at a worked long and hard to come up with ter than full repeal. It retains the es- time to be determined by the majority this agreement. Senator DASCHLE, I be- tate tax for the ultra-rich, but would leader after consultation with the Re- lieve, has fulfilled his commitment. As protect small business owners and fam- publican leader, to two bills relating to I understand it, the only dispute is to ily farmers. And it would save hun- cloning, a bill to be introduced by Sen- when the respective votes should occur, dreds of billions over the next 20 years ators HATCH, FEINSTEIN, SPECTER, and and I submit that shouldn’t matter compared to full repeal. others, and a bill to be introduced by that much, but that is the unanimous Let me also point out one final irony Senator BROWNBACK. I further ask that consent agreement that was pro- in this debate. I mentioned yesterday Senator BROWNBACK or his designee be pounded. Senator DASCHLE has worked the bizarreness of colleagues voting recognized to immediately offer a clo- with others long and hard. Maybe later against raising the debt limit, and then ture motion on his bill, to be followed we can work something else out. At the in the same day turning around and by Senator HATCH or his designee offer- present time, I think Senator DASCHLE supporting a bill that would raise the ing a cloture motion on his bill. I fur- has fulfilled his commitment. national debt by hundreds of thousands ther ask unanimous consent that no f more. amendments or motions to commit be UNANIMOUS CONSENT Today’s irony is that this is supposed in order to either bill and there be the AGREEMENT—S. 2600 to be a debate about small businesses, following limitations for debate with but my friends on the other side are op- respect to both bills: 3 hours equally Mr. REID. I ask unanimous consent posing the Dorgan amendment that divided between the two sponsors or that at 10 a.m. tomorrow the Senate gives permanent relief from the estate their designees on Friday; 4 hours proceed to the consideration of Cal- tax from small businesses and family equally divided in the same fashion on endar No. 410, S. 2600, the terrorism in- farmers right now—compared to 7 Monday, June 17; 1 hour equally di- surance bill. years from now under the Gramm ap- vided in the same fashion on Tuesday, The PRESIDING OFFICER. Is there proach. Let me repeat that, my col- June 18; that following the use or objection? leagues on the other side say they are yielding back of time, on Tuesday, the Mr. MCCONNELL. Reserving the for the small business owner. They say Senate proceed to vote on the cloture right to object. they are for the family farmer. Yet motion on Senator BROWNBACK’s bill The PRESIDING OFFICER. The Sen- they are opposing immediate relief for and, notwithstanding the outcome of ator from Kentucky. small business owners and farmers. that vote, to be followed by an imme- Mr. MCCONNELL. Reserving the Why? To protect their tax breaks for diate cloture vote on Senator HATCH’s right to object, I ultimately will not billionaires. object, but I want to propose that the Small businesses and farmers are the bill; further, if cloture is invoked on ei- ther bill, the Senate then resume con- unanimous consent request be amended pawns in this debate. They have lit- to read as follows: I ask unanimous erally been used by those who want to sideration under the provisions of rule XXII. Finally, I ask unanimous consent consent that at a time determined by give billionaires a tax break. I don’t the majority leader, after consultation know if there is a single person in this that, if cloture is not invoked on either bill, then each bill be placed back on with the Republican leader, the Senate body who would oppose giving perma- proceed to the consideration of Cal- nent, targeted estate tax relief to small the calendar. The PRESIDING OFFICER. Is there endar No. 252, H.R. 3210, and it be con- business owners and family farmers. I sidered under the following limita- think it could pass 100 to 0. But it objection? The Senator from Kansas. Mr. BROWNBACK. Mr. President, re- tions, the only amendments in order be didn’t because if the supporters of full the following: A substitute amendment repeal let the small business owner get serving the right to object, I appreciate my colleague from Nevada bringing by Senator GRAMM and myself, the text relief then they lose this issue. And of which will be printed in the RECORD they won’t get repeal for billionaires. this forward. I hope we can work out a reasonable and prudent way to address upon the granting of the consent; three And they would rather have the issue relevant first-degree amendments to to campaign on, and they aren’t going what I consider to be a critical issue— many people consider to be a critical the substitute to be offered by each to let the little guy on Main Street get leader or their designees, and that no his tax break unless they can get it for issue in front of the country. I say we still may be able to get to an agree- motions to recommit be in order; I fur- the fat cat on Wall Street. ther ask unanimous consent that, fol- The Dorgan amendment should be an ment that would get ample time and lowing a vote on or in relation to the eye opener for small business owners opportunity for the Senate to speak on above-listed first-degree amendments and farmers. It betrays the real agenda this timely legislation. and any debate time, there be a vote on behind full repeal of the estate tax. It’s I therefore ask unanimous consent not about the little guy. It is not about for the following modifications to this or in relation to the substitute amend- the shopkeeper, the farmer, the con- pending request. I ask unanimous con- ment; finally, I ask unanimous consent tractor, the wholesaler. They are the sent that on Friday, June 14, the Sen- that when and if the bill is passed, the hostages in this debate. ate proceed to the bill just mentioned, Senate then insist on its amendment I will not jeopardize Social Secu- introduced by Senator KENNEDY, Sen- and request a conference with the rity—which tens of millions of Ameri- ator HATCH, and others, and that Sen- House on the disagreeing votes. cans rely upon for their retirement—to ator LANDRIEU, myself, and Senator Mr. REID. Mr. President, it is my grant tax breaks to the heirs of multi- HUTCHISON be permitted to offer up to understanding—— millionaires and billionaires. four relevant amendments to the bill; The PRESIDING OFFICER. Does the We cannot afford to give a few lucky further, I ask unanimous consent that Senator so modify his request? Americans a tax free inheritance of these amendments be in order notwith- Mr. REID. Mr. President, reserving hundreds of millions or billions of dol- standing the provisions of rule XXII, the right to respond to the Chair, I lars and protect the tens of millions of and that no other amendments be in would simply say this: We have been Americans and over 740,000 Minneso- order to the bill. through this now for months. I have tans who rely on Social Security. The PRESIDING OFFICER. Does the been down here on a number of occa- But we can afford to shield small es- Senator so modify his request? sions, trying to get something that we tates, small businesses, and family Mr. REID. I do not. believe will expedite this very impor- farms from the estate tax at the same The PRESIDING OFFICER. Is there tant legislation. We have tried one time we safeguard the retirement secu- objection? amendment on each side, two amend- rity of all Minnesotans. That is what I Mr. BROWNBACK. Then I am afraid I ments on each side, three amendments voted to do. must object and I do object. on each side. I think we finally got to f The PRESIDING OFFICER. Objec- five amendments on each side. I think tion is heard. The Senator from Ne- the best thing to do is just get to the UNANIMOUS CONSENT REQUEST vada. bill. It is an important piece of legisla- Mr. REID. Mr. President, I ask unan- Mr. REID. Mr. President, I am, of tion and if it is as important as the imous consent that on Friday, June 14, course, disappointed. Many people major industries believe it is, we are

VerDate 11-MAY-2000 01:54 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.033 pfrm12 PsN: S12PT1 S5436 CONGRESSIONAL RECORD — SENATE June 12, 2002 going to complete this bill in a reason- to go as the best bill that will be avail- It is also clear that the potential for mas- able period of time. So I do not consent able to everyone, I ask unanimous con- sive damages imposed on companies that suf- to the modification. sent to have two things printed in the fer from acts of terror would endanger our economic recovery from a terrorist attack. The PRESIDING OFFICER. Objec- RECORD: First, the letter signed by the Indeed, the added risks and legal uncertainty tion is heard. Is there objection to the Secretary of the Treasury, dated June hanging over the economy as a result of last request from the Senator from Nevada? 10. September 11th are major factors inhibiting Mr. GRAMM. Reserving the right to There being no objection, the mate- a business willingness to invest and to create object, Mr. President. rial was ordered to be printed in the jobs. It makes little economic sense to pass The PRESIDING OFFICER. The Sen- RECORD, as follows: a terrorism insurance bill that leaves our ator from Texas. DEPARTMENT OF THE TREASURY, economy exposed to such inappropriate and Mr. GRAMM. I am not going to ob- Washington, DC, June 10, 2002. needless legal uncertainty. The bipartisan public agreement reached ject. I just want to say we are bringing Hon. TRENT LOTT, up a bill that was not reported by the Senate Republican Leader, U.S. Senate, Wash- between the Administration and Chairman ington, DC. Sarbanes, Chairman Dodd, Senator Gramm committee of jurisdiction. There has and Senator Enzi last fall provided these DEAR SENATOR LOTT: The War on Ter- been an effort underway by many of us minimum safeguards. We would recommend to try to reach a bipartisan consensus, rorism must be fought on many fronts. From an economic perspective, we must minimize that the President not sign any legislation and it may very well be that this is the the risks and consequences associated with that leaves the American economy and vic- only route we can take. I happen to be potential acts of terror. No measure is more tims of terrorist acts subject to predatory one of the people around here who be- important to mitigating the economic ef- lawsuits and punitive damages. The American people and our economy lieves that we should have passed the fects of terrorist events than the passage of have waited seven months since our public terrorism insurance legislation. bill last year. I was for a bill. agreement on legislation. The process must Last November 1, the Administration pub- I would like to say today that this is move forward. Prompt action by the Senate licly agreed to bipartisan legislation nego- a hard way to do it, and it is going to on this vitally important legislation is need- tiated with Chairman Sarbanes, Chairman mean we are going to have to do a lot ed now. Dodd, Senator Gramm and Senator Enzi. of amendments on the floor that we Sincerely, While the House of Representatives quickly PAUL H. O’NEILL, should have done in committee. I hope, responded to this urgent need by passing ap- Secretary of the Treas- therefore, that we are not going to find propriate legislation, the Senate did not act ury. ourselves in a position where we are and has not passed any form of terrorism MITCHELL E. DANIELS, going to have an effort to cloture the legislation in the intervening seven months. Director, Office of The absence of federal legislation is having bill. Management and a palpable and severe effect on our economy If the bill had come out of com- Budget. and is costing America’s workers their jobs. mittee, if there were some kind of con- LAWRENCE LINDSEY, In the first quarter of this year, commercial sensus, then I think you could under- Director, National real estate construction was down 20 per- Economic Council. stand that, if people were raising extra- cent. The disruption of terrorism coverage R. GLENN HUBBARD, neous amendments. But I am hoping makes it more difficult to operate, acquire, Director, Council of we are going to have time for debate. I or refinance property, leading to diminished Economic Advisors. think there will be a real possibility bank lending for new construction projects that we will have to have maybe 10 or and lower asset values for existing prop- Mr. MCCONNELL. We would like also 12 or 15 real amendments on the sub- erties. The Bond Market Association has to include the bill that Senator GRAMM ject, amendments on which we will said that more than $7 billion worth of com- and I had hoped would be the base bill have to work our will. I hope we will mercial real estate activity has been sus- that we took up, one that we are con- pended or cancelled due to the lack of such not have that process cut off with clo- fident the President would have em- insurance. Last week, Moody’s Investors braced and signed. I ask unanimous ture. Service announced that 14 commercial mort- The PRESIDING OFFICER. The Sen- gage-backed transactions could be down- consent that be printed in the RECORD. ator from Kentucky. graded due to a lack of such insurance. There being no objection, the mate- Mr. MCCONNELL. Further reserving Without such insurance, the economic im- rial was ordered to be printed in the the right to object, let me add to what pact of another terrorist attack would be RECORD, as follows: the Senator from Texas has said. Ulti- much larger, including major bankruptcies, S. — mately I will not object, either. But layoffs and loan defaults. While we are doing Be it enacted by the Senate and House of Rep- both of us believe that we have put to- everything we can to stop another attack, resentatives of the United States of America in we should minimize the widespread economic Congress assembled, gether a proposal that should have damage to our economy should such an event been the base bill. I think I can speak SECTION 1. SHORT TITLE. occur. This Act may be cited as the ‘‘Terrorism for the Senator from Texas and myself: One important issue for the availability of Risk Insurance Act of 2002’’. We have some direction from the ad- terrorism insurance is the risk of unfair or SEC. 2. CONGRESSIONAL FINDINGS AND PUR- ministration now as to what kind of excessive litigation against American com- POSE. legislation they might ultimately sign. panies following an attack. Many for-profit (a) FINDINGS.—The Congress finds that— I have in my hand a letter addressed to and charitable entities have been unable to (1) property and casualty insurance firms the Republican leader, signed by the obtain affordable and adequate insurance, in are important financial institutions, the part because of the risk that they will be un- Secretary of the Treasury, the Director products of which allow mutualization of fairly sued for the acts of international ter- risk and the efficient use of financial re- of the Office of Management and Budg- rorists. sources and enhance the ability of the econ- et, the Director of the National Eco- To address this risk at least two important omy to maintain stability, while responding nomic Council, and the Council of Eco- provisions are essential. First, provisions for to a variety of economic, political, environ- nomic Advisers indicating that a bill an exclusive federal cause of action and con- mental, and other risks with a minimum of that makes the victims of terrorist at- solidation of all cases arising out of terrorist disruption; tacks a subject of punitive damages attacks, like those included in the Air (2) the ability of businesses and individuals and that opens up this whole area for Transportation Safety and System Stabiliza- to obtain property and casualty insurance at tion Act, are necessary to provide for reason- reasonable and predictable prices, in order to further predatory lawsuits will not be able and expeditious litigation. spread the risk of both routine and cata- signed by the President. They will rec- Second, the victims of terrorism should strophic loss, is critical to economic growth, ommend to the President a veto. not have to pay punitive damages. Punitive urban development, and the construction I share the view of the Senator from damages are designed to punish criminal or and maintenance of public and private hous- Texas that the amendments to this bill near-criminal wrongdoing. Of course such ing, as well as to the promotion of United certainly ought to be germane to the sanctions are appropriate for terrorists. But States exports and foreign trade in an in- subject. The amendments that this American companies that are attacked by creasingly interconnected world; Senator is going to offer will certainly terrorists should not be subject to predatory (3) the ability of the insurance industry to lawsuits. The availability of punitive dam- cover the unprecedented financial risks pre- be germane to the subject. Just so ev- ages in terrorism cases would result in in- sented by potential acts of terrorism in the erybody will know what the Senator equitable relief for injured parties, threaten United States can be a major factor in the from Texas and I had put together, bankruptcies for American companies and a recovery from terrorist attacks, while main- what we thought would be the best way loss of jobs for American workers. taining the stability of the economy;

VerDate 11-MAY-2000 03:18 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.112 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5437

(4) widespread financial market uncertain- (i) there is physical damage to the business (9) SECRETARY.—The term ‘‘Secretary’’ ties have arisen following the terrorist at- premises of such magnitude that the busi- means the Secretary of the Treasury. tacks of September 11, 2001, including the ab- ness cannot open for business; (10) STATE.—The term ‘‘State’’ means any sence of information from which financial (ii) there is physical damage to other prop- State of the United States, the District of institutions can make statistically valid es- erty that totally prevents customers or em- Columbia, the Commonwealth of Puerto timates of the probability and costs of future ployees from gaining access to the business Rico, the Commonwealth of the Northern terrorist events, and therefore the size, find- premises; or Mariana Islands, American Samoa, Guam, ing, and allocation of the risk of loss caused (iii) the Federal, State, or local govern- and each of the United States Virgin Islands. by such acts of terrorism; ment shuts down an area due to physical or (11) UNITED STATES.—The term ‘‘United (5) a decision by property and casualty in- environmental damage, thereby preventing States’’ means all States of the United surers to deal with such uncertainties, either customers or employees from gaining access States and includes the territorial seas of by terminating property and casualty cov- to the business premises; and the United States. erage for losses arising form terrorist events, (B) does not include lost profits, other than SEC. 4. TERRORISM INSURED LOSS SHARED COM- or by radically escalating premium coverage in the case of a small business concern (as PENSATION PROGRAM. to compensate for risks of loss that are not defined in section 3 of the Small Business (a) ESTABLISHMENT OF PROGRAM.— readily predictable, could seriously hamper Act (15 U.S.C. 632) and applicable regulations (1) IN GENERAL.—There is established in the ongoing and planned construction, property thereunder) in any case described in clause Department of the Treasury the Terrorism acquisition, and other business projects, gen- (i), (ii), or (iii) of subparagraph (A). Insured Loss Shared Compensation Program. erate a dramatic increase in rents, and oth- (3) INSURED LOSS.—The term ‘‘insured (2) AUTHORITY OF THE SECRETARY.—Not- erwise suppress economic activity and loss’’— withstanding any other provision of State or (6) the United States Government should (A) means any loss resulting from an act of Federal law, the Secretary shall administer provide temporary financial compensation to terrorism that is covered by primary prop- the Program, and shall pay the Federal share insured parties, contributing to the sta- erty and casualty insurance, including busi- of compensation for insured losses in accord- bilization of the United States economy in a ness interruption coverage, issued by a par- ance with subsection (e). time of national crisis, while the financial ticipating insurance company, if such loss— (b) CONDITIONS FOR FEDERAL PAYMENTS.— services industry develops the systems, (i) occurs within the United States; or No payment may be made by the Secretary mechanisms, products, and programs nec- (ii) occurs to an air carrier (as defined in under subsection (e), unless— essary to create a viable financial services section 40102 of title 49, United States Code) (1) a person that suffers an insured loss, or market for private terrorism risk insurance. or to a United States flag vessel (or a vessel a person acting on behalf of that person, files (b) PURPOSE.—The purpose of this Act is to based principally in the United States, on a claim with a participating insurance com- establish a temporary Federal program that which United States income tax is paid and pany; provides for a transparent system of shared whose insurance coverage is subject to regu- (2) the participating insurance company public and private compensation for insured lation in the United States), regardless of provides clear and conspicuous disclosure to losses resulting from acts of terrorism, in where the loss occurs; and the policyholder of the premium charged for order to— (B) excludes coverage under any life or insured losses covered by the Program and (1) protect consumers by addressing mar- health insurance. the Federal share of compensation for in- ket disruptions and ensure the continued (4) NAIC.—The term ‘‘NAIC’’ means the sured losses under the Program— widespread availability and affordability of National Association of Insurance Commis- (A) in the case of any policy covering an property and casualty insurance for ter- sioners. insured loss that is issued on or after the rorism risk; and (5) PARTICIPATING INSURANCE COMPANY.— date of enactment of this Act, in the policy, (2) allow for a transitional period for the The term ‘‘participating insurance com- at the time of offer, purchase, and renewal of private markets to stabilize, resume pricing pany’’ means any insurance company, in- the policy; and of such insurance and build capacity to ab- cluding any subsidiary or affiliate thereof— (B) in the case of any policy that is issued sorb any future losses, while preserving (A) that— before the date of enactment of this Act, not State insurance regulation and consumer (i) is licensed or admitted to engage in the later than 90 days after that date of enact- protections. business of providing primary insurance in ment; SEC. 3. DEFINITIONS. any State, and was so licensed or admitted (3) the participating insurance company In this Act, the following definitions shall on September 11, 2001; or processes the claim for the insured loss in apply: (ii) is not licensed or admitted as described accordance with its standard business prac- (1) ACT OF TERRORISM.— in clause (i), if it is an eligible surplus line tices, and any reasonable procedures that (A) CERTIFICATION.—The term ‘‘act of ter- carrier listed on the Quarterly Listing of the Secretary may prescribe; and rorism’’ means any act that is certified by Alien Insurers of the NAIC, or any successor (4) the participating insurance company the Secretary, in concurrence with the Sec- thereto; submits tot he Secretary, in accordance with retary of State, and the Attorney General of (B) that receives direct premiums for any such reasonable procedures as the Secretary the United States— type of commercial property and casualty in- may establish— (i) to be a violent act or an act that is dan- surance coverage or that, not later than 21 (A) a claim for payment of the Federal gerous to— days after the date of enactment of this Act, share of compensation for insured losses (I) human life; submits written notification to the Sec- under the Program; (II) property; or retary of its intent to participate in the Pro- (B) written verification and certification— (III) infrastructure; gram with regard to personal lines of prop- (i) of the underlying claim; and (ii) to have resulted in damage within the erty and casualty insurance; and (ii) of all payments made for insured United States, or outside the United States (C) that meets any other criteria that the losses; and in the case of an air carrier or vessel de- Secretary may reasonably prescribe. (C) certification of its compliance with the scribed in paragraph (3)(A)(ii); and (6) PERSON.—The term ‘‘person’’ means any provisions of this subsection. (iii) to have been committed by an indi- individual, business or nonprofit entity (in- (c) MANDATORY PARTICIPATION; MANDATORY vidual or individuals acting on behalf of any cluding those organized in the form of a AVAILABILITY.—Each insurance company foreign person or foreign interest, as part of partnership, limited liability company, cor- that meets the definition of a participating an effort to coerce the civilian population of poration, or association), trust or estate, or insurance company under section 3— the United States or to influence the policy a State or political subdivision of a State or (1) shall participate in the Program; or affect the conduct of the United States other governmental unit. (2) shall make available in all of its prop- Government by coercion. (7) PROGRAM.—The term ‘‘Program’’ means erty and casualty insurance policies (in all of (B) LIMITATION.—No act or event shall be the Terrorism Insured Loss Shared Com- its participating lines), coverage for insured certified by the Secretary as an act of ter- pensation Program established by this Act. losses; and rorism if— (8) PROPERTY AND CASUALTY INSURANCE.— (3) shall make available property and cas- (i) the act or event is committed in the The term ‘‘property and casualty ualty insurance coverage for insured losses course of a war declared by the Congress; or insurance’’— that does not differ materially from the (ii) losses resulting from the act or event, (A) means commercial lines of property terms, amounts, and other coverage limita- in the aggregate, do not exceed $5,000,000. and casualty insurance; tions applicable to losses arising from events (C) DETERMINATION FINAL.—Any certifi- (B) includes personal lines of property and other than acts of terrorism. cation of, or determination not to certify, an casualty insurance, if a notification is made (d) PARTICIPATION BY SELF INSURED ENTI- act of terrorism under this paragraph shall in accordance with paragraph (5)(B); and TIES.— be final, and shall not be subject to judicial (C) does not include— (1) DETERMINATION BY THE SECRETARY.—The review. (i) Federal crop insurance issued or rein- Secretary may, in consultation with the (2) BUSINESS INTERRUPTION COVERAGE.—The sured under the Federal Crop Insurance Act NAIC, establish procedures to allow partici- term ‘‘business interruption coverage’’— (7 U.S.C. 1501 et seq.); or pation in the Program by municipalities and (A) means coverage of losses for temporary (ii) private mortgage insurance, as that other governmental or quasi-governmental relocation expenses and ongoing expenses, term is defined in section 2 of the Home- entities (and by any other entity, as the Sec- including ordinary wages, where— owners Protection Act of 1998 (12 U.S.C. 4901). retary deems appropriate) operating through

VerDate 11-MAY-2000 01:54 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.036 pfrm12 PsN: S12PT1 S5438 CONGRESSIONAL RECORD — SENATE June 12, 2002 self insurance arrangements that were in ex- effective period of the Program shall be that the program should be extended for one istence on September 11, 2001, but only if the shared— additional year, until midnight on December Secretary makes a determination with re- (A) with all reinsurance companies to 31, 2004; and gard to participation by any such entity be- which the participating insurance company (B) promptly notifies the Congress of such fore the occurrence of an act of terrorism in has ceded some share of the insured loss pur- determination and the reasons therefor. which the entity incurs an insured loss. suant to an in-force reinsurance contract; (2) DETERMINATION FINAL.—The determina- (2) PARTICIPATION.—If the Secretary makes and tion of the Secretary under paragraph (2) a determination to allow an entity described (B) in a manner that distributes the Fed- shall be final, and shall not be subject to ju- in paragraph (1) to participate in the Pro- eral share of compensation for insured losses dicial review. gram, all reports, conditions, requirements, between the participating insurance com- (3) TERMINATION AFTER EXTENSION.—If the and standards established by this Act for pany and the reinsurance company or com- program is extended under paragraph (1), the participating insurance companies shall panies in the same proportion as the insured Program shall terminate at midnight on De- apply to any such entity, as determined to losses would have been distributed if the cember 31, 2004. be appropriate by the Secretary. Program did not exist. (b) REPORT TO CONGRESS.—Not later than 9 months after the date of enactment of this (e) SHARED INSURANCE LOSS COVERAGE.— SEC. 5. GENERAL AUTHORITY AND ADMINISTRA- (1) FEDERAL SHARE.— TION OF CLAIMS. Act the Secretary shall submit a report to (A) IN GENERAL.—Subject to the cap on li- Congress— (a) GENERAL AUTHORITY.—The Secretary (1) regarding— ability under paragraph (2) and the limita- shall have the powers and authorities nec- tion under paragraph (6), the Federal share (A) the availability of insurance coverage essary to carry out the Program, including for acts of terrorism; of compensation under the Program to be authority— paid by the Secretary for insured losses re- (B) the affordability of such coverage, in- (1) to investigate and audit all claims cluding the effect of such coverage on pre- sulting from an act of terrorism occurring under the Program; and during the period beginning on the date of miums; and (2) to prescribe regulations and procedures (C) the capacity of the insurance industry the enactment of this Act and ending at mid- to implement the Program. to absorb future losses resulting from acts of night on December 31, 2003 shall be equal to (b) INTERIM RULES AND PROCEDURES.—The terrorism, taking into account the profit- 90 percent of that portion of the amount of Secretary shall issue interim final rules or ability of the insurance industry; and aggregate insured losses that exceeds procedures specifying the manner in which— (2) that considers— $10,000,000,000. (1) participating insurance companies may (A) the impact of the program on each of (B) EXTENSION PERIOD.—If the Program is file, verify, and certify claims under the Pro- the factors described in paragraph (1); and extended in accordance with section 6, the gram; (B) the probable impact on such factors Federal share of compensation under the (2) the Secretary shall publish or otherwise and on the United States economy if the Program to be paid by the Secretary for in- publicly announce the applicable percentage Program terminates at midnight on Decem- sured losses resulting from an act of ter- of insured losses that is the responsibility of ber 31, 2003. rorism occurring during the period beginning participating insurance companies and the (c) FINDING REQUIRED.—A determination on January 1, 2004 and ending at midnight on percentage that is the responsibility of the under subsection (a) to extend the program December 31, 2004, shall be equal to 90 per- Federal Government under the Program; shall be based on a finding by the Secretary cent of that portion of the amount of aggre- (3) the Federal share of compensation for that— gate insured losses that exceeds insured losses will be paid under the Pro- (1) widespread market uncertainties con- $20,000,000,000, subject to the cap on liability gram, including payments based on esti- tinue to disrupt the ability of insurance in paragraph (2) and the limitation under mates of or actual aggregate insured losses; companies to price insurance coverage for paragraph (6). (4) the Secretary may, at any time, seek losses resulting from acts of terrorism, (C) PRO RATA SHARE.—If, during the period repayment from or reimburse any partici- thereby resulting in the continuing unavail- described in subparagraph (A) (or during the pating insurance company, based on esti- ability of affordable insurance for con- period described in subparagraph (B), if the mates of insured losses under the Program, sumers; and Program is extended in accordance with sec- to effectuate the insured loss sharing provi- (2) extending the program for an additional tion 6), the aggregate insured losses for that sions contained in section 4; year would likely encourage economic sta- period exceed $10,000,000,000, the Secretary (5) each participating insurance company bilization and facilitate a transition to a via- shall determine the pro rata share for each that incurs insured losses shall pay its pro ble market for private terrorism risk insur- participating insurance company of the Fed- rata share of insured losses, in accordance ance. eral share of compensation for insured losses with section 4; and (d) CONTINUING AUTHORITY TO PAY OR AD- calculated under subparagraph (A). (6) the Secretary will determine any final JUST COMPENSATION.—following the termi- (2) CAP ON ANNUAL LIABILITY.—Notwith- nation of the Program under subsection (a), standing paragraph (1), or any other provi- netting of payments for actual insured losses under the Program, including payments the Secretary may take such actions as may sion of Federal or State law, if the aggregate be necessary to ensure payment, reimburse- insured losses exceed $100,000,000,000 during owed to the Federal Government from any participating insurance company and any ment, or adjustment of compensation for in- any period referred to in subparagraph (A) sured losses arising out of any act of ter- and (B) of paragraph (1)— Federal share of compensation for insured losses owed to any participating insurance rorism occurring during the period in which (A) the Secretary shall not make any pay- the Program was in effect under this Act, in ment under this Act for any portion of the company, to effectuate the insured loss shar- ing provisions contained in section 4. accordance with the provisions of section 4 amount of such losses that exceeds and regulations promulgated thereunder. (c) SUBROGATION RIGHTS.—The United $100,000,000,000; and (e) REPEAL; SAVINGS CLAUSE.—This act is States shall have the right of subrogation (B) participating insurance companies repealed at midnight on the final termi- with respect to any payment made by the shall not be liable for the payment of any nation date of the Program under section (a), United States under the Program. portion of the amount that exceeds except that such repeal shall not be (d) CONTRACTS FOR SERVICES.—The Sec- $100,000,000,000. construed— (3) NOTICE TO CONGRESS.—The Secretary retary may employ persons or contract for (1) to prevent the Secretary from taking, shall notify the Congress if estimated or ac- services as may be necessary to implement or causing to be taken, such actions under tual aggregate insured losses exceed the Program. subsection (d) of this section and sections $100,000,000,000 in any period described in (e) CIVIL PENALTIES.—The Secretary may 4(e)(4), 4(e)(5), 5(a)(1), 5(c), and (e) (as in ef- paragraph (1), and the Congress shall deter- assess civil money penalties for violations of fect on the day before the date of such re- mine the procedures for and the source of this Act or any rule, regulation, or order peal), and applicable regulations promul- any such excess payments. issued by the Secretary under this Act relat- gated thereunder, during any period in which (4) FINAL NETTING.—The Secretary shall ing to the submission of false or misleading the authority of the Secretary under sub- have sole discretion to determine the time at information for purposes of the Program, or section (d) of this section is in effect; or which claims relating to any insured loss or any failure to repay any amount required to (2) to prevent the availability of funding act of terrorism shall become final. be reimbursed under regulations or proce- under section 9(b) during any period in which (5) DETERMINATION FINAL.—Any determina- dures described in section 5(b). The authority authority of the Secretary under subsection tion of the Secretary under this subsection granted under this subsection shall continue (d) of this section is in effect. shall be final, and shall not be subject to ju- during any period in which the Secretary’s (f) SENSE OF THE CONGRESS.—It is the sense dicial review. authority under section 6(d) is in effect. of the Congress that he Secretary should (6) IN-FORCE REINSURANCE AGREEMENTS.— SEC. 6. TERMINATION OF PROGRAM; DISCRE- make any determination under subsection For policies covered by reinsurance con- TIONARY EXTENSION. (a) in sufficient time to enable participating tracts in force on the date of enactment of (a) TERMINATION OF PROGRAM.— insurance companies to include coverage for this Act, until the in-force reinsurance con- (1) IN GENERAL.—The Program shall termi- acts of terrorism in their policies for 2004. tract is renewed, amended, or has reached its nate at midnight on December 31, 2003, un- (g) STUDY AND REPORT ON SCOPE OF THE 1-year anniversary date, any Federal share of less the Secretary— PROGRAM.— compensation due to a participating insur- (A) determines, after considering the re- (1) STUDY.—The Secretary, after consulta- ance company for insured losses during the port and finding required by this section, tion with the NAIC, representatives of the

VerDate 11-MAY-2000 01:54 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.039 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5439 insurance industry, and other experts in the a rate as excessive, inadequate, or unfairly district court assigned by the Judicial Panel insurance field, shall conduct a study of the discriminatory; and on Multidistrict Litigation shall be deemed potential effects of acts of terrorism on the (C) during the period beginning on the date to sit in all judicial districts in the United availability of life insurance and other lines of enactment of this Act and for so long as States. of insurance coverage. the Program is in effect, as provided in sec- (4) TRANSFER OF CASES FILED IN OTHER FED- (2) REPORT.—Not later than 9 months after tion 6 (including any period during which the ERAL COURTS.—Any civil action for claims the date of enactment of this Act, the Sec- authority of the Secretary under section 6(d) arising out of or resulting from an act of ter- retary shall submit a report to the Congress is in effect), books and records of any par- rorism that is filed in a Federal district on the results of the study conducted under ticipating insurance company that are rel- court other than the Federal district court paragraph (1). evant to the Program shall be provided, or assigned by the Judicial Panel on Multidis- (h) REPORTS REGARDING TERRORISM RISK caused to be provided, to the Secretary or trict Litigation under paragraph (1) shall be INSURANCE PREMIUMS.— the designee of the Secretary, upon request transferred to the Federal district court so (1) REPORT TO THE NAIC.—Beginning 6 by the Secretary or such designee, notwith- assigned. months after the date of enactment of this standing any provision of the laws of any (5) REMOVAL OF CASES FILED IN STATE Act, and every 6 months thereafter, each State prohibiting or limiting such access. COURTS.—Any civil action for claims arising participating insurance company shall sub- SEC. 8. SENSE OF THE CONGRESS REGARDING out of or resulting from an act of terrorism mit a report to the NAIC that states the pre- CAPACITY BUILDING. that is filed in a State court shall be remov- mium rates charged by that participating in- It is the sense of the Congress that the in- able to the Federal district court assigned by surance company during the preceding 6- surance industry should build capacity and the Judicial Panel on Multidistrict litiga- month period for insured losses covered by aggregate risk to provide affordable property tion under paragraph (1). the Program, and includes an explanation of and casualty insurance coverage for ter- (d) APPROVAL OF SETTLEMENTS.—Any set- and justification for those rates. rorism risk. tlement between the parties of a civil action described in this section for claims arising (2) REPORTS FORWARDED.—The NAIC shall SEC. 9. AUTHORIZATION OF APPROPRIATIONS; promptly forward copies of each report sub- PAYMENT AUTHORITY. out of or resulting from an act of terrorism shall be subject to prior approval by the Sec- mitted under paragraph (1) to the Secretary, (a) ADMINISTRATIVE EXPENSES.—There are the Secretary of commerce, the Chairman of authorized to be appropriated to the Sec- retary after consultation by the Secretary the Federal trade Commission, and the retary, out of funds in the Treasury not oth- with the Attorney General. (e) LIMITATION ON DAMAGES.— Comptroller General of the United States. erwise appropriated, such sums as may be (1) IN GENERAL.—Punitive or exemplary (3) AGENCY REPORT TO CONGRESS.— necessary for administrative expenses of the damages shall not be available for any losses (A) IN GENERAL.—The Secretary, the Sec- Program, to remain available until ex- in any action described in subsection (a)(1), retary of Commerce and the Chairman of the pended. including any settlement described in sub- Federal Trade Commission shall submit (b) PAYMENT AUTHORITY.—This Act con- joint reports to Congress and the Comp- section (d), except where— stitutes payment authority in advance of ap- (A) punitive or exemplary damages are per- troller General of the United States summa- propriation Acts, and represents the obliga- mitted by applicable State law; and rizing and evaluating the reports forward tion of the Federal Government to provide (B) the harm to the plaintiff was caused by under paragraph (2). for the Federal share of compensation for in- a criminal act or course of conduct for which (B) TIMING.—The reports required under sured losses under the Program. the defendant was convicted under Federal subparagraph (A) shall be submitted— SEC. 10. PROCEDURES FOR CIVIL ACTIONS. or State criminal law, including a conviction (i) 9 months after the date of enactment of (a) FEDERAL CAUSE OF ACTION.— based on a guilty plea or plea of nolo this Act; and (1) IN GENERAL.—There shall exist a Fed- contendere. (ii) 12 months after the date of submission eral cause of action for claims arising out of (2) PROTECTION OF TAXPAYER FUNDS.—Any of the first report under clause (i). or resulting from an act of terrorism, which amounts awarded in, or granted in settle- (4) GAO EVALUATION AND REPORT.— shall be the exclusive cause of action and ment of, an action described in subsection (A) EVALUATION.—The Comptroller General remedy for such claims, except as provided (a)(1) that are attributable to punitive or ex- of the United States shall evaluate each re- in subsection (f). emplary damages allowable under paragraph port submitted under paragraph (3), and (2) PREEMPTION OF STATE ACTIONS.—All (1) of this subsection shall not count as in- upon request, the Secretary, the Secretary of State causes of action of any kind for claims sured losses for purposes of this Act. Commerce, the Chairman of the Federal arising out of or resulting from an act of ter- (f) CLAIMS AGAINST TERRORISTS.—Nothing Trade Commission, and the NAIC shall pro- rorism that are otherwise available under in this section shall in any way be construed vide to the Comptroller all documents, State law, are hereby preempted, except as to limit the ability of any plaintiff to seek records, and any other information that the provided in subsection (f). any form of recovery from any person, gov- Comptroller deems necessary to carry out (b) GOVERNING LAW.—The substantive law ernment, or other entity that was a partici- such evaluation. for decision in an action described in sub- pant in, or aider and abettor of, any act of (B) REPORT TO CONGRESS.—Not later than section (a)(1) shall be derived from the law, terrorism. 90 days after receipt of each report sub- including applicable choice of law principles, (g) EFFECTIVE PERIOD.—This section shall mitted under paragraph (3), the Comptroller of the State in which the act of terrorism apply only to actions described in subsection General of the United States shall submit to giving rise to the action occurred, except to (a)(1) arising out of or resulting from acts of Congress a report of the evaluation required the extent that— terrorism that occur during the effective pe- by subparagraph (A). (1) the law, including choice of law prin- riod of the Program, including any applica- SEC. 7. PRESERVATION OF STATE LAW. ciples, of another State is determined to be ble extension period. Nothing in this Act shall affect the juris- applicable to the action by the district court The PRESIDING OFFICER. The Re- diction or regulatory authority of the insur- hearing the action; or publican leader. ance commissioner (or any agency or office (2) otherwise applicable State law (includ- Mr. LOTT. Reserving the right to ob- performing like functions) of any State over ing that determined under paragraph (1), is ject, I will be brief and I will not ob- any participating insurance company or inconsistent with or otherwise preempted by other person— Federal law. ject. I think we should go ahead and (1) except as specifically provided in this (c) FEDERAL JURISDICTION.— get an agreement to proceed on this Act; and (1) IN GENERAL.—Notwithstanding any bill because there has been a lot of ef- (2) except that— other provision of law, not later than 90 days fort over a long period of time to try to (A) the definition of the term ‘‘act of ter- after the date of the occurrence of an act of work out some substance, some process rorism’’ in section 3 shall be the exclusive terrorism, the Judicial Panel on Multidis- for considering it, the numbers of definition of that term for purposes of com- trict Litigation shall assign a single Federal amendments that would be offered. pensation for insured losses under this Act, district court to conduct pretrial and trial and shall preempt any provision of State law proceedings in all pending and future civil Having been through all of that, I that is inconsistent with that definition, to actions for claims arising out of or resulting think it is time we just go forward. We the extent that such provision of law would from that act of terrorism. could not get an agreement to limit otherwise apply to any type of insurance (2) SELECTION CRITERIA.—The Judicial amendments anyway. I believe there covered by this Act; Panel on Multidistrict Litigation shall se- are going to be a lot of amendments (B) during the period beginning on the date lect and assign the district court under para- that relate to the subject matter that of enactment of this Act and ending at mid- graph (1) based on the convenience of the will be offered and we will have a good night on December 31, 2002, rates for ter- parties and the just and efficient conduct of debate. rorism risk insurance covered by this Act the proceedings. I do want to make two observations. and filed with any State shall not be subject (3) JURISDICTION.—The district court as- to prior approval or a waiting period, under signed by the Judicial Panel on Multidistrict There was a bipartisan bill. There was any law of a State that would otherwise be Litigation shall have original and exclusive a bill, I had the impression, that had applicable, except that nothing in this Act jurisdiction over all actions under paragraph been worked out with Senator SAR- affects the ability of any State to invalidate (1). For purposes of personal jurisdiction, the BANES, I thought Senator DODD, and

VerDate 11-MAY-2000 03:18 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.042 pfrm12 PsN: S12PT1 S5440 CONGRESSIONAL RECORD — SENATE June 12, 2002 Senator GRAMM at the committee I want to thank Senator DODD for the and chemical attacks—the very threats level, although it was not reported out, extraordinary patience and leadership the government warns us are most that would have had some limits on li- he has demonstrated on this issue over likely to be used by terrorists. ability, but all of a sudden it dis- so many months. I also want to thank The growing gap in terrorism cov- appeared from the committee itself, a number of our other colleagues—es- erage threatens the stability of Amer- went to some other venue, and it came pecially Senator SARBANES, Senator ica’s economy. up with the substance as it is now. I do SCHUMER and Senator REID—for their The plain fact is: private insurers, not think that is the way business help in producing this bill, as well as alone, cannot close this gap. The po- should be done around here, and every their many efforts to reach a bipar- tential loss is simply too great for any time it is done that way, which was the tisan agreement on this matter. one company or industry to absorb. case, in my opinion, on the energy bill President Bush has asked the Senate The federal government must be a and on an agriculture bill, you get into repeatedly to pass terrorism insurance. partner. a great big fracas and have a lot of So has the commercial real estate in- We’ve done it before. During World trouble. dustry, the hotel industry, and many War II, the Government authorized a But I think the issue is important. I other industries employing tens of mil- program, administered by private in- am sure there are very strong feelings lions of Americans. Despite their re- surers, which insured property against for it and some against it. quests, a small group of Republican ‘‘enemy attack.’’ We need a similar ef- But I emphasize the point that Sen- Senators has refused to let any ter- fort today. That is what this bill is ator MCCONNELL made a moment ago. rorism insurance bill pass unless it in- about. We need this legislation passed because cludes their extraneous plan to dra- The Congress is working closely with of the confidence it will provide to this matically overhaul major parts of the President to improve the physical sector of the economy. But it will not America’s civil justice system. security of our nation. We should be no be signed into law without some limits At a time when we are hearing new less vigilant in defending America’s on liabilities. We cannot and we will warnings almost every day about the economic security from the cata- not—and the President will not—allow possibility, even the ‘‘inevitability’’ of strophic losses associated with ter- the plaintiff’s lawyers of this country more terrorist attacks—when our econ- rorism. We must pass a terrorism bill. to get this kind of access to the Treas- omy is struggling to shake off a reces- We cannot afford to let this critical ury of the United States of America. I sion, such political gamesmanship is measure be held hostage any longer by think everybody needs to understand inexcusable. a handful of Senators who want to use that. Before September 11th, terrorist at- it to pass extraneous measures. The We should do this. We are going for- tacks on America seemed unimagi- risks to America’s economic security is ward. But in the end we are not going nable. Now, as a result of September too great. to have a bill without limits on liabil- 11th, such acts are becoming un-insur- The President has made that clear. ities. The market is making it clear. We With that, I withdraw my reserva- able. Consider a few facts: need to close the terrorism insurance tion. Mr. DASCHLE. Mr. President, in the A recent survey by The Bond Market gap now. No more delays. We urge our days and weeks following September Association shows that lenders have colleagues to join us. 11, this Senate passed an unprece- placed on hold or canceled more than The PRESIDING OFFICER. Is there dented series of measures to help heal $7 billion in commercial mortgage objection? our wounded nation, protect America loans because of ‘‘the difficulty and ex- Without objection, it is so ordered. Mr. REID. Mr. President, if I could from future terrorist attacks, and pense’’ of finding terrorism insurance just say a few words before my friend bring to justice those who attacked us. coverage. Those days were among the most dif- According to a recent study by from Connecticut who worked so hard ficult any of us has ever experienced in Moody’s, ‘‘virtually all terrorism in- on this legislation makes a few re- our public lives. They were also some surance policies have some major gap, marks, the minority should understand of our proudest days as Senators—be- including carve-outs for certain types that Senator DASCHLE has no intention cause we were united. Because we rose of terrorism and 30 day cancellation of peremptorily moving to invoke clo- to a challenge that few of us could have clauses.’’ These policy gaps pose sig- ture. I think there should be a reason- imagined until then. nificant risks to investors. able time for people to offer amend- Today—nearly 9 months after the The lack of terrorism insurance for ments. I also say that we also have to terrorist attacks we have not yet ad- commercial real estate is also hurting work constructively on this legisla- dressed the growing inability of many ‘‘commercial mortgage backed securi- tion. businesses to purchase adequate, af- ties’’ bonds that are backed entirely by The fact is that we have as a result of fordable terrorism insurance. mortgages on commercial buildings. what is facing this country lots of bills, Democrats have made repeated good- Investors in this $270 billion market in- not the least of which is the Defense faith offers to reach a bipartisan solu- clude pension funds, insurance compa- authorization bill. We have to com- tion to this difficult problem. This Sen- nies and other institutions. plete that before the July 4th recess. ate could have passed a terrorism in- Moody’s and Fitch recently placed 22 We are going to do that. surance bill months ago—and it could commercial mortgage backed securi- There is a lot of work to do. The ma- already be law. The only reason it is ties transactions—backed by more jority leader has stated publicly that not is because a small group of Sen- than $9 billion in commercial real es- this legislation is important. Senator ators in the other party are determined tate loans, on a ‘‘watch list’’ for pos- DODD has spent untold time trying to to use terrorism re-insurance as cover sible downgrade. In every one of the 22 work out an agreement. If everybody to push through radical changes in our transactions on that list, terrorism in- believes it as important as they say it legal system that they know do not surance for the collateral was either is, then we should be able to get a bill. have sufficient support to pass on their inadequate—or due to expire by this I respectfully say to my friend, the own merits. They are holding terrorism Fall. Republican leader, that they have a insurance, and America’s economic se- In addition, major hotel companies right to offer all kinds of amendments curity, hostage to try to force through employing thousands of Americans and any amendment they want to deal- an agenda that has nothing to do with have lost—or will soon lose—terrorism ing with liability, lawyers, and other September 11th, or with the threat of coverage. Businesses, museums, hos- things. But I hope if they lose, they do future terrorist attacks. pitals, gaming and sports facility own- not cause us to not have a bill. Enough is enough. Last Friday, Sen- ers, and builders all over the country This bill is important to the real es- ator DODD introduced a good, balanced are in similar straits. tate industry, the developers, and the terrorism insurance bill, S–2600. I am While a few insurers have come to- people in the construction business. We now calling up that bill to see where gether to offer very narrow coverage, have hotels, businesses, shopping cen- the votes fall. We need to stop playing their policies they provide generally ters, and they have all come to all of politics with this critical issue. exclude coverage for nuclear, biological us. They believe this is important.

VerDate 11-MAY-2000 01:54 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.115 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5441 We are going to have a debate. One of motion, for which I am grateful. That tomorrow to start debate on bill, and the principal participants in that de- would have delayed consideration of make opening statements, if they need bate will be the Presiding Officer, who this bill. to be made, and then engage in, hope- was an insurance commissioner of the I am not going to debate the merits fully, a healthy but brief debate and third or fourth largest State in United or demerits of the bill tonight. I see my discussion on this important matter. States. He certainly has had a view colleague from Maryland, the chair- I see my colleague from Maryland that a lot of us haven’t had as to what man of the committee, is here. He may here who may want to express some insurance is all about. We look forward want to be heard on this as well. thoughts. to the debate with the Senator from But this is an important bill. It isn’t The PRESIDING OFFICER. The Sen- Florida, and the debate generally. I because I think it is. It is important ator from Maryland. hope it is as constructive as the debate because you hear from almost every Mr. SARBANES. Mr. President, I will was on the estate tax. It was a good de- major metropolitan area in the coun- be very brief. I join my very able col- bate over the last 2 days. When we have try now that is feeling the real pinch of league from Connecticut in under- debates like that, it makes this body a slowdown as a result of the inability scoring the importance of this legisla- look good. I think people look not at and an unwillingness, for obvious rea- tion and the problem with which it the result as much as how we are treat- sons, of banks to lend money to major seeks to deal. It is one that we have ing each other. Senators, we should be real estate and construction projects been wrestling with for a number of happy. I am happy with the result we without those projects having insur- months. had with the estate tax. But the debate ance on terrorism. I particularly commend the able Sen- was good. People had a chance to voice In the absence of getting that, which ator from Connecticut for his leader- their opinions. I hope we do just as well the industry is unwilling to write be- ship on this issue. He has been indefati- on this important legislation on ter- cause they cannot figure out how to gable in focusing our attention on this rorism insurance. cost all of this—that is understandable matter and repeatedly insisting that The PRESIDING OFFICER. The Sen- as well from the business standpoint— we have to come to terms with this ator from Connecticut. a lot of these projects are not moving. issue. Mr. DODD. Mr. President, I thank Jobs are being lost, and the economy is I am pleased that we are now going the distinguished majority whip, Sen- feeling the effects of it. to be able to actually move tomorrow ator REID, for propounding the unani- That is a shorthand version of what to the legislation and begin this impor- mous consent request. I thank the dis- is going on. It hasn’t reached such pro- tant debate. I will defer my comments tinguished Republican leader for agree- portion yet that it would stop any kind on the substance of this legislation ing to allow this to go forward, and my of economic growth. But it certainly, until tomorrow, until that debate be- colleague from Texas, and colleague by every estimation, is having a nega- gins. from Kentucky, who have had a long- tive impact on our economic recovery. But Senator DODD has played a major standing interest in the subject mat- Now we have put together the pro- role, an instrumental role, throughout ter, as many Members have, including posal. I know there will be amend- and, obviously, has played a large part the Presiding Officer. And other Mem- ments offered. My hope is they will be in bringing us to the point at which we bers have come to me over time with relevant amendments so they don’t use are now, which offers us now the oppor- various ideas and proposals to be in- this vehicle to bring up all sorts of ex- tunity to finally address this issue. cluded as part of the terrorism insur- traneous matters. I understand, under the consent ance package. We will try to limit the debate to agreement, it is a wide open consider- Let me say my good friend from Mis- some degree on the bill we are pro- ation that lies ahead of us. I would sissippi, the Republican leader, raised posing and the one which I suspect will urge my colleagues of the necessity to the issue about where we were. He is finally be adopted. Even if some show some restraint as we try to do right. There was a time not so long amendments are accepted, it will be that because we are under, obviously, ago—about 8 or 9 months ago—when we substantially different from what the some very significant time pressures. sat down and innocently thought that other body proposed. But I look forward to that debate and three or four Members sitting together Even if we complete our work here, the opportunity to try to address this could write something and then come there is a monumental amount of work issue on its substance. We have heard, to the floor, and people would say, You to be done to reach agreement with the of course, a great deal from across the have done a lot of work, go ahead. As other body. If we hope to get that com- country about this matter. oftentimes happens, it is not unique. pleted at some point between now and I simply want to echo the able Sen- We thought we had put something to- over the August break—I hope earlier— ator from Connecticut in saying that I gether. We came to the floor and dis- we are going to have to finish this bill hope we can consider this matter in a covered that there were 97 other Mem- fairly quickly. very positive and constructive way. I bers who had some ideas—not all 97 but I urge Members who have an interest know Members have different ideas on a good many had other thoughts about to come over and be heard. If you can how we ought to go about it. We hope which they felt strongly. limit your time so we can have a good to be able to consider those in a rea- I don’t regret the effort that my col- debate—I hope no one intends to fili- sonable and proper way and reach some league from Texas and I made with buster on this bill. That would cer- conclusion, hopefully, in the near fu- Senator SARBANES of Maryland. Sen- tainly be unwise, in my view. ture. ator SCHUMER was involved I think to We will try to produce a product that I thank the Chair and I yield the some degree in all of that, and others will get us to conference and further floor. as well. We made a good faith effort. refinement, and resolve the issues so The PRESIDING OFFICER. The Sen- We thought it would work. It didn’t. we can send it to the President of the ator from Kansas. December 20, I think, was the date United States for his signature; and, f when there was a unanimous consent sort of cut this Gordian knot that sits request to bring the matter up. There out there as a real choke point, if you MARTIN AND GRACIA BURNHAM was an objection expressed at that will, in the economic flow of our coun- Mr. BROWNBACK. Mr. President, I time. From then on, we have tried all try. That is what this is at this point. rise today to discuss a sad and incred- sorts of ideas and variations that I thank again my colleagues for not ibly important situation that happened would get us to a unanimous consent objecting to the unanimous consent re- last week involving citizens from my where we would have a limited number quest that we go to this bill. That is a State. of amendments to be brought up to try good sign. I know there is still a lot of The war on terrorism claimed an- to focus on this bill. None of that difference. But I take that as an omen other victim. worked. that we at least can bring up this mat- This past week brought about the We are now in a situation where we ter and try to resolve these differences. sorrowful conclusion to a long and had a rule XIV on the bill on June 7, I look forward to the debate tomorrow. harrowing ordeal for three inspiring and this evening we avoided a cloture I believe we will be here at 10 o’clock people, two of whom are from my home

VerDate 11-MAY-2000 01:54 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.118 pfrm12 PsN: S12PT1 S5442 CONGRESSIONAL RECORD — SENATE June 12, 2002 state of Kansas. Gracia and Martin uated from Calvary Bible College and rorism and its causes, and to urge my Burnham, and their fellow hostage, Fil- the Wichita Aviation Education Cen- colleagues to do so as well. After all, ipino nurse Ediborah Yap, had endured ter, and then completed the New Tribes the struggle is not over, only this or- more than a year in captivity at the Mission training program, the New deal. brutal hands of the terrorist group Abu Tribes group out of Florida. Not sur- Just this morning, elements of the Sayyaf that has had links to the al-Qaida prisingly, he and Gracia then returned AFP, the Filipino military, were in- organization. to the Philippines, remaining there volved in a fierce battle with a group We all know the news reports, some ever since. In fact, their three children, that calls itself the Pentagon. It is a of them almost by heart, of the at- Jeff, Mindy, and Zach, were all born in splinter group from the Moro Islamic tempted rescue by the Filipino mili- the Philippines. Liberation Front. This group has held tary, who, based on the details that I And then, on May 27, 2001, while cele- a south Korean businessman captive have, demonstrated heroism and brav- brating their 18th wedding anniversary, since February 6, 2001. While defending ery in the encounter. And the heart- they were kidnapped. their country from the scourge of ter- rending deaths of Martin and Ediborah It was not the marker of celebration rorism, two Philipino soldiers were and the wounding of Gracia. But today they wanted—that of their love for killed, and nine members of this ex- I want to remind all of us that while each other and for God—but rather tremist organization died. That was in this may have been the end of their or- that of the beginning of this incredible, this most recent firefight. More deaths, deal, it is not the end of their struggle, horrible journey. and for what? nor of ours. The blame for the year of suffering Let me be clear. The deplorable ac- The poet John Donne once wrote, that Martin, Gracia, and Ediborah Yap tions of the Abu Sayyaf Group caused ‘‘No man is an island, entire of it selfe; endured rests squarely upon the shoul- the deaths of Martin, Ediborah, and any man’s death diminishes me, be- ders of the terrorist Abu Sayyaf Group. Guillermo. Let there be no equivo- cause I am involved in Mankinde; and They were offered peaceful means to cation on this point, the Abu Sayyaf therefore never send to know for whom resolve this situation, multiple peace- Group is criminally culpable and must the bells tolls; it tolls for thee.’’ ful options. Yet this group insisted be brought to justice. September 11 was a wakeup call, but upon terror, murder, and rampage. As we all know, terror begets terror, the bell still tolls. We must not let it They attacked Americans, and they at- but justice produces justice. And a na- go unanswered. tacked their own people. And they tion founded upon the rule of law has a Some people have proclaimed that never hesitated to kill without com- special responsibility to share and en- terrorism is simply a symptom of pov- punction, without compassion, and force that vision. erty and despair. That it is, if you can without logic. Executing several pris- This Friday, the Burnham family believe this, the logical response to a oners, including another American will be holding a memorial service for life of misery. I have one question that was taken hostage at the time as Martin, not to mourn, but to celebrate then: Why kill those who are there to the Burnhams. Guillermo Sabero, a his life. Today, I ask all of us to do so, alleviate poverty, to lift despair, and to Californian, was beheaded by this same to celebrate Martin, to remember his eliminate misery? Abu Sayyaf Group. family, and to recall our shared duty to Terrorism is not a symptom of pov- Terrorists must understand every ‘‘provide for the common Defense’’ and erty, despair and misery. It is a cause. single U.S. citizen is important, that to ‘‘define and punish . . . Offenses It is the root cause. These men and an attack on an American anywhere in against the Law of Nations.’’ women do not just attack the concept the world is an attack on America These may seem to be the worst of of freedom and freedom-loving people itself. times, but, like the Burnhams, we are everywhere, they terrorize their own Most of all, though, terrorists must a strong, resilient, and, most of all, people, they ravage their own country. understand—must be made to under- hopeful people, and we will prevail. That is not logic, that is not strat- stand—that terrorism is never justifi- As it says in the Beatitudes: egy; that is evil. Yet, in the face of able. Wanton violence that harms Blessed are the merciful, For they shall ob- evil, people such as the Burnhams do blameless men, women and children, tain mercy. not flinch. They have never flinched. unpredictable violence that strikes Blessed are the pure in heart, For they shall When the governments have left, the fear into innocent hearts and minds is see God. missionaries are there. When the NGOs not, and never will be justifiable. Blessed are the peacemaker, For they shall have left, the missionaries are there. As Philippines President Gloria Ar- be called sons of God. When the charitable organizations royo said, ‘‘The fight against terrorism Blessed are those who are persecuted for have left, the missionaries are there. is our fight. It is the fight of all of righteousness’ sake, For theirs is the kingdom of heaven. There are some goals too great, some mankind against evil.’’ missions really just too precious, and The bell tolls for all of us. Duty beck- God bless you, Martin Burnham. so the missionaries are there. They ons all of us. I yield the floor and suggest the ab- keep going. They are always there. And And the call is simple. We must con- sence of a quorum. they accept the sacrifices of their work tinue to support the effort to eradicate The PRESIDING OFFICER. The in order to stay true to their calling. the Abu Sayyaf Group and other ter- clerk will call the roll. Even Gracia Burnham,on the day she rorist organizations that threaten the The assistant legislative clerk pro- arrived home to her children and her security of the Philippines and other ceeded to call the roll. friends and family, seeing them for the peaceful nations. Mr. REID. Mr. President, I ask unan- first time in over 375 days, forcefully Already, U.S. assistance to the Phil- imous consent that the order for the said, ‘‘A very bad thing happened to ippines has produced results. Civil ac- quorum call be rescinded. Martin and I when we were taken hos- tion and humanitarian projects are im- The PRESIDING OFFICER. Without tage, but we want everyone to know proving living conditions, and special- objection, it is so ordered. that God was good to us every single ized training has resulted in a more ca- f day of our captivity.’’ pable military. Even Gracia Burnham It is a statement emblematic of the noted, ‘‘We especially want to thank MORNING BUSINESS strength, courage and, most of all, the military men, the Fillipinos and Mr. REID. Mr. President, I ask unan- faith of both of them, and of all mis- the Americans, who risk, and even gave imous consent the Senate now proceed sionaries worldwide, who every day their lives, in order to rescue us.’’ to a period of morning business with risk their lives to help others. In fact, As seen by this rescue, the Abu Senators allowed to speak therein for a the Burnham’s story started out much Sayyaf Group is on the run, but it period not to exceed 5 minutes each. like many others. needs to be completely eliminated as a The PRESIDING OFFICER. Without Martin first arrived in the Phil- threat. I personally will continue to objection, it is so ordered. ippines in 1969 with his missionary par- encourage any U.S. support requested Mr. LEAHY. Mr. President, I am de- ents. He returned to the United States by the Phillippine Government to as- lighted that the House of Representa- after high school, met Gracia, grad- sist them in their fight against ter- tives yesterday passed unanimously

VerDate 11-MAY-2000 03:18 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.056 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5443 the Mychal Judge Police and Fire SOLUTION TO MTBE PROBLEM niques may be shared across the na- Chaplains Public Safety Officers’ Ben- Mr. SMITH of New Hampshire. Mr. tion. Once MTBE enters fractured bed- efit Act of 2002, S. 2431. President, by now, most everyone in rock, it is nearly impossible to reme- Last month, the Senate passed the Nation has heard of the problems diate and equally as difficult to track. unanimously my legislation to provide caused by MTBE (methyl tertiary MTBE may contaminate wells that are death benefits to the families of 10 fall- butyl ether). I am very pleased that S. many miles away from the original en heroes of September 11. I again 950, the Federal Reformulated Fuels source. In simple terms, we can’t get it thank Senators CAMPBELL, SCHUMER, Act of 2002, reported by the Senate out of bedrock and we can’t tell where CLINTON, BIDEN and FEINGOLD for co- Committee on Environment and Public it will cause problems. sponsoring our bipartisan measure. I Works, has largely been incorporated Mr. JEFFORDS. As the Senator from commend Representatives MANZULLO into the Senate energy bill, S. 517, New Hampshire, the ranking member and NADLER for their bipartisan leader- passed by the Senate on April 25, 2002. on the Environment and Public Works ship on the House companion bill, H.R. I would like to thank all those who Committee, has pointed out, the com- 3297, and I thank House Judiciary Com- worked with me to negotiate this com- mittee acted to address existing con- mittee Chairman SENSENBRENNER and prehensive solution to the MTBE prob- tamination and to prevent future con- Ranking Member CONYERS for their lem. tamination. There are many sources of strong support as well. The legislative package provides Fed- MTBE releases, including leaking un- Named for Chaplain Mychal Judge, eral funding for cleanup of existing derground storage tanks, motor vehicle who was killed while responding with contamination and for prevention of accidents, fuel overfills, backyard me- the New York City Fire Department to future releases of MTBE, while pre- chanics and many more. With the nu- the September 11 terrorist attacks on serving the environment and pro- merous potential sources, the only way the World Trade Center, this legisla- tecting the country from gasoline price to ensure prevention of future contami- tion recognizes the invaluable service spikes and fuel shortages. I would like nation is to get MTBE out of gasoline. of police and fire chaplains in crisis sit- to engage in a brief colloquy with the This legislation contains several provi- uations by allowing for their eligibility chairman of the committee so that we sions that work together to provide for in the Public Safety Officers’ Benefit can provide an overview of the prob- quick reduction and eventual elimi- Program. Father Judge, who was gay, lems caused by MTBE and how this leg- nation of MTBE use in gasoline. was survived by his two sisters who, islation solves these problems. Section 834 eliminates the oxygen under current law, are ineligible to re- The problem that initially motivated content requirement in Sections ceive payments through the PSOB Pro- the committee and the Senate to act 211(k)(2) and 211(k)(3)(A) of the Clean gram. This is simply wrong and must on S. 950 and this issue in general is the Air Act. These provisions require RFG existing MTBE contamination of water be remedied. to contain two percent oxygen by resources. Leaking underground stor- weight. To satisfy this mandate, refin- Indeed, Father Judge is among 10 age tanks (USTs) are the major source ers must blend either fourteen percent public safety officers who were killed of MTBE releases. Section 832 of this MTBE or 5 percent ethanol into RFG. on September 11, but who are ineligible legislation authorizes $200 million from Elimination of the oxygen mandate for Federal death benefits because they the Leaking Underground Storage will allow for a phase-down of the use died without a surviving spouse, child, Tank (LUST) Trust Fund for States to of MTBE in RFG without requiring the or parent. This bill would retroactively use for MTBE remediation. For this use of ethanol in every gallon of RFG correct this injustice by expanding the limited allocation of funds, the legisla- in certain non-attainment areas. But, list of those who may receive public tion waives the LUST requirement RFG will still be required to meet all safety officer benefits to the bene- that the contamination be linked to an other statutory and regulatory require- ficiaries named on the most recently UST. Once in the environment, MTBE ments. executed life insurance policy of the separates from other gasoline compo- The elimination of the oxygen re- deceased officer. This change would go nents and can quickly move far away quirement also will allow refiners sup- into effect on September 11 of last year from the source. Since MTBE contami- plying RFG to the Northeast and many to make sure the families of Father nation is difficult to trace, it is nearly other States to use considerably less Judge and the nine other fallen heroes impossible to establish a link between MTBE in RFG prior to the beginning of receive their public safety officer bene- the contamination and a LUST. the phase out. MTBE is currently 3 per- fits. In addition to cleaning up existing cent of the national gasoline supply. In addition, this bill would retro- contamination, we must prevent future Most of this is used in RFG areas, actively restructure the Public Safety leaks from USTs because MTBE, in vol- where MTBE volume in RFG is up to 15 Officers’ Benefit Program to specifi- umes much lower than current levels percent. cally include chaplains as members of found in reformulated gasoline (RFG), The oxygen requirement is elimi- the law enforcement and fire units may remain in gasoline for up to four nated effective 270 days after enact- they serve, and would make these years of enactment of this bill. To pre- ment in order to provide time for EPA chaplains eligible for the one-time vent future leaks, Section 832 of this to put in place the anti-backsliding $250,000 benefit available to public safe- legislation authorizes an additional provisions included under Section 834 ty officers who have been permanently $200 million from the LUST Trust Fund of this legislation. disabled as a result of injuries sus- for States to use for activities to en- Mr. SMITH of New Hampshire. In ad- tained in the line of duty, or to the sur- force existing UST regulations. dition to elimination of the oxygen vivors of officers who have died. There is still more to learn about re- mandate, as the Senator from Vermont Finally, I applaud the National Asso- mediation of MTBE. Section 832 of this has indicated, this legislation requires ciation of Police Organization, the Fra- legislation authorizes $2 million for EPA to make a determination about ternal Order of Police, and the Amer- conducting bedrock bioremediation re- the adequacy of any pending RFG peti- ican Federation of State, County and search and establishing an information tion to waive the oxygen content re- Municipal Employees for their strong clearinghouse. These authorized funds quirements of section 211(k)(2)(B) for support for this bill to honor public are intended to go to the Bedrock Bio- RFG. If EPA fails to act in the required safety officers and their families. remediation Center (BBC) at the Uni- time, the petition shall be deemed ap- This legislation provides much-need- versity of New Hampshire. Currently, proved. Although this includes an opt- ed relief for the survivors of the brave the BBC conducts research on bio- out or other request, EPA’s failure to public servants who selflessly risk and remediation of various contaminants act results in automatic approval of sacrifice their own lives everyday so in fractured bedrock. This additional the petition only to the extent that the that others might live. I look forward funding will allow the BBC to learn oxygen content requirement for RFG to President Bush signing the Mychal ways of cleaning up MTBE contamina- would be waived. No other RFG re- Judge Police and Fire Chaplains Public tion in fractured bedrock and establish quirements are affected. This provision Safety Officers’ Benefit Act of 2002 into an information clearinghouse so that only applies to petitions pending at the law. the newly developed remediation tech- time of enactment of this provision.

VerDate 11-MAY-2000 02:00 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.123 pfrm12 PsN: S12PT1 S5444 CONGRESSIONAL RECORD — SENATE June 12, 2002 The State of New Hampshire sub- does not want it stored or handled with the toxics reduction goals in the mitted to EPA a request to opt-out of there for fear of water supply contami- Clean Air Act has been largely due to the RFG program and set state fuel nation. the dilution effect of the oxygenates standards that are identical to the Fed- Section 833(d) is intended to hold MTBE and ethanol, relatively toxic- eral RFG specifications, excluding the harmless any legal recourse that the free additives. RFG survey data sug- oxygen mandate. The EPA is in- States may have during the on-going gest that refiners have achieved a 27 structed to interpret the New Hamp- litigation over the efforts to impose or percent or higher reduction in toxic air shire RFG opt-out request as a request defend state MTBE bans or other le- pollutants from the 1990 baseline. to eliminate the oxygen mandate. If gitimate actions to control or prohibit On March 29, 2001, EPA released a the request is deemed adequate, either MTBE use or production. final strategy to further reduce air by EPA or by statute, the RFG sold Mr. JEFFORDS. The Senator has toxics emissions from motor fuels in an and used in New Hampshire will not be stated the essential point of this legis- effort to comply with its responsibility required to adhere to the oxygen con- lation and these provisions in the en- under Section 202(l) of the Act. The tent requirement, effective imme- ergy bill, that is the elimination of strategy identified 21 mobile source air diately upon the adequacy determina- MTBE to protect water supplies. Its re- toxics (MSATs). It is intended to en- tion. moval from the gasoline supply could sure that refiners continue over-com- The removal of the oxygenate re- encourage the replacement of fuel vol- pliance with RFG and anti-dumping re- quirement alone, however, is not umes with more toxic components, so quirements by maintaining their aver- enough to ensure the removal of MTBE section 834 of this legislation requires age 1998–2000 toxic emissions perform- from gasoline. Therefore, Section 833 of EPA to ensure maintenance of the ance levels for baseline volumes of this legislation contains a provision toxics reduction over-compliance al- RFG and conventional gasoline. For in- that prohibits the blending of MTBE in ready achieved in RFG areas. EPA may cremental volumes, refiners must ad- gasoline within 4 years of enactment. comply with this requirement by here to the regulatory standard of a The 4-year period is intended to allow amending the existing Mobile Source 21.5 percent reduction. The MSAT rule fuel refiners to phase out the use of Air Toxics (MSAT) rule by updating is intended to ensure that toxics over- MTBE on a schedule that will not the individual refinery RFG baselines compliance is maintained regardless of cause gasoline shortages or price from 1998–2000 to 1999–2000, and what- whether any oxygenates are used. The spikes. The absence of a mandatory ever other appropriate changes are nec- MSAT rule commits EPA to revisiting statutory phase down schedule is in- essary. We are advised by the Agency additional fuel and vehicle MSATs con- tended to give maximum flexibility to that any such changes should be mini- trols in a 2004 rulemaking. fuel refiners as they proceed to an mal. Section 834(b) supplements the air MTBE-free gasoline supply. The MSAT rule currently makes a toxics provisions for RFG. Congress The reference to use of MTBE in new distinction between baseline volume, recognizes that EPA recently adopted section 211(c)(5)(A) of the Clean Air Act the average volume produced during regulations at 40 CFR part 80 Subpart J is meant to cover use by all persons. It the years 1998–2000, and incremental regarding air toxics performance of includes all persons in the motor vehi- volume, or additional volume above gasoline, including provisions for RFG. cle fuel production and distribution baseline volume. These categories are Congress intends that the regulations system, as well as ultimate consumer treated differently under the rule and recently adopted by EPA are adequate of the fuel and producers of MTBE. under this legislation. Under the rule, to implement new section EPA’s regulation may include appro- baseline volumes must adhere to new 211(k)(1)(B)(ii) and (iii), with the excep- priate provisions to implement this toxic reduction standards based on ac- tion of the change in baseline year prohibition. tual survey data from 1998–2000 and in- from 1998–2000 to 1999–2000 and any re- The findings listed in this section are cremental volumes are held to the stat- sulting baseline changes that may ne- intended to clarify that the elimi- utory or regulatory reduction, which- cessitate. The provisions in the current nation of the use of MTBE is intended ever apply. Under this legislation, the regulations for setting baselines, base- to protect water quality. It is impor- baseline volumes must adhere to the line adjustments, deficit carry-over, tant to note that health concerns are updated toxic reduction standard based and the like should still all be appro- not the main cause for Congressional on actual survey data from 1999–2000. priate under this new provision. While action, based on information to date. Incremental volumes are treated the new baseline adjustments would not be There is an allowance for de minimus same as under the rule unless the ac- allowed based solely on the new provi- amounts of MTBE to be present in gas- tual toxics levels in any PADD exceed sion, prior baseline adjustments would oline because MTBE is sometimes pro- the average 1999–2000 levels. If there is not be affected, except as called for duced in trace amounts during the gas- an exceedance, EPA must revise the ex- with the change in the baseline years. oline production process. The Adminis- isting regulation to require incre- For example, the existence of a federal trator will make a determination on mental volumes of RFG, in addition to ban on MTBE would not automatically what level is appropriate, but the legis- baseline volumes, to adhere to the up- change any previously granted adjust- lation provides that it can be no more dated individual refinery baselines. ments, and would not provide grounds than .5 percent by volume. The RFG program set statutory con- for any new adjustments. Another provision gives States the tent and performance requirements. I would note that there is not whole- authority to allow the use of MTBE in Through regulatory authority provided hearted support for the MSAT rule at gasoline for sale and use within such by the Clean Air Act, EPA chose, in 40 CFR part 80 subpart J in Congress or State’s borders. This provision is in- 1993, to adopt performance standards in the States. The Northeast States for tended to allow a State to use MTBE for toxic air pollutants and volatile or- Coordinated Air Use Management has should the State determine that other ganic compounds (VOCs) rather than filed suit against the Agency claiming problems, such as increased air pollu- the prescriptive fuels formula allowed that this rule is inadequate to protect tion, price spikes, or fuel supply short- under Section 211(k)(3)(A). These per- public health in the Northeast and in- ages, outweigh any adverse impact formance standards required a 15 per- consistent with the requirements in MTBE may have on water quality. The cent reduction in toxic air pollutants section 202(l) of the Clean Air Act. So, regulations implementing this provi- from baseline fuel starting in 1995 and we have included a savings clause to be sion could allow production and dis- maintained through 1999, and required very clear that Congress has not tribution in other States for intended a 21.5 percent reduction from baseline blessed this rule through the inclusion ultimate use in the notifying State, fuel beginning in 2000, as part of Phase of these anti-backsliding provisions. with appropriate safeguards to ensure II. Mr. SMITH of New Hampshire. Mr. that the fuel containing MTBE ulti- Motor vehicle emissions of toxics President, the existing RFG regula- mately is only sold or used in the noti- have been drastically reduced in RFG tions set separate standards for fuel fying State. Such rules, however, areas, though they are still a very sub- sold in Northern and Southern RFG should not authorize production or use stantial portion of the air toxics inven- areas. Section 839 of the legislation we in a state that has banned MTBE and tory in many areas. Over-compliance are discussing requires EPA to revise

VerDate 11-MAY-2000 02:00 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.074 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5445 existing RFG regulations to apply the tive date of these requirements if there possibility of two more periods of up to stricter Southern requirements in all is insufficient capacity to supply gaso- 1 year each. RFG areas nationwide. This will pro- line to a State that chooses to opt in Mr. JEFFORDS. In order to prevent vide the Northern RFG States, includ- new areas to the RFG program. If EPA, future problems similar to the MTBE ing New Hampshire, with less-polluting in consultation with the Department of debacle, Congress is expanding EPA’s Southern RFG. In addition, this provi- Energy, determines that expansion of existing authority to regulate fuel ad- sion will help to reduce the number of the RFG program would result in insuf- ditives. The current provisions of the boutique fuels. This provision does not ficient supply of gasoline in the State, Clean Air Act provide a process for alter the Administrator’s current abil- the effective date of the new opt-in EPA and authorized States to regulate ity to make volatile organic compound areas may be delayed for a period of up fuels and additives in order to protect (VOC) adjustments for ethanol blends to one year with the possibility of two air quality. This legislation amends of RFG, like the existing adjustment more periods of up to one year each. that process by allowing fuel and addi- given to Chicago and Milwaukee. Mr. JEFFORDS. Section 838 of the tive regulation in order to protect Mr. JEFFORDS. Because of that legislation allows States to ask EPA to water quality, as well. If this authority change and the other congressional ac- enforce any state-imposed fuel speci- already existed, EPA and the State of tions on MTBE and renewable fuels, fications that have been approved California might have been able to ad- there are likely to be significant under processes established under Sec- dress the MTBE problem before it be- changes in the Nation’s gasoline char- tion 110 or Section 211(c)(4)(C) of the came acute without Congressional ac- acteristics. Section 836 of this legisla- Clean Air Act. Effective and consistent tion. tion requires EPA to study and report enforcement of State and federal envi- There is also an additional prophy- on the changes in emissions of air pol- ronmental laws is very important. lactic provision that requires EPA to lutants and changes in overall air qual- States currently have very limited study the health, air quality, and water ity due to the use of fuels and fuel ad- budgets for enforcement activities. To quality effects of fuel additives and ditives resulting from this bill. This re- ensure full, faithful, and consistent en- blend stocks that may be used as re- placements for MTBE. The bill specifi- port will provide information to evalu- forcement of the state laws, this provi- cally lists ETBE, TAME, DIPE, TBA, ate the success of the provisions of this sion provides the ability for States to ethanol, iso-octane, and alkylates as legislation and should help identify access additional federal resources for enforcement of state fuel specifica- additives to be studied. problems that can be solved by statute The existing law allows the Adminis- tions, once approved by EPA through or regulation before they are serious. trator to require fuel producers to con- Section 211(c) of the CAA provides the existing processes. duct tests to determine the health and the Administrator with regulatory au- The section directs EPA to enforce environmental effects of fuels and fuel thority over fuels or fuel additives, if, certain state fuel controls or prohibi- additives. This provision mandates in the judgment of the Administrator, tions in the same manner as if EPA that the Administrator regularly re- the fuels or fuel additives or emission had adopted the control or prohibition quire fuel and fuel additive manufac- under section 211. This new provision is products cause or contribute to air pol- turers to conduct testing and supply not intended to change in any way the lution that may reasonably be antici- information on the effects of those sub- requirements for approval of a State pated to endanger the public health or stances on public and environmental fuel control or prohibition in a SIP, in- welfare. This legislation adds authority health. to protect water quality, in addition to cluding the requirement that it be en- Congress intends that the Adminis- air quality. The bill requires the Ad- forceable by the state. It is also not in- trator should use this authority to ministrator to exercise this regulatory tended to limit EPA’s enforcement dis- identify and assess any adverse public authority to prohibit the use of MTBE. cretion. EPA would have the same dis- health, welfare, or environmental ef- The bill also adds water quality as an cretion in enforcement matters with fects from the use of motor vehicle environmental protection criterion in respect to these state fuel controls or fuels or fuel additives or the combus- Title II of the act. prohibition as it would with a federal tion products of such fuels or fuel addi- Mr. SMITH of New Hampshire. To ad- fuel control or prohibition adopted tives. The Administrator should use dress the inflexibility of the opt-in under section 211. the authority to assess threats to both process for states that desire to use Mr. SMITH of New Hampshire. To air pollution and water pollution in RFG to reduce emissions, section 837 of avert air quality problems that might order to effectively exercise the au- the Energy bill allows Governors of arise through increased use of ethanol, thority in Section 211(c) as amended by States within the Ozone Transport Re- pursuant to the renewable fuels re- this legislation. gion (OTR), to opt in any area to the quirements, section 819(c) of the legis- The Blue Ribbon Panel on RFG program. EPA must approve the lation allows States to eliminate the Oxygenates in Gasoline recommended request unless there is insufficient ca- RVP waiver for gasohol if such waiver that EPA and others accelerate ongo- pacity to supply RFG to the area. Cur- will increase air pollution in any area ing research efforts into the inhalation rently, only ozone nonattainment within the State. If a state determines and ingestion health effects, air emis- areas are allowed to opt in to the pro- the waiver will cause air quality prob- sion transformation byproducts, and gram. This legislation expands the pro- lems, the State may submit notifica- environmental behavior of all gram to include all areas within the tion, accompanied by supporting docu- oxygenates and other components like- OTR States. This will give those mentation, to EPA indicating that the ly to increase in the absence of MTBE. states, including New Hampshire, the stricter RVP limit must be applied to This should include research on eth- opportunity to have one clean, MTBE- gasohol within the state. This provi- anol, alkylates, and aromatics, as well free RFG statewide. This provision is sion will help new ethanol using states as on gasoline compositions containing intended to provide cleaner fuel, ad- to control evaporative air pollution those components. dress the boutique fuel problem, and emissions from gasohol. Mr. SMITH of New Hampshire. In help states achieve attainment. This section includes a provision that order to limit potential negative im- The section addresses both the com- establishes a temporary delay of the ef- pacts on gasoline prices and fuel sup- mencement and termination of the fective date of these requirements if plies, the legislation authorizes a total RFG requirements in areas in the OTR there is insufficient capacity to supply of $750 million over three fiscal years that opt-in to RFG under that provi- gasoline to a State that chooses to to promote production of other fuel ad- sion. The provision on termination of eliminate the ethanol RVP waiver. If ditives. This funding is intended to pro- the RFG program in these opt-in areas EPA, after consultation with the De- vide grants to merchant MTBE pro- is not intended to change or modify in partment of Energy, determines that ducers for retooling existing facilities any way EPA’s authority to adopt rea- elimination of such waiver would re- to produce other clean fuel additives, sonable opt-out provisions under either sult in an insufficient supply of gaso- such as iso-octane, in order to avoid section 211(k)(6)(A) or (B). line in the State, refiners may be al- any fuel shortages that may have oth- This section includes a provision that lowed to retain the ethanol RVP waiv- erwise resulted from the elimination of allows a temporary delay of the effec- er for a period of up to 1 year with the the use of MTBE.

VerDate 11-MAY-2000 02:00 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.075 pfrm12 PsN: S12PT1 S5446 CONGRESSIONAL RECORD — SENATE June 12, 2002 According to a report from the EPA, mass, which is particularly energy-effi- and blending renewable fuels. If prob- the impact of the Federal Reformu- cient and produces superior greenhouse lems are anticipated, the Adminis- lated Fuels Act on the fuel supply gas benefits, would receive 1.5 credits trator of the Environmental Protection could range from a one percent short- for every gallon used. This should spur Agency is instructed to reduce the age to a one percent surplus. The re- the establishment of new ethanol fa- level of the RFS in 2004. In subsequent port further stated that, due to the cilities across the United States that years, States that are concerned about transition assistance, the actual im- will use wood waste, municipal solid renewable fuels prices or supplies may pact is more likely to be on the surplus waste, switchgrass, and other innova- apply to the Administrator of the Envi- side. tive feedstocks. ronmental Protection Agency to re- Mr. JEFFORDS. The renewable fuels In September of 2000, the Environ- duce the RFS in whole or in part. State and MTBE provisions contained in H.R. ment and Public Works Committee applications must be acted upon within 4, as passed by the Senate, constitute passed legislation, S. 2962, which incor- 90 days. an agreement among many competing porated many of the elements of S. The legislation creates a narrow pro- interests that is designed to get rid of 2503, but Congress adjourned prior to spective safe harbor from liability for MTBE and increase renewable fuel use. enactment of that bill. The EPW Com- defect in design or manufacture of a re- After the reformulated gasoline pro- mittee again took up the issue in Sep- newable fuel by virtue of it being man- gram went into effect in 1995, many re- tember of 2001, passing legislation to dated by this legislation. To qualify for finers chose to use MTBE to satisfy the allow states to waive the oxygen re- this limited protection, manufacturers minimum 2 percent oxygen require- quirement, banning MTBE, and pro- of such fuels must have evaluated them ment of the program. Oxygenates re- viding additional resources for clean- for EPA with respect to their toxicity, duce tailpipe emissions of carbon mon- ing up MTBE contamination, but not carcinogenicity, air quality impacts, oxide and other ozone precursors and including a renewable fuels standard. water quality impacts and they must provide a clean source of high octane, As the Senator from New Hampshire be used in compliance with any restric- thereby displacing such toxic gasoline mentioned earlier, that legislation, S. tions imposed by EPA. All other causes octane enhancers as benzene, toluene, 950, was largely incorporated into S. and 1,3 butadiene. After implementa- of action or damages available under 517, the Energy Policy Act. A separate tion of the RFG program, increasing applicable State or Federal law are un- section establishing a renewable fuels detection of MTBE in ground water and affected by this legislation including, standard also was included in S. 517. surface water led California to estab- but not limited to, negligence, duty to Subsequently, negotiations between lish a schedule to ban MTBE and 13 warn, personal injury, property dam- the Environment and Public Works other States have followed with their age, environmental damage, wrongful Committee, the Energy Committee, own MTBE bans. death, compensatory damages, and pu- It became clear that the combination and ethanol, public health, environ- nitive damages. of a phase out of MTBE in these states mental, and petroleum interests pro- The Senate passed its bill on April 25 and the continued existence of the two duced a compromise that replaced the and appointed conferees on May 1. We percent oxygen content requirement initial MTBE and renewable fuels pro- should move quickly to begin this con- for RFG could result in a potentially visions of S. 517. ference because there are many dif- disruptive and abrupt transition to During debate on the RFS, concerns ficult matters to negotiate. Fortu- ethanol in states that did not have a were raised that it could lead to gaso- nately, the compromise provisions history of using ethanol. To facilitate line price increases. In response, Sen- which we have been discussing relating the ban of MTBE, and to provide great- ators MURKOWSKI and DASCHLE asked to MTBE and renewable fuels appear to er flexibility in producing RFG, states the Energy Information Administra- have broad support, judging from the and refiners requested Congress and tion (EIA) to evaluate the potential votes in the Senate, and should be ame- the administration to lift the RFG oxy- costs of implementing the RFS, as well nable to swift agreement among the gen requirement. At the same time, as the other fuels provisions in S. 517. energy bill conferees. ethanol producers saw a major oppor- The EIA found that the RFS would So, as I mentioned during the debate tunity for market growth and were re- raise gasoline prices by less than 1 on S.517 as part of my summary of luctant to support elimination of the penny per gallon in RFG areas and less these provisions, this is not an ideal RFG oxygen requirement. than one-half a cent per gallon nation- package, but it meets the test of im- To address the challenge of maintain- wide. The EIA also noted that these proving and protecting air and water ing market growth for ethanol, pro- were upper-bound estimates that did quality and promoting renewable en- viding greater flexibility in making not account for the economic benefits ergy. clean-burning gasoline, and reducing that would result from the credit trad- Mr. SMITH of New Hampshire. Mr. the use of MTBE, Senators LUGAR and ing and banking provisions. The Amer- President, I agree with the chairman DASCHLE in 2000 introduced the Renew- ican Petroleum Institute estimated that this legislation is not ideal, but it able Fuels Act, S. 2503. That bill would that the maximum cost increase for a accomplishes our main goal of remedi- allow States to waive the 2 percent ox- gallon of gasoline due to the implemen- ation and prevention of MTBE con- ygen requirement and established a na- tation of the RFS would be less than tamination. I am pleased that the tion-wide renewable fuels standard one-third of a cent per gallon. House has appointed its conferees (RFS) to roughly triple the use of eth- Concerns have also been expressed today and I hope that we can move anol from current levels over 10 years. that requiring the nation to use more that conference to an expeditious con- That RFS requirement would apply to renewable fuels could lead to supply clusion maintaining the integrity of refiners, who would be able to gen- shortages and price increases. The evi- the compromise that we worked out erate, bank, and trade credits for the dence suggests that there will be abun- here in the Senate. use of renewable fuels, such as ethanol dant supplies of renewable fuels to f and biodiesel. This mechanism was de- meet the RFS. The RFS begins in 2004, SUPPORT FOR THE LOCAL LAW signed to increase the use of renewable requiring 2.3 billion gallons of ethanol fuels, provide maximum flexibility in to be used in that year. According to ENFORCEMENT ENHANCEMENT the use of those renewable fuels, while the California Energy Commission re- ACT ensuring that eliminating MTBE from port on nationwide ethanol supplies, Mrs. BOXER. Mr. President, I was gasoline supplies will not lead to great- issued in August of 2001, there will be deeply disappointed that the Senate er dependence on foreign oil. As a re- 2.7 billion gallons of ethanol capacity did not have enough votes to move for- sult of the credit trading and banking, in place by then, so renewable fuels ward on the hate crimes bill—even refiners will use renewable fuels where supplies should be plentiful. though a clear majority of the Senate and when it is most economical to do Nevertheless, additional consumer supports this important measure. so, and no State will need to use any protections were incorporated into the During the debate, many of my col- particular amount of renewable fuel. legislation. Under the bill, the Depart- leagues addressed the constitutionality That legislation also established that ment of Energy is required to evaluate of this legislation, and the role that ethanol produced from cellulosic bio- supply and logistics of transporting the Federal Government should play

VerDate 11-MAY-2000 02:00 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.077 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5447 with regard to hate crimes. What ers race, religion, color and national against the harms that come out of speaks volumes to me about the impor- origin—to gender, sexual orientation hate. The Local Law Enforcement En- tance of this legislation—and the rea- and disability. It would also make it hancement Act of 2001 is now a symbol son the Senate’s inaction is so dis- easier to prosecute hate crimes at the that can become substance. I believe appointing—are the stories. The people Federal level. that by passing this legislation and behind the numbers. The victims and It is an extremely important tool to changing current law, we can change the survivors. help our already overtaxed State and hearts and minds as well. In the strong hope that we will re- local law enforcement by allowing Fed- f visit this matter in the near future, let eral assistance, when necessary, in the me share some of these stories—some investigation and prosecutions of hate LEGISLATION TO DENY U.S. TAX- of the awful realities of the crimes we crimes. PAYER MONEY TO ARAFAT AND are talking about. The most recent It would provide Federal assistance THE PALESTINIAN AUTHORITY happened just last week in Riverside, to State, local and Indian law enforce- Mr. SMITH of New Hampshire. Mr. CA. ment officials who have run up extraor- President, I rise today in support of my Last Thursday, two gay men were dinary expenses in connection with legislation to prohibit any U.S. tax- stabbed repeatedly in the back outside their investigation and prosecution of payer money from ending up in the a popular gay bar. One of these men, hate crimes. It would also provide hands of Yasser Arafat and the Pales- 40-year-old Jeffrey Owens, died hours training grants to help local law en- tinian authority. later. Michael Bussee, 48-years-old, forcement officers identify, inves- Unfortunately, Yasser Arafat is not a managed to survive. tigate, prosecute, and prevent hate partner in the peace process. According to the media reports, both crimes. Finally, it would allow the Jus- As long as the United States con- men had come to the bar to celebrate a tice Department to back up local law tinues to provide money to the Pales- friend’s birthday. After leaving the bar enforcement by removing arcane obsta- tinian authority through grants to with their partners, Jeffrey Owens cles that prevent effective prosecution non-governmental organizations, some wanted to show everyone the pictures of hate crimes motivated by race, of that money will end up in the hands he had taken on a recent trip to Joshua color, religion, or ethnicity. of those who wish to do harm to Israel. Tree National Park. When he went to This bill has broad support from no- We must stand shoulder to shoulder retrieve the pictures in his car, a man table law enforcement agencies and with Israel in the war against ter- approached Michael Bussee, punched state and local leaders, including 22 rorism. him, and then stabbed him in the back. state Attorneys General, the Inter- We must also send a clear message to Noting the commotion, Jeffrey Owens national Association of Chiefs of Po- Yasser Arafat and the Palestinian lead- lice, the National Sheriff’s Association, approached the perpetrator, and was ership that the United States will not the Federal Law Enforcement Officers stabbed four times in the back. Before tolerate terrorism against Israel. Association, and others. With this Israel is a true friend and ally. stabbing Jeffrey, the attacker broad-based support, and with the need And, as a Nation, we share many of screamed a homophobic slur. so clearly urgent, this bill should be the same values—democracy, respect Apparently, neither man knew how immediately passed. for human rights, freedom of the press, badly he had been hurt. Jeffrey Owens Two years ago we stressed the impor- a strong desire for peace and pros- didn’t even realize he had been stabbed tance of passing hate crimes legisla- perity, to name but a few. until he stepped out of the car at the tion. We cited the examples of James During the Camp David summit in county hospital in Moreno Valley, Byrd, Jr., of Matthew Shepard, and July of 2000, it was Israel that was pre- when his friends saw his blood-soaked others. And we passed it. pared to make tremendous concessions seat. Here we are, two years later, making to ensure peace in the Region. Jeffrey Owens died hours later, after the same arguments and conducting As we all know today, Arafat refused two operations. Michael Bussee was the same debates. This time, the vic- to reach a peace agreement, and treated and released. tims have new names: most recently, walked away from the negotiating There are countless other stories I in my State of California, names such table. could share with you, but I will only as Jeffrey Owens, Michael Bussee, Yasser Arafat did not want peace be- touch on a few of them here today. Jesus Plascensia, and Clint Scott cause he needs the conflict for them to On September 7, 2000, a Los Angeles Risetter. stay in power. resident was charged with murder and The time to act is now. It is my hope Instead of peace, they chose terror. hate crimes for allegedly killing a 65- that we will pass this vital legislation My staff has compiled a list of ter- year-old Hispanic man, Jesus by the end of this year. rorist attacks on Israel last year. In Plascensia, by running him over at f 2001, 79 attacks cost 160 innocent least twice in a parking lot. Authori- Israelis their lives, and wounded an- LOCAL LAW ENFORCEMENT ACT ties say she made comments about her other 1,200. Since then, of course, we OF 2001 hatred of Hispanics after she murdered have all seen the tremendous cost in him and referred to him as ‘‘dead road Mr. SMITH of Oregon. Mr. President, human lives and misery from many kill.’’ I rise today to speak about hate crimes more terrorist attacks on innocent ci- On September 18, 2001, someone legislation I introduced with Senator vilians, and the resulting isolation of threw a Molotov cocktail through the KENNEDY in March of last year. The Yasser Arafat and the civilized world’s window of a Sikh family’s home in San Local Law Enforcement Act of 2001 condemnation of the Palestinian au- Mateo, CA. The fuse was lit but, due to would add new categories to current thority. some miracle, the firebomb did not ex- hate crimes legislation sending a sig- We dare not forget the level of terror plode as it hit the head of a 3-year-old nal that violence of any kind is unac- visited upon Israel by Palestinian ter- child in the house. ceptable in our society. rorists. In Santa Barbara, CA, a 37-year-old I would like to describe a terrible Arafat is using his own personal gay man named Clint Scott Risetter crime that occurred June 1, 2001 in Mo- forces to attack Israel through suicide was killed after an alleged arsonist desto, CA. The home of an inter-racial attacks. poured gasoline over him while he slept couple and the couple’s two children Furthermore, he is allowing Hamas and set him on fire. The perpetrator were threatened when someone threw a and Islamic Jihad safe harbor in the says he killed Risetter ‘‘because he was Molotov cocktail at the couple’s home. West Bank and Gaza Strip. gay,’’ and because he had ‘‘a lot of ha- Police believe it was a hate crime, cit- Hamas and Islamic Jihad are two of tred toward gay people.’’ ing other evidence such as a water- the most heinous terrorist organiza- And the list goes on and on. These melon thrown on the driveway, a box of tions in the world, responsible for the stories are what make this bill so vi- grits, a frozen bag of black-eyed peas, deaths of numerous innocent people. tally important. and a 40-oz. King Cobra beer. Keep in mind, at one time, Arafat This bill would extend current Fed- I believe that government’s first duty promised to get rid of these organiza- eral hate crime protection—which cov- is to defend its citizens, to defend them tions.

VerDate 11-MAY-2000 03:18 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.061 pfrm12 PsN: S12PT1 S5448 CONGRESSIONAL RECORD — SENATE June 12, 2002 Arafat’s promises are worth nothing. among other items, the invoice requested However, in recent weeks those who It is wrong to ask American tax- 20,000 Israeli Shekels, $4,200 American, to oppose my legislation have interpreted payers to subsidize the Palestinian au- buy electrical and chemical components for the language of my bill in a manner thority when Yasser Arafat uses the re- the production of a month’s supply of 30 that is not consistent with the intent sources of the Palestinian authority to bombs. It’s an invoice of terrorism, said Dori Gold, an advisor to Prime Minister Sharon. of the bill. They argue that my bill as attack innocent men, women, and chil- [Mr. Secretary,] do you believe the Pales- originally introduced would allow a dren in Israel. tinian authority harbors or supports ter- cloned embryo to be implanted into the We have seen video footage of the rorism?’’ uterus and ‘‘harvested’’ at some point Palestinian people cheering and danc- Do you know, what our Secretary of prior to birth. ing in the streets after the September State replied? I do not believe the language of my 11th attacks—many holding posters of Did he deny the authenticity of this bill allows that, and it is certainly not Saddam Hussein. document? He did not. the intent of the bill. But, in order that Yet, while we have sanctions against Did he deny that Arafat paid the bill? no one can misinterpret the intent of Iraq, we are providing millions of dol- He did not. my bill, I am making an adjustment in lars in aid to the Palestinian authority Did he deny that our taxpayer dollars the bill language. The revised language through non-governmental organiza- are thus funding the killing of innocent will define human cloning as ‘‘implant- tions. men, women and children? He did not. ing or attempting to implant the prod- We know well that any funds, even What he said was, ‘‘It is a complex uct of somatic cell nuclear transfer, or designated as humanitarian, free up situation’’. any other cloning technique, into a money that Arafat can use for his There’s nothing complex about it! uterus or the functional equivalent of a army of human bombers. Our tax dollars should never be used uterus.’’ It makes it unlawful for ‘‘any If there is any doubt in anybody’s for terrorism. Period. End of discus- person to conduct or attempt to con- mind that Yasser Arafat promotes ter- sion! duct human cloning.’’ The bill retains rorism, I would like you to consider After our Nation was brutally at- the strict penalties against violators the order on the official letterhead of tacked on September 11, President that were present in the original the presidential bureau of the Pales- Bush set a new direction in U.S. for- version. tinian authority/Palestine liberation eign policy. My legislation is silent on the matter organization, bearing the signature of He Said, ‘‘From this day forward, any of therapeutic cloning or what some Yasser Arafat just 8 days after our Nation that continues to harbor or sup- call ‘‘regenerative medicine.’’ I under- country was attacked on 911, ordering port terrorism will be regarded by the stand that this is a topic that needs $600 be paid from the treasury of the United States as a hostile regime.’’ thoughtful discussion and debate. It is Palestine authority to each of three By any honest assessment, Yasser a subject that is addressed in other terrorists. Two of them are senior ac- Arafat both harbors and supports ter- bills now before the Senate. tivists of the Fatah terrorist group, rorism. I respect those who support the and one of these, Ziad Da’as, is the On the other hand, Israel is a good Brownback bill and wish to prohibit head of the group behind a recent dead- friend of the United States and the what is called somatic cell nuclear ly terrorist attack on a bat-mitzvah only democracy in the middle east. transplantation or the cloning of stem party in Israel. The Israeli defense I repeat, we must stand unequivo- cells. This is a difficult subject and ministry says they recently captured cally by Israel, and do everything in there is plenty of room for thoughtful this document at Arafat’s office in our power to support her. disagreement in the debate. But I don’t Ramallah. The record is clear. believe that we should prohibit the Also, I ask my colleages to consider Israel is a friend of the United promising research that could lead to the order from Yasser Arafat to the fi- States, Yasser Arafat is not. cures for diseases such as diabetes, Alz- nance ministry of the Palestinian au- We can’t expect Israel to negotiate heimer’s, cancer, heart disease and thority from January 7th of this year. with individuals who wish to destroy more. I agree with Nancy Reagan, In this document, Arafat orders the Israel’s very existence. former President Ford, ORRIN HATCH, disbursement of $350 to each of the 12 We must also ensure that we in no and others that this kind of regenera- named Fatah activists. According to way support Arafat’s oppressive regime tive medicine conducted under strict the Israeli Defense Ministry, who cap- by providing money to organizations guidelines and controls can offer great tured this document at Arafat’s head- affiliated with the Palestinian author- hope to tens of millions of Americans quarters in Ramallah, each of these 12 ity. and can save lives. individuals are known terrorists, be- Every dollar that we send to the west The debate on that matter is left to longing to Fatah and or Tanzim. Ara- bank and Gaza is a dollar that could other legislation. My bill applies only fat’s approval is given in response to a potentially be used to support ter- to the issue of prohibiting the cloning request of Ra’ed Karmi, then the head rorism. of a human being and I hope that this of the Fatah and Tanzim Terror I strongly urge my colleagues to change in the language will no longer Groups, which perpetrated numerous stand with me on the side of Israel and leave room for those who are opponents murderous attacks on innocent Israeli vote for my legislation. to misinterpret or misunderstand its civilians since September 2000. f intent. American aid to the Palestinian au- thority allows Arafat to focus more of HUMAN CLONING PROHIBITION f his resources on attacking Israel. ACT ADDITIONAL STATEMENTS We need to make sure no taxpayer Mr. DORGAN. Mr. President, earlier money ends up in the Palestinian au- this week I modified my bill, the thority. Human Cloning Prohibition Act, S. ALEUTIAN CAMPAIGN OF WORLD My legislation would do just that. 2076. I originally introduced this bill in WAR II As recently as April 7th of this year, an attempt to forge a consensus on ∑ Mr. STEVENS. Mr. President, I sub- Tim Russert on ‘‘Meet the Press’’ what I thought was a straight-forward mit the following newspaper articles asked the Secretary of State to deny concept, the banning of reproductive commemorating the 60th anniversary that Arafat is funding terrorism. Here cloning or the cloning of a human of Aleutian Campaign of the Second Is what he said: being. When I introduced the legisla- World War and the veterans who served Russert: Israel says documents link Arafat tion, I stated: ‘‘It is a simple bill, but there. This campaign was the only ac- and terrorism. They seized documents and it reflects my view and a view that is tion actually fought on American soil made them public, which linked the office of held by almost everyone. . . . My legis- during the war. The men who served Yasser Arafat with terrorist attacks carried out against Israeli civilians and other tar- lation makes it illegal to clone a there endured not only the horrors of gets. One of the documents, said to be an in- human being and imposes strict pen- combat, but also one of the harshest voice submitted by a leading Palestinian alties against anyone who violates this environments on Earth. Fighting and, militant group to a Palestinian official, prohibition.’’ in many cases, dying, to prove that

VerDate 11-MAY-2000 02:00 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.066 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5449 Americans are dedicated, at all cost, to American incursions by sea and air. It also tack on Pearl Harbor in the territory of Ha- the principle that no corner of our hoped to pull America’s might away from its waii. country, no matter how remote, will main objective, the South Pacific, Hawaii It was six months later that Japanese bombers delivered the first bombs on the ter- ever be ceded to our enemies. and perhaps Australia. The Dutch Harbor raid was a diversionary ritory of Alaska, attacking Dutch Harbor For those who wish to learn more tactic, meant to draw attention from Ja- and nearby Fort Mears—timed to coincide about the Aleutian Campaign, I rec- pan’s assault on Midway Island, planned to with Japan’s assault on Midway, far to the ommend ‘‘The Thousand Mile War’’ by occur at the same time that American forces south in the Pacific. Brian Garfield. It illustrates the stra- were distracted by the attack on Alaska. Today’s anniversary of the start of the bat- tegic importance of the battles of But unknown to the Japanese, U.S. code tle in the Aleutian Islands—the only action Dutch Harbor, Attu, and Kiska. Gar- breakers had cracked the enemy’s top secret actually fought on American soil during the field has vivid descriptions of the long, ‘‘purple code’’ and were able to prepare for war—is a reminder that American soldiers, airmen and sailors put their lives on the line hard campaign to push the Japanese off the attacks. U.S. soldiers at bases through- out the Pacific were put on alert. to drive enemy forces from Attu and Kiska. American soil. One of them was Marine Corps Pvt. Howard One of those, Army Pvt. Joe P. Martinez of I ask to print the aforementioned ar- Lucas, stationed on Kodiak Island. Company K, 32nd Infantry, was post- ticles in the RECORD. ‘‘We were ready for somebody to come up humously awarded the Medal of Honor for The material follows: over the hill and get us,’’ said Lucas, 79, who gallantry above and beyond the call of duty. [From the Anchorage Daily News, June 3, lives in Palmer. Despite facing what the War Department 2002] Lucas spent two weeks on alert 24 hours a called ‘‘severe hostile machine-gun, rifle and mortar-fire’’ from both flanks and from MEMORIES OF WAR: SIXTY YEARS AGO, BOMBS day, manning an antiquated World War I-era enemy forces protected by snow trenches FELL ON DUTCH HARBOR AND TURNED ALAS- water-cooled machine gun. ahead of him, Martinez used his automatic KA INTO A BATTLEGROUND ‘‘It was scary,’’ he said. ‘‘But they never showed up. Nobody knew what they were rifle and hand grenades to lead repeated (By Gabriel Spitzer) going to do, the Japanese included, I guess.’’ charges up a rocky, knife-like ridge to a To Japan during World War II, the Aleu- By the morning of June 3, the fog of war, snow-covered mountain pass. tian Islands looked into North America. It both literal and figurative, had wreaked Just below the rim of the pass, Martinez was on the Aleutians that the enemy set foot havoc on both sides. encountered a final enemy-occupied trench on American soil for the first time since the That day, planes on the Japanese carrier and while firing into it was mortally wound- War of 1812. Junyo never reached Dutch Harbor, grounded ed. But soldiers following in his footsteps Sixty years ago, on the morning of June 3, by weather. At the same time, a radio mes- then were able to capture the pass, described 1942, 16 Japanese fighters and bombers sage warning American forces of the impend- in the citation awarding him the nation’s streaked eastward toward Dutch Harbor, off ing attack failed to reach its destination. highest medal as ‘‘an importance on the is- Unalaska Island. Bombs rained down for In the two days of bombing and the days land.’’ about 20 minutes on the Navy facilities immediately before, the weather made a The war is decades in the past now. Old en- there. The next day the Japanese forces re- mockery of both sides’ battle plans. emies have become friends. turned in greater numbers. By the end of the Historians estimate that both sides sus- But Alaskans of today should never forget second day, 35 American men were killed and tained more casualties related to the weath- that in the Aleutians, now a proud part of 28 more were wounded. er than from actual combat. American forces the 49th State, young Americans gave their Johnnie Jenkins, a 25-year-old Navy mess lost four times as many planes to weather- lives years ago to drive invading forces from cook, was in his barracks the morning of related accidents as they did in battle. our land. June 3 when the explosions woke him. He Although U.S. casualties greatly out- It’s worthy of remembering on today’s an- said he jumped from bed and threw on his numbered Japanese losses at Dutch Harbor, niversary of that first raid on Dutch Har- clothes, one shoe on and the other in his by the end of the assault Japan was on its bor.∑ hand. heels. Its attack on Midway proved a major f ‘‘I stood in the doorway, and I saw a Japa- defeat, and American intelligence had foiled nese plane coming in with a rising sun on Japan’s naval ruse. EULOGY FOR REVEREND JAMES L. it,’’ said Jenkins, now living in Anchorage. Rather than abandon the Aleutian cam- STOVALL ‘‘Lord, my heart started pumping and I was paign, Japanese forces occupied the western ∑ Mr. BREAUX. Mr. President, my so scared. I thought, this is it. I just froze islands of Attu and Kiska. On Attu, 1,200 right there.’’ State of Louisiana recently mourned Japanese troops surrounded and captured 39 the death of one of our most notable Jenkins, who is African-American, looked Aleut villagers. around for cover. On Kiska, the invaders found only a weath- and renowned religious leaders, Rev- ‘‘I saw a white fellow in a foxhole, and he er station guarding the island. Still, scores erend James L. Stovall, a minister of stood up. I ran over there. He said, ‘You of Aleuts and about a dozen white Americans the United Methodist Church for thirty can’t come in here, I’m from Alabama.’ I were captured in the attacks and spent the years and the founder of the Louisiana said, ‘I don’t give a damn where you’re from. rest of the war as prisoners in Japan. Coalition Against Racism and Nazism. You move on over!’ And he did.’’ Drafin Delkettie, one of the few living In 1989, fearful of the rise of former Ku One of the many civilians at Dutch Harbor members of the celebrated Combat Intel- was 22-year-old shipwright Bob Ingram, now Klux Klan leader David Duke, Rev- ligence Platoon, Alaska Scouts, was sta- erend Stovall led the effort to bring to- living in Fairbanks. Ingram was getting tioned on the island of Amchitka, about 40 ready for an ordinary day of work when the miles east of Japanese-occupied Kiska. gether people of faith and other citi- bombs began to fall. During that time, Delkettie, who lives in zens to oppose the hatred and bigotry ‘‘Somebody yelled ‘air raid’. We saw air- Anchorage, experienced what the soldiers at espoused by Duke and many of his sup- planes, quite a few in the sky,’’ he said. Dutch Harbor felt. porters. ‘‘Somebody said, there’s been a number of ‘‘They bombed and strafed us every morn- men killed, and they’re going to need cas- As a participant in the Louisiana ing at 10 a.m. and every evening at 6 p.m. kets. Now, if there’s one thing you don’t Senate election of 1990 and the gov- They never missed it by a minute. Some- need during an air raid it’s caskets. But we ernor’s election the following year, I times we played pinochle or something, wait- wanted to help. So we started to make cas- can attest to successful efforts of Rev- ing for them to come,’’ he said. kets out of plywood, 2 feet square and 6 feet Which didn’t make it a game. ‘‘No matter erend Stovall and his Coalition in ex- long.’’ where the bombs are falling,’’ he reflected, posing for Louisiana and the world As inviting as the Aleutians may have ‘‘It’s scary.’’ Duke’s harmful and divisive racist seemed on the map, the Japanese quickly record. found them an inhospitable invasion route. [From the Anchorage Daily News, June 3, Often bathed in fog and pounded by frequent Those who did not know James Sto- 2002] storms, the islands proved difficult to scout vall might not have known that his and navigate. This, coupled with American WAR CAME TO ALASKA ... SIXTY YEARS AGO role in forming and leading the Lou- intelligence reports, led to victories for the It was early on a Wednesday morning, that isiana Coalition Against Racism and United States but not before Japan had occu- day of June 3, 1942, when war came to Alas- Nazism was merely the culmination of pied two Alaska islands and drawn American ka. a life and career dedicated to cham- forces into one of the costliest battles of the Sixty years have passed since then. The pioning human rights and better rela- Pacific theater. war has come and gone. But the memories tions among people of all faiths, ethic Japan had little intention of actually in- are seared deeply in the minds and hearts of vading the U.S. mainland from the Aleu- those whose lives were touched by the long backgrounds, and nationalities. As one tians. Instead, it hoped to occupy a few is- fight against enemies of freedom. of his daughters said to a newspaper re- lands in the North Pacific to solidify its World War II began officially for the U.S. porter after his death on May 17, ‘‘He naval perimeter and protect itself from on Dec. 7, 1941, with Japan’s surprise air at- had a genuine sense of caring about

VerDate 11-MAY-2000 03:18 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.050 pfrm12 PsN: S12PT1 S5450 CONGRESSIONAL RECORD — SENATE June 12, 2002 people and a strong sense of right and this sense, James Stovall achieved a kind of Brown, Kaitie Cochrane, and Lindsay wrong.’’ immortality that only the best of us can Jans for their hard work, dedication, James Stovall was born in Winn Par- ever dream of. We will miss him in body, but and creativity in the study of history. ish, graduated from Centenary College he will always be with us in spirit. They have earned the admiration of in Shreveport and the Perkins School I extend my heartfelt condolences to their families, their community, their of Theology at Southern Methodist Reverend Stovall’s daughters, sisters, teacher, Huy Nguyen, and their school, University. During the Second World grandchildren, and great-grand- Sunrise Park Middle School. These stu- War, he served this country as a chap- children. In the midst of their grief, I dents have been selected by the Na- lain attached to the Marine Corps. Fol- hope that they will be comforted to tional History Day program to present lowing the war, he returned to Lou- know that his important work and the their performance, ‘‘Separate But Not isiana where, for thirty years, he principles that guided him in that Equal,’’ at the National Museum of served Methodist churches in Eunice, work will not soon be forgotten.∑ American History on June 12, 2002. To Baton Rouge, Lake Charles, Lafayette, f be ranked by the National History Day Metairie, and Monroe. A strong be- RECOGNIZING KELLY CAMPBELL program among the 2000 students cho- liever in ecumenism, he was a leader in sen to join the national competition is the creation of the Greater Baton ∑ Mr. ALLEN. Mr. President, today I an impressive honor, and to be one of Rouge Federation of Churches and Syn- recognize Kelly Campbell, a student at only 17 groups selected from over half a agogues, and from 1976 to 1991, he Lebanon High School in Lebanon, VA, million participants to present at the served as executive director of the Lou- who has been chosen to make a presen- National Museum of American History isiana Interchurch Conference. tation at the White House Visitors is an incredible achievement indeed. Reverend Stovall served not only the Center during the National History The National History Day Contest is church, but held several positions in Day Celebration. the Nation’s oldest and one of the most State government. He was executive di- Kelly is one of 16 young history highly regarded humanities contests rector of the Governor’s Office of El- scholars from across the country who for students in middle and high school. derly Affairs from 1979 to 1980, chair- will present their work reflecting this The experience that Kaitie, Lindsay, man of the Governor’s Pardon and Pa- year’s National History Day theme: and Melissa have gained through their role Study Commission in 1976, and a Revolution, Reaction, Reform in His- NHD project using primary resources member of the Louisiana Commission tory. The students’ projects presented and participating in hands-on activi- on Human Rights in 1992. at the White House are part of a larger ties will last them for the rest of their At his funeral service in Baton group of 2,000 finalists participating in lives. The more than 9 million students Rouge, one of Reverend Stovall’s good the National History Day national con- who have participated in the NHD pro- friends, Dr. Lance Hill, who is execu- test at the University of Maryland. gram have gone on to careers in busi- tive director of the Southern Institute The National History Day Program ness, law, medicine, teaching, and for Education and Research at Tulane engages more than one-half million countless other disciplines in which University New Orleans, shared a pow- participants annually in grades 6 they are putting into practice the erful story about his legacy. I would through 12 in 49 states and the District thinking and investigative approach like to quote from that eulogy at this of Columbia. The program provides stu- fostered through the National History time: dents the analytical and research skills Day program. I want to thank these Many years ago Jimmie told me that John that are useful in any area of their students for representing Minnesota Wesley, the founder of the Methodist Church, lives. Students research history topics along with only thirteen other States once noted that a man’s achievements in of their choice related to an annual at the National Museum of American this lifetime are fleeting and insignificant; theme and create exhibits, perform- History today. The kind of leadership what is meaningful is the shadow that he ances, documentaries and papers, casts into the future. We formed the South- and perseverance Lindsay, Melissa, and ern Institute for Education and Research at which they may enter in competitions Kaitie have exhibited will carry the Tulane University nine years ago to con- at the district, State and national lev- theme of this year’s National History tinue the work of Jimmie Stovall and the els. Day Contest, ‘‘Revolution, Reaction, anti-Duke coalition, but this time through a Kelly will present an exhibit entitled and Reform in History,’’ into the next proactive program that taught young people ‘‘The 3 R’s: Revolution, Reform, Reac- generation. I wish them the best of the consequences of prejudice and the indi- tion and the Schools of the Freedman’s luck both in the upcoming competition vidual moral obligation to speak out against Bureau.’’ the oppression of others. and in their future endeavors. I thank The Southern Institute is very much Rev- During my term as Governor of Vir- them for their hard work and their erend Stovall’s gift to Louisiana. I told ginia, we recognized that there are fun- commitment to learning and sharing Jimmie years ago that we should have damental academic basics that our their knowledge with other students named it the Stovall Institute, but people children must learn if they are to be from across the country.∑ might think it was a [football] clinic. capable, responsible, and contributing f Jimmie just laughed, but he knew what I citizens, and able to compete and suc- meant. The work of the Institute is part of ceed in the future. To ensure the suc- TRIBUTE TO FRANK OLIVERI Jimmie’s vast shadow cast into the future. cess of our school children, we imple- UPON HIS RETIREMENT A few months ago, I returned to St. Cath- ∑ erine of Sienna, a school in the middle of mented high standards and account- Mr. SMITH of New Hampshire. Mr. [David] Duke’s old legislative district. We ability including history standards. We President, I rise today to honor Frank had worked with the teachers and students believed that Virginia’s students Oliveri, an exemplary public official there for years. That day I watch 150 stu- should have the fundamental knowl- who dedicated himself to serving the dents mesmerized by the story told by Eva edge and understanding of their cul- people of the city of New York for Galler, a Holocaust survivor. The students tural and historical heritage that three decades. As deputy director of heard the story of Eva’s leap from the train serves as a foundation for preserving a waste water treatment, he has brought to Auschwitz; the destruction of her family; free, prosperous and decent society. to the office the professional skills and the end of the world as she knew it. Eva told them that this was not simply a story of I congratulate Kelly and her fellow knowledge that has made a difference Jews and Nazis, it was a story of racism and historians on their success and wish in the lives of the people of the Big hatred. It could happen anywhere, anytime, them the best as they compete against Apple. and they had a moral obligation to resist ha- students from across the country.∑ Frank began his career with the De- tred at every turn. f partment of Environmental Protection I watched three young boys on the back in 1971. He is widely respected for his row, sitting on the edge of their seats, COMMENDING MELISSA BROWN, waste water expertise at city, state and straining to see over the tall girls in front of KAITIE COCHRANE AND LINDSAY national levels. Frank approached his them. They were transfixed by Eva. And as JANS ON NATIONAL HISTORY work with a can-do attitude, and bal- Eva spoke, I saw the soft, warm shadow of DAY Reverend Stovall envelop the children. These anced what needs to be done with what children, the next generation of leaders in ∑ Mr. WELLSTONE. Mr. President, can be done. Throughout his career, Louisiana, these children were his legacy. In today I would like to commend Melissa Frank accomplished a great deal for

VerDate 11-MAY-2000 02:00 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.124 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5451 the Department of Environmental Pro- NEW MEXICO STUDENTS’ partment of State to harmonize commercial tection. NATIONAL HISTORY DAY PROJECT law in the Americas, focusing on a model law for secured transactions, uniform docu- It is an honor and a privilege to serve ∑ Mr. BINGAMAN. Mr. President, Frank Oliveri in the U.S. Senate and I mentation for cross-border surface transpor- today I recognize the notable work of tation, and rules for electronic commerce. wish him and his family Godspeed in New Mexico middle school students This legal reform work is performed in co- his retirement and in all of their future Elyse Burlingame, Gabrielle Sanchez, operation with the Organization of American endeavors.∑ Michelle Foley-Shea, Ciara Siebuhr States. The Center plays an important role in inte- f and Crystle Krueger on their impres- sive history project titled ‘‘Margaret grating U.S. business into the economies of THREE MICHIGAN STUDENTS HON- Sanger: Woman Rebel.’’ Their project the Western Hemisphere. Its work to reduce legal barriers to trade promotes the rule of ORED FOR NATIONAL HISTORY highlights the determination and im- law, democratic institutions, and enhances DAY portant achievements of Margaret San- political stability and security in the region. ∑ Mr. LEVIN. Mr. President, I would ger, a strong advocate for a woman’s Once again, congratulations, and I wish like to congratulate three Michigan right to family planning services. The the Center continued success.∑ achievement of these young scholars students whose projects have been se- f has been recognized through the lected for the high honor of being pre- project’s selection as one of the TRIBUTE TO TWO CALIFORNIA senters at the National Museum of projects that will be displayed at the STUDENTS American History on Wednesday, June National Museum of American History, 12, 2002. These three students are three ∑ Mrs. BOXER. Mr. President, today I today, June 12, 2002. Their project was of only 34 chosen to present from over would like to honor two students from chosen out of more than half a million 2,000 National History Day finalists. my State of California: Heidi projects submitted by students across The National History Day contest an- Bowerman and Katie Olson. They have the nation as being an outstanding nually receives more than a half mil- been selected to present their award work that reflects this year’s National lion entries. winning projects at the National Mu- History Day theme, ‘‘Revolution, Reac- seum of American History on June 12, Trevor Bakker, of Holland West Mid- tion, Reform in History.’’ Not only dle School in Holland, MI, won for his 2002. does the work of these students cap- The Smithsonian Institution’s Na- project titled ‘‘A Pinch of Salt: Ma- ture the story of an important figure in hatma Gandhi’s Nonviolent Revolu- tional Museum of American History is history, it also goes beyond the story celebrating National History Day by tion.’’ From Rochester Adams High itself and brilliantly interprets the ef- School in Rochester Hills, MI, Allison reflecting on this year’s theme: Revo- fects Margaret Sanger had on Amer- lution, Reaction, Reform in History. and Rachel Brown received recognition ican society in a very useful way. Their The program asks students to research for their project called ‘‘Laying It On ability to go beyond their research in history topics of their choice related to the Line: The United Automobile this way demonstrates the attributes the year’s theme, and then create ex- Workers’ Struggle for Labor Reform.’’ of true scholars. Their work reflects an hibits, performances, documentaries These projects reflect this year’s Na- excellent understanding of historical and papers, which they then enter in tional History Day theme, ‘‘Revolu- context, as well as intellectual and so- competitions at the district, State and tion, Reaction, Reform in History.’’ cial setting. These students also dem- national levels. Heidi and Katie’s Michigan has played a critical role in onstrate great intellectual maturity by projects were two of seventeen projects revolution and reform in our country. presenting the historical struggle of that were selected out of more than On December 30, 1936, the newly-formed Margaret Sanger using a variety of United Automobile Workers of Amer- viewpoints that allow for a better re- half a million students across America. ica revolted against management with flection of history. It is a great honor Katie’s exhibit is titled: ‘‘Warsaw a sit-down strike in Flint to protest for these students, as well as for the Ghetto Uprising.’’ Katie attends Santa General Motors’ decision to shift work entire state of New Mexico, to have Rose High School in Santa Rosa, CA, to other factories where the union was their project displayed in the National and her teachers were Will Dunn and not as strong. Three months later, the Museum of American History in our Whitney Olson. strike ended successfully with an nation’s capital. I would like to con- Heidi’s performance is titled: ‘‘Aris- agreement under which General Motors gratulate Ms. Burlingame, Ms. tocracy to Communism: The Revolu- recognized the union as the bargaining Sanchez, Ms. Foley-Shea, Ms. Siebuhr, tion that Reformed a Nation.’’ Heidi agent of the workers, inspiring the and Ms. Krueger on their hard work attends Alta Sierra Intermediate growth of countless unions across the and the well deserved recognition of School in Clovis, CA, and her teachers country. their project.∑ were Carole Smoot and Linda Linder. I am so proud to have two accom- In addition, Michigan was the home f of Sojourner Truth, the great reformer plished young women representing the for the issues of slavery and women’s 10TH ANNIVERSARY OF THE NA- State of California in receiving this rights, over the last 20 years of her life. TIONAL LAW CENTER FOR impressive award. Their achievements, And Michigan’s unique ten-cent bottle INTER-AMERICAN FREE TRADE along with the other student award refunds, implemented in 1978 by the ∑ Mr. KYL. Mr. President, I would like winners, should serve as an inspiration Beverage Container Act, represents a to congratulate the National Law Cen- to all students.∑ significant reform for the national ter for Inter-American Free Trade on f issues of recycling and waste reduc- its 10th anniversary by having the fol- tion. lowing letter printed in the CONGRES- RECOGNIZING KATHY SHORTT These three young historians have SIONAL RECORD. ∑ Mr. ALLEN. Mr. President, I rise poured months of research into this en- DR. BORIS KOZOLCHYK, today to recognize Kathy Shortt, a deavor. Along the way they have sharp- President and Director, National Law Center for teacher at Lebanon High School in ened their critical thinking and re- Inter-American Free Trade, Tucson, AZ Lebanon, VA, who is one of eight final- search skills while becoming bonafide DEAR DR. KOZOLCHYK: I would like to con- ists for the Richard T. Farrell Teacher gratulate the National Law Center for Inter- experts on their respective topics. American Free Trade on the celebration of of Merit Award for outstanding success Their time in Washington is sure to be its tenth anniversary on April 1, 2002. in teaching history. an enriching experience as they ob- The Center is an impressive research and The Richard T. Farrell Award is pre- serve some of the richness of American educational institution affiliated with the sented each year to a teacher who em- history up close. James E. Rogers College of Law at the Uni- ploys innovative teaching methods in I know my Senate colleagues will versity of Arizona in Tucson. It takes excel- and out of the classroom. The teacher join me in congratulating Trevor, Alli- lent advantage of being near one of the most must participate in the National His- significant international borders in the son, and Rachel for their tremendous world. tory Day program, develop and use cre- accomplishment, and in hoping for Since its establishment, the Center has un- ative teaching methods that interest their continued success.∑ dertaken significant work for the U.S. De- students in history and help them

VerDate 11-MAY-2000 02:22 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.028 pfrm12 PsN: S12PT1 S5452 CONGRESSIONAL RECORD — SENATE June 12, 2002 make exciting discoveries about the sault crisis center, and a substance and translation provide a role model past, and show exemplary commitment abuse and rehabilitation center. She for this and future generations. to helping students develop their inter- has received many awards for her serv- These two New Jerseyans embody the ests in history and recognizing their ice, including the Minority Corporate spirit of American innovation and have achievements. Council Diversity Award and the Pro advanced our nation’s global competi- Ms. Shortt is being recognized for her Bono Partnership Outstanding Con- tiveness and standard of living. Their dedication to the National History Day tribution Award. groundbreaking contributions have program and her success at improving Ms. Moss is a fine example of the em- commercialized technologies, created history education. She has been in- bodiment of our living democratic jobs, improved productivity and stimu- volved in helping students participate ideals, and I congratulate her on re- lated the nation’s growth and develop- in National History Day for 21 years ceiving this distinguished recognition ment. I commend them for their re- and has presented at numerous work- of her contribution to improving markable achievements and am hon- shops and acted as a mentor for other human relations. I wish her continued ored to bring them to your attention.∑ teachers for much of her career. She success in her commitment to public continues to have an impact on stu- service and hope that her example will f dents even after they have left her demonstrate the importance of active classroom. civic involvement on the behalf of our MESSAGE FROM THE HOUSE During my term as Governor of Vir- communities.∑ At 1:44 p.m., a message from the ginia, we recognized that there are fun- f House of Representatives, delivered by damental academic basics that our Ms. Niland, one of its reading clerks, children must learn if they are to be 2001 NATIONAL MEDAL OF TECHNOLOGY LAUREATES announced that the House has passed capable, responsible, and contributing the following bill, without amendment. citizens, and able to compete and suc- ∑ Mr. CORZINE. Mr. President, I rise today to honor the 2001 National Medal S. 2431. An act to amend the Omnibus ceed in the future. To ensure the suc- Crime Control and Safe Streets Act of 1968 to cess of our school children, we imple- of Technology Laureates, Dr. Arun N. ensure that chaplains killed in the line of mented high standards and account- Netravali of Murray Hill, NJ and Dr. duty receive public safety officer death bene- ability including history standards. We Sidney Pestka of Piscataway, NJ. fits. Dr. Arun Netravali is a leader in the believed that Virginia’s students The message further announced that field of communications systems. As should have the fundamental knowl- the House has passed the following the chief scientist of Lucent Tech- edge and understanding of their cul- bills, in which it requests the concur- nologies and past president of Bell tural and historical heritage that rence of the Senate: serves as a foundation for preserving a Labs, he is being cited for his pio- neering contributions that transformed H.R. 2054. An act to give the consent of free, prosperous and decent society. Congress to an agreement or compact be- I commend Kathy on her selection television from analog to digital. His tween Utah and Nevada regarding a change for this award and applaud her dedica- innovative algorithms have enabled in the boundaries of those States, and for tion to her students and the improve- the switch from analog to digital in nu- other purposes. ment of the educational process. With merous services, including broadcast H.R. 2068. An act to revise, codify, and dedicated teachers like Kathy Shortt, I television, CATV, DBS, and HDTV. enact without substantive change certain know the students in Virginia and in- Furthermore, his work has facilitated general and permanent laws, related to pub- lic buildings, property, and works, as title 40, deed, across America have a bright fu- an entirely new set of products and ∑ services for the multimedia revolution United States Code, ‘‘Public Buildings, Prop- ture. erty, and Works.’’ f over the Internet. Important commu- H.R. 2621. An act to amend title 18, United nication services such as video confer- TRIBUTE TO SARA MOSS States Code, with respect to consumer prod- encing and streaming over the Internet uct protection. ∑ Mr. LIEBERMAN. Mr. President, I could not be done economically with- H.R. 2880. An act to amend laws relating to rise today to congratulate Sara Moss out Dr. Netravali’s compression algo- the lands of the enrollees and lineal descend- for being honored by the New York rithms. He has also been singled out for ants of enrollees whose names appear on the Lawyers’ Division of the Anti-Defama- this prestigious honor for his leader- final Indian rolls of the Muscogee (Creek), tion League for her strong commit- ship. During his tenure, Dr. Netravali Seminole, Cherokee, Chickasaw, and Choc- taw Nations (historically referred to as the ment to public service and an exem- created, inspired and motivated teams Five Civilized Tribes), and for other pur- plary dedication to human relations. to innovate, keeping Bell Labs at the poses. The mission of Anti-Defamation forefront of revolutionary develop- H.R. 3738. An act to designate the facility League is to expose and combat the ments in technology. of the United States Postal Service located purveyors of hatred in our midst, re- I would also like to recognize Dr. Sid- at 1299 North 7th Street in Philadelphia, sponding to whatever new challenges ney Pestka for his groundbreaking Pennsylvania, as the ‘‘Herbert Arlene Post may arise. The Human Relations achievements that led to the develop- Office Building.’’ Award is presented to an individual ment of the biotechnology industry. H.R. 3739. An act to designate the facility During his career, Dr. Pestka has made of the United States Postal Service located who has demonstrated distinguished at 6150 North Broad Street in Philadelphia, service, outstanding leadership and a a remarkable series of discoveries and Pennsylvania, as the ‘‘Rev. Leon Sullivan personification of the highest ideals of developments, often bucking prevailing Post Office Building.’’ our democratic society. beliefs and designing innovative solu- H.R. 3740. An act to designate the facility Ms. Moss possesses all of these quali- tions to problems along the way to suc- of the United States Postal Service located ties and more. One need only look at cess. His efforts have led to the devel- at 925 Dickinson Street in Philadelphia, the many examples in her life to be opment of the first recombinant Pennsylvania, as the ‘‘William V. Cibotti convinced. In addition to maintaining interferons for the treatment of many Post Office Building.’’ a successful career as Senior Vice viral diseases, cancers, and multiple The message also announced that the President and General Counsel of sclerosis. Creating the foundation for House has agreed to the following con- Pitney Bowes, she has continued to more than 100 U.S. and foreign patents, current resolutions, in which it re- demonstrate a strong commitment to Dr. Pestka’s work prepared the path- quests the concurrence of the Senate: public service and pro bono work, espe- way for the development of many other H. Con. Res. 213. Concurrent resolution ex- cially when involving issues related to biotherapeutic agents now used and pressing the sense of the Congress regarding women and minorities. In particular, stimulated the development of today’s North Korean refugees who are detained in Ms. Moss has used her position with extensive biotechnology industry. He China and returned to North Korea where Pitney Bowes to provide legal counsel has fostered new industries in multiple they face torture, imprisonment, and execu- tion. to a wide variety of service organiza- area, developed new medicines for pre- H. Con. Res. 394. Concurrent resolution ex- tions, including a social service agen- viously untreatable diseases, and pressing the sense of the Congress con- cy, a women’s learning center, a non- brought new hope to those afflicted. In- cerning the 2002 World Cup and co-hosts Re- profit day care provider, a sexual as- deed, his achievements in innovation public of Korea and Japan.

VerDate 11-MAY-2000 02:22 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.030 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5453 MEASURES REFERRED SECTION 1. ADVICE AND CONSENT TO RATIFICA- ble international legal instruments’’ in Arti- TION OF THE OPTIONAL PROTOCOL cles 3(1)(a)(ii) and 3(5) of the Protocol refers The following bills were read the first TO THE CONVENTION ON THE to the Convention on Protection of Children and the second times by unanimous RIGHTS OF THE CHILD ON THE SALE and Co-operation in Respect of Intercountry consent, and referred as indicated: OF CHILDREN, CHILD PROSTITU- TION, AND CHILD PORNOGRAPHY, Adoption done at The Hague on May 29, 1993 H.R. 2054. An act to give the consent of SUBJECT TO A RESERVATION, UN- (in this paragraph referred to as ‘‘The Hague Congress to an agreement or compact be- DERSTANDINGS, A DECLARATION, Convention’’). tween Utah and Nevada regarding a change AND A CONDITION. (B) NO OBLIGATION TO TAKE CERTAIN AC- in the boundaries of those States, and for The Senate advises and consents to the TION.—The United States is not a party to other purposes; to the Committee on the Ju- ratification of the Optional Protocol Relat- The Hague Convention, but expects to be- diciary. ing to the Convention on the Rights of the come a party. Accordingly, until such time H.R. 2068. An act to revise, codify, and Child on the Sale of Children, Child Prostitu- as the United States becomes a party to The enact without substantive change certain tion, and Child Pornography, opened for sig- Hague Convention, it understands that it is general and permanent laws, related to pub- nature at New York on May 25, 2000 (Treaty not obligated to criminalize conduct pro- lic buildings, property, and works, as title 40, Doc. 106–37; in this resolution referred to as scribed by Article 3(1)(a)(ii) of the Protocol United States Code, ‘‘Public Buildings, Prop- the ‘‘Protocol’’), subject to the reservation or to take all appropriate legal and adminis- erty, and Works’’; to the Committee on the in section 2, the understandings in section 3, trative measures required by Article 3(5) of Judiciary. the declaration in section 4, and the condi- the Protocol. H.R. 2880. An act to amend laws relating to tion in section 5. (C) UNDERSTANDING OF ‘‘IMPROPERLY INDUC- the lands of the citizens of the Muscogee SEC. 2. RESERVATION. ING CONSENT’’.—The United States under- (Creek), Seminole, Cherokee, Chickasaw Na- The advice and consent of the Senate stands that the term ‘‘improperly inducing tions, historically referred to as the Five under section 1 is subject to the reservation, consent’’ in Article 3(1)(a)(ii) of the Protocol Civilized Tribes, and other purposes; to the which shall be included in the United States means knowingly and willfully inducing con- Committee on Indian Affairs. instrument of ratification of the Protocol, sent by offering or giving compensation for H.R. 3738. An act to designate the facility that, to the extent that the domestic law of the relinquishment of parental rights. of the United States Postal Service located the United States does not provide for juris- (6) IMPLEMENTATION OF THE PROTOCOL IN at 1299 North 7th Street in Philadelphia, diction over an offense described in Article THE FEDERAL SYSTEM OF THE UNITED Pennsylvania, as the ‘‘Herbert Arlene Post 3(1) of the Protocol if the offense is com- STATES.—The United States understands Office Building’’; to the Committee on Gov- mitted on board a ship or aircraft registered that the Protocol shall be implemented by ernment Affairs. in the United States, the obligation with re- the Federal Government to the extent that H.R. 3739. An act to designate the facility spect to jurisdiction over that offense shall it exercises jurisdiction over the matters of the United States Postal Service located not apply to the United States until such covered therein, and otherwise by the State at 6150 North Broad Street in Philadelphia, time as the United States may notify the and local governments. To the extent that Pennsylvania, as the ‘‘Rev. Leon Sullivan Secretary-General of the United Nations State and local governments exercise juris- Post Office Building’’; to the Committee on that United States domestic law is in full diction over such matters, the Federal Gov- Governmental Affairs. conformity with the requirements of Article ernment shall, as necessary, take appro- H.R. 3740. An act to designate the facility 4(1) of the Protocol. priate measures to ensure the fulfillment of of the United States Postal Service located SEC. 3. UNDERSTANDINGS. the Protocol. at 925 Dickinson Street in Philadelphia, The advice and consent of the Senate SEC. 4. DECLARATION. Pennsylvania, as the ‘‘William V. Cibotti under section 1 is subject to the following The advice and consent of the Senate Post Office Building’’; to the Committee on understandings, which shall be included in under section 1 is subject to the declaration Governmental Affairs. the United States instrument of ratification that: The following concurrent resolutions of the Protocol: (1)(A) the provisions of the Protocol (other were read, and referred as indicated: (1) NO ASSUMPTION OF OBLIGATIONS UNDER than Article 5) are non-self-executing; and CONVENTION ON THE RIGHTS OF THE CHILD.— (B) the United States will implement Arti- H. Con. Res. 213. Concurrent resolution ex- The United States understands that the cle 5 of the Protocol pursuant to chapter 209 pressing the sense of the Congress regarding United States assumes no obligations under of title 18, United States Code; and North Korean refugees who are detained in the Convention on the Rights of the Child by (2) except as described in the reservation in China and returned to North Korea where becoming a party to the Protocol. section 2—— they face torture, imprisonment, and execu- (2) THE TERM ‘‘SALE OF CHILDREN’’.—The (A) current United States law, including tion; to the Committee on Foreign Rela- United States understands that the term the laws of the States of the United States, tions. ‘‘sale of children’’, as defined in Article 2(a) fulfills the obligations of the Protocol for H. Con. Res. 394. Concurrent resolution ex- of the Protocol, is intended to cover any the United States; and pressing the sense of the Congress con- transaction in which remuneration or other (B) accordingly, the United States does not cerning the 2002 World Cup and co-hosts Re- consideration is given and received under intend to enact new legislation to fulfill its public of Korea and Japan; to the Committee circumstances in which a person who does obligations under the Protocol. on Foreign Relations. not have a lawful right to custody of the SEC. 5. CONDITION. f child thereby obtains de facto control over The advice and consent of the Senate the child. under section 1 is subject to the condition MEASURES PLACED ON THE (3) THE TERM ‘‘CHILD PORNOGRAPHY’’.—The that the Senate reaffirms condition (8) of the CALENDAR United States understands the term ‘‘child resolution of ratification of the Document The following bill was read the first pornography’’, as defined in Article 2(c) of Agreed Among the States Parties to the the Protocol, to mean the visual representa- Treaty on Conventional Armed Forces in Eu- and second times by unanimous con- tion of a child engaged in real or simulated rope (CFE) of November 19, 1990 (adopted at sent, and placed on the calendar: sexual activities or of the genitalia of a child Vienna on May 31, 1996), approved by the H.R. 2621. An act to amend title 18, United where the dominant characteristic is depic- Senate on May 14, 1997 (relating to condition States Code, with respect to consumer prod- tion for a sexual purpose. (1) of the resolution of ratification of the uct protection. (4) THE TERM ‘‘TRANSFER OF ORGANS FOR INF Treaty, approved by the Senate on May PROFIT’’.—The United States understands 27, 1988). f that— EXECUTIVE REPORT OF (A) the term ‘‘transfer of organs for prof- Treaty Doc. 106–37(A) Optional Protocol No. COMMITTEE it’’, as used in Article 3(1)(a)(i) of the Pro- 1 to Convention on Rights of the Child on tocol, does not cover any situation in which Involvement of Children in Armed Conflict The following executive report of a child donates an organ pursuant to lawful (Exec. Rept. No. 107–4) committee was submitted: consent; and TEXT OF THE COMMITTEE-RECOMMENDED By Mr. BIDEN, from the Committee on (B) the term ‘‘profit’’, as used in Article RESOLUTION OF ADVICE AND CONSENT 3(1)(a)(i) of the Protocol, does not include Foreign Relations: Resolved (two-thirds of the Senators present the lawful payment of a reasonable amount Treaty Doc. 106–37(B) Optional Protocol No. 2 concurring therein), associated with the transfer of organs, in- to Convention on the Rights of the Child cluding any payment for the expense of trav- SECTION 1. ADVICE AND CONSENT TO RATIFICA- on the Sale of Children, Child Prostitution el, housing, lost wages, or medical costs. TION OF THE OPTIONAL PROTOCOL and Child Pornography (Exec. Rept. No. TO THE CONVENTION ON THE (5) THE TERMS ‘‘APPLICABLE INTERNATIONAL 107–4) RIGHTS OF THE CHILD ON THE IN- LEGAL INSTRUMENTS’’ AND ‘‘IMPROPERLY IN- VOLVEMENT OF CHILDREN IN Text of the Committee-Recommended DUCING CONSENT’’.— ARMED CONFLICT, SUBJECT TO UN- Resolution of Advice and Consent (A) UNDERSTANDING OF ‘‘APPLICABLE INTER- DERSTANDINGS AND CONDITIONS. Resolved (two-thirds of the Senators present NATIONAL LEGAL INSTRUMENTS’’.—The United The Senate advises and consents to the concurring therein), States understands that the term ‘‘applica- ratification of the Optional Protocol to the

VerDate 11-MAY-2000 02:20 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.052 pfrm12 PsN: S12PT1 S5454 CONGRESSIONAL RECORD — SENATE June 12, 2002 Convention on the Rights of the Child on the States Code, that no person under 18 years of and critical access hospitals; to the Com- Involvement of Children In Armed Conflict, age may be originally enlisted in the Armed mittee on Finance. opened for signature at New York on May 25, Forces of the United States without the By Mr. THURMOND: 2000 (Treaty Doc. 106–37; in this resolution re- written consent of the person’s parent or S. 2616. A bill to amend the Public Health ferred to as the ‘‘Protocol’’), subject to the guardian, if the parent or guardian is enti- Service Act to establish an Office of Men’s understandings in section 2 and the condi- tled to the person’s custody and control; Health; to the Committee on Health, Edu- tions in section 3. (C) each person recruited into the Armed cation, Labor, and Pensions. Forces of the United States receives a com- SEC. 2. UNDERSTANDINGS. f The advice and consent of the Senate prehensive briefing and must sign an enlist- under section 1 is subject to the following ment contract that, taken together, specify SUBMISSION OF CONCURRENT AND the duties involved in military service; and understandings, which shall be included in SENATE RESOLUTIONS the United States instrument of ratification (D) all persons recruited into the Armed of the Protocol: Forces of the United States must provide re- The following concurrent resolutions (1) NO ASSUMPTION OF OBLIGATIONS UNDER liable proof of age before their entry into and Senate resolutions were read, and THE CONVENTION ON THE RIGHTS OF THE military service. referred (or acted upon), as indicated: (2) INTERPRETATION OF THE PROTOCOL.—The CHILD.—The United States understands that By Mr. GRAHAM (for himself, Mr. the United States assumes no obligations Senate reaffirms condition (8) of the resolu- DEWINE, Mr. MCCAIN, Mr. under the Convention on the Rights of the tion of ratification of the Document Agreed TORRICELLI, Mr. MILLER, Mr. LEAHY, Child by becoming a party to the Protocol. Among the States Parties to the Treaty on Mr. FEINGOLD, Mr. DODD, Mr. NELSON (2) IMPLEMENTATION OF OBLIGATION NOT TO Conventional Armed Forces in Europe (CFE) of Florida, Mr. GRASSLEY, Mr. PERMIT CHILDREN TO TAKE DIRECT PART IN of November 19, 1990 (adopted at Vienna on BREAUX, Mr. WARNER, Mr. NELSON of HOSTILITIES.—The United States understands May 31, 1996), approved by the Senate on May that, with respect to Article 1 of the 14, 1997 (relating to condition (1) of the reso- Nebraska, Mr. COCHRAN, Mr. HELMS, Protocol— lution of ratification of the INF Treaty, ap- Mr. CHAFEE, Mr. REID, Mr. ROCKE- (A) the term ‘‘feasible measures’’ means proved by the Senate on May 27, 1988). FELLER, Mr. BAYH, Mr. LUGAR, Mr. those measures that are practical or prac- (3) REPORTS.— BROWNBACK, Mr. ALLEN, and Mr. SES- tically possible, taking into account all the (A) INITIAL REPORT.—Not later than 90 days SIONS): circumstances ruling at the time, including after the deposit of the United States instru- S. Res. 283. A resolution recognizing the humanitarian and military considerations; ment of ratification, the Secretary of De- successful completion of democratic elec- (B) the phrase ‘‘direct part in hostilities’’— fense shall submit to the Committee on For- tions in the Republic of Colombia; to the (i) means immediate and actual action on eign Relations and the Committee on Armed Committee on Foreign Relations. the battlefield likely to cause harm to the Services of the Senate a report describing enemy because there is a direct causal rela- the measures taken by the military depart- f tionship between the activity engaged in and ments to comply with the obligation set ADDITIONAL COSPONSORS the harm done to the enemy; and forth in Article 1 of the Protocol. The report (ii) does not mean indirect participation in shall include the text of any applicable regu- S. 1339 hostilities, such as gathering and transmit- lations, directives, or memoranda governing At the request of Mr. CAMPBELL, the ting military information, transporting the policies of the departments in imple- names of the Senator from New York weapons, munitions, or other supplies, or menting that obligation. (Mrs. CLINTON) and the Senator from forward deployment; and (B) SUBSEQUENT REPORTS.— (C) any decision by any military com- (i) REPORT BY THE SECRETARY OF STATE.— Alaska (Mr. MURKOWSKI) were added as mander, military personnel, or other person The Secretary of State shall submit to the cosponsors of S. 1339, a bill to amend responsible for planning, authorizing, or exe- Committee on Foreign Relations and the the Bring Them Home Alive Act of 2000 cuting military action, including the assign- Committee on Armed Services of the Senate to provide an asylum program with re- ment of military personnel, shall only be a copy of any report submitted to the Com- gard to American Persian Gulf War judged on the basis of all the relevant cir- mittee on the Rights of the Child pursuant POW/MIAs, and for other purposes. cumstances and on the basis of that person’s to Article 8 of the Protocol. S. 1746 assessment of the information reasonably (ii) REPORT BY THE SECRETARY OF DE- available to the person at the time the per- FENSE.—Not later than 30 days after any sig- At the request of Mr. REID, the name son planned, authorized, or executed the ac- nificant change in the policies of the mili- of the Senator from New Jersey (Mr. tion under review, and shall not be judged on tary departments in implementing the obli- TORRICELLI) was added as a cosponsor the basis of information that comes to light gation set forth in Article 1 of the Protocol, of S. 1746, a bill to amend the Atomic after the action under review was taken. the Secretary of Defense shall submit a re- Energy Act of 1954 and the Energy Re- (3) MINIMUM AGE FOR VOLUNTARY RECRUIT- port to the Committee on Foreign Relations organization Act of 1974 to strengthen MENT.—The United States understands that and the Committee on Armed Services of the security at sensitive nuclear facilities. Article 3 of the Protocol obligates States Senate describing the change and the ration- Parties to the Protocol to raise the min- ale therefor. S. 1785 imum age for voluntary recruitment into f At the request of Mr. CLELAND, the their national armed forces from the current names of the Senator from California INTRODUCTION OF BILLS AND international standard of 15 years of age. (Mrs. FEINSTEIN) and the Senator from JOINT RESOLUTIONS (4) ARMED GROUPS.—The United States un- South Dakota (Mr. JOHNSON) were derstands that the term ‘‘armed groups’’ in The following bills and joint resolu- added as cosponsors of S. 1785, a bill to Article 4 of the Protocol means nongovern- tions were introduced, read the first urge the President to establish the mental armed groups such as rebel groups, and second times by unanimous con- dissident armed forces, and other insurgent White House Commission on National groups. sent, and referred as indicated: Military Appreciation Month, and for (5) NO BASIS FOR JURISDICTION BY ANY By Mr. LIEBERMAN (for himself and other purposes. INTERNATIONAL TRIBUNAL.—The United Mr. MILLER): S. 1931 States understands that nothing in the Pro- S. 2613. A bill to amend section 507 of the At the request of Mr. LIEBERMAN, the tocol establishes a basis for jurisdiction by Omnibus Parks and Public Lands Manage- any international tribunal, including the ment Act of 1996 to authorize additional ap- name of the Senator from North Da- International Criminal Court. propriations for historically black colleges kota (Mr. DORGAN) was added as a co- SEC. 3. CONDITIONS. and universities, to decrease the cost-sharing sponsor of S. 1931, a bill to amend title The advice and consent of the Senate requirement relating to the additional ap- XVIII of the Social Security Act to im- under section 1 is subject to the following propriations, and for other purposes; to the prove patient access to, and utilization conditions: Committee on Energy and Natural Re- of, the colorectal cancer screening ben- (1) REQUIREMENT TO DEPOSIT DECLARA- sources. efit under the medicare program. TION.—The President shall, upon ratification By Mr. CORZINE: of the Protocol, deposit a binding declara- S. 2614. A bill to amend title XVIII of the S. 2070 tion under Article 3(2) of the Protocol that Social Security Act to reduce the work At the request of Mr. BINGAMAN, the states in substance that— hours and increase the supervision of resi- name of the Senator from Maryland (A) the minimum age at which the United dent physicians to ensure the safety of pa- (Mr. SARBANES) was added as a cospon- States permits voluntary recruitment into tients and resident physicians themselves; to sor of S. 2070, a bill to amend part A of the Armed Forces of the United States is 17 the Committee on Finance. title IV to exclude child care from the years of age; By Mr. MURKOWSKI (for himself and determination of the 5-year limit on (B) the United States has established safe- Mr. WELLSTONE): guards to ensure that such recruitment is S. 2615. A bill to amend title XVII of the assistance under the temporary assist- not forced or coerced, including a require- Social Security Act to provide for improve- ance to needy families program, and ment in section 505(a) of title 10, United ments in access to services in rural hospitals for other purposes.

VerDate 11-MAY-2000 03:18 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.060 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5455 S. 2085 the causes of chronic wasting disease (Mr. CAMPBELL) and the Senator from At the request of Mr. CLELAND, the and methods to control the further Kansas (Mr. ROBERTS) were added as name of the Senator from Georgia (Mr. spread of the disease in deer and elk cosponsors of S. Con. Res. 3, a concur- MILLER) was added as a cosponsor of S. herds, to monitor the incidence of the rent resolution expressing the sense of 2085, a bill to amend title XVIII of the disease, to support State efforts to con- Congress that a commemorative post- Social Security Act to clarify the defi- trol the disease, and for other purposes. age stamp should be issued in honor of nition of homebound with respect to S. 2572 the U.S.S. Wisconsin and all those who home health services under the medi- At the request of Mr. KERRY, the served aboard her. care program. name of the Senator from New York f (Mrs. CLINTON) was added as a cospon- S. 2108 STATEMENTS ON INTRODUCED sor of S. 2572, a bill to amend title VII At the request of Ms. STABENOW, the BILLS AND JOINT RESOLUTIONS name of the Senator from New York of the Civil Rights Act of 1964 to estab- (Mrs. CLINTON) was added as a cospon- lish provisions with respect to religious By Mr. LIEBERMAN (for himself sor of S. 2108, a bill to amend the Agri- accommodation in employment, and and Mr. MILLER): culture and Consumer Protection Act for other purposes. S. 2613. A bill to amend section 507 of the Omnibus Parks and Public Lands of 1973 to assist the neediest of senior S. 2573 citizens by modifying the eligibility At the request of Mr. REED, the name Management Act of 1996 to authorize criteria for supplemental foods pro- of the Senator from New York (Mrs. additional appropriations for histori- vided under the commodity supple- CLINTON) was added as a cosponsor of S. cally black colleges and universities, mental food program to take into ac- 2573, a bill to amend the McKinney- to decrease the cost-sharing require- count the extraordinarily high out-of- Vento Homeless Assistance Act to re- ment relating to the additional appro- pocket medical expenses that senior authorize the Act, and for other pur- priations, and for other purposes; to citizens pay, and for other purposes. poses. the Committee on Energy and Natural Resources. S. 2600 S. 2233 Mr. LIEBERMAN. Mr. President, on At the request of Mr. DODD, the name At the request of Mr. THOMAS, the behalf of myself and Senator MILLER, I of the Senator from New Jersey (Mr. names of the Senator from North Da- am submitting legislation that is de- CORZINE) was added as a cosponsor of S. kota (Mr. CONRAD), the Senator from signed to facilitate historic preserva- 2600, a bill to ensure the continued fi- Massachusetts (Mr. KERRY), and the tion activities at historically black nancial capacity of insurers to provide Senator from Illinois (Mr. DURBIN) colleges and universities. Specifically, coverage for risks from terrorism. were added as cosponsors of S. 2233, a this legislation would amend section S. 2608 bill to amend title XVIII of the Social 507 of the Omnibus Parks and Public At the request of Mr. GREGG, the Security Act to establish a medicare Lands Management Act of 1996 to de- name of the Senator from Maine (Ms. subvention demonstration project for crease the cost-sharing requirement for COLLINS) was added as a cosponsor of S. veterans. those seeking Federal funds for his- 2608, a bill to amend the Coastal Zone S. 2425 toric preservation activities at histori- Management Act of 1972 to authorize At the request of Mr. BAYH, the name cally black colleges and universities. I the acquisition of coastal areas in of the Senator from Ohio (Mr. DEWINE) am proud to say that the legislation I order better to ensure their protection was added as a cosponsor of S. 2425, a am submitting today is a companion from conversion or development. bill to prohibit United States assist- bill to H.R. 1606, submitted by Con- S. 2611 ance and commercial arms exports to gressman JAMES CLYBURN of South countries and entities supporting inter- At the request of Mr. REED, the Carolina. national terrorism. names of the Senator from New York American history has been a con- (Mrs. CLINTON), the Senator from S. 2458 stant, if not always consistent, march South Dakota (Mr. DASCHLE), and the At the request of Mrs. HUTCHISON, the toward an ideal. That ideal is equal op- Senator from South Dakota (Mr. JOHN- name of the Senator from California portunity for all. SON) were added as cosponsors of S. (Mrs. FEINSTEIN) was added as a co- In every generation, it’s taken the 2611, a bill to reauthorize the Museum sponsor of S. 2458, a bill to enhance work of pioneers to open the gates of and Library Services Act, and for other United States diplomacy, and for other the American community to people purposes. purposes. who had previously been excluded. Pio- S.J. RES. 37 neers have stepped forward when oth- S. 2489 At the request of Mr. WELLSTONE, the ers would not to defiantly state, in ef- At the request of Mrs. CLINTON, the names of the Senator from New Jersey fect, that we as a Nation will not be de- name of the Senator from South Caro- (Mr. CORZINE) and the Senator from fined by surface characteristics. We lina (Mr. HOLLINGS) was added as a co- New Jersey (Mr. TORRICELLI) were will look deeper and try harder. The sponsor of S. 2489, a bill to amend the added as cosponsors of S. J. Res. 37, a pioneers have held us to our national Public Health Service Act to establish joint resolution providing for congres- promise, and reminded us that America a program to assist family caregivers sional disapproval under chapter 8 of and Americanism are not about where in accessing affordable and high-qual- title 5, United States Code, of the rule you came from, what language you ity respite care, and for other purposes. submitted by Centers for Medicare & speak, what religion you practice, or S. 2548 Medicaid Services within the Depart- what you look like, but about belief in At the request of Mr. BINGAMAN, the ment of Health and Human Services re- basic ideals of responsibility, oppor- name of the Senator from New Jersey lating to modification of the medicaid tunity and community. (Mr. CORZINE) was added as a cosponsor upper payment limit for non-State gov- Historically Black Colleges and Uni- of S. 2548, a bill to amend the tem- ernment owned or operated hospitals versities have been such pioneers for porary assistance to needy families published in the Federal Register on generations, and they continue today program under part A of title IV of the January 18, 2002. and submitted to the to help America become its best self. Social Security Act to improve the Senate on March 15, 2002. Today, America has 103 historically provision of education and job training S. RES. 266 black colleges and universities in twen- under that program, and for other pur- At the request of Mr. ROBERTS, the ty-two States and the Virgin Islands, poses. name of the Senator from Wisconsin which educate about 300,000 under- S. 2560 (Mr. FEINGOLD) was added as a cospon- graduate students and thousands of At the request of Mr. ALLARD, the sor of S. Res. 266, a resolution desig- graduate, professional and doctoral name of the Senator from South Da- nating October 10, 2002, as ‘‘Put the students. In fact, 8 of the top 10 pro- kota (Mr. JOHNSON) was added as a co- Brakes on Fatalities Day.’’ ducers of African-American engineers sponsor of S. 2560, a bill to provide for S. CON. RES. 3 are HBCUs. 42 percent of all the PhDs a multi-agency cooperative effort to At the request of Mr. FEINGOLD, the earned each year by African-Americans encourage further research regarding names of the Senator from Colorado are earned by graduates of HBCUs.

VerDate 11-MAY-2000 02:20 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.054 pfrm12 PsN: S12PT1 S5456 CONGRESSIONAL RECORD — SENATE June 12, 2002 Despite playing such a central role in (5) by adding at the end the following new Council for Graduate Medical Edu- our economy, society, and culture, paragraph: cation, ACGME, announced today new HBCUs have been physically eroding ‘‘(3) EXCEPTION.—The Secretary may obli- work hour recommendations. This is for years. In 1998, the National Trust gate funds made available under subsection an important first step. But while some (d)(2) for a grant with respect to a building for Historic Preservation reported that or structure listed on, or eligible for listing of their recommendations are com- most of the HBCUs in the United on, the National Register of Historic Places mendable, they would still require resi- States are showing serious signs of ne- only if the grantee agrees to provide, from dents to work in excess of 80 hours a glect. The Trust said that campus land- funds derived from non-Federal sources, an week and 30-hour shifts. I look forward marks are decaying and college amount that is equal to 30 percent of the to working with the Council to adapt grounds are badly in need of attention. total cost of the project for which the grant strong standards that are not only rec- And a 1998 General Accounting Office is provided.’’. ommendations, but are enforceable re- report estimated that in HBCUs na- (b) AUTHORIZATION OF APPROPRIATION.— quirements that truly protect patients tionwide, there were more than 700 his- Section 507(d) of the Omnibus Parks and Public Lands Management Act of 1996 (16 and residents. toric buildings in states of disrepair. U.S.C. 470a note) is amended— Today, I am introducing legislation That’s why I am proudly sponsoring (1) by striking ‘‘Pursuant to’’ and inserting that not only recognizes the problem of Representative CLYBURN’s bill to pro- the following: excessive work hours, but also creates vide more restoration funding for his- ‘‘(1) 1996 AUTHORIZATION.—Pursuant to’’; strong enforcement mechanisms. The toric sites at Historically Black Col- and bill also provides funding support to leges and Universities throughout the (2) by adding at the end the following new teaching hospitals to implement new Nation. paragraph: work hour standards. Without enforce- ‘‘(2) ADDITIONAL AUTHORIZATION.—In addi- These beautiful, architecturally sig- ment and financial support, efforts to nificant structures are in most cases tion to amounts made available under para- graph (1), pursuant to section 108 of the Na- reduce work hours are not likely to be over a hundred years old, and were successful. often built using the help of the stu- tional Historic Preservation Act, there are authorized to be appropriated such sums as Let me again emphasize that the Pa- dents themselves. Their architectural are necessary to carry out the purposes of tient and Physician Safety and Protec- beauty is a sign of something deeper, this section.’’. tion Act of 2002 will limit medical resi- the fact that they have served as crit- dent work hours to 80 hours a week. ical portals of opportunity for African- By Mr. CORZINE: Not 40 hours or 60 hours. 80 hours a Americans throughout our history. S. 2614. A bill to amend title XVIII of week. It is hard to argue that this That’s why they deserve our strong the Social Security Act to reduce the standard is excessively strict. In fact, protection and sensitive preservation. work hours and increase the super- it is unconscionable that we now have I saw this firsthand. When I visited vision of resident physicians to ensure resident physicians, or any physicians Allen University in South Carolina in the safety of patients and resident phy- for that matter, caring for very sick April of this year, I went to Arnett sicians themselves; to the Committee patients 120 hours a week and 36 hours Hall, a building that had been trans- on Finance. straight with fewer than 10 hours be- formed from an eyesore into a beau- Mr. CORZINE. Mr. President, I rise tween shifts. This is an outrageous vio- tiful and stately facility with the help today to introduce legislation, the Pa- lation of a patient’s right to quality of Federal funds, thanks to Representa- tient and Physician Safety and Protec- care. And, for many patients, it is lit- tive CLYBURN. In the past, students and tion Act of 2002, to limit medical resi- erally a matter of life and death. faculty would walk into the hall and dent work hours to 80 hours a week and In addition to limiting work hours to get the message that we as a Nation to provide real protections for patients 80 hours week, my bill limits the were neglecting these historic treas- and resident physicians who are nega- length of any one shift to 24 consecu- ures. Now, they absorb the message tively affected by excessive work tive hours and limits the length of an that we consider historically black col- hours. This is a companion bill to legis- emergency room shift to 12 hours. The leges and universities central to our lation introduced in the House of Rep- bill also ensures that residents have at history and to our future. resentatives by Representative JOHN Thanks in no small part to these in- least one out of seven days off and ‘‘on- CONYERS. call’’ shifts no more often than every stitutions, the overarching history of It is very troubling that hospitals African-Americans in this country has third night. across the Nation are requiring young Finally, my legislation provides been not a tragedy, as it once was, but doctors to work 36 hour shifts and as a brilliant movement toward dignity, meaningful enforcement mechanisms many as 120 hours a week in order to inclusion, freedom, and opportunity. that will protect the identity of resi- complete their residency programs. That’s the right message for African- dent physicians who file complaints These long hours lead to a deteriora- Americans and all Americans. about work hour violations. The guide- I ask unanimous consent that the tion of cognitive function similar to lines that the ACGME released today text of the bill be printed in the the effects of blood alcohol levels of 0.1 do not contain any whistleblower pro- percent. This is a level of cognitive im- RECORD. tections for residents that seek to re- There being no objection, the bill was pairment that would make these doc- port program violations. Without this ordered to be printed in the RECORD, as tors unsafe to drive, yet these physi- important protection, residents will be follows: cians are not only allowed but in fact reluctant to report these violations, S. 2613 are required to care for patients and which in turn will weaken enforce- Be it enacted by the Senate and House of Rep- perform procedures on patients under ment. resentatives of the United States of America in these conditions. My legislation also makes compli- Congress assembled, While the medical community has ance with these work hour require- SECTION 1. DECREASED MATCHING REQUIRE- been aware of this problem for many ments a condition of Medicare partici- MENT; AUTHORIZATION OF APPRO- years, the issue has largely been pation. Each year, Congress provides $8 PRIATIONS. pushed under the rug. Only recently billion to teaching hospitals to train (a) DECREASED MATCHING REQUIREMENT.— Section 507(c) of the Omnibus Parks and has the medical community taken a new physicians. While Congress must Public Lands Management Act of 1996 (16 more serious look at the problem. In continue to vigorously support ade- U.S.C. 470a note) is amended— the last couple of months, my office quate funding so that teaching hos- (1) by striking ‘‘(1) Except’’ and inserting has worked with the Association of pitals are able to carryout this impor- the following: American Medical Colleges and teach- tant public service, these hospitals ‘‘(1) IN GENERAL.—Except’’; ing hospitals in New Jersey and New must also make a commitment to en- (2) by striking ‘‘paragraph (2)’’ and insert- York to address this problem and to suring safe work conditions for these ing ‘‘paragraphs (2) and (3)’’; try to find a workable solution. (3) by striking ‘‘(2) The Secretary’’ and in- physicians and providing the highest serting the following: As a result of these efforts and in- quality of care to the patients they ‘‘(2) WAIVER.—The Secretary’’; creased public pressure on the medical treat. (4) by striking ‘‘paragraph (1)’’ and insert- community to address this quality of In closing I would like to read a ing ‘‘paragraphs (1) and (3)’’; and care and labor issue, the Accreditation quote from an Orthopedic Surgery

VerDate 11-MAY-2000 03:18 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00066 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.071 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5457 Resident from Northern California, (C) by inserting after subparagraph (S) the ceed $100,000 for each resident training pro- which I think illustrates why we need following new subparagraph: gram in any 6-month period. The provisions this legislation: ‘‘(T) in the case of a hospital that uses the of section 1128A of the Social Security Act services of physician residents or post- (other than subsections (a) and (b)) shall I was operating post-call after being up for graduate trainees, to meet the requirements apply to civil money penalties under this over 36 hours and was holding retractors. I of subsection (j).’’; and paragraph in the same manner as they apply literally fell asleep standing up and nearly (2) by adding at the end the following new to a penalty or proceeding under section face-planted into the wound. My upper arm subsection: 1128A(a) of such Act. hit the side of the gurney, and I caught my- ‘‘(j)(1)(A) In order that the working condi- self before I fell to the floor. I nearly put my (4) DISCLOSURE OF VIOLATIONS AND ANNUAL tions and working hours of physicians and face in the open wound, which would have REPORTS.—The individual designated under postgraduate trainees promote the provision contaminated the entire field and could have paragraph (1) shall— of quality medical care in hospitals, as a resulted in an infection for the patient. (A) provide for annual anonymous surveys condition of participation under this title of postgraduate trainees to determine com- This is a very serious problem that each hospital shall establish the following pliance with such requirements and for the must be addressed before medical er- limits on working hours for certain members disclosure of the results of such surveys to rors like this occur. I hope every mem- of the medical staff and postgraduate train- the public on a residency-program specific ber of the Senate will consider this leg- ees: basis; islation and the potential it has to re- ‘‘(i) Subject to subparagraph (C), post- (B) based on such surveys, conduct appro- duce medical errors, improve patient graduate trainees may work no more than a priate on-site investigations; care, and create a safer working envi- total of 80 hours per week and 24 hours per (C) provide for disclosure to the public of shift. ronment for the backbone of our Na- violations of and compliance with, on a hos- ‘‘(ii) Subject to subparagraph (C), post- pital and residence-program specific basis, tion’s healthcare system. graduate trainees— such requirements; and I ask unanimous consent that the ‘‘(I) shall have at least 10 hours between (D) make an annual report to Congress on text of the bill be printed in the scheduled shifts; the compliance of hospitals with such re- RECORD. ‘‘(II) shall have at least 1 full day out of quirements, including providing a list of hos- There being no objection, the bill was every 7 days off and 1 full weekend off per pitals found to be in violation of such re- ordered to be printed in the RECORD, as month; quirements. follows: ‘‘(III) who are assigned to patient care re- (c) WHISTLEBLOWER PROTECTIONS.— sponsibilities in an emergency department S. 2614 (1) IN GENERAL.—A hospital covered by the shall work no more than 12 continuous hours Be it enacted by the Senate and House of Rep- requirements of section 1866(j)(1) of the So- in that department; and cial Security Act (as added by subsection (a)) resentatives of the United States of America in ‘‘(IV) shall not be scheduled to be on call in Congress assembled, shall not penalize, discriminate, or retaliate the hospital more often than every third in any manner against an employee with re- SECTION 1. SHORT TITLE. night. spect to compensation, terms, conditions, or This Act may be cited as the ‘‘Patient and ‘‘(B) The Secretary shall promulgate such privileges of employment, who in good faith Physician Safety and Protection Act of regulations as may be necessary to ensure (as defined in paragraph (2)), individually or 2002’’. quality of care is maintained during the in conjunction with another person or SEC. 2. FINDINGS. transfer of direct patient care from 1 post- persons— Congress finds the following: graduate trainee to another at the end of (A) reports a violation or suspected viola- (1) The Federal Government, through the each such 24-hour period referred to in sub- tion of such requirements to a public regu- medicare program, pays approximately paragraph (A) and shall take into account latory agency, a private accreditation body, $8,000,000,000 per year solely to train resi- cases of individual patient emergencies. or management personnel of the hospital; dent-physicians in the United States, and as ‘‘(C) The work hour limitations under sub- (B) initiates, cooperates or otherwise par- a result, has an interest in assuring the safe- paragraph (A) and requirements of subpara- ticipates in an investigation or proceeding ty of patients treated by resident-physicians graph (B) shall not apply to a hospital during brought by a regulatory agency or private and the safety of resident-physicians them- a state of emergency declared by the Sec- accreditation body concerning matters cov- selves. retary that applies with respect to that hos- ered by such requirements; (2) Resident-physicians spend a significant pital. (C) informs or discusses with other employ- amount of their time performing activities ‘‘(2) The Secretary shall promulgate such ees, with a representative of the employees, not related to the educational mission of regulations as may be necessary to monitor with patients or patient representatives, or training competent physicians. and supervise postgraduate trainees assigned with the public, violations or suspected vio- (3) The excessive numbers of hours worked patient care responsibilities as part of an ap- lations of such requirements; or by resident-physicians is inherently dan- proved medical training program, as well as (D) otherwise avails himself or herself of gerous for patient care and for the lives of to assure quality patient care. the rights set forth in such section or this resident-physicians. ‘‘(3) Each hospital shall inform post- subsection. (4) The scientific literature has consist- graduate trainees of— (2) GOOD FAITH DEFINED.—For purposes of ently demonstrated that the sleep depriva- ‘‘(A) their rights under this subsection, in- this subsection, an employee is deemed to tion of the magnitude seen in residency cluding methods to enforce such rights (in- act ‘‘in good faith’’ if the employee reason- training programs leads to cognitive impair- cluding so-called whistle-blower protec- ably believes— ment. tions); and (A) that the information reported or dis- (5) A substantial body of research indicates ‘‘(B) the effects of their acute and chronic closed is true; and that excessive hours worked by resident-phy- sleep deprivation both on themselves and on (B) that a violation has occurred or may sicians lead to higher rates of medical error, their patients. occur. motor vehicle accidents, depression, and ‘‘(4) For purposes of this subsection, the (d) EFFECTIVE DATE.—The amendments pregnancy complications. term ‘postgraduate trainee’ includes a post- made by subsection (a) shall take effect on (6) The medical community has not ade- graduate intern, resident, or fellow.’’. the first July 1 that begins at least 1 year quately addressed the issue of excessive resi- (b) DESIGNATION.— after the date of enactment of this Act. dent-physician work hours. (1) IN GENERAL.—The Secretary of Health (7) Different medical specialty training and Human Services shall designate an indi- SEC. 4. ADDITIONAL FUNDING FOR HOSPITAL programs have different patient care consid- vidual within the Department of Health and COSTS. erations but the effects of sleep deprivation Human Services to handle all complaints of There are hereby appropriated to the Sec- on resident-physicians does not change be- violations that arise from residents who re- retary of Health and Human Services such tween specialties. port that their programs are in violation of amounts as may be required to provide for (8) The Federal Government has regulated the requirements of section 1866(j) of the So- additional payments to hospitals for their the work hours of other industries when the cial Security Act (as added by subsection reasonable additional, incremental costs in- safety of employees or the public is at risk. (a)). curred in order to comply with the require- RIEVANCE RIGHTS SEC. 3. REVISION OF MEDICARE HOSPITAL CON- (2) G .—A postgraduate ments imposed by this Act (and the amend- DITIONS OF PARTICIPATION RE- trainee or physician resident may file a com- ments made by this Act). GARDING WORKING HOURS OF RESI- plaint with the Secretary of Health and DENTS. Human Services concerning a violation of By Mr. MURKOWSKI (for himself (a) IN GENERAL.—Section 1866 of the Social such requirements. Such a complaint may be and Mr. WELLSTONE): Security Act (42 U.S.C. 1395cc) is amended— filed anonymously. The Secretary may con- S. 2615. A bill to amend title XVII of (1) in subsection (a)(1)— duct an investigation and take such correc- (A) by striking ‘‘and’’ at the end of sub- tive action with respect to such a violation. the Social Security Act to provide for paragraph (R); (3) CIVIL MONEY PENALTY ENFORCEMENT.— improvements in access to services in (B) by striking the period at the end of Any hospital that violates such requirement rural hospitals and critical access hos- subparagraph (S) and inserting ‘‘, and’’; and is subject to a civil money penalty not to ex- pitals; to the Committee on Finance.

VerDate 11-MAY-2000 03:18 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00067 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.069 pfrm12 PsN: S12PT1 S5458 CONGRESSIONAL RECORD — SENATE June 12, 2002 Mr. MURKOWSKI. Mr. President, hospitals with less than 50 inpatient ‘‘(C) makes available 24-hour emergency today I am introducing legislation that beds to receive enhanced cost-based re- care services; is designed to strengthen and improve imbursement for inpatient, outpatient, ‘‘(D) subject to subparagraph (C), has a the health care delivered to rural Medi- and select post-acute care services. provider agreement in effect with the Sec- retary and is open to the public as of Janu- care beneficiaries. The ‘‘Rural Commu- Hospitals are resorting to Critical ary 1, 2002; and nity Hospital Assistance Act of 2002’’ Access status for financial reasons. ‘‘(E) applies to the Secretary for such des- ensures that our Nation’s seniors will Rural hospitals are facing a financial ignation. be able to receive the same quality of crisis. In fact, rural facilities have a ‘‘(2) For purposes of paragraph (1)(B), beds inpatient care throughout the country, Medicare inpatient margin that is al- in a psychiatric or rehabilitation unit of the regardless of whether they live in New most 10 percentage points lower than hospital which is a distinct part of the hos- pital shall not be counted. York City or Petersburg, AK. urban hospitals. And with these finan- ‘‘(3) Subparagraph (1)(C) shall not be con- The best insurance in the world is cial constraints, they have often been strued to prohibit any of the following from worthless if there is not a provider or forced to pass on facility upgrades and qualifying as a rural community hospital: facility nearby to deliver quality acquiring new technologies. Who suf- ‘‘(A) A replacement facility (as defined by health care. Right now, in commu- fers? The seniors who can’t receive the the Secretary in regulations in effect on Jan- nities across the country, many Medi- same state-of-the-art care simply be- uary 1, 2002) with the same service area (as care beneficiaries are underserved be- cause they aren’t fortunate to live in a defined by the Secretary in regulations in ef- cause they have no access to care. This urban zip code. fect on such date). ‘‘(B) A facility obtaining a new provider is wrong and intolerable. I remain com- This legislation is vital to the state number pursuant to a change of ownership. mitted to ensuring that all Americans, of Alaska. Hospitals such as Petersburg ‘‘(C) A facility which has a binding written and especially those in currently un- Medical Center, Sitka Community, agreement with an outside, unrelated party derserved rural communities, received Valdez Community, Seward Medical for the construction, reconstruction, lease, the care they deserve. Center, and Wrangell Medical Center rental, or financing of a building as of Janu- Unfortunately, a number of the prob- will be able to modernize and expand ary 1, 2002. lems facing rural health care arise services to their growing elderly popu- ‘‘(4) Nothing in this subsection shall be construed as prohibiting a critical access from the actions and construct of the lation. Access and quality will in- hospital from qualifying as a rural commu- federal Medicare system. Its historical crease. Seniors will reap the benefits. nity hospital if the critical access hospital one-size-fits-all approach to health I would like to remind my colleagues meets the conditions otherwise applicable to care delivery and reimbursement has that many Alaskan hospitals are not hospitals under subsection (e) and section led to small community facilities that on a road system. They are true safety- 1866.’’. lack the ability to make payroll, ex- net facilities. If they are not there, a (b) PAYMENT.— pand services, add new technologies, need will go unmet. (1) INPATIENT SERVICES.—Section 1814 (42 We must work together to strengthen U.S.C. 1395f) is amended by adding at the end and guarantee comparable care to more the following new subsection: Medicare. I encourage my colleagues to urban providers. ‘‘Payment for Inpatient Services Furnished In recent years, Congress has moved reflect upon the burdens placed upon in Rural Community Hospitals to even the playing field between urban rural hospitals and to consider this ‘‘(m) The amount of payment under this and rural medicine. New classifica- worthy bill. It is an incremental step part for inpatient hospital services furnished tions, such as Critical Access Hos- towards leveling the playing field be- in a rural community hospital, other than pitals, have allowed these truly safety- tween rural and urban medicine. I urge such services furnished in a psychiatric or net facilities to remain in operation my colleagues to act swiftly upon this rehabilitation unit of the hospital which is a and serve their community. But more bill. distinct part, is, at the election of the hos- work must be done. I ask unanimous consent that the pital in the application referred to in section In 1994, a new payment system for text of the ‘‘Rural Community Hospital 1861(ww)(1)(D)— ‘‘(1) the reasonable costs of providing such hospital inpatient services was created Assistance Act of 2002’’ be printed in services, without regard to the amount of to bring efficiency and cost savings the RECORD. the customary or other charge, or into the Medicare program. The new There being no objection, the bill was ‘‘(2) the amount of payment provided for prospective payment system paid hos- ordered to be printed in the RECORD, as under the prospective payment system for pitals a fixed amount before services follows: inpatient hospital services under section were provided, and severed the histor- S. 2615 1886(d).’’. ical link between reimbursement and Be it enacted by the Senate and House of Rep- (2) OUTPATIENT SERVICES.—Section 1834 (42 reasonable costs. In 2000, hospital out- resentatives of the United States of America in U.S.C. 1395m) is amended by adding at the Congress assembled, end the following new subsection: patient services were added to this pay- ‘‘(n) PAYMENT FOR OUTPATIENT SERVICES SECTION 1. SHORT TITLE; AMENDMENTS TO SO- ment system. FURNISHED IN RURAL COMMUNITY HOS- CIAL SECURITY ACT. But what has this system meant for PITALS.—The amount of payment under this (a) SHORT TITLE.—This Act may be cited as the small rural hospital that has only part for outpatient services furnished in a the ‘‘Rural Community Hospital Assistance a handful of beds and cares for a small rural community hospital is, at the election Act of 2002’’. of the hospital in the application referred to number of patients? Quite simply, (b) AMENDMENTS TO SOCIAL SECURITY in section 1861(ww)(1)(D)— lower volumes hurt the ability of rural ACT.—Except as otherwise specifically pro- ‘‘(1) the reasonable costs of providing such vided, whenever in this Act an amendment is hospitals to handle a prospective pay- services, without regard to the amount of expressed in terms of an amendment to, or ment system. They have limited finan- the customary or other charge and any limi- repeal of, a section or other provision, the cial reserves, lack available funds to tation under section 1861(v)(1)(U), or reference shall be considered a reference to make capital improvements and, espe- ‘‘(2) the amount of payment provided for that section or other provision of the Social under the prospective payment system for cially in the case of Alaska, have dif- Security Act. covered OPD services under section 1833(t).’’. ficulty dealing with volume fluctua- SEC. 2. ESTABLISHMENT OF RURAL COMMUNITY (3) HOME HEALTH SERVICES.— tions that are often times tied to sea- HOSPITAL (RCH) PROGRAM. (A) EXCLUSION FROM HOME HEALTH PPS.— sonal travel. (a) IN GENERAL.—Section 1861 (42 U.S.C. (i) IN GENERAL.—Section 1895 (42 U.S.C. The ‘‘Rural Community Hospital As- 1395x) is amended by adding at the end of the 1395fff) is amended by adding at the end the following new subsection: sistance Act’’ seeks to remedy this following: problem and a few others that are fac- ‘‘Rural Community Hospital; Rural ‘‘(f) EXCLUSION.— ing rural America. This legislation Community Hospital Services ‘‘(1) IN GENERAL.—In determining payments would proved enhanced cost-based re- ‘‘(ww)(1) The term ‘rural community hos- under this title for home health services fur- imbursement for critical access hos- pital’ means a hospital (as defined in sub- nished on or after October 1, 2002, by a quali- pitals. Cost-based reimbursement for section (e)) that— fied RCH-based home health agency (as de- inpatient and outpatient services ‘‘(A) is located in a rural area (as defined fined in paragraph (2))— in section 1886(d)(2)(D)) or treated as being so ‘‘(A) the agency may make a one-time would include a ‘‘return on equity’’ to located pursuant to section 1886(d)(8)(E); election to waive application of the prospec- assist the small facilities in addressing ‘‘(B) subject to subparagraph (B), has less tive payment system established under this technology and infrastructure needs. It than 51 acute care inpatient beds, as re- section to such services furnished by the would also provide an option for rural ported in its most recent cost report; agency shall not apply; and

VerDate 11-MAY-2000 02:20 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.070 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5459 ‘‘(B) in the case of such an election, pay- (2) adding at the end the following: minations with respect to distinct part unit ment shall be made on the basis of the rea- ‘‘(2) The amounts of beneficiary cost shar- status that are made on or after October 1, sonable costs incurred in furnishing such ing for outpatient services furnished in a 2002. services as determined under section 1861(v), rural community hospital under this part but without regard to the amount of the cus- shall be as follows: SEC. 4. IMPROVEMENTS TO MEDICARE CRITICAL ACCESS HOSPITAL (CAH) PROGRAM. tomary or other charges with respect to such ‘‘(A) For items and services that would services or the limitations established under have been paid under section 1833(t) if pro- (a) EXCLUSION OF CERTAIN BEDS FROM BED paragraph (1)(L) of such section. vided by a hospital, the amount of cost shar- COUNT.—Section 1820(c)(2) (42 U.S.C. 1395i– ‘‘(2) QUALIFIED RCH-BASED HOME HEALTH ing determined under paragraph (8) of such 4(c)(2)) is amended by adding at the end the AGENCY DEFINED.—For purposes of paragraph section. following: (1), a ‘qualified RCH-based home health ‘‘(B) For items and services that would ‘‘(E) EXCLUSION OF CERTAIN BEDS FROM BED agency’ is a home health agency that is a have been paid under section 1833(h) if fur- COUNT.—In determining the number of beds provider-based entity (as defined in section nished by a provider or supplier, no cost of a facility for purposes of applying the bed 404 of the Medicare, Medicaid, and SCHIP sharing shall apply. limitations referred to in subparagraph Benefits Improvement and Protection Act of ‘‘(C) For all other items and services, the (B)(iii) and subsection (f), the Secretary 2000 (Public Law 106–554; Appendix F, 114 amount of cost sharing that would apply to shall not take into account any bed of a dis- Stat. 2763A–506) of a rural community hos- the item or service under the methodology tinct part psychiatric or rehabilitation unit pital that is located— that would be used to determine payment for (described in the matter following clause (v) ‘‘(A) in a county in which no main or such item or service if provided by a physi- of section 1886(d)(1)(B)) of the facility, except branch office of another home health agency cian, provider, or supplier, as the case may that the total number of beds that are not is located; or be.’’. taken into account pursuant to this subpara- ‘‘(B) at least 35 miles from any main or (d) CONFORMING AMENDMENTS.— graph with respect to a facility shall not ex- branch office of another home health agen- (1) PART A PAYMENT.—Section 1814(b) (42 ceed 10.’’. cy.’’. U.S.C. 1395f(b)) is amended by inserting (b) PAYMENTS TO HOME HEALTH AGENCIES (ii) CONFORMING CHANGES.— ‘‘other than inpatient hospital services fur- OWNED AND OPERATED BY A CAH.—Section (I) PAYMENTS UNDER PART A.—Section nished by a rural community hospital,’’ after ‘‘critical access hospital services,’’. 1895(f) (42 U.S.C. 1395fff(f)), as added by sec- 1814(b) (42 U.S.C. 1395f(b)) is amended by in- tion 2(b)(3), is further amended by inserting serting ‘‘or with respect to services to which (2) PART B PAYMENT.— ‘‘or by a home health agency that is owned section 1895(f) applies’’ after ‘‘equipment’’ in (A) IN GENERAL.—Section 1833(a) (42 U.S.C. and operated by a critical access hospital (as the matter preceding paragraph (1). 1395l(a)) is amended— defined in section 1861(mm)(1))’’ after ‘‘as de- (II) PAYMENTS UNDER PART B.—Section (i) in paragraph (2), in the matter before fined in paragraph (2))’’. 1833(a)(2)(A) (42 U.S.C. 1395l(a)(2)(A)) is subparagraph (A), by striking ‘‘and (I)’’ and amended by striking ‘‘the prospective pay- inserting ‘‘(I), and (K)’’; (c) PAYMENTS TO CAH-OWNED SNFS.— ment system under’’. (ii) by striking ‘‘and’’ at the end of para- (1) IN GENERAL.—Section 1888(e) (42 U.S.C. (III) PER VISIT LIMITS.—Section graph (8); 1395yy(e)) is amended— 1861(v)(1)(L)(i) (42 U.S.C. 1395x(v)(1)(L)(i)) is (iii) by striking the period at the end of (A) in paragraph (1), by striking ‘‘and (12)’’ amended by inserting ‘‘(other than by a paragraph (9) and inserting ‘‘; and’’; and and inserting ‘‘(12), and (13)’’; and qualified RCH-based home health agency (as (iv) by adding at the end the following: (B) by adding at the end thereof the fol- defined in section 1895(f)(2))’’ after ‘‘with re- ‘‘(10) in the case of outpatient services fur- lowing: spect to services furnished by home health nished by a rural community hospital, the ‘‘(13) EXEMPTION OF CAH FACILITIES FROM agencies’’. amounts described in section 1834(n).’’. PPS.—In determining payments under this (iii) CONSOLIDATED BILLING.— (B) AMBULANCE SERVICES.—Section part for covered skilled nursing facility serv- (I) RECIPIENT OF PAYMENT.—Section 1834(l)(8) (42 U.S.C. 1395m(l)(8)), as added by ices furnished on or after October 1, 2002, by 1842(b)(6)(F) (42 U.S.C. 1395u(b)(6)(F)) is section 205(a) of the Medicare, Medicaid, and a skilled nursing facility that is a distinct amended by inserting ‘‘and excluding home SCHIP Benefits Improvement and Protection part unit of a critical access hospital (as de- health services to which section to which Act of 2000 (Appendix F, 114 Stat. 2763A–463), fined in section 1861(mm)(1)) or is owned and section 1895(f) applies’’ after ‘‘provided for in as enacted into law by section 1(a)(6) of Pub- operated by a critical access hospital— such section’’. lic Law 106–554, is amended— ‘‘(A) the prospective payment system es- (II) EXCEPTION TO EXCLUSION FROM COV- (i) in the heading, by striking ‘‘CRITICAL tablished under this subsection shall not ERAGE.—Section 1862(a) (42 U.S.C. 1395y(a)) is ACCESS HOSPITALS’’ and inserting ‘‘CERTAIN apply; and amended by inserting before the period at FACILITIES’’; ‘‘(B) payment shall be made on the basis of the end of the second sentence the following: (ii) by striking ‘‘or’’ at the end of subpara- the reasonable costs incurred in furnishing ‘‘and paragraph (21) shall not apply to home graph (A); such services as determined under section health services to which section 1895(f) ap- (iii) by redesignating subparagraph (B) as 1861(v), but without regard to the amount of plies’’. subparagraph (C); the customary or other charges with respect (4) RETURN ON EQUITY.—Section (iv) by inserting after subparagraph (A) the to such services or the limitations estab- 1861(v)(1)(P) (42 U.S.C. 1395x(v)(1)(P)) is following new subparagraph: lished under subsection (a).’’. amended— ‘‘(B) by a rural community hospital (as de- (2) CONFORMING CHANGES.— (A) by inserting ‘‘(i)’’ after ‘‘(P)’’; and fined in section 1861(ww)(1)), or’’; and (A) IN GENERAL.—Section 1814(b) (42 U.S.C. (B) by adding at the end the following: (v) in subparagraph (C), as so redesignated, 1395f(b)), as amended by subsection (b)(2)(A), ‘‘(ii)(I) Notwithstanding clause (i), sub- by inserting ‘‘or a rural community hos- is further amended in the matter preceding paragraph (S)(i), and section 1886(g)(2), such pital’’ after ‘‘critical access hospital’’. paragraph (1)— regulations shall provide, in determining the (3) TECHNICAL AMENDMENTS.— (i) by inserting ‘‘other than a skilled nurs- reasonable costs of the services described in (A) CONSULTATION WITH STATE AGENCIES.— ing facility providing covered skilled nursing subclause (II) furnished by a rural commu- Section 1863 (42 U.S.C. 1395z) is amended by facility services (as defined in section nity hospital on or after October 1, 2002, for striking ‘‘and (dd)(2)’’ and inserting ‘‘(dd)(2), 1888(e)(2)) or posthospital extended care serv- payment of a return on equity capital at a (mm)(1), and (ww)(1)’’. ices to which section 1888(e)(13) applies,’’ rate of return equal to 150 percent of the av- (B) PROVIDER AGREEMENTS.—Section after ‘‘inpatient critical access hospital serv- erage specified in clause (i): 1866(a)(2)(A) (42 U.S. C. 1395cc(a)(2)(A)) is ices’’; and ‘‘(II) The services referred to in subclause amended by inserting ‘‘section 1834(n)(2),’’ (ii) by striking ‘‘1813 1886,’’ and inserting (I) are inpatient hospital services, outpatient after ‘‘section 1833(b),’’. ‘‘1813, 1886, 1888,’’. hospital services, home health services fur- (e) EFFECTIVE DATE.—The amendments (B) CONSOLIDATED BILLING.— nished by an RCH-based home health agency made by this section shall apply to items (i) RECIPIENT OF PAYMENT.—Section (as defined in section 1895(f)(2)), and ambu- and services furnished on or after October 1, 1842(b)(6)(E) (42 U.S.C. 1395u(b)(6)(E)) is lance services. 2002. amended by inserting ‘‘services to which ‘‘(III) Payment under this clause shall be SEC. 3. REMOVING BARRIERS TO ESTABLISH- paragraph (7)(C) or (13) of section 1888(e) ap- made without regard to whether a provider MENT OF DISTINCT PART UNITS BY plies and’’ after ‘‘other than’’. is a proprietary provider.’’. RCH AND CAH FACILITIES. (ii) EXCEPTION TO EXCLUSION FROM COV- (5) EXEMPTION FROM 30 PERCENT REDUCTION (a) IN GENERAL.—Section 1886(d)(1)(B) (42 ERAGE.—Section 1862(a)(18) (42 U.S.C. IN REIMBURSEMENT FOR BAD DEBT.—Section U.S.C. 1395ww(d)(1)(B)) is amended by strik- 1395y(a)(18)) is amended by inserting ‘‘(other 1861(v)(1)(T) (42 U.S.C. 1395x(v)(1)(T)) is ing ‘‘a distinct part of the hospital (as de- than services to which paragraph (7)(C) or amended by inserting ‘‘(other than a rural fined by the Secretary)’’ in the matter fol- (13) of section 1888(e) applies)’’ after ‘‘section community hospital)’’ after ‘‘In determining lowing cause (v) and inserting ‘‘a distinct 1888(e)(2)(A)(i)’’. such reasonable costs for hospitals’’. part (as defined by the Secretary) of the hos- (c) BENEFICIARY COST-SHARING FOR OUT- pital or of a critical access hospital or a (d) PAYMENTS TO DISTINCT PART PSY- PATIENT SERVICES.—Section 1834(n) (as added rural community hospital’’. CHIATRIC OR REHABILITATION UNITS OF by subsection (b)(2)) is amended— (b) EFFECTIVE DATE.—The amendment CAHS.—Section 1886(b) (42 U.S.C. 1395ww(b)) (1) by inserting ‘‘(1)’’ after ‘‘(n)’’; and made by subsection (a) shall apply to deter- is amended—

VerDate 11-MAY-2000 02:20 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.058 pfrm12 PsN: S12PT1 S5460 CONGRESSIONAL RECORD — SENATE June 12, 2002 (1) in paragraph (1), by inserting ‘‘, other provement and Protection Act of 2000 (Ap- ment policies. Because of their small than a distinct part psychiatric or rehabili- pendix F, 114 Stat. 2763A–463), as enacted into size, a median of 58 beds compared to tation unit to which paragraph (8) applies,’’ law by section 1(a)(6) of Public Law 106–554. 186 beds for urban hospitals, rural hos- after ‘‘subsection (d)(1)(B)’’; and Mr. WELLSTONE. Mr. President, I pitals have a much more difficult time (2) by adding at the end the following: rise today along with my colleague, the ‘‘(8) EXEMPTION OF CERTAIN DISTINCT PART surviving within a prospective pay- PSYCHIATRIC OR REHABILITATION UNITS FROM Senator from Alaska, to introduce the ment system. Rural hospitals have COST LIMITS.—In determining payments Rural Community Hospital Assistance fewer financial reserves and greater under this part for inpatient hospital serv- Act. Senator MURKOWSKI and I don’t volume fluctuations than urban hos- ices furnished on or after October 1, 2002, by agree on a lot of issues. But one thing pitals. They rely on Medicare as a a distinct part psychiatric or rehabilitation we both care very deeply about is the source of revenue more than other hos- unit (described in the matter following health of this Nation’s rural hospitals. pitals. They have to deal with isola- clause (v) of subsection (d)(1)(B)) of a critical Rural hospitals provide essential care tion, high levels of poverty, and short- access hospital (as defined in section for more than 54 million people. They 1861(mm)(1))— ages of critical health care profes- ‘‘(A) the limits imposed under the pre- provide essential inpatient, outpatient sionals, making it much more difficult ceding paragraphs of this subsection shall and post-acute care, including skilled for small rural hospitals to absorb the not apply; and nursing, home health and rehabilita- impact of policy and market changes. ‘‘(B) payment shall be made on the basis of tion services. Minnesota has more The Critical Access Hospital Pro- the reasonable costs incurred in furnishing rural hospitals than any other state in gram has done a good job. There are 43 such services as determined under section the United States with the exception of 1861(v), but without regard to the amount of Critical Access Hospitals in Minnesota. Texas. The hospitals of rural America But this program needs to be updated the customary or other charges with respect are the heart of our health care sys- to such services.’’. and it needs to be extended and en- tem. In rural America, how far away (e) ELIMINATION OF ISOLATION TEST FOR hanced if we are going to restore our COST-BASED CAH AMBULANCE SERVICES.— you are from your community hospital rural hospitals to financial health. The Paragraph (8) of section 1834(l) (42 U.S.C. can be a matter of life and death. Rural Community Hospital Assistance But the health of our rural hospitals 1395m(l)), as added by section 205(a) of BIPA, Act will provide enhanced cost based is amended by striking the comma at the end in 2002 is not good. Many are struggling reimbursement for Critical Access Hos- of the last subparagraph and all that follows to survive. Rural hospitals have Medi- pitals, and extend such reimbursement and inserting a period. care inpatient margins that are 10 per- ETURN ON QUITY to post acute care services. It will per- (f) R E .—Section cent less than urban hospitals. Rural 1861(v)(1)(P) (42 U.S.C. 1395x(v)(1)(P)), as mit and extend enhanced reimburse- hospital total Medicare margins have amended by section 2(b)(4), is further amend- ment fore geriatric psychiatric care. It declined significantly, falling to an av- ed by adding at the end the following: will provide enhanced cost based reim- ‘‘(iii)(I) Notwithstanding clause (i), sub- erage of negative 3.2 percent since 1999, bursement for ambulance services. It paragraph (S)(i), and section 1886(g)(2), such and even lower margins, negative 5.4 would also provide an option for rural regulations shall provide, in determining the percent, for rural hospitals with 50 or hospitals with less than 50 acute care reasonable costs of the services described in fewer beds. Rural hospital costs are in- beds to receive cost based reimburse- subclause (II) furnished by a rural commu- creasing at a greater rate than urban nity hospital on or after October 1, 2002, for ment for inpatient, outpatient, and hospitals. They can’t survive on the payment of a return on equity capital at a ambulance services. This is very im- Medicare prospective payment system rate of return equal to 150 percent of the av- portant because so many rural hos- that we’ve set up for them. That pay- erage specified in clause (i): pitals with less than 50 beds are strug- ‘‘(II) The services referred to in subclause ment system provides a fixed hospital gling just to survive. It is essential (I) are inpatient critical access hospital serv- payment established in advance of the that the doors of our rural hospitals re- ices (as defined in section 1861(mm)(2)), out- provisions of services, rather than pro- main open. I ask my colleagues to join patient critical access hospital services (as viding reimbursement retroactively on defined in section 1861(mm)(3)), extended Senator MURKOWSKI and me in sup- the basis of costs. The Medicare Pay- care services provided pursuant to an agree- porting this important legislation for ment Advisory Commission (MedPAC) ment under section 1883, posthospital ex- rural America. tended care services to which section told the Congress last June that the Prospective Payment System is not 1888(e)(13) applies, home health services to By Mr. THURMOND: which section 1895(f) applies, ambulance working for small rural hospitals. We services to which section 1834(l) applies, and set up that system to contain costs and S. 2616. A bill to amend the Public inpatient hospital services to which section save money. But we can’t have the Health Service Act to establish an Of- 1886(b)(8) applies. fice of Men’s Health; to the Committee ‘‘(III) Payment under this clause shall be kind of healthcare system that the peo- ple who live in the small towns and on on Health, Education, Labor, and Pen- made without regard to whether a provider sions. is a proprietary provider.’’. the farms of America deserve, if we try (g) TECHNICAL CORRECTIONS.— to finance it on the cheap. This is Mr. THURMOND. Mr. President, this (1) SECTION 403(b) OF BBRA 1999.—Section about values. This is about priorities. week in the United States we are com- 1820(b)(2) (42 U.S.C. 1395i–4(b)(2)) is amended This is about giving people who work memorating Men’s Health Week. The by striking ‘‘nonprofit or public hospitals’’ hard all their lives the healthcare they National Men’s Health Week Act was and inserting ‘‘hospitals’’. deserve. passed by Congress and signed into law (2) SECTION 203(b) OF BIPA 2000.—Section I voted against the Balanced Budget in 1994. Since then Men’s Health Week 1883(a)(3) (42 U.S.C. 1395tt(a)(3)) is amended— has been celebrated each year as the (A) by inserting ‘‘section 1861(v)(1)(G) or’’ Act of 1997 because I was worried that after ‘‘Notwithstanding’’; and it would lead to significant harm for week leading up to and including Fa- (B) by striking ‘‘covered skilled nursing fa- our healthcare system. I was worried ther’s Day. I was proud to be a cospon- cility’’. that it would hurt healthcare in our sor of that Act. Today, I rise to intro- (h) EFFECTIVE DATES.— rural areas, in our cities, and that it duce the Men’s Health Act of 2002, to (1) ELIMINATION OF REQUIREMENTS.—The would damage our healthcare safety establish an Office of Men’s Health amendment made by subsections (a) and (b) net. Unfortunately, I was right and we within the Department of Health and shall apply to services furnished on or after Human Services to promote men’s October 1, 2002. have seen exactly the kind of problems health in America. (2) TECHNICAL CORRECTIONS.— I warned about. But one good thing we (A) BBRA.—The amendment made by sub- included was the Medicare Rural Hos- In this Nation, there is an ongoing, section (f)(1) shall be effective as if included pital Flexibility Act which set up increasing, and predominantly silent in the enactment of section 403(b) of the ‘‘Critical Access Hospitals.’’ The Crit- crisis in the health and well-being of Medicare, Medicaid, and SCHIP Balanced ical Access Hospital (CAH) program men. Due to a lack of awareness, poor Budget Refinement Act of 1999 (Appendix F, provides cost based Medicare reim- health education, and culturally-in- 113 Stat. 1501A–321), as enacted into law by bursement for qualifying rural hos- duced behavior patterns, the state of section 1000(a)(6) of Public Law 106–113. (B) BIPA.—The amendment made by sub- pitals with 15 of fewer inpatient beds. men’s health and well-being is deterio- section (f)(2) shall be effective as if included Small rural hospitals face unique cir- rating steadily. Heart disease, stroke, in the enactment of section 203(b) of the cumstances that require special consid- and various cancers, including prostate Medicare, Medicaid, and SCHIP Benefits Im- eration when developing Medicare pay- and testicular cancer, continue to be

VerDate 11-MAY-2000 02:20 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.058 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5461 major areas of concern. We must ad- pressure, blood sugar, and cholesterol Whereas the Senate notes the courage of dress these issues with diligent edu- screens, in conjunction with clinical exams the millions of citizens of the Republic of Co- cational efforts, prevention and treat- and self-testing, can result in the early de- lombia that turned out to vote in order to ment as we seek to enhance the quality tection of many problems and in increased freely and directly express their opinion; and survival rates. Whereas these open, fair, and democratic and duration of men’s lives. Improved (12) Educating men, their families, and elections of the new President and Vice distribution of information concerning health care providers about the importance President of the Republic of Colombia, and the health challenges men face and the of early detection of male health problems the speedy posting of election results, should utilization of the appropriate preven- can result in reducing rates of mortality for be broadly commended: Now, therefore, be it tive measures are imperative to ad- male-specific diseases, as well as improve the Resolved, That the Senate— dressing this need. health of America’s men and its overall eco- (1) congratulates the government and the nomic well-being. people of the Republic of Colombia for the As a lifelong advocate of regular successful completion of democratic elec- medical exams, daily exercise, and a (13) Recent scientific studies have shown that regular medical exams, preventive tions held on May 26, 2002, for President and balanced diet, I feel strongly that an screenings, regular exercise, and healthy eat- Vice President; Office of Men’s Health should be estab- ing habits can help save lives. (2) congratulates President-elect Alvaro lished to help improve the overall (14) Establishing an Office of Men’s Health Uribe Velez and Vice President-elect Fran- health of America’s male population. is needed to investigate these findings and cisco Santos Calderon on their recent vic- The bill I am introducing is similar to take such further actions as may be needed tory and their continuing strong commit- a bill introduced in the House of Rep- to promote men’s health. ment to democracy, national reconciliation, SEC. 3. ESTABLISHMENT OF OFFICE OF MEN’S and reconstruction; resentatives. I invite my colleagues to (3) congratulates Colombian President An- join me in supporting this important HEALTH. (a) IN GENERAL.—Title XVII of the Public dres Pastrana, who has been a strong ally of measure. I ask unanimous consent that Health Service Act (42 U.S.C. 300u et seq.) is the United States, a long-standing supporter the text of the bill be printed in the amended by adding at the end the following: of peace process negotiations, and a builder ECORD of national unity in the Republic of Colom- R . ‘‘OFFICE OF MEN’S HEALTH There being no objection, the bill was bia, for his personal commitment to democ- ‘‘SEC. 1711. The Secretary shall establish racy; ordered to be printed in the RECORD, as within the Department of Health and Human follows: (4) commends all Colombian citizens and Services an office to be known as the Office political parties for their efforts to work to- S. 2616 of Men’s Health, which shall be headed by a gether to take risks for democracy and to Be it enacted by the Senate and House of Rep- director appointed by the Secretary. The willfully pursue national reconciliation in resentatives of the United States of America in Secretary, acting through the Director of order to cement a lasting peace and to Congress assembled, the Office, shall coordinate and promote the strengthen democratic traditions in the Re- status of men’s health in the United SECTION 1. SHORT TITLE. public of Colombia; States.’’. This Act may be cited as the ‘‘Men’s (5) supports Colombian attempts to— (b) REPORT.—Not later than two years (A) ensure democracy, national reconcili- Health Act of 2002’’. after the date of the enactment of this Act, SEC. 2. FINDINGS. ation, and economic prosperity; the Secretary of Health and Human Services, (B) support human rights and rule of law; Congress makes the following findings: acting through the Director of the Office of (1) A silent health crisis is affecting the and Men’s Health (established under section 1711 (C) abide by all the essential elements of health and well-being of America’s men. of the Public Health Service Act as added by (2) While this health crisis is of particular representative democracy as enshrined in subsection (a)), shall submit to Congress a the Inter-American Democratic Charter, Or- concern to men, it is also a concern for report describing the activities of such Of- women regarding their fathers, husbands, ganization of American States, and United fice, including findings that the Director has Nations principles; sons, and brothers. made regarding men’s health. (3) Men’s health is a concern for employers (6) encourages the government and people f who pay the costs of medical care, and lose of the Republic of Colombia to continue productive employees. STATEMENTS ON SUBMITTED their struggle against the evils of narcotics and all forms of terrorism; (4) Men’s health is a concern to Federal RESOLUTIONS and State governments which absorb the (7) encourages the government of the Re- enormous costs of premature death and dis- public of Colombia to continue to promote— (A) the professionalism of the Colombian ability, including the costs of caring for de- SENATE RESOLUTION 283—RECOG- pendents left behind. Armed Forces and Colombian National Po- NIZING THE SUCCESSFUL COM- lice; and (5) The life expectancy gap between men PLETION OF DEMOCRATIC ELEC- and women has increased from one year in (B) judicial and legal reforms; and 1920 to almost six years in 1998. TIONS IN THE REPUBLIC OF CO- (8) reaffirms that the United States is un- (6) Prostate cancer is the most frequently LOMBIA equivocally committed to encouraging and diagnosed cancer in the United States among supporting democracy, human rights, rule of Mr. GRAHAM (for himself, Mr. law, and peaceful development in the Repub- men, accounting for 36 percent of all cancer DEWINE, Mr. MCCAIN, Mr. TORRICELLI, cases. lic of Colombia and throughout the Amer- Mr. MILLER, Mr. LEAHY, Mr. FEINGOLD, (7) An estimated 180,000 men will be newly icas. Mr. DODD, Mr. NELSON of Florida, Mr. diagnosed with prostate cancer this year Mr. GRAHAM. Mr. President, I rise, alone, and 37,000 will die. GRASSLEY, Mr. BREAUX, Mr. WARNER, along with 21 of my colleagues, to sub- (8) The American Heart Association re- Mr. NELSON of Nebraska, Mr. COCHRAN, mit a resolution commending the coun- ports that heart attack is the single biggest Mr. HELMS, Mr. CHAFEE, Mr. REID, Mr. try and the people of Colombia on con- killer of American males. Men are more like- ROCKEFELLER, Mr. BAYH, Mr. LUGAR, tinuing the tradition of democracy, ly to die of stroke and are almost twice as Mr. BROWNBACK, Mr. ALLEN, and Mr. with a plurality freely and fairly vot- likely to die of heart disease than are SESSIONS) submitted the following res- ing for President-elect Alvaro Uribe women. High blood pressure increases the olution; which was referred to the Velez and Vice President-elect Fran- risk for stroke and heart attack and men Committee on Foreign Relations: under age 55 are much more likely to suffer cisco Santos Calderon on May 26, 2002. from high blood pressure than are women. S. RES. 283 In Colombia, the evil hand of terror (9) An estimated 7,600 men will be diag- Whereas on May 26, 2002, the Republic of and suffering and fear and death has nosed this year with testicular cancer, and Colombia successfully completed democratic been an everyday reality for too long. 400 of these men will die of this disease in multiparty elections for President and Vice In 2000, over 44 percent of the world- 2002. A common reason for delay in treat- President; wide incidents of terrorist attacks ment of this disease is a delay in seeking Whereas these elections were deemed by against U.S. citizens and United States medical attention after discovering a testic- international and domestic observers, in- interests were in the country of Colom- ular mass. cluding the United Nations and the Organi- bia. These attacks pose a threat to Co- (10) Studies show that men are at least 25 zation of American States, to be free, fair, lombia, the stability of Latin America, percent less likely than women to visit a and a legitimate nonviolent expression of the doctor, and are significantly less likely to will of the people of the Republic of Colom- the security of the Western Hemi- have regular physician check-ups and obtain bia; sphere, and the direct and indirect se- preventive screening tests for serious dis- Whereas the United States has consist- curity of many United States citizens, eases. ently supported the efforts of the people of businesses, and interests. (11) Appropriate use of tests such as pros- the Republic of Colombia to strengthen and Yet, despite the constant threat and tate specific antigen (PSA) exams and blood continue their democracy; reality of violence in Colombia, the

VerDate 11-MAY-2000 02:20 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00071 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.065 pfrm12 PsN: S12PT1 S5462 CONGRESSIONAL RECORD — SENATE June 12, 2002 citizens and government of Colombia ternal Revenue Code of 1986 (relating to ap- (1) shall deposit the amount of the increase carried out democratic elections, plicable credit amount), as amended by sub- in premium in a separate, segregated ac- deemed by international standards to section (a)(2)(B), is amended by striking count; be free, fair and the express will of the ‘‘$3,500,000’’ and inserting ‘‘$4,000,000’’. (2) shall identify the portion of the pre- (c) FULL TAX DEDUCTION FOR FAMILY- mium insuring against terrorism risk on a Colombian people. As Latin America’s OWNED BUSINESS INTERESTS.— separate line item on the policy; and oldest democracy, the legacy of leaders (1) IN GENERAL.—Section 2057(a) (relating (3) may not disburse any funds from elected by the people continues. to deduction for family-owned business in- amounts in that separate, segregated ac- We desire to work closely with both terests) is amended— count for any purpose other than the pay- President-elect Uribe and Vice Presi- (A) by striking paragraphs (2) and (3), and ment of losses from acts of terrorism. dent-elect Santos to reach our common (B) by striking ‘‘GENERAL RULE.—’’ and all (c) LIMITATION ON RATE INCREASES FOR COV- goals of continued democracy, sta- that follows through ‘‘For purposes’’ and in- ERED RISKS.— bility, peace, and the elimination of serting ‘‘ALLOWANCE OF DEDUCTION.—For (1) EXISTING POLICIES.—Any rate increase purposes’’. drugs, terrorism and corruption from by a participating insurance company on (2) PERMANENT DEDUCTION.—Section 2057 is covered risks during any period within the our countries and our hemisphere. amended by striking subsection (j). Program may not exceed the amount estab- I urge my colleagues to join me in (d) EFFECTIVE DATE.—The amendments lished by the Secretary under subsection (a). support of this resolution and the great made by this section shall apply to the es- (2) NEW POLICIES.—Property and casualty democracy of Colombia. tates of decedents dying, and gifts made, insurance policies issued after the date of en- f after December 31, 2002. actment of this Act shall conform with the regulations issued by the Secretary under AMENDMENTS SUBMITTED AND SA 3833. Mr. GRAMM (for himself, subsection (a). PROPOSED Mr. KYL, Mr. BROWNBACK, and Mr. (d) REFUNDS ON EXISTING POLICIES.—Not SA 3832. Mr. REID (for Mr. DORGAN (for HUTCHINSON) proposed an amendment later than 90 days after the date of enact- himself, Mr. DURBIN, Mrs. CARNAHAN, Mr. to the bill H.R. 8, to amend the Inter- ment of this Act, a participating insurance CORZINE, and Ms. STABENOW)) proposed an nal Revenue Code of 1986 to phaseout company shall— amendment to amendment SA 3831 proposed the estate and gift taxes over a 10-year (1) review the premiums charged under by Mr. CONRAD to the bill (H.R. 8) to amend period, and for other purposes; as fol- property and casualty insurance policies of the company that are in force on the date of the Internal Revenue Code of 1986 to phase- lows: out the estate and gift taxes over a 10-year enactment of this Act; Strike all after the enacting clause and in- period, and for other purposes. (2) calculate the portion of the premium SA 3833. Mr. GRAMM (for himself, Mr. sert the following: paid by the policy holder that is attributable KYL, Mr. BROWNBACK, and Mr. HUTCHINSON) SECTION 1. SHORT TITLE. to terrorism risk during the period in which proposed an amendment to the bill H.R. 8, This Act may be cited as the ‘‘Permanent the company is participating in the Pro- supra. Death Tax Repeal Act of 2002’’. gram; and SA 3834. Mr. NELSON of Florida submitted SEC. 2. ESTATE TAX REPEAL MADE PERMANENT. (3) refund the amount calculated under an amendment intended to be proposed by (a) IN GENERAL.—Section 901 of the Eco- paragraph (2) to the policy holder, with an him to the bill S. 2600, to ensure the contin- nomic Growth and Tax Relief Reconciliation explanation of how the refund was cal- ued financial capacity of insurers to provide Act of 2001 is amended— culated. (1) in subsection (a) by striking ‘‘shall not coverage for risks from terrorism; which was f ordered to lie on the table. apply—’’ and all that follows and inserting ‘‘(other than title V) shall not apply to tax- AUTHORITY FOR COMMITTEES TO f able, plan, or limitation years beginning MEET TEXT OF AMENDMENTS after December 31, 2010.’’, and (2) in subsection (b) by striking ‘‘, estates, COMMITTEE ON ENERGY AND NATURAL SA 3832. Mr. REID (for Mr. DORGAN gifts, and transfers’’. RESOURCES (for himself, Mr. DURBIN, Mrs. (b) EFFECTIVE DATE.—The amendments Mr. DORGAN. Mr. President, I ask CARNAHAN, Mr. CORZINE, and Ms. made by subsection (a) shall take effect as if unanimous consent that the Com- STABENOW)) proposed an amendment to included in section 901 of the Economic mittee on Energy and Natural Re- amendment SA 3831 proposed by Mr. Growth and Tax Relief Reconciliation Act of sources be authorized to hold a Hearing 2001. CONRAD to the bill (H.R. 8) to amend during the session of the Senate on the Internal Revenue Code of 1986 to SA 3834. Mr. NELSON of Florida sub- Wednesday, June 12, at 2:30 p.m. in SD– phaseout the estate and gift taxes over mitted an amendment intended to be 366. The purpose of this hearing is to a 10-year period, and for other pur- proposed by him to the bill S. 2600, to receive testimony on the following poses; as follows: ensure the continued financial capac- bills: In lieu of the matter proposed to be in- ity of insurers to provide coverage for S. 1257 and H.R. 107, to require the serted, insert the following: risks from terrorism; which was or- Secretary of the Interior to conduct a SECTION 1. ESTATE TAX WITH FULL TAX DEDUC- TION FOR FAMILY-OWNED BUSINESS dered to lie on the table; as follows: theme study to identify sites and re- INTERESTS. At the appropriate place, insert the fol- sources to commemorate and interpret (a) ELIMINATION OF ESTATE TAX REPEAL.— lowing: the Cold War; (1) IN GENERAL.—Subtitle A of title V, sec- SEC. ll. INSURANCE RATE INCREASES FOR TER- S. 1312 and H.R. 2109, to authorize the tions 511(d), 511(e), and 521(b)(2), and subtitle RORISM RISKS. Secretary of the Interior to conduct a E of title V of the Economic Growth and Tax (a) CALCULATIONS OF TERRORISM INSURANCE special resource study of Virginia Key Relief Reconciliation Act of 2001 are re- PREMIUMS.— Beach, Florida, for possible inclusion pealed. (1) IN GENERAL.—Not later than 30 days (2) CONFORMING AMENDMENTS.— after the date of enactment of this Act, the in the National Park System; (A) The table contained in section Secretary shall promulgate regulations es- S. 1944, to revise the boundary of the 2001(c)(2)(B) of the Internal Revenue Code of tablishing parameters for insurance rate in- Black Canyon of the Gunnison Na- 1986 is amended by striking ‘‘2007, 2008, and creases for terrorism risk. tional Park and Gunnison Gorge Na- 2009’’ and inserting ‘‘2007 and thereafter’’. (2) CONSULTATION.—In developing the regu- tional Conservation Area in the State (B) The table contained in section 2010(c) of lations under paragraph (1), the Secretary of Colorado, and for other purposes; such Code is amended by striking ‘‘2009’’ and shall consult with the NAIC and appropriate H.R. 38, to provide for additional inserting ‘‘2009 and thereafter’’. Federal agencies. lands to be included within the bound- (C) Section 901 of the Economic Growth (3) MODIFICATIONS.—The Secretary may pe- and Tax Relief Reconciliation Act of 2001 is riodically modify the regulations promul- aries of the Homestead National Monu- amended— gated under paragraph (1), as necessary to ment of America in the State of Ne- (i) by striking ‘‘this Act’’ and all that fol- account for changes in the marketplace. braska, and for other purposes; lows through ‘‘2010.’’ in subsection (a) and in- (4) EXCLUSIONS.—Under exceptional cir- H.R. 980, to establish the Moccasin serting ‘‘this Act (other than title V) shall cumstances, the Secretary may exclude a Bend National Historic Site in the not apply to taxable, plan, or limitation participating insurance company from cov- State of Tennessee as a unit of the Na- years beginning after December 31, 2010.’’, erage under any of the regulations promul- tional Park System; and and gated under paragraph (1). H.R. 1712, to authorize the Secretary (ii) by striking ‘‘, estates, gifts, and trans- (b) SEPARATE ACCOUNT REQUIRED.—If a par- fers’’ in subsection (b). ticipating insurance company increases an- of the Interior to make adjustments to (b) INCREASE IN EXCLUSION AMOUNT.—The nual premium rates on covered risks under the boundary of the National Park of table contained in section 2010(c) of the In- subsection (a), the company— American Samoa to include certain

VerDate 11-MAY-2000 03:22 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\CR\FM\G12JN6.079 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — SENATE S5463 portions of the islands of Ofu and ernor for Criminal Justice Policy, Ex- The PRESIDING OFFICER. Without Olosega within the Park, and for other ecutive Director, Illinois Governor’s objection, it is so ordered. purposes. Commission on Capital Punishment; f The PRESIDING OFFICER. Without Donald Hubert, Esq., Donald Hubert & objection, it is so ordered. Associates, Chicago, IL, Member, Illi- ORDERS FOR THURSDAY, JUNE 13, COMMITTEE ON ENVIRONMENT AND PUBLIC nois Governor’s Commission on Capital 2002 WORKS Punishment; John J. Kinsella, Esq., Mr. REID. Mr. President, I ask unan- Mr. DORGAN. Mr. President, I ask First Assistant State’s Attorney, imous consent that when the Senate unanimous consent that the Com- DuPage County, IL; Professor Larry completes its business today, it ad- mittee on Environment and Public Marshall, Northwestern University journ until 9 a.m., Thursday, June 13; Works be authorized to meet on Law School, Legal Director, Center on that following the prayer and the Wednesday, June 12, 2002, at 9:30 a.m. Wrongful Convictions; Kent pledge, the Journal of proceedings be to hold a hearing to receive testimony Scheidegger, Legal Director, Criminal approved to date, the morning hour be further analyzing the benefits and Justice Legal Foundation, Sacramento, deemed expired, the time for the two costs of multi-pollutant legislation. CA; Scott Turow, Esq., Sonnenschein leaders be reserved for their use later The hearing will be held in SD–406. Nath & Rosenthal, Chicago, IL, Mem- in the day, and there be a period of The PRESIDING OFFICER. Without ber, Illinois Governor’s Commission on morning business until 10 a.m., with objection, it is so ordered. Capital Punishment; and Druanne D. Senators permitted to speak for up to COMMITTEE ON GOVERNMENTAL AFFAIRS White, Esq., Solicitor, Tenth Judicial 10 minutes each, with the first half of Mr. DORGAN. Mr. President, I ask Circuit, South Carolina. the time under the control of the ma- unanimous consent that the Com- The PRESIDING OFFICER. Without jority leader or his designee and the mittee on Governmental Affairs be au- objection, it is so ordered. second half under the control of the thorized to meet on Wednesday, June SELECT COMMITTEE ON INTELLIGENCE Republican leader or his designee that 12, 2002 at 9:30 a.m. for the purpose of Mr. DORGAN. Mr. President, I ask at 10 a.m. the Senate begin consider- holding a hearing entitled ‘‘Protecting unanimous consent that the Select ation of the terrorism insurance bill, as Our Kids: What is Causing the Current Committee on Intelligence be author- under the previous order. Shortage in Childhood Vaccines?’’ ized to meet during the session of the The PRESIDING OFFICER. Without The PRESIDING OFFICER. Without Senate on Wednesday, June 12, 2002, at objection, it is so ordered. objection, it is so ordered. 2:30 p.m. to hold a closed hearing on f COMMITTEE ON THE JUDICIARY the joint inquiry into the events of Mr. DORGAN. Mr. President, I ask September 11, 2001. ADJOURNMENT UNTIL 9 A.M. unanimous consent that the Com- The PRESIDING OFFICER. Without TOMORROW mittee on the Judiciary be authorized objection, it is so ordered. Mr. REID. Mr. President, we have to meet to conduct a hearing on ‘‘The SUBCOMMITTEE ON SCIENCE, TECHNOLOGY AND worked long and hard today. As I have Criminal Justice System and Mentally SPACE said before, we had some very good de- Ill Offenders’’ on Wednesday, June 12, Mr. DORGAN. Mr. President, I ask bate. I think it is time that we close 2002, in Dirksen room 226 at 9 a.m. unanimous consent that the Sub- business for the day. I ask unanimous Agenda committee on Science, Technology and consent the Chair deem the Senate Space of the Committee on Commerce, closed for the day, as under the pre- Witnesses Science, and Transportation be author- vious order, as there is no further busi- Panel I: The Honorable George Ryan, ized to meet on Wednesday, June 12, ness to come before the Senate. Governor of the State of Illinois. 2002, at 2:30 p.m. on the Internet Cor- There being no objection, the Senate, Panel II: The Honorable Matt poration for Assigned Names and Num- at 6:52 p.m., adjourned until Thursday, Bettenhausen, Illinois Deputy Gov- bers. June 13, 2002, at 9 a.m.

VerDate 11-MAY-2000 03:22 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\CR\FM\A12JN6.073 pfrm12 PsN: S12PT1 June 12, 2002 CONGRESSIONAL RECORD — Extensions of Remarks E1009 EXTENSIONS OF REMARKS

TO AMEND THE HIGHER EDU- in’’ intercollegiate athletics. What is needed is and universities football is no different than CATION ACT OF 1965 TO ESTAB- a new participation ethic in sports. other sports. Its revenues frequently cannot LISH A SCHOLARSHIP PROGRAM Athletic Departments are not the same thing match costs. Indeed, to their credit, six univer- TO RECOGNIZE SCHOLAR ATH- as History Departments but they share in com- sities in the East offer two full football pro- LETES, AND FOR OTHER PUR- mon the goal of developing the judgment and grams, with one requiring that all participants POSES character of the individual student. Like band weigh under a given amount. As a former par- and orchestra and debate, sports teams ticipant in three college sports where fans HON. JAMES A. LEACH should be seen as student-centered, not profit- often numbered less than team members, I OF IOWA driven. have always been appreciative of administra- Unfortunately, Title IX has been used by IN THE HOUSE OF REPRESENTATIVES tors who understood that what matters most is many athletic departments as an excuse to cut love of the sport, not its cost. Tuesday, June 11, 2002 sports programs when it should be used to up- Wrestling is a classic. Gyms are seldom Mr. LEACH. Mr. Speaker, Title IX, the Fed- grade the role of sports. For one who appre- packed. Fans are appreciated, but those of us eral law passed 30 years ago to mandate ciates what Title IX has started to do for who made that walk with butterflies to the cen- equality of opportunity for women in intercolle- women, yet is dismayed for the loss of so ter of the mat and stared at an opponent giate athletics, is today a subject for deserved many wrestling, gymnastic, swimming and whose arms looked thicker than tree trunks, celebration on what it has done for women other men’s programs, the question is what, if understood that we wrestled for the competi- and understandable dismay for its unintended anything, the Federal government should do. tive challenge and nothing else. Colleges and consequences for certain men’s programs. One option would be to mandate colleges universities should support sports like wres- The challenge from a Federal policy per- and universities to offer particular programs, tling and at the same time press to add wom- spective is to strengthen the good Title IX has but such an approach has the obvious prob- en’s sports as diverse as basketball, swim- wrought, while eliminating its negative con- lem of intruding on institutional decisionmaking ming, field hockey, volleyball, softball, soccer, sequences. in potentially inappropriate ways. While Title IX crew, lacrosse, fencing, hockey, tennis, cross The good is obvious. Many more women may be considered an intrusion by some, its country, archery, track and field, golf, water have been given a chance to participate in egalitarian character and purpose is socially polo and squash. What matters is growth of intercollegiate athletics. But making progress compelling. The question that remains is how, the individual: the character sport builds, not is not the same thing as achieving full equality from a governmental perspective, to put a the remuneration it receives at the gate. or advancing adequate opportunity. Nor is ob- greater emphasis on the opportunity side of I speak personally to this issue because in taining opportunity at the expense of elimi- the Title IX equation. the end sport is about the sum effect on indi- nating it for others as positive a social goal as My recommendation is 3-fold: (a) Federal viduals of the values it imparts—both team could otherwise be the case. and State officials and college administrators discipline and self-reliance. The problem is the distinction in goals of should use their positions to call for a greater The enemy of opportunity for those inter- achieving equality and providing opportunity. emphasis on participation in sports in the edu- ested in participation in low revenue gener- Simplistically, an institution of higher education cation experience; (b) Federal guidelines ating sports is neither football nor Title IX’s can offer no athletic options or, for instance, should encourage colleges and universities to call for gender equality. It is the assumption in two women’s and two men’s teams and be in meet the Title IX egalitarian premises by add- too many places that sports are to be encour- compliance with Title IX. Hence, in an abstract ing women’s teams without subtracting men’s; aged only if they are financially self-sufficient. setting, a school that might offer 12 men’s and (c) a new Federal scholar/athletic scholarship But from a school’s perspective, athletic teams six women’s teams might be considered Title program should be established to incentivize should not be considered burdens. They pro- IX compliant if it eliminated six men’s pro- colleges and universities to offer greater ath- vide a unique means of advertising the at- grams or if it eliminated three men’s and letic options. tributes, indeed the existence, of many institu- added three women’s programs. Instead of With regard to the third recommendation, I tions and a positive way of attracting students adding and subtracting, there would be greater am today introducing legislation titled the ‘‘J. in a competitive education environment. It is in opportunity for women as well as men if such Dennis Hastert Scholar Athlete Act of 2002.’’ this context that the Hastert Scholarship pro- a school opted to achieve equality with addi- The act calls for the creation of Hastert ath- gram is proposed as a positive for schools, for tion alone, by offering 12 women’s as well as letic scholarships to be granted at the State students, and for the best of America’s athletic 12 men’s programs. level to men and women on an equal basis. ethic. Title IX is insufficiently progressive if it is im- Qualification criteria would include an empha- In a tight budget circumstance where it is plemented with a subtraction mind-set. It mat- sis on sports that are part of the Olympic tempting for colleges to meet Federal gender ters where the bar is placed. The lower the Games or are not significant revenue genera- equality guidelines with a smaller number of sports offerings for men, the less opportunity tors at particular institutions. teams, the question is whether the govern- provided women. In architecture ‘‘less’’ might Sports participation helps build character, ment should step in and incentivize sports par- in some cases be ‘‘more,’’ but when individual initiative, and leadership. This is totally inde- ticipation while maintaining the mandate of opportunity is at issue, ‘‘more’’ is better. pendent of the growing assumption in colleges equal opportunity. Title IX is not just a doctrine of equality, but and universities that athletic departments must My answer is yes. of equal opportunity. be profitable or at least not too expensive. It Title IX should be about building up without The underlying dilemma with Title IX en- is, of course, a plus if an athletic department tearing down. forcement is that it has, to date, underempha- can be self-sufficient, but this should not be an f sized the opportunity quotient implicit in the overriding consideration. Indeed, it is remark- law. The goal should be equality with in- able how some of our larger universities which HONORING DR. JOSEPH E. SABOL creased opportunity. are at the forefront of competitive quality in Just as the equalitarian nature of Title IX revenue generating sports often offer far fewer HON. GEORGE RADANOVICH should be understood as a call for new sports athletic options than smaller colleges and uni- OF CALIFORNIA openings for women, the opportunity basis of versities which are not driven by a ticket sale IN THE HOUSE OF REPRESENTATIVES the law requires upgrading and reemphasizing mentality. participation in sports in the education proc- Some see the current emphasis on football Tuesday, June 11, 2002 ess. to be a significant problem. To be fair, football Mr. RADANOVICH. Mr. Speaker, I rise There is a trend at colleges and universities is expensive, but at Division I schools it can today to honor Dr. Joseph E. Sabol on the oc- that the principal sports experience for stu- often pay its own way and offset losses else- casion of his retirement from California Poly- dents is ‘‘going to’’ rather than ‘‘participating where in athletic budgets. In smaller colleges technic State University, in San Luis Obispo,

∑ 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.

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00001 Fmt 0626 Sfmt 9920 E:\CR\FM\A12JN8.000 pfrm04 PsN: E12PT1 E1010 CONGRESSIONAL RECORD — Extensions of Remarks June 12, 2002 CA. Dr. Sabol has spent the past 29 years as Whereas, the 3M Specialty Film and Media CELEBRATING THE 50TH ANNIVER- a teacher educator, faculty member, adminis- Products Division began operations in Green- SARY OF THE ZONTA CLUB OF trator, club advisor, and director of Outreach ville in 1973; and MONTGOMERY COUNTY for the College of Agriculture. Whereas, 3M makes valuable contributions Dr. Sabol has also touched the lives of to our community through jobs, environmental HON. CONSTANCE A. MORELLA many through his work with Future Farmers of stewardship, charitable contributions and vol- OF MARYLAND America, 4–H, Grange, and California Rare unteerism; IN THE HOUSE OF REPRESENTATIVES Fruit Growers. In addition, he has worked with Therefore, be it declared that, this 11th day the Agricultural Education Foundation through of June 2002, shall be 3M Day. Tuesday, June 11, 2002 its California Agricultural Leadership Program f Mrs. MORELLA. Mr. Speaker, I rise to rec- since 1972. Over the course of his career, he HONORING PETER NEUMANN ognize and celebrate of the 50th Anniversary has worked with teachers in Mexico, Pakistan, of The Zonta Club of Montgomery County. Australia, and Costa Rica. Zonta International is a worldwide service or- A ceremony will be held to honor Dr. Sabol HON. JAMES P. McGOVERN ganization of business and professional ex- OF MASSACHUSETTS on June 22, 2002, at California Polytechnic ecutives who work together to advance the IN THE HOUSE OF REPRESENTATIVES State University, in San Luis Obispo, CA. Dr. status of women. There are more than 34,000 Sabol is also working to establish a teaching Tuesday, June 11, 2002 members in 1,230 clubs. This past weekend, endowment in the name of his mother and Mr. MCGOVERN Mr. Speaker, I rise today I gathered with the many dedicated members teaching mentor, Dorothea Sabol, in order to to congratulate Peter Neumann on the occa- of my local club, known for many years as assist highly motivated teacher candidates in sion of his retirement from the Social Security The Zonta Club of Bethesda/Silver Spring. joining the teaching profession. Administration after 31 years of dedicated The Zonta Club of Montgomery County was Mr. Speaker, I rise today to congratulate service. founded and chartered in January of 1952. and honor Dr. Joseph Sabol for his dedication Born in New Britain, CT, on July 6, 1947, Their very first project involved distinguished to higher education in California and his many Mr. Neumann graduated from Newington High service to the men and women of our Armed contributions to California agriculture. I invite School in 1965. After attending Central Con- Forces through the local United Service Orga- my colleagues to join me in thanking Dr. Sabol necticut State College, he served in the U.S. nizations. Over the past 50 years. The Zonta for his service to the education and agriculture Army from 1969–1971, including a tour of duty Club of Montgomery County has provided communities and wishing him continued suc- in Vietnam. committed leadership and community service cess in all future endeavors. Mr. Neumann started working at Social Se- for so many other individuals and organiza- f curity in 1971 as a claims authorizer in the Bu- tions. In this anniversary year, the member- reau of Disability Insurance. He later served in A PROCLAMATION HONORING ship has provided caring and dedicated serv- many other management positions until finally JUDGE FRANK J. FREGIATO ice to The National Home for Children and becoming district manager for the Worcester, Families in Bethesda. MA, Field Office, of the Social Security Admin- Mr. Speaker, I would like to express my HON. ROBERT W. NEY istration in 1990. deepest thanks and admiration to The Zonta OF OHIO Mr. Neumann has brought friendliness and Club of Montgomery County, Maryland for 50 IN THE HOUSE OF REPRESENTATIVES accessibility to the Worcester Field Office for years of commitment and service to our com- Tuesday, June 11, 2002 the 11 years he served as district manager. I munity. can personally attest to this since he has al- Mr. NEY. Mr. Speaker, Whereas, Judge f ways been helpful to my staff and me. I can- Fregiato has been named 2002 Italian Amer- not thank him enough for the countless times A PROCLAMATION RECOGNIZING ican of the Year by the Board of Directors of he has worked with my office to solve Social CHRISTOPHER TRUEX the Upper Ohio Valley Italian Festival; and, Security problems for the people of central Whereas, Judge Fregiato is currently the Massachusetts. Belmont County Northern Division Court HON. ROBERT W. NEY Without a doubt, Mr. Neumann has contrib- Judge; and, OF OHIO uted immensely to the Social Security Admin- Whereas, Judge Fregiato has been an ac- IN THE HOUSE OF REPRESENTATIVES istration as well as the community-at-large. tive contributor to his profession through the Not only has Mr. Neumann served as presi- Tuesday, June 11, 2002 American, Ohio and Belmont Bar Associations dent and vice president of the New England and various leadership positions; and, Mr. NEY. Mr. Speaker, Whereas, Chris- Whereas, Judge Fregiato has worked to im- Social Security Management Association, but topher Truex has devoted himself to serving prove his community through involvement in he has also served as president of the New others through his membership in the Boy Knights of Columbus, Masons Kirkwood England Public Employees Roundtable. In ad- Scouts of America Troop 257; and Lodge, Belmont County Township Association, dition, Mr. Neumann has worked for the Whereas, Christopher Truex has dem- the Chamber of Commerce, and others; Worcester Area Combined Federal Campaign onstrated a commitment to meet challenges Therefore, I join with the residents of the en- as board member and director for the last dec- with enthusiasm, confidence and outstanding tire 18th Congressional District of Ohio in ap- ade. As a member of the Central Massachu- service; and plauding Judge Frank J. Fregiato for receiving setts Agency on Aging for the last 8 years, he Whereas, Christopher Truex must be com- the 2002 Italian American of the Year Award. has served as president and has served on mended for the hard work and dedication he the Advisory Committee and Board of Direc- put forth in earning the Eagle Scout Award; f tors. Mr. Neumann recently finished serving a Therefore, I join with the entire 18th Con- 3M SPECIALTY FILM AND MEDIA term on the Board of Elder Services of gressional District of Ohio in congratulating PRODUCTS DIVISION Worcester. He has also volunteered at the Christopher Truex for his Eagle Scout Award. Audio Journal, making tapes for blind con- f HON. JIM DeMINT sumers. There is no question Mr. Neumann’s love for community service and devotion to el- HONORING SELF-HELP OF SOUTH CAROLINA ENTERPRISES IN THE HOUSE OF REPRESENTATIVES ders is unwavering. I am sure his eagerness to help people will Tuesday, June 11, 2002 not falter in retirement. His plans for the future HON. GEORGE RADANOVICH Mr. DEMINT. Mr. Speaker, Whereas, 3M include serving in the Peace Corps with his OF CALIFORNIA was founded 100 years ago in Two Harbors, wife Maria, spending more time with his fam- IN THE HOUSE OF REPRESENTATIVES Minnesota and serves as the world’s leading ily, backpacking around Colorado, vacationing Tuesday, June 11, 2002 innovative company; and in Maine, visiting Italy and Thailand, and hik- Whereas, 3M makes and sells thousands of ing the Appalachian Trail. Mr. RADANOVICH. Mr. Speaker, I rise products that improve people’s lives; and Mr. Speaker, I am certain that the entire today to honor Self-Help Enterprises (SHE) for Whereas, 3M is a company consisting of House of Representatives joins me in thanking its contributions to California’s San Joaquin 75,000 employees world-wide and 250 at the Mr. Neumann for his service to the Social Se- Valley. 3M Specialty Film and Media Products Divi- curity Administration and wishes him the best SHE was formed in 1965 with the purpose sion in Greenville, South Carolina; and of luck in retirement. of providing improved living conditions to low-

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00002 Fmt 0626 Sfmt 9920 E:\CR\FM\A11JN8.003 pfrm04 PsN: E12PT1 June 12, 2002 CONGRESSIONAL RECORD — Extensions of Remarks E1011 income families in the eight-county rural area chusetts in honoring William Wallace for his was extremely affected by the events of Sep- of the San Joaquin Valley. The idea of SHE 25 years of service as Executive Director of tember 11. Instead of exchanging Christmas dates back to the 1930s and to the program the Worcester Historical Museum as the insti- gifts, Sam urged his family to take a trip to American Friends Service Committee (AFSC). tution celebrates its 125th Anniversary. Ground Zero, so that he could observe directly This organization studied the desolate lives of Founded in 1875 by Samuel Staples, the how New Yorkers were impacted by that hor- coal miners and developed a self-help housing Worcester Historical Museum was designed to rible day. program. It also provided financing of 20- to be a cultural organization ‘‘not for today, but a Upon visiting Ground Zero, Sam discovered 30-year loans at 2% interest. hundred years to come.’’ With the help of the smoggy air, ashy streets and morose at- AFSC transformed into a national program Mayor Clark Jillson, the museum incorporated mosphere that he had expected. Silence pre- with its efforts in Goshen, California, located in in 1877. Originally, the museum consisted of vailed at the scene, only to be interrupted by the center of the San Joaquin Valley. Afford- two small rooms in the Worcester National the piercing noise of an ambulance’s siren, able, suitable housing in adequate numbers Bank Building on Foster Street. The museum which signified the passing of the vehicle, was not available to meet the needs of the eventually moved to its own building on Salis- filled with the remains of victims. It was a so- low-income families in the area. The AFSC of- bury Street fourteen years later. bering sight, and the missing posters that cov- fice in Visalia worked side by side with farm When Mr. Wallace signed on as Executive ered the walls, among tributes to the dead, left workers and others on the implementation of Director 25 years ago, he and his staff faced Sam with a somber, hopeless feeling. Yet a plan to construct homes. Rather than pay a the challenges of establishing an effective ex- when he began discussing the tragic day with developer to construct housing, the rural resi- hibition program for the Worcester Historical bystanders, firefighters, police officers, and dents worked together to build their own hous- Museum and managing the length of time that New York citizens, Sam realized that although ing developments. AFSC encouraged legisla- the museum and its fine collections would be the events of September 11 had caused 3,000 tion which would make housing loans eligible open to the public. Because of his tenacious deaths, it had also produced 10,000 miracles. to rural residents other than farmers under dedication and leadership, Mr. Wallace was Sam met one woman who had 11 family Section 502, and USDA’s Rural Housing Serv- able to overcome these initial obstacles and members at the World Trade Center on Sep- ice allowed the rural residents to earn credit oversee many changes. In April 1980, the mu- tember 11. After the smoke had cleared, the for ‘‘sweat equity’’ because they build their seum leased the Salisbury Mansion, thereby woman was amazed to hear that she had not own homes. The success of this program led creating the city’s first historic house museum. lost a single family member in the attacks. An- to the development in February 1965 of Self- Even today, Salisbury Mansion serves as a other woman, Janet Warnock, had a son who Help Enterprises, the first rural self-help hous- venue for house tours, lectures, concerts, and worked in one of the towers, and another son ing organization in the nation. SHE is still exhibitions. Most recently, the museum moved and husband who were firefighters that arrived dedicated to serving low-income rural families into the Georgian Revival building on Elm at the site on that fateful morning. Janet’s fam- after over 30 years. Street and showcases Worcester’s industrial ily members also survived. Mr. Speaker, I rise today to honor Self-Help history and the experiences of its immigrant Upon returning to Santa Barbara, Sam Enterprises for its tremendous dedication to groups. I believe the energy and passion Mr. wrote about his experience in New York. His the community. I invite my colleagues to join Wallace has for the museum has been a essay was later published in the Santa Bar- me in thanking SHE and wishing the program major factor in the museum’s overall evolution bara News-Press, attracting the attention of continued success in the future. into the fine institution it is today. his school principal, Gerrie Fawsett, who of- f In addition to his duties at the museum, Mr. fered Sam the resources to paint a mural re- Wallace is currently on the Board of Trustees flecting his experience. The 8th grade leader- 3M PACKAGING SYSTEMS DIVISION for the Friends of Hope Cemetery and served ship class also expressed interest in the as founding president from 1992 to 1997. Mr. project, and the students proceeded to create HON. JIM DeMINT Wallace’s interest in gravestones began this mural, entitled 3,000 Deaths, 10,000 Mir- OF SOUTH CAROLINA through his work on his family’s genealogy acles. IN THE HOUSE OF REPRESENTATIVES while he wrote a book on his great-great- On June 10, 2002, this mural was unveiled grandfather, John Hubbard Spaudling. Mr. at Santa Barbara Junior High. Janet Warnock Tuesday, June 11, 2002 Wallace has also been an integral figure in or- flew out from New York to be present at the Mr. DEMINT. Mr. Speaker, whereas, 3M ganizing World Smile Day and is an avid col- ceremony. The mural is a wonderful piece of was founded 100 years ago in Two Harbors, lector of Mickey Mouse memorabilia. I can work, and it will serve as a reminder that al- Minnesota and serves as the world’s leading personally testify to this since every time I though there were many tragedies on that innovative company; and meet with Mr. Wallace, he is always wearing fateful day, September 11 created many mir- Whereas, 3M makes and sells thousands of a Mickey Mouse tie! Clearly, Mr. Wallace ap- acles as well. products that improve people’s lives; and proaches everything with the same vivacity f Whereas, 3M is a company consisting of and care that he does with his work at the mu- 75,000 employees world-wide and 219 at the seum. PERSONAL EXPLANATION 3M Packaging Systems Division in Greenville, Mr. Speaker, I am certain that the entire South Carolina; and House of Representatives joins me in hon- HON. BOB RILEY Whereas, the 3M Packaging Systems Divi- oring Mr. Wallace for his many accomplish- OF ALABAMA sion began operations in Greenville in 1974; ments as Executive Director of the Worcester IN THE HOUSE OF REPRESENTATIVES and Historical Museum and wishes him the best of Tuesday, June 11, 2002 Whereas, 3M makes valuable contributions luck in retirement. to our community through jobs, environmental f Mr. RILEY. Mr. Speaker, I was unavoidably stewardship, charitable contributions and vol- detained for Roll Call No. 207, H.R. 4823, the unteerism; HONORING SAM DUDLEY Holocaust Restitution Tax Fairness Act. Had I Therefore, be it declared that, this 11th day been present I would have voted yea. of June 2002, shall be 3M day. HON. LOIS CAPPS I was also unavoidably detained for Roll Call f OF CALIFORNIA No. 208, H.R. 4800, to repeal the sunset of IN THE HOUSE OF REPRESENTATIVES the Economic Growth and Tax Relief Rec- HONORING WILLIAM WALLACE onciliation Act of 2001 with respect to the ex- FOR 25 YEARS OF SERVICE TO Tuesday, June 11, 2002 pansion of the adoption credit and adoption THE WORCESTER HISTORICAL Mrs. CAPPS. Mr. Speaker, yesterday I at- assistance programs. Had I been present I MUSEUM tended a special dedication of a mural at would have voted yea. Santa Barbara Junior High in the memory of I was also unavoidably detained for Roll Call HON. JAMES P. McGOVERN not only the 3,000 people who lost their lives No. 209, on Approving the Journal. Had I OF MASSACHUSETTS on September 11, but additionally in the mem- been present I would have voted yea. IN THE HOUSE OF REPRESENTATIVES ory of the 10,000 that survived. Today, I would I was also unavoidably detained for Roll Call like to pay special tribute to the person re- No. 210, on Agreeing to the Conference Re- Tuesday, June 11, 2002 sponsible for that mural, Sam Dudley. port on S. 1372, the Export-Import Bank Re- Mr. MCGOVERN. Mr. Speaker, I rise today Sam Dudley is a student at Santa Barbara authorization Act. Had I been present I would to join the community of Worcester, Massa- Junior High, who, like the rest of the country, have voted yea.

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00003 Fmt 0626 Sfmt 9920 E:\CR\FM\A11JN8.009 pfrm04 PsN: E12PT1 E1012 CONGRESSIONAL RECORD — Extensions of Remarks June 12, 2002 I was also unavoidably detained for Roll Call only agreement I made with USAG was that trying to support my wife’s lavish lifestyle. No. 211, the Woolsey of California Amend- (1) the manufacturing of any product would be They had no idea that my wife has worked 20 ment to H.R. 4664, Investing in America’s Fu- in my district and (2) eventually the entire cor- years, worked her way through college and that her family is very financially well off; ture Act. Had I been present I would have porate headquarters and all umbrellas would and we have never sought money from any- voted yea. be relocated to my district for the procurement body. And when I moved from New Jersey, I I was also unavoidably detained for Roll Call of jobs for my constituents. In this venue, I was carefully, carefully debt free and had no No. 212, H.R. 4664, Investing in America’s Fu- might add, high-tech jobs. obligations to anybody; and the thing about ture Act. Had I been present I would have J.J. Cafaro perjured himself in my trial to having to commit fraud with a bank in order voted yea. avoid charges of his previous perjured testi- to obtain a mortgage is pure nonsense. I was also unavoidably detained for Roll Call That’s where they’ve gone. They’ve gone mony in the RICO trial of former Mahoning after me in every way, shape and form. No. 213, on the Motion to Adjourn. Had I been County Sheriff, Phil Chance. In fact under JT: And Cafaro lied to you from day one, present I would have voted no. cross-examination by myself, Mr. Cafaro ad- didn’t he? I was also unavoidably detained for Roll Call mitted to ‘‘lying but not perjuring’’ himself, RD: Yes, he did. No. 214, to Table the Appeal of the Ruling of which is evidenced in the transcript. JT: And everything he said was a lie? the Chair. Had I been present I would have RD: And I have numerous witnesses where Be advised that the testimony in the Chance he lied to them. voted yea. trial dealt with an alibi, wherein Mr. Cafaro * * * * * f claimed to have given money to former Sheriff RD: Like I said, I can only tell the truth. A PROCLAMATION HONORING Chance, instead of mob-boss Lenny Strollo. I fear for my children’s lives. I’m scared to RICHARD SCHOLL Lenny Strollo later admitted that he had given death. the money to Chance. The same prosecutors JT: You’re going to be subpoenaed by me. in my trial called J.J. Cafaro in the Chance RD: Do it through the attorney. HON. ROBERT W. NEY JT: I will. trial a ‘‘liar’’ and Cafaro admitted to that in his RD: The threats and intimidation; I’m OF OHIO testimony. Mr. Cafaro perjured himself at my willing to go to the media. I’m willing to go IN THE HOUSE OF REPRESENTATIVES trial and paid for the perjured testimony of Al anyplace, you know. Tuesday, June 11, 2002 Lange, by providing for Al Lange’s attorney’s JT: File your lawsuit and go to the media and say their zeal to get Traficant, they Mr. NEY. Mr. Speaker, whereas, Richard fees. In addition, I have come to find out that as an additional inducement for his testimony, wanted me to lie. That’s the bottom line; Scholl has reached the safety milestone of and they pressured me to lie and made it One Million Miles driven without a preventable Al Lange, who has been diagnosed with can- known very clearly from what you told me accident; and cer, is being maintained by Mr. Cafaro’s insur- that if I lie, all my problems would go away. Whereas, Richard Scholl has been awarded ance, although the company has since gone RD: I didn’t lie. They wanted me to. I re- the rank of ‘‘Individual Million Mile Safe Driv- bankrupt and Mr. Lange is no longer em- fused. I just said keep calm. I’ve discussed with my wife. I discussed it with other asso- er’’, a rank of accomplishment reached by only ployed by Mr. Cafaro. This whole quid pro quo also involves my ciates. They said that I was (UNINTELLI- a few professional drivers; and GIBLE) with the IRS. I basically couldn’t Whereas, Richard Scholl must be com- boat. I had it for sale and was visited by J.J. even speak and my family members sat there mended for his service to the community, pro- Cafaro in my D.C. office one afternoon, where with me, and they said, Rick, we know you; viding safe transportation on our nation’s high- he handed me a book containing an evident you won’t lie; you don’t lie; don’t lie. Don’t ways; bookmarker. When I opened the book I found be coerced into lying. I said they’re telling Therefore, I join with the residents of the en- that it was a bank draft for $26,000 to buy my me they’re going to ruin my life if I don’t. I’m basically at my breaking point. I’m tire 18th Congressional District in recognizing boat. Mr. Cafaro was so thrilled that his com- pany, which was on the brink of bankruptcy, mentally running, I mean to tell you the Richard Scholl as a recipient of the Individual truth; I’m ready to just go ahead and blow Million Mile Safe Driver award. was given life through my efforts by obtaining my head off. It is so bad, if it wasn’t for my f $4 million for MEANPALS. kids and the strain it would have on my I refused the money that Mr. Cafaro offered kids, I’d be gone. TRAFICANT TRIAL: A RAILROAD me and informed him that one of his employ- 4. Mr. Detore, because he would not lie, OF JUSTICE ees, Al Lange, had a sincere interest in pur- was charged with a superceding indictment chasing the boat and claimed he had bonus with me. This information is evidenced in Mr. HON. JAMES A. TRAFICANT, JR. money coming from the company and that Mr. Detore’s sworn declaration in his Motion to OF OHIO Lange would ‘‘repair the boat and use it for Dismiss filed with the court. It states in per- IN THE HOUSE OF REPRESENTATIVES water navigation purposes.’’ J.J. Cafaro and Al tinent part: ‘‘30. Mr. Morford attempted to pressure me Tuesday, June 11, 2002 Lange testified that the whole thing was a boat scheme to reward me for my appropriation of [Detore] to change my statement that I Mr. TRAFICANT. Mr. Speaker, the govern- the $4 million. The problem is that they cannot knew of no acts of corruption involving Con- gressman Traficant, J.J. Cafaro, and USAG.’’ ment presented a ten-count indictment against overcome their lies with the following facts: me on May 4, 2001. And, convicted me on 5. Mr. Cafaro and Mr. Lange both testified 1. Al Lange had a professional boat survey that they bought me a welder and a gener- those ten counts, Thursday, April 11, 2002. done on the boat that showed that the value ator, which is another lie, since I would have Count Three—John J. Cafaro (The great of the boat to be greater (without repairs) than no use for these items having already owned anomaly—double jeopardy, perjury.) I had been asking. a welder and generator. The welder and gen- This count surrounds a now bankrupt firm 2. Richard Detore, then COO of USAG, was erator were given to me at my D.C. office to known as U.S. Aerospace Group Inc. of Ma- a witness to the boat transactions and said he deliver to Brian Kidwell, a constituent of nassas, VA. Like Lorena Bobbitt, they couldn’t mine, who had stated to me and the officials ‘‘would not lie’’ even after tremendous pres- at USAG, once he saw the first completed keep track of their appendages; in this case sure by the government to do so. their corporate structure. trailer, that he could ‘‘build the trailers This information is evidence in a taped con- needed for the company at a great savings.’’ The owner of the company was John J. versation I had with Mr. Detore on August 1, He further stated that ‘‘you [USAG]’’ provide Cafaro. The president was his 21-year-old 2001. It states in pertinent part: me with a welder for aluminum work and a daughter, Capri. The COO was Richard RD: What kind of witness does Cafaro real- quality generator and I’ll save ‘‘you up to Detore, who was later succeeded by Al Lange. ly make when the reality comes out that the 40% on trailer costs.’’ The company was going bankrupt, but owned guy’s lying . . . Mr. Kidwell testified under oath that the gen- patent rights to an aviation safety device sec- JT: Well he’s going to have Al Lange to erator perished in a fire and affirms that he ond to none, the laser flight navigation system. make him look like he’s telling the truth, has reported this information to his insurance I arranged to have this laser system dem- but they can’t handle the fact that you are company. onstrated for Aviation Subcommittee Chairman so upright and upstanding a man of integ- The welder was photographed and sched- Jimmy Duncan of Tennessee and FAA Admin- rity, and it’s going to blow their case; do you uled for delivery to the U.S. District court in istrator Jane Garvey. Both were impressed. understand? Cleveland so it could be shown to the jury that RD: Yeah, they tried to tear me apart, IRS. Ultimately there was $4 million appropriated They tried saying that I committed fraud in it was unused. The welder was picked up at for military testing and use of this system— order to obtain my house, which is nonsense Mr. Kidwell’s residence in Vienna, Ohio under MEANPALS. because the bank told them I qualified for extremely suspicious and threatening cir- This count was supposed to be a quid pro the house before I even moved. I was all cumstances. The following affidavit by Mr. quo like the others. Truth of the matter is the prequalified. They tried to tell me that I was Kidwell describes the events:

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00004 Fmt 0626 Sfmt 0634 E:\CR\FM\A11JN8.013 pfrm04 PsN: E12PT1 June 12, 2002 CONGRESSIONAL RECORD — Extensions of Remarks E1013 AFFIDAVIT OF BRIAN KIDWELL children, especially Gary, whom the three And next, as promised . . . Pinocchio, At- SATURDAY, APRIL 2, 2002 men had alluded to as having owned a blue torney at Law. pick-up truck. I hereby swear that the following accounts I never saw any identification. I never f of events that occurred concerning an un- asked if they represented any company not TRIBUTE TO MASTER CHIEF ELEC- used welder delivered to me from USAG by the government, I just followed their in- James A. Traficant, Jr. are true and accu- structions to ‘‘stay out of this.’’ TRONICS TECHNICIAN (SUB- rate. The above is a true and accurate state- MARINES) CURTIS DEAN HAG- On Friday afternoon, March 22, 2002, at ap- ment. GARD, U.S. NAVY proximately 3:30–4:30 p.m. a dark blue Ford Sworn before a notary on April 6, 2002. pick-up truck of a newer model pulled into Since this ordeal, Brian Kidwell has been my driveway at 1861 Youngstown-Kingsville HON. JO ANN DAVIS Road, Vienna, Ohio. notified that there have been visits to his em- OF VIRGINIA There were three big white men in the ployer concerning activities at his workplace IN THE HOUSE OF REPRESENTATIVES truck. and now suspects that the government is be- They backed the truck up to the building hind this because of Mr. Kidwell’s belief that Tuesday, June 11, 2002 where the USAG welder was stored and being the government illegally tampered with evi- Mrs. JO ANN DAVIS of Virginia. Mr. Speak- prepared to be shipped to Cleveland as evi- dence by picking up the welder. er, I rise today to honor Master Chief Elec- dence in the Traficant Trial. Another element in this count was that J.J. tronics Technician (Submarines) Curtis Dean They proceeded to take the unused USAG Cafaro alleged that he gave me $13,000 in Haggard, United States Navy. Master Chief welder out of the eastern garage door that cash while sitting in a car after a meeting out- the welder had been stored in. The door Haggard will retire on Friday, 14 June 2002 measured ten feet in height and nine feet in side of a building at Youngstown State Univer- after 24 years of faithful service to our Nation. width. sity. Again, Mr. Cafaro perjured himself. Master Chief Haggard enlisted in the United They then loaded, by hand, lifting the Former clerk to Chief Justice Thomas States Navy in Las Vegas, Nevada and re- welder onto the bed of the blue Ford pick-up Lambros, Attorney Percy Squire, was asked ported to Basic Training in San Diego, Cali- truck. I did not help load the welder. It was by me to be a character witness. When Atty. fornia in 1978. Upon completion of Electronics my impression that it was a half-ton pick-up Squire arrived for his court appearance, he Technician ‘‘A’’ School at Great Lakes, Illinois truck, single cab. said. he returned to San Diego for a six-month tour In addition, they had also taken all equip- ‘‘Why do you want me as a character wit- as a radar technician aboard the destroyer ment pertaining to the welder and also my ness, I know first hand that Bucci and Cafaro personal used yellow acetylene tank that USS John R. Craig (DD 885). He next re- are lying.’’ ported to Naval Nuclear Power School in Or- was stored on the back of the unused welder. Cafaro maintained that after a lengthy meet- They then asked me, after they loaded the lando, Florida and then to the Naval Nuclear ing at YSU that we (Cafaro and myself) ‘‘wait- unused welder, the equipment associated Propulsion Training Unit in Idaho Falls, Idaho. ed until everyone left’’ got into his car and with it, and my used acetylene tank. if that In 1980 Master Chief Haggard arrived at ‘‘drove around the block’’ when he gave me ‘‘blue pick-up truck that just pulled out’’ be- Pearl Harbor, Hawaii for duty in Reactor Con- $13,000 cash. longed to my son. trols Division abroad USS Tautog (SSN 639). I said, ‘‘yes.’’ Atty. Squire testified that he was serving as I then told them that the welder was to be an official advisor of a community group at the He completed deployments to the Western delivered to Cleveland. meeting and walked out with me and saw me Pacific, Eastern Pacific, and Indian Oceans They said, ‘‘This welder is not going to immediately get into a green truck and the and to the North Pole. He qualified Engineer- Cleveland.’’ driver of the truck drove off. Brian Kidwell, ing Watch Supervisor, Engineering Duty Petty Then they said, ‘‘if you are asked, you did Officer and Reactor Operator. In 1983, instruc- not see this welder going out of here.’’ who testified that he picked me up directly after the meeting, owned the truck. tor duty followed at the Trident Prototype in They proceeded to place a restraining Ballston Spa, New York where he qualified nylon tie down strap over the welder to se- I presented two witnesses to impeach the cure it to the truck bed. The restraining tie testimony of J.J. Cafaro, who the prosecutors Engineering Officer of the Watch and Engi- down nylon strap was my property and has had called a ‘‘liar’’ in a formed RICO trial and neering Duty Officer, was certified as a Master not been returned. now suborns Cafaro’s perjury and permits a Training Specialist and advanced to Chief I became very nervous and afraid when I conspiracy to continue between Cafaro and Al Petty Officer. realized that these men were not sent by Lange to help them to gain a conviction Mr. Speaker, he next reported as one of the Congressman Traficant for the purpose of against me. highly selective initial manning crew of the having the welder delivered to the Cleveland Because of his participation in my convic- Pre-Commissioning Unit Pennsylvania at the Court. Electric Boat Shipyard in Groton, Connecticut I further became concerned and afraid for tion, I imagine that Mr. Cafaro’s fate will prob- my three children since evidently, they knew ably resemble that of Anthony Bucci, who in 1987. After placing USS Pennsylvania my one son at least by asking about his blue made three federal plea agreements and is (SSBN 735) into commission in 1989 in New Chevrolet pick-up truck, which had just left. working on his fourth, which has rewarded him London, Connecticut, he arrived with the Blue When I testified in Cleveland at the Trafi- with 6 weeks home detention and 2 years of Crew in Kings Bay, Georgia and completed a cant Trial, Monday, March 25, 2002, I was probation for his crimes against the govern- five-year tour in Pennsylvania, including three afraid to mention to Congressman Traficant ment. Strategic Deterrent Patrols. He next reported what had occurred and led the Congressman Since the trial I have also learned that J.J. to Trident Training Facility in Kings Bay, where to believe that the welder would be delivered he qualified Command Duty Officer and to Cleveland for inspection. Cafaro wanted Al Lange to sign a demand I did this for the safety and concern of my note for money extended relative to my boat. served as the Reactor Controls Division Offi- three children. I’ve also learned that Mr. Cafaro continues to cer in the Engineering Training Department The three men never identified themselves pay for Mr. Lange’s hospitalization to this date and the Electronics Technician Maintenance and by their behavior and intimidation I did and continues to even though the USAG Com- School Supervisor. not attempt to stop them. pany has since dissolved and Mr. Lange is not In August 1995 Master Chief Haggard re- After considering all possible cir- an employee of Mr. Cafaro’s. ported to USS Hyman G. Rickover (SSN 709) cumstances, I decided to avoid everybody The question is . . . was Mr. Lange rep- in Norfolk, Virginia as the Engineering Depart- until the trial was over, since photographs resented by his own attorney, or was he really ment Master Chief. During this tour Rickover had been take of the machine extensively by Dominic Marchese, photographs that I had represented by Mr. Cafaro’s attorney? What is completed two Operational Reactor Safe- truthfully identified for the Court on March even more unusual is that Mr. Cafaro was the guards Examinations, two Tactical Readiness 25, 2002. government’s least credible witness, as evi- Evaluations and an extended deployment to My attempts to avoid any contact were in- denced by statements by the jurors, yet they the North Atlantic. In May 1997 he reported to terrupted by the unexpected visit of Con- threw out overt acts associated with other wit- the Deputy Chief of Naval Operations for Man- gressman James A. Traficant, Jr. and nesses and left all the Cafaro garbage in. power and Policy in the Navy Bureau of Per- Dominic Marchese on Saturday morning ap- Again, no physical evidence, no wiretaps, sonnel in Washington, DC, as Quality Control proximately 5:50 a.m. on April 6, 2002. no tapes, no hidden microphones and no fin- Advisor for nuclear enlisted personnel. I then admitted what had occurred on list- ed above and asked Congressman Traficant gerprints on more than 1000 documents. How Mr. Speaker, Master Chief Haggard is a to protect my family in any way he could so is it possible to reach a conclusion beyond a graduate of the University of the State of New that I would not get into trouble for failing reasonable doubt with only circumstantial evi- York in Albany, New York with a Bachelor of to report this. It was never my intention to dence and the testimony of felons, in a RICO Science degree in Psychology. He earned a break any laws, my concerns were for my case? Master of Public Administration degree from

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00005 Fmt 0626 Sfmt 9920 E:\CR\FM\A11JN8.018 pfrm04 PsN: E12PT1 E1014 CONGRESSIONAL RECORD — Extensions of Remarks June 12, 2002 the Valdosta State University in Valdosta, Mr. Speaker, it is with great pride that I con- Mr. Speaker, it’s time for us all to work to- Georgia where he was the 1993 Graduate gratulate Team Hammond for its second con- gether to enact a meaningful Medicare pre- Student of the Year. He also graduated with secutive year as national champions and third scription drug benefit. Military Honors from the Navy Senior Enlisted national championship overall at the US f Academy in Newport, Rhode Island in 1995. FIRST national competition. The young men Mr. Speaker, Master Chief Haggard’s con- and women of the team worked hard towards HONORING STANLEY ZIMMERMAN tributions have had a direct and lasting impact a goal and their efforts paid off. I hope that the on the overall readiness and effectiveness of rest of my colleagues will join with me in ap- HON. ADAM B. SCHIFF Naval Nuclear Propulsion Program personnel. plauding Team Hammond’s commendable ef- OF CALIFORNIA He is an individual of uncommon character fort. IN THE HOUSE OF REPRESENTATIVES and his professionalism will be sincerely f missed. I am proud, Mr. Speaker, to thank him Tuesday, June 11, 2002 for his honorable service in the United States IT’S TIME Mr. SCHIFF. Mr. Speaker, I rise today to Navy, and to wish him ‘‘fair winds and fol- honor Stanley Zimmerman on the occasion of lowing seas’’ as he closes his distinguished HON. KEN LUCAS his 70th birthday and the Preview of the Auto- military career. OF KENTUCKY mobile Driving Museum. For over 30 years, f IN THE HOUSE OF REPRESENTATIVES Stanley Zimmerman has been collecting, re- storing, and showing classic automobiles, NATIONAL CHAMPIONS HAMMOND Tuesday, June 11, 2002 amassing nearly 40 cars. This life long pas- ROBOTICS TEAM Mr. LUCAS of Kentucky. Mr. Speaker, I rise sion will culminate with the opening of the today to speak to my colleagues about pre- Automobile Driving Museum in the fall of HON. PETER J. VISCLOSKY scription drugs and Medicare. Specifically, I 2002. OF INDIANA feel it is an outrage that our senior citizens are Stanley’s passion for automotive restoration IN THE HOUSE OF REPRESENTATIVES being forced to drive to Canada to get pre- began in the 1970s when he purchased a Tuesday, June 11, 2002 scription drugs at reasonable prices, or even 1936 Packard Convertible Sedan which he Mr. VISCLOSKY. Mr. Speaker, it is with worse having to choose between buying food painstakingly restored over the ensuing 28 great pride and enthusiasm that I congratulate or medication. years to award-winning, 100 point perfection. the national champion Hammond Robotics This has gone on for far too long. As a cou- Since that time, his collection has expanded to Team. the team, which comprises students ple in Maysville, KY, avowed, ‘‘It is past time! include: Packards, Studebakers, Lincolns, from all racial, cultural, and economic walks of And way overdue! Older people need help, Fords, Cadillacs, Chryslers, and a Stutz. Due life, finished in first place for the second con- perhaps not all of us, but many of us do.’’ This to its uniqueness of variety and perfection, secutive year at the US FIRST national com- is just one of the many comments that I re- Stanley’s collection has been shown around petition in Orlando, FL. ceived in the mail from Kentucky seniors. the country, winning awards and inspiring fel- The members of the national champion However, as I read their comments, I realize low collectors. Hammond Robotics Team are: Amanda Al- these are not just the voices of Kentucky’s Over the last 30 years, Stanley Zimmer- dridge, Jasmine Barnett, Justin Clark, David senior citizens, they are the voices of Amer- man’s passion has contributed to the preser- Clinton, Ryan Gawron, Mike Goril, Ethan ica’s senior citizens. These senior citizens are vation of the history of automobile production Grove, Eugene Hanas, Elyse Holguin, veterans, they are mothers and fathers, they in America as well as the histories of the fa- Khamicia Jarrett, Kristyn Kapetanovic, Kevin are grandparents, and they are men and mous Americans who drove them. His collec- Kolodziej, Omar Martin, Sarah Michna, Luis women that have worked their entire life to tion contains such historically significant auto- Moreno, Amanda Morrison, Julia Novak, make America a better place. mobiles as a 1955 Packard Caribbean, a car Shane Ostapchuk, Michael Phillips, Christina As representatives of the American people, first purchased by Howard Hughes for his Polka, and Michael Smith. we must work together to pass a meaningful wife, Jean Peters, and a 1936 seven-pas- US FIRST is an organization dedicated to drug benefit for our senior citizens. We need senger Packard Phantom, purportedly a gift motivating America’s youth about science, a bipartisan prescription drug plan that helps from President Roosevelt to Joseph Stalin. technology, and engineering through hands-on seniors afford the drugs their doctors are tell- As a member of the Classic Car Club, The methods. The program involves a unique ing them they need. This is not a political Packard Automobile Classics Club, the An- blend of problem solving and competition that issue. This is a quality of life issue. We need tique Studebaker Club, the Lincoln Owners prepares students for real world situations. to get this done and get this done now. I Club, the Walter P. Chrysler Club and the Earl During the competition, teams face off against would like to share with you some of the sto- C. Anthony Packard Club, Stanley has gained each other and are given a limited amount of ries from Kentucky’s senior citizens. However, priceless knowledge about each of the cars he time to devise both an offensive and defensive when you listen to these stories from across has restored and has thus been able to pass strategy for accomplishing a specific task. the Fourth District of Kentucky, remember they on this knowledge to countless other classic Team Hammond conquered the challenge. are representative of the problems seniors are car owners and members of our national com- While nearly 1,000 teams nationwide were in- facing all across America. munity. With his years of experience as his volved in the US FIRST competition, Team From Crittenden, KY, ‘‘It is getting so bad guide, Stanley will open the Automobile Driv- Hammond came out on top. we are thinking about driving to Canada to ing Museum, the only car museum in the Although Team Hammond has enjoyed a stock up on our prescriptions.’’ From Rush, United States which allows visitors to ride in high level of success through the years, the KY, ‘‘Seniors have worked all their lives and the classic cars on display. team’s triumphs have not come without adver- now can’t enjoy pleasures because medicine I ask all Members to join me in congratu- sity. Though many of the teams at the Na- is too high.’’ From Pleasureville, KY, ‘‘When is lating Stanley Zimmerman for his devotion to tional Competition enjoyed significant cor- it going to end? Something surely needs to be the history and restoration of classic auto- porate financial underwriting, Team Hammond done, people like myself are not going to be mobiles and in wishing him good fortune upon had to work extremely hard to secure funding able to make it. Sometimes, I wonder do I pay the opening of the Automobile Driving Mu- for both the regional and national competition. my bills or buy my medicine.’’ From Dry seum. Through numerous fundraising efforts and pri- Ridge, KY, ‘‘We are both 68 years old. My f vate sponsorships, Team Hammond took the husband’s prescription drug bills were about necessary initiative and was able to secure $600 a month after heart surgery. So we start- IN RECOGNITION OF PASTOR the necessary funding for its worthy program. ed getting prescription drugs from Canada. My FATHER PHILLIP G. RACCO However, perhaps the most applaudable as- cholesterol medicine is $80 a month from Wal- pect of Team Hammond’s success is the var- Mart. From Canada it is $31 a month and is HON. STEPHANIE TUBBS JONES ious backgrounds from which the team mem- exactly the same prescription drug.’’ From OF OHIO bers come. The team is comprised of students Ashland, KY, ‘‘I am 90 years old and it is a IN THE HOUSE OF REPRESENTATIVES from all four of Hammond’s high schools and choice between food and Medicine.’’ From reflects the diversity on which northwest Indi- Williamstown, KY, ‘‘We need the medicine but Tuesday, June 11, 2002 ana prides itself. This diversity is, for the Ham- we need to eat too. Sometimes we do not Mrs. JONES of Ohio. Mr. Speaker, I rise mond Robotics Program, the rule rather than know which comes first. We need help with today to recognize Phillip G. Racco, Pastor of the exception and it should be commended. our prescription drugs.’’ Holy Rosary Church in Cleveland, OH. On

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00006 Fmt 0626 Sfmt 9920 E:\CR\FM\A11JN8.022 pfrm04 PsN: E12PT1 June 12, 2002 CONGRESSIONAL RECORD — Extensions of Remarks E1015 June 11, 2002, Father Racco will celebrate the INTRODUCTION OF OFFICIAL TIME The General Accounting Office (GAO) has silver anniversary of his ordinance into the REPORTING ACT tried to study how much official time is being priesthood. Father Racco has devoted 13 used but has been stymied by the lack of data years to ministering to the people of Holy Ro- HON. DAN MILLER on this issue. In testimony before the Civil sary and Little Italy. Father Racco has made OF FLORIDA Service Subcommittee of the House Govern- Holy Rosary Church a great haven for the stu- IN THE HOUSE OF REPRESENTATIVES ment Reform and Oversight Committee in June 1998, GAO concluded: ‘‘our work has dents at Case Western Reserve University Tuesday, June 11, 2002 shown that if decision makers hope to resolve and the many families and friends of patients Mr. DAN MILLER of Florida. Mr. Speaker, I the question of the extent to which federal at University Hospital and the Cleveland Clinic rise to discuss legislation I have introduced agencies use official time and other resources who visit the church daily. Father Racco has today. The ‘‘Official Time Reporting Act’’ is a to support employee union activities, better previously served as an assistant at St. John much needed effort to bring sunshine to the data will be needed.’’ mysterious world of ‘‘official time.’’ Bosco in Parma Heights, St. Margaret Mary in This bill will remedy this important GAO This bill would require the Office of Per- South Euclid and Pastor at St. Philomena in concern. East Cleveland prior to being assigned Pastor sonnel Management (OPM) to collect and re- port to Congress on the use of official time by The Official Time Reporting Act is different of Holy Rosary Church in 1989. federal union workers. than an official time bill that I introduced in Therefore, I join with the entire 11th District Official time is the use of federal govern- 1998 called the Workplace Integrity Act. of Ohio in congratulating Father Phillip Racco ment paid time to attend to union related busi- Whereas the 1998 bill contained restrictions for his 13 years of service to Holy Rosary ness. The use of official time by union mem- on official time, this bill solely concentrates on Church and the city of Cleveland. bers for the participation in collective bar- reporting and disclosure issues. The Official gaining and Federal Labor Relations Act au- Time Reporting Act has no restrictions on the use of official time. It is a bill introduced in the f thorized activities is a matter of statutory right. Using official time for other union activities is spirit of openness and good government. I am HONORING JOHN REYNOLDS negotiated between the agency and the union. hopeful this good government disclosure bill However, critics note that official time has will be acted upon by Congress in an expedi- ambiguous definitions that leave it open for tions manner. HON. GEORGE RADANOVICH abuse such as through the use of ‘‘no-show’’ I urge my colleagues to co-sponsor this im- jobs or government funded union advocacy. portant bill and I thank the Speaker for yield- OF CALIFORNIA Nevertheless, the bill I am introducing today ing me this time. IN THE HOUSE OF REPRESENTATIVES has nothing to do with the merits of official time, it simply tries to quantify the use of it f Tuesday, June 11, 2002 within the federal government. There are over 1.8 million federal workers CELEBRATING 120 YEARS OF Mr. RADANOVICH. Mr. Speaker, I rise currently working for the government. This SERVICE AND SPIRITUAL GUID- today to honor John Reynolds on the occasion large workforce is continuing to grow espe- ANCE of his retirement from the National Park Serv- cially with the war on terror adding to its roles. ice. I have had the pleasure of working with However, there is no method to tell what fed- HON. HEATHER WILSON him in my capacity on the Resources Com- eral resources (salary, equipment, etc.) are mittee and as the Representative from the used for purely union related work as opposed OF NEW MEXICO 19th District of California. to federal work. IN THE HOUSE OF REPRESENTATIVES John is the son of a park ranger, having Currently, only the Social Security Adminis- Tuesday, June 11, 2002 tration (SSA) collects and reports this informa- been born in Yellowstone National Park. He is tion. Mrs. WILSON of New Mexico. Mr. Speaker, the brother of a park superintendent who The information currently collected by the I would like to share the story of the Grant served around the country in superlative na- SSA includes: Chapel Church in my hometown of Albu- tional parks. He has spent the last 37 years (1) The number of hours of official time that querque, New Mexico. The church was found- crisscrossing the country, changing assign- employees spent on union activities; ed in 1882 as the ‘‘Colored Methodist Mission’’ ments every couple of years, and charting the (2) Number of employees who used official by a group of local African Americans. It was course of a moderate and flexible national time for union activities; built as a place for them to worship in dignity park system. He will retire August 2 as re- (3) Number of employees who spent 100 and respect. As one of the oldest African gional director of the Pacific West Region. percent of their time on union activities; American churches in the Southwest, the (4) Dollar value of the official time spent on church has provided spiritual guidance and His distinguished career began as a park union activities; refuge to Albuquerque communities for many planner and he developed a lifelong love of (5) Dollar value of the office space, equip- years. Yosemite National Park after serving as team ment, telephone use and supplies provided to In 1883, the New Mexico Township, Inc. captain for the first master plan. John has unions; and awarded several plots of lands to businesses (6) Benefits and disadvantages of using offi- served the National Park Service diligently in and churches to promote development in the cial time for union activities. numerous positions across the country. town that has become the Albuquerque we My bill would simply make every federal Among these John has acted as the Director know today. The Colored Methodist Mission of the Service Center located in Denver, Colo- agency report this information to the OPM. Extrapolating from the currently provided was only one of five churches to receive this rado, the Regional Director to the Mid Atlantic SSA data, official time usage could be at least gift from the city. Region, in Philadelphia, and the Deputy Direc- a $400 million a year federal government-wide The Grant Chapel Church has changed tor of the National Park Service here in Wash- expense. When we are talking about hundreds hands over the years and has had some fifty ington, D.C. Throughout his career with the of millions of dollars, Congress should not ministers serve its congregation throughout Service, John Reynolds has consistently dem- have to guess. the 120-year history. In 1905, the church was onstrated a level of care, commitment, leader- Furthermore the previous administration’s renamed for Bishop Abram Grant, the pre- ship and vision of America’s National Parks. I OPM was ordered by Congress to examine siding prelate of the 5th Episcopal District. The anticipate that John will continue to generously this issue in 1998. In its 1998 report, OPM cal- faithful members of this congregation built a share his thoughts and vision for these treas- culated a figure of roughly $110 million using church house in a Southwestern style in 1952 ures long into his retirement. different criteria than the SSA. So as you can and served the community there for nearly fifty see official time is not cheap. years before moving to a new location in Mr. Speaker, I rise today to honor John This bill puts sunshine on the issue of fed- 1990, where it remains today and continues to Reynolds on his retirement. I invite my col- eral worker productivity and will be an impor- serve. leagues to join me in thanking John for his tant tool for Congress to use to understand Mr. Speaker, please join me in congratu- outstanding service to the nation’s National how the money it appropriates is being spent lating this church for 120 years of service and Parks and in wishing him many more years of and for the Executive Branch to understand spiritual guidance to the Albuquerque commu- continued success. how it is allocating resources. nities.

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00007 Fmt 0626 Sfmt 0634 E:\CR\FM\A11JN8.026 pfrm04 PsN: E12PT1 E1016 CONGRESSIONAL RECORD — Extensions of Remarks June 12, 2002 HONORING MARCUS THAMES, THE through workshops and media projects. AUP The U.S. Justice Department’s Relocation LOUISVILLE SLUGGER, MIS- regularly conducts media projects in partner- Order in February of 1942 forced hundreds of SISSIPPI’S LATEST SPORTS LEG- ship with the United Nations Children’s Fund Italian residents of the East Contra Costa END (UNICEF) and the United Nations Educational, County area to relocate away from the newly Scientific and Cultural Organization built Camp Stoneman military based in Pitts- HON. RONNIE SHOWS (UNESCO). burgh. All Italian residents who were not legal OF MISSISSIPPI In 1997, AUP established the Digital Tech- citizens of the United States were labeled nology Academy, a ten-week summer media IN THE HOUSE OF REPRESENTATIVES ‘‘enemy aliens’’ and deemed a threat to na- arts program that trains inner-city young peo- tional security by the government. Tuesday, June 11, 2002 ple in the ever-growing field of digital tech- On Tuesday, June 11, 2002, ‘‘An Explo- Mr. SHOWS. Mr. Speaker, I rise today to nology with an emphasis on digital video pro- ration of Our History: The Story of East Contra share with my colleagues the exploits of base- duction and multimedia integration. The pro- Costa County’’ will be presented at the ball’s, and Mississippi’s, newest hero, Marcus gram was designed by the AUP staff to ad- Amborse Recreation Center in Bay Point, Cali- Thames, rookie outfielder for the New York dress the growing concerns and issues sur- fornia. Athletes United For Peace is thankful to Yankees. rounding the ‘‘Digital Divide‘‘ in relation to ac- Contra Costa County’s Service Integration Yes, Mr. Speaker, we Mississippians can cess and training for disadvantaged youth in Program and the local historical society for speak kindly about New York, as long as it is the East Bay. The AUP membership associa- having an opportunity to train young people in really about another Mississippian! tion with the United Nations has offered mem- digital technology for the purpose of docu- On Monday, June 10, Marcus Thames of bers of the Digital Technology Academy op- menting and preserving the community’s his- Louisville, Mississippi, made his Major League portunities to engage in interactive teleconfer- tory through this innovative intergenerational Baseball debut against the defending World ence and media presentations to the UN Gen- program that blends multimedia integration Champion Arizona Diamondbacks. And whom eral Assembly. and education. should he face on the pitchers’ mound? None In 1999, the Contra Costa County’s Employ- f other than Cy Young Award winner, World Se- ment and Human Services Department’s Serv- COMMENDING THE KING’S KIDS OF ries MVP and future Hall of Famer Randy ice Integration Program (Martinez) formed a AMERICA Johnson, that’s who! All 6 feet, 10 inches of partnership with AUP to conduct the Digital him! Technology Academy for groups of economi- Did Marcus Thames, this proud Mississip- cally disadvantaged teens from the county’s HON. J. RANDY FORBES pian, crumble under the pressure of the mo- unincorporated and under-served communities OF VIRGINIA ment? Did he let the sound of almost 50,000 of North Richmond and Bay Point. In addition IN THE HOUSE OF REPRESENTATIVES cheering fans get to him? No, of course not, to receiving comprehensive training in the Tuesday, June 11, 2002 he’s from Mississippi. Marcus Thames slugged areas of digital camera operation, audio, light- Mr. FORBES. Mr. Speaker, I rise to com- the first big league pitch he ever saw over the ing, script writing and desktop editing, each of mend the King’s Kids of America, Inc. for their fence for a home run! the teen participants were required to conduct outstanding service to our nation and the This graduate of East Central Community research on the history of their respective young people of America. Founded in Suffolk, College in Decatur, Mississippi, is the 82nd communities. Research performed by the teen Virginia in 1989, the King’s Kids of America player in baseball history to go deep in his first groups at the public libraries and local histor- has selflessly worked to develop our youth career at-bat, and the 32nd to do it on the first ical societies was refined and developed into into well-rounded young adults. The King’s pitch of his career. scripts for the academy’s series of award-win- Kids of America is a volunteer, non-profit com- But Marcus Thames won’t let stardom go to ning community history documentary film munity outreach program for all of America’s his head. Like all good Mississippi boys, the projects. youth. Their motto is: ‘‘striving to make a posi- The current documentary film ‘‘An Explo- first thing he did after the big game was to call tive difference.’’ his mama, Veterine, back home in Mississippi. ration of Our History: The Story of East Contra Unfortunately, the evidence is all around us Mr. Speaker, I salute Marcus Thames, Costa County,’’ was produced during the Sum- that our young people today need some extra baseball’s newest hero from Louisville, Mis- mer/Fall of 2001 and competed in the Spring care and support. Our youth today face chal- sissippi. The good people of Louisville and of 2002. The documentary objectively exam- lenges and obstacles that I never dreamed East Central Mississippi already know about ines the areas history from 1900–1944 from about when I was growing up. We know that him, and no doubt all Americans will become both social and economic perspectives. Pres- one caring adult can make a world of dif- very familiar with the newest Louisville Slugger entation of the historical content was con- ference in the life of a child. The King’s Kids for years to come. ducted through on-camera interviews with sev- of America is committed to making sure that f eral residents and local historians from the our youth make wholesome decisions that will Contra Costa County, Pittsburgh and Concord ATHLETES UNITED FOR PEACE lead to positive outcomes in their future. historical societies. America and Virginia need the King’s Kids of During this period of East Contra Costa America now more than ever. HON. GEORGE MILLER County’s community history, several events of Through the tireless efforts of the King’s OF CALIFORNIA national prominence occurred. The most nota- Kids of America over the years, and its numer- IN THE HOUSE OF REPRESENTATIVES ble events include: ous programs dedicated to developing our (1917) Walnut Creek Land developer Robert Tuesday, June 11, 2002 youth, the world is a better place. I applaud N. Burgess received a $20 million contract the King’s Kids of America’s history, and her- Mr. GEORGE MILLER of California. Mr. from the federal government in Washington, ald its future. I join with the citizens of the Speaker, I rise today to offer my congratula- D.C., to build 10 cargo ships for the war effort Commonwealth of Virginia and my colleagues tions to the Athletes United For Peace (AUP), during World War I. The ships were built at his in the House of Representatives in thanking a nonprofit organization based in Berkeley, Pacific Coast Shipbuilding Company located at the King’s Kids of America and all its mem- California, which is committed to promoting the deep water port in Bay Point next to the bers for their service, dedication, and contribu- peace, education, friendship, and under- Southern Pacific and Santa Fe trans- tions to our state. standing through programs and events for continental railroads. young people. (1942) The United States Army constructs f AUP is a member of the United Nations De- Camp Stoneman military base in Pittsburgh, THE HEPATITIS C CRISIS partment of Public Information’s worldwide which served as one of the largest embar- team of non-governmental organizations kation centers for soldiers preparing for com- HON. BILL PASCRELL, JR. (NGO), and represents the voice of young bat during World War II in the Pacific. OF NEW JERSEY people throughout the Bay Area counties of (1942) The United States Navy constructs IN THE HOUSE OF REPRESENTATIVES Alameda and Contra Costa. Some of the orga- the Naval Ammunition Depot in the town of nization’s duties as an NGO include attending Port Chicago, where enlisted African American Tuesday, June 11, 2002 international conferences; developing pro- sailors (material handlers) unloaded and load- Mr. PASCRELL. Mr. Speaker, I rise today to grams; and disseminating information on the ed ammunition that was transshipped by rail call attention to the health care crisis posed by United Nations’ current issues, initiatives and onto cargo ships at the deep-water port facil- Hepatitis C infection, and to highlight prom- projects to constituents in the Bay Area ity. ising news about awareness of the need for

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00008 Fmt 0626 Sfmt 9920 E:\CR\FM\A11JN8.030 pfrm04 PsN: E12PT1 June 12, 2002 CONGRESSIONAL RECORD — Extensions of Remarks E1017 testing and the development of new treatment [From the New York Times, May 14, 2002] combined with ribavirin, another antiviral options. As the attached article from The New MORE ARE FINDING PERMANENT CURES FOR agent. With both drugs taken together, a York Times demonstrates. Hepatitis C, esti- HEPATITIS C permanent cure rate of about 25 percent was achieved. One reason the rate was not higher (By Julie Bain) mated to affect more than 4 million Americans, was that the interferon was cleared out of is a growing public health threat that rivals that Five years ago, R. Scott Bromley, then 57, the blood so quickly. of AIDS. Although new infections are decreas- was returning from a trip to Sicily with Current treatment is pegylated interferon, ing, the incidence of Hepatitis C virus (HCV) friends when he felt a nagging pain in his a long-acting form of the treatment that infection is increasing as individuals who were right side. he was scheduled for an annual maintains a sustained blood level for a week. checkup the next day, and he learned from a infected years ago are just now learning of Approved by the Food and Drug Administra- blood test that his liver enzymes were ele- tion in 2001, it brought the cure rate up to their infection. Even as recently as last week, vated. about 50 percent. ‘‘And if you add ribavirin a Boston Globe article discusses significant in- Not a big drinker, Mr. Bromley, a New to it,’’ Dr. Tobias said, ‘‘you get to over 60 creases in Hepatitis C cases, noting that pub- York architect, told the doctor that while in percent.’’ lic awareness campaigns encouraging people Italy, ‘‘You have a little wine before dinner Five years ago Mr. Bromley began treat- to get tested are having an impact. on the piazza, a little wine during dinner, a ment with alpha interferon, and within two little wine after dinner,’’ and suggested and a half months he was down to a level of Hepatitis C is a blood-borne disease that maybe that was the cause of the unusual zero virus. But the side effects were dev- can lead to liver scarring, liver failure or can- numbers. astating. ‘‘I didn’t sleep well, my sex life was cer. It is the leading diagnosis leading to liver Two weeks later he was tested again, with all screwed up, I lost 40 pounds and the transplantation. Hepatitis C affects people the same result. He was referred to a spe- interferon changed my whole personality,’’ from all walks of life, although veterans, indi- cialist in liver disease and, after further he said. Then, just a year after he was off the drug, viduals who received blood transfusions prior tests, hepatitis C was diagnosed. The doctor told him he could have been harboring the the virus rebounded, even higher than it was to 1992, intravenous drug users, health care virus for 30 years or more with no symptoms. before. and emergency workers and hemophiliacs are What’s more, the disease could be life threat- There is no clear correlation between the at greatest risk of infection. Because of the ening. Mr. Bromley was devastated. viral count and what’s going on in the liver, long period of time between HCV infection and More than four million people have hepa- the real danger zone. the onset of symptoms, health experts believe titis C in the United States, five times as ‘‘I have patients with advanced liver dis- many as are infected with H.I.V. ease whose viral counts are fairly low,’’ Dr. that the incidence of known Hepatitis C infec- Tobias said, ‘‘and I have patients with very tion will continue to increase substantially in ‘‘It’s the bulk of my practice,’’ said Dr. Hillel Tobias, the medical director of the little liver disease whose viral counts are the coming years. The costs associated with Liver Transplant Service at New York Uni- very high. Similarly, there are people who Hepatitis C, estimated at $5.6 billion in 1997, versity Medical Center. have normal enzymes and still have signifi- can also be expected to rise. The reason is not that new cases are being cant hepatitis C.’’ That’s why a liver biopsy is usually re- The good news is, as more people become contracted. New cases have declined 80 per- cent in the last decade, mainly because blood quired to help determine treatment. For Mr. Bromley, whose tests showed little tested and learn of their HCV infection, med- transfusions have not been risk factors in damage to his liver, it was a tough decision ical science has made important treatment ad- that period, thanks to testing for the virus. whether to undergo a second treatment. But vances. In the early 1990’s treatment for Hep- But because the disease takes so long to a year and a half later, he began 48 weeks of atitis C was only moderately successful at progress, more patients are learning that interferon and ribavirin, and this time the they have hepatitis C while in their 40’s and eliminating the virus from the bloodstream. Ad- side effects were even worse. ‘‘I couldn’t 50’s and that they contracted the virus many vances in the past decade have made marked sleep,’’ he said. ‘‘I began forgetting things. I years ago. improvements. The Hepatitis Foundation Inter- would fall down in the middle of the street. The annual death toll, about 10,000 a year national estimates that currently 50 to 60 per- I became very depressed.’’ in the United States, is expected to increase cent of patients respond to treatment initially But the treatment worked, and Mr. for another decade to as many as 30,000 be- Bromley has been free of the virus for more and that lasting clearance of the virus occurs fore declining, according to the American in about 10 to 40 percent of patients. Addition- than three years. Liver Foundation. Other patients refuse a second treatment, ally, some patients who are not cured find that Unlike hepatitis A and B, there is no vac- saying the side effects, including flulike treatment can delay the need for a liver trans- cine for hepatitis C, and the virus can lead to symptoms and depression, aren’t worth it. plant, an important consideration given the serious liver disease, like cirrhosis or liver ‘‘But,’’ said Dr. Tobias, ‘‘they should be re- critical shortage of organs available for trans- cancer. Hepatitis C patients make up the treated with the pegylated interferon be- plant. largest percentage of people requiring liver cause a significant number of them will re- transplants. But with new treatments, more spond to it.’’ Despite these advances, new treatment are now finding permanent cures. Those who previously did not respond with regimens are desperately needed in this area. Some misconceptions exist about the way interferon have about a 20 percent chance of Other options are in various stages of re- the hepatitis C virus is spread, said Dr. Eu- being cured if they are retreated with the search and development for these patients gene R. Schiff, a professor of medicine and pegylated interferon. Those who have re- and I have sent a letter with several of my col- the director of the Center for Liver Disease lapsed after successful treatment have a at the University of Miami School of Medi- leagues to the Secretary of Health and Human chance of receiving a permanent cure of cine. ‘‘The unequivocally major mode of greater than 50 percent. Evidence also sug- Services to encourage him to expedite review transmission is blood to blood,’’ he said. An gests that even if a patient doesn’t lose the of such products as determined appropriate by estimated 300,000 Americans now infected got virus, the anti-inflammatory activity of the the Food and Drug Administration. In addition, the disease from a transfusion before 1990. pegylated interferon slows the progression of I have also sent a letter to the Labor, Health ‘‘Sexual transmission has been way over- the disease. Some patients who have ad- and Human Services, Education, and Related played,’’ he said. ‘‘So has transmission from vanced liver disease go on lifetime reduced- Agencies Appropriations Subcommittee re- mother to baby. It’s uncommon, probably dose interferon, which can delay the need for less than 3 percent for either of those, quite questing the Centers for Disease Control and a liver transplant. the opposite from hepatitis B.’’ New treatments in development may re- Prevention (CDC), the National Institute of Al- Drugs injected by needle also pose blood- place interferon an ribavirin, or be added to lergy and Infectious Diseases (NIAID), and the to-blood risks. ‘‘The classic hepatitis C pa- them in a drug cocktail, similar to AIDS and National Institute of Diabetes and Digestive tient today is a very upstanding 50-year-old H.I.V. treatments. Vertex and Eli Lilly re- and Kidney Diseases (NIDDK) to include lan- lawyer who once tried a needle when he was cently announced that they were developing guage that will recognize and address the in- in college,’’ Dr. Tobias said. ‘‘In the 70’s, a a protease inhibitor that could prevent the tensity of Hepatitis C and language that en- lot of kids in college tried needles once.’’ virus from making infectious copies of itself. courages research for better treatment options Tattoo needles can also spread the disease. Even more promising, say doctors, is a po- Because of the lack of symptoms, many for those in high-risk populations. lymerase inhibitor, which may also stop the cases go undetected until the disease is ad- virus from replicating. Another possibility is In the meantime, a growing number of vanced, although a test can detect antibodies a ribozyme, which may cut the hepatitis C Americans, like the patient described in The to the virus before it affects the liver. virus ‘‘like a scissors,’’ said Dr. Schiff. Times article, will discover their infection in the Starting in 1992, the treatment of choice None of these treatments, however, will be was alpha interferon, injected three times a available for several years. coming decade. I am hopeful that medical week for a year. This antiviral protein can A vaccine remains a challenge because science, together with sound public policy, will kill the virus, as well as boost the immune hepatitis C has eight different molecular do everything possible to help these Ameri- system. The rate of permanent viral clear- configurations that are constantly changing cans fight their disease and continue to lead ance was 8 to 10 percent, Dr. Tobias said. and mutating. A vaccine would require de- productive lives. About five years ago, this treatment was veloping an immune response to a part of the

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00009 Fmt 0626 Sfmt 0634 E:\CR\FM\A11JN8.040 pfrm04 PsN: E12PT1 E1018 CONGRESSIONAL RECORD — Extensions of Remarks June 12, 2002 virus that is relatively stable across all the my district in Ohio, has been commendable. remarkable understanding of history. His variations. It’s important to remember the bravery and award winning research paper, titled ‘‘ ‘In f service of others to our country throughout Times of War the Laws are Silent’: The Fair history. The Throckmorton reunion in Williams- Play Committee, Heart Mountain Relocation IN RECOGNITION OF FIRST NA- burg, Virginia is a gathering of a great Amer- Camp, Wyoming, 1944’’ is a written testament TIONAL THROCKMORTON RE- ican family and a salute to times past. I’m con- to these qualities. The paper describes the ex- UNION fident that generations from now the periences of the Fair Play Committee, a group Throckmortons will continue to be a proud of Japanese Americans who were sentenced HON. DEBORAH PRYCE family of patriots. It’s my honor and privilege to extended terms in federal prison for refus- OF OHIO to recognize the Throckmorton family, and ex- ing to appear for draft induction while being IN THE HOUSE OF REPRESENTATIVES tend my best wishes to them all. The United held in internment camps as potential enemies Tuesday, June 11, 2002 States is in their debt. of the United States. f The sixty-three members of the Fair Play Ms. PRYCE of Ohio. Mr. Speaker, I rise Committee unanimously agreed to serve in the today to recognize the first national IN HONOR OF THE HEROISM OF military on the condition that their constitu- Throckmorton Reunion, to be held in Williams- JOHNNY SHERRILL tional rights be restored, a remarkable histor- burg, Virginia from June 16th through the ical event that Andrew Kamei explored with 20th. The Throckmorton family’s legacy in the HON. MICHAEL N. CASTLE tremendous determination. By talking to United States is as storied and proud as any OF DELAWARE former internees, scouring state archives, and lineage in our nation’s history. From the settle- IN THE HOUSE OF REPRESENTATIVES meeting with surviving members of the Fair ment of Jamestown in 1607 to the present, the Tuesday, June 11, 2002 Play Committee, Andrew has put together a Throckmorton name has embodied public research paper of the highest caliber. Further- service and patriotism. They were involved in Mr. CASTLE. Mr. Speaker, it is with great more, Andrew draws on his own experiences the founding of our country from early colonial pleasure that I rise today to pay tribute to and as a Japanese American and the son of a times through the Revolution, into the Civil honor the heroism of a brave civil servant, Mr. man born into internment to give his work an War and Reconstruction. Throckmortons from Johnny Sherrill of New Castle, Delaware. His added depth and gravity. The result is an im- around the U.S. will meet in the colonial city bravery and heroic actions resulted in a life portant historical document worthy of com- of Williamsburg to celebrate their illustrious being saved. peting in the National History Day Competi- heritage and retrace the steps of their fore- Mr. Sherrill, a mail carrier with the United tion. fathers as founders of Virginia and Colonial States Postal Service, deserves a hero’s rec- Mr. Speaker, I commend Andrew Kamei for America. ognition for his actions that save the life of 95- his spirited pursuit of academic excellence and Their story in America begins with the trav- year-old Elsmere resident Almira Francisco. historical perspective. Balancing national secu- els of Kellam Throckmorton to Jamestown, While on his delivery route, Mr. Sherrill heard rity and civil liberties is an important issue, Virginia in 1607. Kellam was among the set- a smoke detector alarm and noticed smoke one that Andrew can continue to study and tlers of England’s first colonial establishment coming from Mrs. Francisco’s residence. Mr. apply to what will certainly be a bright aca- on our soil. Kellam was sadly among the Sherrill alertly checked on the residence, es- demic and professional future. brave adventurers who did not survive the corted Mrs. Francisco safely outside, and f harsh winter of that first year in Virginia. Even called the Elsmere Fire Department. After IN HONOR OF THE 90TH ANNIVER- Sir Walter Raleigh, a founder of Virginia, was waiting for emergency personnel to arrive, Mr. SARY OF TEMPLE EMANU-EL connected to the Throckmortons; marrying Sherrill simply continued on with his delivery Elizabeth Throckmorton the daughter of route. Queen Elizabeth’s Ambassador to France. Mr. Sherrill displayed a quality that all Dela- HON. ROBERT MENENDEZ The next chapter of the Throckmorton legacy wareans should look for in a role model—self- OF NEW JERSEY was the following generation and the travels of less concern for fellow citizens. We should all IN THE HOUSE OF REPRESENTATIVES John Throckmorton with Roger Williams. Ad- hope to emulate Mr. Sherrill’s actions. In times Tuesday, June 11, 2002 like these, America needs everyday heroes mitted as a Freeman on May 18, 1631 in Mr. MENENDEZ. Mr. Speaker, I rise today who display courage and bravery when called Salem, Mass., John, along with Williams, set- to honor the 90th Anniversary of Bayonne’s upon to help their fellow citizens. I am proud tled most of Rhode Island and other parts of Temple Emanu-El. This momentous event to say that Mr. Sherrill exemplified these quali- New England in the 1630’s and 40’s. took place on Sunday, June 9, 2002, at Tem- ties with his actions, and his recognition, Mr. Several family members were guests of ple Emanu-El, and featured the television per- Speaker, is duly deserved. George and Martha Washington’s and served sonalities, ‘‘The God Squad’’, Msgr. Thomas under him in the Continental Army during the Ordinary people, like Johnny Sherrill from my great State of Delaware, are the true he- Harman and Rabbi Marc Gellman. Revolutionary War. Families such as the Initially formed in 1911 as a response to the roes in today’s world, and are the true role Throckmortons are more than worthy of rec- Conservative Movement of America, Temple models for the next generation of leaders, ognition for their immeasurable sacrifices to Emanu-El, with its modern outlook, has served both inside and outside of Delaware’s borders. our nation’s birth and cause. and continues to serve as a inviting place of The Civil War era saw two prominent politi- f worship for Bayonne’s Jewish community. In a cians and soldiers from this family. James TRIBUTE TO MR. ANDREW KAMEI departure from the Orthodox practice, in 1913, Webb Throckmorton was a soldier in the Mexi- it was decided that men and women should sit can War and a Confederate general from HON. MICHAEL M. HONDA together, demonstrating the Temple’s enlight- Texas. He worked closely with American hero OF CALIFORNIA ened vision, as well as its commitment to the Sam Houston as a Texas state senator lead- IN THE HOUSE OF REPRESENTATIVES congregation. ing up to the war. Although he fought for the The Temple’s first President was Hyman South, Throckmorton was one of seven dele- Tuesday, June 11, 2002 Lazarus, followed by many outstanding lead- gates who voted against the 1861 Texas Se- Mr. HONDA. Mr. Speaker, I rise today in ers, all of whom contributed greatly to making cession Convention. After the war, James honor of the achievement of Mr. Andrew Temple Emanu-El the esteemed place of wor- Webb Throckmorton was elected governor of Kamei of Bishop, California. Andrew Kamei ship it is today. The Temple’s first building Texas and later served for over a decade in was awarded first place in the Junior Historical was purchased in 1912 and completed in the House of Representatives before his pass- Research Paper category at the California 1913. In 1953, the building was completely ing in 1894. This era also includes the serv- State History Day competition held in San renovated, and continues to serve as the con- ices of Oliver Hazard Perry Throckmorton as Jose, California. Having accomplished this, gregation’s meeting place. Governor of Indiana and as a close advisor of Andrew has earned the honor of representing Over the past nine decades, Temple President Ulysses S. Grant in 1872. Oliver California in the National History Day Competi- Emanu-El has established itself as Bayonne’s Throckmorton served as an American envoy tion this month, an event honoring the scholar- leading Jewish religious institution with a to Great Britain as well. ship and creativity of students across the na- beautiful house of worship, exceptional reli- More recently, the proactive work of Mrs. tion. gious instruction for its students, and count- Clare McClaren-Throckmorton and Dr. Caro- Andrew Kamei is a 12-year-old seventh less social functions for its congregants and line Throckmorton Lewin, a psychologist from grader with an inspirational work ethic and a their family and friends.

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00010 Fmt 0626 Sfmt 9920 E:\CR\FM\A11JN8.044 pfrm04 PsN: E12PT1 June 12, 2002 CONGRESSIONAL RECORD — Extensions of Remarks E1019 Today, I ask my colleagues to join me in Weavers, where he has developed remarkable CHILD HEALTH CARE honoring Temple Emanu-El for ninety years of skill in the trade, adding a little piece of him- AFFORDABILITY Jewish religious guidance, the congregation’s self to each item he weaves. contributions to the community of Bayonne, Having spent his entire life in Colorado, HON. RON PAUL and its success at making Bayonne a more Danny has been an avid Denver Broncos foot- OF TEXAS prosperous and spiritual community. ball fan for many years. Like many Broncos IN THE HOUSE OF REPRESENTATIVES f fans, Danny is an admirer of former Quarter- back John Elway. To express his love and ap- Tuesday, June 11, 2002 A PROCLAMATION RECOGNIZING preciation for Elway and his exploits on the Mr. PAUL. Mr. Speaker, I am pleased to TRINITY CHRISTIAN ACADEMY field, Danny recently wove bright orange mug help working Americans provide for their chil- mats and a glass case for John Elway and his dren’s health care needs by introducing the HON. ROBERT W. NEY family—yet another example of Danny’s big Child Health Care Affordability Act. The Child OF OHIO heart and selfless nature. Health Care Affordability Act provides parents Mr. Speaker, I bring my friend Danny Collins IN THE HOUSE OF REPRESENTATIVES with a tax credit of up to $500 for health care to the attention of this body of Congress not expenses of dependent children. Parents car- Tuesday, June 11, 2002 because of the particular accomplishments he ing for a child with a disability, terminal dis- Mr. NEY. Mr. Speaker, Whereas, Trinity has achieved during the course of his life, but ease, cancer, or any other health condition re- Christian Academy participated in National rather for the infectious spirit and indomitable quiring specialized care would receive a tax Make a Difference Day, Good Deeds Literacy will that have been his hallmark since child- credit of up to $3,000 to help cover their Contest in October 2001; and hood. I am proud to pay tribute to a good child’s health care expenses. The tax credit Whereas, Trinity Christian Academy col- friend and fellow Coloradan. The love and joy would be available to all citizens regardless of lected children’s books to be sent to the chil- that Danny reflects was absorbed from his whether or not they itemize their deductions. dren of New York Police and Fire Fighters af- caring family who have swarmed around him The tax credits provided in this bill will be fected by the tragic events of September 11th, like angels from the time he was young. especially helpful to those Americans whose 2001; and Though Danny’s parents have sadly passed employers cannot afford to provide their em- Whereas, Trinity Christian Academy has away recently, I know their affection for Danny ployees health insurance. These workers must demonstrated a commitment to the community lives on in the lives of his three siblings. I struggle to meet the medical bills of them- and whole Nation by helping others in need, echo their admiration for Danny as I pay trib- selves and their families. This burden is espe- and ute to him today here on the floor of this dis- cially heavy on, parents whose children have Whereas, Trinity Christian Academy is to be tinguished Chamber—he is a truly remarkable a medical condition, such as cancer or a phys- commended for its hard work and dedication; man. ical disability, which requires long-term or spe- Therefore, I join with the residents of the en- f cialized health care. tire 18th Congressional District in honoring As an OB–GYN who has had the privilege CELEBRATING THE BIRTH OF Trinity Christian Academy for its outstanding of delivering more than four thousand babies, HARRISON BECKETT LAZAR dedication to others. I know how important it is that parents have f the resources to provide adequate health care HON. VAN HILLEARY for their children. The inability of many working PAYING TRIBUTE TO DANNY OF TENNESSEE Americans to provide health care for their chil- COLLINS IN THE HOUSE OF REPRESENTATIVES dren is rooted in one of the great inequities of Tuesday, June 11, 2002 the tax code: Congress’ failure to allow individ- HON. SCOTT McINNIS Mr. HILLEARY. Mr. Speaker, over 2,000 uals the same ability to deduct health care OF COLORADO years ago, Cicero, the Roman statesman, phi- costs that it grants to businesses. As a direct IN THE HOUSE OF REPRESENTATIVES losopher and politician, noted, ‘‘Of all nature’s result of Congress’ refusal to provide individ- uals with health care related tax credits, par- Tuesday, June 11, 2002 gifts to the human race, what is sweeter to a man than his children?’’ A rhetorical question ents whose employers do not provide health Mr. MCINNIS. Mr. Speaker, I rise today to of course to which the answer is nothing. It re- insurance have to struggle to provide health pay tribute to a man whose unrelenting spirit, mains as true today as it was when Cicero care for their children. Many of these parents and passion for life, have personally touched said it two millennia ago. work in low-income jobs; oftentimes their only me during our many years of friendship: Children are the greatest gift God can be- recourse to health care is the local emergency Danny Collins. I grew up with Danny and have stow upon us. They bring pride and joy, humil- room. been impressed by his infectious joy since we ity and unconditional love and so much more. Sometimes parents are forced to delay first met. Danny’s ongoing struggle with the ef- Most of what we do is fleeting, but the values seeking care for their children until minor fects of Down Syndrome has been an inspira- and principles we teach our children are last- health concern that could have been easily tion to me from a very young age; to watch ing. Whatever we may do in life, our children treated become serious problems requiring ex- him undertake this battle with a constant smile and their progeny are our most important leg- pensive treatment! If these parents had ac- on his face has been a reminder of the many acy. cess to the type of tax credits provided in the ways in which we all take our lives for grant- Craig and Andrea Lazar welcomed their first Child Health Care Affordability Act, they would ed. child into the world last week. Harrison be better able to provide care for their chil- Danny was born in Glenwood Springs, CO, Beckett Lazar arrived at 8:30 a.m. on Thurs- dren, and our nation’s already overcrowded in 1953, though he was raised for much of his day, May 30. emergency room facilities would be relieved of early life in nearby Carbondale. At the age of His life will be enriched by a large and car- the burden of having to provide routine care ten, Danny Collins returned to Glenwood ing extended family. Harrison’s maternal for people who otherwise cannot afford it. Springs, where we both spent our childhood. grandparents are Christine Hessong and Keith According to research on the effects of this From a young age, it was clear that Danny Hessong. His paternal grandparents are bill done by my staff and legislative counsel, was a very special person. Though he has Charles Lazar, and Linda Lazar. Harrison has the benefit of these tax credits would begin to Down Syndrome, Danny has been a constant five great-grandparents: Don and Angus be felt by joint filers with incomes slightly source of light in the lives of others: he has Hessong, Max and Helen Beloff and Katherine above $18,000 dollars a year, or single in- never allowed his challenges to dampen his Lazar. come filers with incomes slightly above contagious spirit for life. I join them in celebrating the birth of Har- $15,000 per year. Clearly this bill will be of the In 1978, Danny became a client at Mountain rison Beckett Lazar. Harrison’s birth, as does most benefit to low-income Americans bal- Valley Developmental Services of Glenwood those of all children born today, holds the ancing the demands of taxation with the needs Springs, where he received invaluable care promise of our future. We welcome him to a of their children. and attention from their many skilled practi- world that we constantly strive to make better Under the Child Health Care Affordability tioners. He moved into their first group home so his future will be a little brighter, more se- Act, a struggling single mother with an asth- on Hager Lane and benefited from the cama- cure and full of promise, and so when the time matic child would at last be able to provide for raderie and love that Mountain Valley Devel- comes when his own child is born, he may her child’s needs; while a working-class family opmental Services had to offer. Danny cur- revel in the sweetest gift that can be bestowed will not have to worry about how they will pay rently works as a weaver at Mountain Valley upon us. the bills if one of their children requires

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00011 Fmt 0626 Sfmt 9920 E:\CR\FM\A11JN8.049 pfrm04 PsN: E12PT1 E1020 CONGRESSIONAL RECORD — Extensions of Remarks June 12, 2002 lengthy hospitalization or some other form of example to us all. In the wake of the tragedies Howard Station and WKYC, a Gannett owned specialized care. of 9/11, Aaron’s passing is just one more re- station, are leading the charge into the digital Mr. Speaker, this Congress has a moral re- minder of the price that we pay for freedom. future. sponsibility to provide tax relief for low-income Mr. Speaker it is my profound honor to bring Across the country, local broadcasters have parents struggling to care for a sick child, in such a man to the attention of this body of made substantial investments in new transmit- order to help them better meet their child’s Congress and a grateful nation. Thank you ting facilities, new production equipment, and medical expenses. Some may say that we Aaron, for all that you gave in defense of your in some cases, new broadcast towers. Collec- cannot enact the Child Health Care Afford- state and your nation. As his family mourns tively, the broadcast industry has invested ability Act because it would cause the govern- his loss, I would like to extend my deepest over one billion dollars in this new technology. ment to lose revenue, but who is more deserv- sympathies. While local broadcasters are doing their part ing of this money, Congress or the working f to propel the digital television transition for- parents of a sick child? ward, all the pieces of this transition have yet The Child Health Care Affordability Act DR. GEORGE BASS to fall into place. The transition will accelerate takes a major step toward helping working significantly once cable companies begin to Americans meet their health care needs by HON. KEVIN BRADY carry local broadcasters’ digital signals. 70% providing them with generous health care re- OF TEXAS of U.S. television households receive their TV lated tax cuts and tax credits. I urge my col- IN THE HOUSE OF REPRESENTATIVES through cable. American consumers will begin leagues to support the pro-family, pro-health Tuesday, June 11, 2002 to reap the full benefits of this revolution once care tax cuts contained in the Child Health digital television is available on cable. Mr. BRADY of Texas. Mr. Speaker, I rise Care Affordability Act. I hope that Congress can work with these today to honor an outstanding researcher from different groups: broadcasters and cable oper- f my district, Dr. George Bass. On Wednesday, ators, and other interested parties on remain- PAYING TRIBUTE TO DANIEL June 12, 2002, Dr. Bass, a retired professor ing issues. Until then, however, I am confident AARON ROMERO emeritus from Texas A&M University, will re- the future of television is digital. And that fu- ceive the National Medal of Science for his ture is bright. HON. SCOTT McINNIS work in nautical archeology. This discipline is f dedicated to understanding human existence OF COLORADO through the discovery and study of ships and PAYING TRIBUTE TO BRET KELLY IN THE HOUSE OF REPRESENTATIVES the cultures that constructed them. Tuesday, June 11, 2002 Dr. Bass, known as the ‘‘father of nautical HON. SCOTT McINNIS Mr. McINNIS. Mr. Speaker it is with a sol- archeology,’’ is internationally recognized as a OF COLORADO emn heart but also great pride that I honor the leader in his field. Dr. Bass is credited for con- IN THE HOUSE OF REPRESENTATIVES life and memory of Daniel Aaron Romero. ducting the first excavation of an ancient ship- Tuesday, June 11, 2002 wreck entirely on the seabed. This event took Known to his family as Aaron, this young man Mr. MCINNIS. Mr. Speaker, it is with a sol- place in 1960. Since that time, Dr. Bass has responded to his country’s call for help and emn heart that I take this opportunity to pay conducted excavations in the United States, gave his life for its security. On the seven- tribute to the life of Bret Kelly, who recently Turkey, and the Caribbean. teenth of March, Aaron was killed in Afghani- passed away at the age of 79. Bret was a pil- In 1973, Dr. Bass established the Institute of stan while involved in an ordinance disposal lar of the Pueblo, Colorado community and, as Nautical Archeology. Today, this institute con- operation. Like many young men and women his family mourns his loss, I think it is appro- ducts research on four continents. The infor- today, Aaron believed that our nation needs priate that we remember his life and celebrate mation obtained from this research allows us her citizens to stand up and fight for our ideals the work he did on behalf of others. to better understand how ancient societies and values, and like Aaron, several will have Born in Rocky Ford, Colorado, Bret at- conducted commerce, educated their children, to pay the ultimate price. Aaron knew the tended Centennial High School in 1940. After and organized their lives. risks, but believed in our cause, and today he graduating, he enrolled at the University of For his contributions to his field, Dr. Bass reminds all Americans of the courage and self- Colorado, though his studies there were inter- has received numerous awards and decora- lessness that allows us the freedoms we cher- rupted when he answered the call to serve our tions including the Gold Medal for Distin- ish today. I can think of no better way to honor nation in the US Army infantry in World War guished Archeological Achievement in 1986. Aaron then to recognize his achievements and II. Bret’s service in the war included fighting in Additionally, he was honored by the Society service before this body of Congress and this the historic Battle of the Bulge, in which he for Historical Archeology in 1999 and the nation today. suffered severe shrapnel wounds to his arm Aaron was born in Longmont, Colorado and American Academy of Achievement in 2001. Although retired from Texas A&M, Dr. Bass and back. At the conclusion of his time in the grew up in the town of Lafayette. In 1991, he is not retired from expanding our under- armed forces, Bret was awarded both the Sil- fulfilled a lifelong dream of joining the military. standing of the past. He continues to be ac- ver Star and Bronze Star with Oak Leaf Clus- He joined the Army and attended basic, ad- tively involved in his research institute and ter for the uncommon valor that he displayed vanced, individual, and eventually, airborne continues to publish in scholarly journals. For in the service of our nation. training. He excelled in his role as a soldier, Bret was a shining example of a man thor- his contributions to human knowledge, I am and through hard work and dedication, he oughly involved in his community. He was forever grateful. joined the prestigious ranks of the Special named Citizen of the Year in 2001 by the Forces. He was an esteemed member of B f Greater Pueblo Chamber of Commerce and Company of the 5th battalion 19th Special DIGITAL TELEVISION was lauded for having a profound influence on Forces Group of the Colorado Army National the entire Pueblo community. As a member of Guard, and served as the valuable Commu- HON. SHERROD BROWN the Pueblo Board of Water Works and over a nications Chief for his unit. OF OHIO dozen community organizations, Bret’s pas- As member of the U.S. Army, Aaron trav- IN THE HOUSE OF REPRESENTATIVES sion and involvement in the lives of his neigh- eled the world frequently in defense of his bors was an inspiration to all who knew him. country, and after long periods of separation Tuesday, June 11, 2002 His early financial support of the Pueblo His- from his family, he was assigned the National Mr. BROWN of Ohio. Mr. Speaker, I rise panic Education Fund made a difference in Guard Post in Pueblo. He enjoyed spending today in support of an exciting new tech- the lives of countless students. As the head of time with his family and will be remembered nology. Local television broadcasters across Steel City Agencies, Inc., Bret took an active as a wonderful person. the country are undertaking their biggest ad- interest in each of his 46 employees, pro- Mr. Speaker, Aaron’s dedication to excel- vancement in years: the transition to digital tel- moting their continuing education and encour- lence is reflected in his decorations which in- evision. These stations aim to provide new aging them to join him in giving back to their clude the Army Service Ribbon, the Non-Com- services to their viewers, our constituents. Dig- community. missioned Officers Ribbon, the National De- ital TV opens the door to new possibilities like Mr. Speaker, it is my privilege to pay tribute fense Service Medal, the Colorado Emergency High Definition TV, interactive television, and to Bret Kelly for his contributions to the Pueblo Service Ribbon, the parachute badge, and the expanded programming options. area. Bret’s dedication to his community, em- Special Forces tab. His dedication to this na- Two Cleveland stations already serve my ployees and family certainly deserves the rec- tion, his bravery, and his courage, serve as an district with digital signals: WEWS, a Scripps ognition of this body of Congress. Although

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00012 Fmt 0626 Sfmt 9920 E:\CR\FM\A11JN8.053 pfrm04 PsN: E12PT1 June 12, 2002 CONGRESSIONAL RECORD — Extensions of Remarks E1021 Bret has left us, his good-natured spirit lives Judi so much admired the majestic moun- trying to minimize one’s tax burden to en- on through the lives of those he has touched. tains of Colorado, she moved from the Mid- hance economic competitiveness. In fact, it I would like to extend my thoughts and deep- west to Battlement Mesa in 1980, where she could be argued that since reincorporation est sympathies to Bret’s family and friends met her beloved husband the late Lee Hay- helps companies create new jobs and expand during this difficult time. ward. Judi actively contributed to the commu- the American economy, those who reincor- f nity of Battlement Mesa, beginning to work at porate are behaving patriotically. the American Heart Association in 1986. After One also could argue that it is those who FAMILY CHRISTIAN ACADEMY she married, Judi became her husband’s hu- oppose reincorporation who do not grasp the GRADUATION manitarian colleague, and aided her husband essence of the American system. After all, two with his duties at the National Park Service. of the main principles underlying the Constitu- HON. VAN HILLEARY Not surprisingly, she later deservingly became tion and the Declaration of Independence are OF TENNESSEE the President of the Grand Valley Parks Asso- limited government and respect for private IN THE HOUSE OF REPRESENTATIVES ciation. property. In contrast, opponents of reincorpo- Judi has actively assisted the Historical So- ration implicitly assume that the government Tuesday, June 11, 2002 ciety with their plans to renovate an old school owns all of a nation’s assets; therefore tax- Mr. HILLEARY. Mr. Speaker, last month, a house, and develop a small museum. Be- payers never should take any actions to deny group of home school students from Ten- cause Judi strongly believes in the idea of government what the politicians have deter- nessee won the National Mock Trial Cham- neighborhood unity, she diligently worked with mined to be their ‘‘fair share.’’ Mr. Speaker, pionship. The team represented Family Chris- the Junior College School board, towards the this philosophy has more in common with me- tian Academy, a network of home schoolers improvement of local community Colleges. dieval feudalism than with the constitutional based in Tennessee. Judi’s selfless contributions over the past few republic created by the drafters of the Con- This Saturday, Family Christian Academy decades continue with each responsibility she stitution. will hold a commencement ceremony for over undertakes. Judi currently sits on the Zoning In conclusion, Mr. Speaker, I once again 100 graduates. These graduates are part of a Commission board in Parachute, Colorado, urge my colleagues to read Mr. Mitchell’s arti- growing movement in Tennessee and across and she looks to help improve future neighbor- cle, which forcefully makes the case that tax- the nation. In our country, over 850,000 chil- hood growth. ing offshore income is economically destruc- dren are being educated at home. Mr. Speaker, it is with great pride, I honor tive. Such taxation also is Inconsistent with the Home schooled students come from all such an amazing individual before this body of respect for individual liberty and private prop- walks of life, and more often than not, they are Congress and this nation. Words will never ex- erty rights which forms the foundation of excelling in academics. In May, the Wall press the gratitude that I have for Judi, but I America’s constitutional republic, as well as a Street Journal noted, ‘‘In recent years, home- will state my sincerest appreciation for her ef- threat to the sovereign right of nations to de- schoolers have been disproportionately rep- forts. Judi, thank you for your hard work in our termine the tax treatment of income earned in- resented in spelling and geography bees. But country, and I anticipate great future achieve- side national borders. I hope my colleagues will reject efforts to subject companies that re- their victory this month in the National High ments from you. incorporate overseas to burdensome new School Mock Trial Championship, held in St. f Paul, Minn., is more intriguing still, because taxes and regulations. Expanding Federal this contest—designed to foster appreciation BAD TAX POLICY power in order to prevent companies from re- for the U.S. system of law cannot be written incorporating will only kill American jobs and off as an exercise in mere memorization. As HON. RON PAUL further weaken America’s economy. the competition’s Web page states, it is based OF TEXAS [From the Washington Times, May 8, 2002] on ‘critical thinking, reading, speaking, and ad- IN THE HOUSE OF REPRESENTATIVES BAD TAX POLICY: YOU CAN RUN ... vocacy.’’’ (By Daniel Mitchell) Tuesday, June 11, 2002 I believe one of our highest priorities is to The worst Supreme Court decision of all make sure every child has the opportunity to Mr. PAUL. Mr. Speaker, I wish to call my time? One of the leading candidates has to be receive: a quality education, one that will allow colleagues’ attention to the following article the infamous 1857 Dred Scott decision, in each to pursue his or her dreams. The genius entitled ‘‘Bad Tax Policy: You Can Run . . .’’ which the Supreme Court ruled that slaves by Daniel Mitchell, McKenna Senior Fellow at did not gain freedom by escaping to nonslave of America is that we provide a free public states. education to everyone while also giving people the Heritage Foundation. Mr. Mitchell dis- Instead, they were considered property and the freedom to pursue other forms of edu- cusses the practice of companies reincor- had to be returned to their ‘‘owners.’’ cational excellence, whether it be in private, porating in foreign jurisdictions to reduce their Some U.S. companies soon may be treated parochial, charter or home schools. tax liability. As Mr. Mitchell points out, reincor- in a similar manner, thanks to legislation Home schooling has proven itself to be a poration benefits shareholders and American being touted by Sens. Max Baucus, Montana very good option for educating our children workers. This is because reincorporation In a Democrat, and Charles Grassley, Iowa Re- publican. and youth. I congratulate the graduates of low-tax foreign jurisdiction makes companies It all starts with the Internal Revenue Family Christian Academy, and I pay tribute to more competitive, thus enabling the compa- Code, which forces U.S.-based companies to their parents and the many others who have nies to create new and better jobs for working pay an extra layer of tax on income earned provided them with strong educational founda- Americans. Furthermore, reincorporation helps in other countries. tions that give them the tools they need to protect American companies from corporate In an effort to protect the interests of pursue their dreams. takeovers by foreign investors. America’s anti- workers, shareholders and consumers, some competitive tax system is a major reason why of these companies are escaping bad U.S. tax f law by rechartering in Bermuda. several US companies have been taken over This is a win-win situation for America. PAYING TRIBUTE TO JUDI by foreign business interests. We get to keep factories and headquarters in HAYWARD In the vast majority of cases, when a com- America, and our companies remain on a pany moves its corporate headquarters to a level playing field with businesses based in HON. SCOTT McINNIS foreign jurisdiction, it maintains its physical op- Europe and elsewhere. Not so fast, Sens. Baucus and Grassley are OF COLORADO erations in America. In fact, Mr. Speaker, Stanley Company, whose recently-announced saying. They want to stop ‘‘corporate expa- IN THE HOUSE OF REPRESENTATIVES triations,’’ even though they keep American decision to incorporate in Bermuda has Tuesday, June 11, 2002 jobs in America and help U.S. companies caused much handwringing over reincorpora- compete with their counterparts in Europe Mr. MCINNIS. Mr. Speaker, I would like to tion, will not be laying off a single American and Asia. take this opportunity to pay tribute to Judi worker as a consequence of their action! Their legislation would forbid U.S. compa- Hayward, an exceptional individual who has Though reincorporation benefits American nies from re-chartering in countries with selflessly devoted her time and energy to the investors and workers, some of my colleagues better tax laws. The politicians who support this are acting betterment of the community. I applaud her have objected to reincorporation because this as if these companies belonged to the govern- outstanding character, and her desire to sup- action deprives the government of revenue. ment. Yet when House Minority Leader port her community. Judi Hayward dem- Some have even gone so far as to question Richard Gephardt, Missouri Democrat, for onstrates amazing qualities worthy of such the patriotism of companies that reincorporate. instance, accuses them of being ‘‘unpatri- praise. However, there is nothing unpatriotic about otic,’’ he never explains what’s so patriotic

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00013 Fmt 0626 Sfmt 0634 E:\CR\FM\K11JN8.002 pfrm04 PsN: E12PT1 E1022 CONGRESSIONAL RECORD — Extensions of Remarks June 12, 2002 about higher taxes and noncompetitive tax upheld America’s liberty and regrettably the helm and led it through the next critical policy. passed away in April of this year. Today we twelve years, eventually incorporating the Republicans are doing their share of busi- mourn the loss of a great citizen, and a coura- business in 1961. ness-bashing, too. Mr. Grassley claims that corporate expatriations are ‘‘immoral,’’ as if geous leader who proudly served his family Innovators since the beginning, Buck Knives companies would be moral if they instead and community. has continued to develop trendsetting knives kept their U.S. charters and fired some of Martin moved with his family to Colorado in and processes. Beginning with a revolutionary their workers. 1974, and accepted the position as the Assist- new blade and continuing through today with If politicians are upset that some compa- ant District Attorney in Colorado Springs. Nine new designs, this company has continued to nies want to recharter, they should blame months later, Martin moved to Aspen as the set the standard in the knife industry. themselves for trying to tax ‘‘worldwide’’ in- Police Chief, bringing with him experience and The family tradition continues today. Chuck come. An American firm competing against ideas that would change and mold new stand- Buck followed his father Al as president, serv- a Dutch firm for a contract in Ireland, for in- stance, must pay a 35 percent tax on its in- ards for the Aspen Law Enforcement Division. ing until 1999 when he handed the reigns over come—and the lion’s share goes to the IRS. From day one, Martin vowed to make Aspen to his son C.J., who is the current president The Dutch firm, by contrast, pays only the Law Enforcement different in its principles, but and CEO. While Chuck stepped down as 10 percent Irish tax on its Irish-source in- strong in its quest to achieve excellence. president, he still serves as an integral part of come because the Netherlands doesn’t tax in- The intelligence and ingenious demeanor the family business as chairman of the board. come earned outside its borders. Martin carried inspired his colleagues to per- With more and more companies choosing to Before giving the IRS more power, politi- form to their fullest potential. Martin was a relocate overseas for low-wage workers and cians should consider the following: Expatriation helps control government strong leader and an exceptional role model, tax breaks, Buck Knives remains in the United waste. High-tax California can’t stop compa- so its not surprising he was elected to the States and is an active partner and friend of nies from moving to low-tax Nevada. Know- Aspen City Council. His deeply rooted devo- the entire San Diego community. Buck Knives ing this helps deter the big-spenders in the tion to the town of Aspen made him an out- employs individuals with disabilities from the state capitol from wasting even more money. standing, respected city council member. He local Home of the Guiding Hands to work in The politicians in Massachusetts must exer- left Aspen in the late 1980’s, and went to New their factory. They allow groups within the cise some restraint because they know local York but continued to be involved in law en- community, such as the Boy and Girl Scouts businesses can flee to low-tax New Hamp- forcement returning to teach skiing after retir- and local churches, to utilize their facility for shire. Nations also should be subject to mar- ket discipline. This is why Washington poli- ing as a New York Judge. His achievements meetings and activities. Additionally, Buck ticians shouldn’t stop companies from escap- continued in 1991 when he was appointed to Knives donates products for nationwide fund- ing bad U.S. tax law. the New York Criminal Court bench. raising events to police and firefighters, as Expatriation protects American jobs. Re- Martin’s calm, outgoing personality high- well as the National Turkey Foundation, just to chartering in another jurisdiction doesn’t lighted his tremendous achievements. His name a few. In their quest to make our com- mean factories will go overseas. Nor does it strength and wisdom extended to all whom he munity a better place, Buck Knives has been require a company to move its headquarters. encountered, and today we remember this a perpetual advocate and friend. It simply means a company is chartered man for all the joy and smiles he provided. Given their longevity in the business and under the laws of a different jurisdiction, much as many American companies are Mr. Speaker, it is with great honor I stand their trend setting designs, it is easy to under- chartered in Delaware, but operate factories here and praise the achievements of Martin stand why when you think of a knife, you think and have their home offices in other states. before this body of Congress and this nation. of a Buck knife. Mr. Speaker, please join me In the case of expatriations, the newly Martin Hershey will be missed tremendously, in congratulating Buck Knives in its centennial formed foreign company still maintains its and although we will grieve the loss of this in- celebration. U.S. operations, but now won’t have to fire credible individual, we will rejoice over this f workers since it can compete more effec- man of great character and conduct. I express tively with overseas businesses. my sincerest condolences to his family and 12TH ANNIVERSARY OF THE Expatriation is not tax evasion. All cor- friends, and I salute Martin, a person who self- AMERICANS WITH DISABILITIES porations, regardless of where they’re based, ACT pay tax to the IRS on all profits they earn in lessly contributed to our society. the United States. This is true of U.S.-based f companies, and it’s true of all foreign-based HON. CAROLYN McCARTHY companies—including those that expatriate. HONORING BUCK KNIVES 100TH OF NEW YORK ANNIVERSARY All that chances is that expatriating compa- IN THE HOUSE OF REPRESENTATIVES nies no longer have to pay taxes on income earned outside America’s borders. Since Tuesday, June 11, 2002 worldwide taxation is misguided tax policy, HON. DUNCAN HUNTER OF CALIFORNIA Mrs. MCCARTHY of New York. Mr. Speak- this is a positive result. Indeed, every tax re- er, the Americans with Disabilities Act will cel- form plan, including the flat tax, is based on IN THE HOUSE OF REPRESENTATIVES ebrate its 12th anniversary on July 26, 2002. this common-sense principle of ‘‘territorial’’ Tuesday, June 11, 2002 taxation. The importance and significance of this Act, Now is hardly the time, with the economy Mr. HUNTER. Mr. Speaker, I want to com- and its impact on the lives of individuals with in the midst of recovery, for Washington mend a business, located in my district, for disabilities, is certainly remarkable and note- politicians to make U.S. companies less com- producing quality products for 100 years. Buck worthy. petitive. Nor is it the time to give the IRS Knives of El Cajon, California, is a fourth gen- Prior to the passage of the Act, it was com- the power to prohibit businesses from re- eration family-owned and operated business. mon place to dismiss qualified job applicants chartering in jurisdictions with more sen- From making their first knives using worn-out on the grounds of their disability, or for dis- sible tax laws. Instead of treating companies as if they’re federal property, Sens. Grassley file blades, Buck Knives has become arguably abled individuals to be effectively excluded and Baucus should be fixing the problems in the most well-known, respected, and famous from the mainstream of American life. With the the tax code. American-made knives in the world. passage of the Americans with Disability Act In 1902, the first Buck knife was made by a 12 years ago, however, we now have the f young apprentice blacksmith from Kansas, most comprehensive Federal civil-rights stat- PAYING TRIBUTE TO MARTIN Hoyt Buck. Making each knife by hand, Hoyt ute protecting the rights of people with disabil- HERSHEY combined innovation with experience to ities. produce a better tempered steel so it would This Act ended the discrimination faced HON. SCOTT McINNIS hold a sharper edge longer. daily by the disabled by requiring employers to OF COLORADO During World War II, Hoyt contributed to make reasonable accommodations for affected IN THE HOUSE OF REPRESENTATIVES America’s war effort by substantially increas- workers and assisted the disabled to become ing his output to ensure that our troops were an active member of society by requiring pub- Tuesday, June 11, 2002 adequately supplied. Following the war, Hoyt lic services, such as mass transportation, to Mr. MCINNIS. Mr. Speaker, I would like to moved to San Diego where he, and his oldest be just as accessible to people with disabilities take this opportunity to pay tribute to the life son Al, formed H. H. Buck and Son in 1947. as they are to able-bodied people. and memory of Martin Hershey, who honor- Hoyt passed away in 1949 and Al took over Since its inception, the Act has withstood ably devoted his life to serving this great na- the company. H. H. Buck and Son had only various attacks based on myth and half-truth, tion. Martin, as he was commonly referred to, been in business for two years when Al took the very basis of which affirms the need for

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00014 Fmt 0626 Sfmt 9920 E:\CR\FM\A11JN8.058 pfrm04 PsN: E12PT1 June 12, 2002 CONGRESSIONAL RECORD — Extensions of Remarks E1023 the ADA. I was pleased to learn that a 1996 CONGRATULATIONS TO tion of Dr. Jean Williams. Jean has given poll by the United Cerebral Palsy Foundation KENNAMETAL INC.’S MINING Pueblo, Colorado a lifetime of service through indicated that 75% of respondents believed AND CONSTRUCTION DIVISION her two careers and has continued to do so public attitudes towards disabilities and the FOR 50 YEARS OF OPERATION into her seventies. For over fifty years Jean disabled had changed since the Act was intro- dedicated her life to improving public, environ- duced. The greatest barrier to many talented HON. BILL SHUSTER mental, and industrial health. In 1981 she re- individuals achieving their goals is the very OF PENNSYLVANIA tired and became a full time volunteer as a perception of their disability, and that is why IN THE HOUSE OF REPRESENTATIVES board member of the Senior Resource Devel- we must continually work to remove these bar- Tuesday, June 11, 2002 opment Agency, known as SRDA. She has riers. brought her expertise and experience to this Mr. SHUSTER. Mr. Speaker, I rise today to organization, and in honor of her dedication to As a nurse for 30 years, I agree more congratulate Kennametal Inc.’s Mining and improve the lives of her peers, she is being needs to be done to remove barriers that pre- Construction Division for celebrating 50 years honored this year with the Senior Citizen of vent people with disabilities from fully partici- of operation and being inducted in the Bedford the Year award. pating in society. I understand that although County Chamber of Commerce Business Hall In addition to her work with the SRDA, Jean education and employment opportunities have of Fame. The manufacturing facility that has put her medical expertise to work as well improved since the Act’s inception, our work is houses this division, which opened its doors through volunteering her time to two separate on April 7, 1958, is the oldest manufacturing not yet finished. I congratulate those who programs: the Senior Link/Community Link facility in Bedford County and has been an ex- worked so hard to make the Act a reality as and the Home Health Care. Both enable sen- ample of business excellence since its con- ior citizens to live full and independent lives by well as the continued efforts of so many to ception. The Bedford facility boasts an impres- providing help in areas like yard work and press for further improvements. sive record of sales accomplishments that in- transportation and helping to create networks Mr. Speaker, whether in the case of an ath- clude, being ranked number one in the world to support active seniors. Jean is an energetic lete, a school child or an adult pursuing a new for the sale of construction and mining tools volunteer in both programs and looks after the career path, I believe this Act has been an in- and shipping and selling their products to more than 31 countries around the world. health of the seniors involved. Jean has self- valuable tool and a demonstration of a more lessly put in countless hours in order to im- mature, compassionate and understanding, Their total sales are projected to be approxi- mately $150 million by the end of the fiscal prove the lives of others. American society. I am honored to be in a po- In addition to her efforts as a volunteer, sition to celebrate the Americans with Disabil- year, June 30, 2002. Great companies can only continue down Jean is also a proactive member of her com- ities Act and to play a part in ensuring its con- the path of success if they are lead by dedi- munity in other ways as well. She is a proud tinuing legacy remains. cated and reliable employees. Kennametal is member of the board of the Pueblo League of an example of how the people make the insti- Women Voters, the Pueblo Area Council of f tution great. The Bedford plant began in 1952 Government’s environmental policy advisory with 12 employees and now hosts 388 em- board, the citizens reuse advisory board of the PAYING TRIBUTE TO MARY ployees that are involved in all aspects of the Pueblo Chemical Depot and the School Dis- STEINBRECHER plant’s operational success and contribute to trict 60’s equal employment opportunity and the betterment of their community as well. affirmative action committee. In addition to her Over the past 20 years, the employees of official duties, Jean regularly attends the HON. SCOTT McINNIS Kennametal have given more than $70,000 to Pueblo Area Council of Government and the OF COLORADO Bedford Area charities and community organi- Southeastern Colorado Water Conservancy zations. President George W. Bush, in his last District to keep up on the issues. IN THE HOUSE OF REPRESENTATIVES State of the Union Address, challenged all of Jean continues to work tirelessly to improve Tuesday, June 11, 2002 us to give two years or 4,000 hours of service her community. Her courage and dedication to over our lifetimes. The employees of service are examples to us all. Mr. Speaker, I Mr. MCINNIS. Mr. Speaker, I would like to Kennametal are meeting this challenge by am privileged to pay tribute to Dr. Jean Wil- take this opportunity to pay tribute to a Glen- serving as active volunteers for many organi- liams before this body of Congress. Thank you wood Springs, Colorado community activist zations such as volunteer fire companies, Jean for all that you have done. Mary Steinbrecher, an exceptional individual emergency medical services, church groups, f youth athletics and more. who has selflessly devoted her time and en- THE LIFE STORY OF JOHN A. ergy to the betterment of the community. I ap- This country was built on ingenuity, hard work, and the desire to succeed; all necessary DROST plaud her outstanding character, and her de- ingredients to be a successful business in to- sire to support and enhance our society’s way day’s market. These businesses are a vital HON. DANNY K. DAVIS of life. Mary demonstrates such impressive component to the fabric of society because OF ILLINOIS qualities, it is fitting she received the 2002 they contribute resources, jobs, and products IN THE HOUSE OF REPRESENTATIVES Athena award in recognition of her humani- that help develop good communities for not Tuesday, June 11, 2002 tarian efforts. just the employees, but their neighbors as Mr. DAVIS of Illinois. Mr. Speaker, one of well. It is important for our businesses to be Mary is an individual who performs any the basic axioms of democracy, one of de- responsible citizens, by sharing their success, task, large or small, with astounding precision mocracy’s fundamental philosophical they help communities prosper along with in- and perfection. Her vision to improve and en- underpinnings is the notion that the life, work, dustry. Kennametal, over the last 50 years, hance situations and circumstances provides a and opinion, of every person counts, or, at has demonstrated how this type of partnership level of excellence to any organization or es- least, ought to count. tablishment she assists. She was instrumental can allow progress within the company and I firmly believe in that notion: that every per- the community. in obtaining the new Glenwood Springs Com- son counts and I believe in its corollary: that I congratulate Kennametal’s Bedford Facility munity Center, and her tireless, selfless efforts every person can make a difference. for 50 years of success and I wish them many finished the project ahead of schedule. Even I want to offer up a life story as illustration more in the future. though Mary’s achievements in Glenwood ex- of that belief—the life story of John A. Drost. tend to every citizen, Mary humbly accepts her f John Drost was born in 1909 in Czecho- praises with dignity. PAYING TRIBUTE TO JEAN slovakia. He went through school there earned WILLIAMS a Juris Doctor degree in 1932. Mr. Speaker, it is with great pride I honor He served in the Czechoslovakian army in such an outstanding individual before this HON. SCOTT McINNIS the Judge Advocate General’s Department body of Congress and this nation. Mary con- and assisted in the mobilization of the Czech OF COLORADO tributed so much, and she was so thoughtful, Army. IN THE HOUSE OF REPRESENTATIVES words will never express our appreciation for He became associated with a law firm with her. Mary, thank you for your hard work in our Tuesday, June 11, 2002 ties to the exiled Czechoslovakian Govern- community, and I anticipate great future Mr. MCINNIS. Mr. Speaker, it is my honor ment in London representing the interests of achievements from you. today to recognize the hard work and dedica- Jewish clients.

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00015 Fmt 0626 Sfmt 9920 E:\CR\FM\A11JN8.060 pfrm04 PsN: E12PT1 E1024 CONGRESSIONAL RECORD — Extensions of Remarks June 12, 2002 As a result of his legal work he was ar- solving many crimes throughout the commu- Rabb, who died in New York, on Sunday, rested jailed and sentenced to a Nazi labor nity. For many years Frank worked tirelessly June 2, at the age of 91. camp. to protect our youth by preventing the esca- Ambassador Rabb was a distinguished law- John, and his new bride Doris, eluded the lation of violence among our teens, notably yer, secretary to the cabinet in the Eisenhower Gestapo and went underground until the end amongst gangs and groups that commonly Administration, ambassador to Italy in the of the war. threaten our nation’s youngest generation. His Reagan Administration and held a variety of After the war he was pursued by the Com- most recent service has been to defend our positions in government and in service to civil munist government and John and Doris es- roadways and streets by actively pursuing in- society. caped to Austria where John began work for dividuals who injure our citizens in traffic acci- On Wednesday, June 12, he will be the Church World Organization. Eventually dents and speed away to avoid the penalties funeralized at the Congregation Emanu-el in John and his family emigrated to the United and consequences. I am confident that New York, where he served as president from States. Frank’s expertise in protecting our youth from 1973 to 1981. John found work as Church Administrator violence will be greatly missed not only by the Born in Boston, where he was educated at for St. Paul’s United Church of Christ in Chi- department, but a grateful community. Harvard College and Harvard Law School, cago. With the urging and support of church Mr. Speaker, as a former law enforcement Ambassador Rabb was a most uncommon members he returned to night school and officer I am well aware of the dangers and man in talents and accomplishments. In serv- earned a law degree at the John Marshall Law hazards our peace officers face today. These ice to his country, he demonstrated an ex- School in Chicago. individuals work long hours, weekends, and traordinary ability to overcome differences be- John became the attorney for the Austrian holidays to guarantee their fellow citizen’s tween nations, religions, and the races. Exhib- Consulate and also did work for the German rights and protection. They work tirelessly with iting qualities instilled from childhood, he had Consulate General. great sacrifice to their personal and family a unique empathy, an ability to feel as others John’s own life experiences left John with a lives to ensure our freedoms remain strong in felt, and thus engender trust. feeling of special responsibility for families and our homes and communities. Their service Such was the case in his dealings with my for family support. and dedication deserve the recognition and predecessor, Congressman Adam Clayton As a result of his work with St. Paul’s thanks of this body of Congress and nation Powell who, as the political leader of the civil Church John became acquainted with Uhlich and that is why I bring the name of officers rights movement in the 1950’s, had ongoing Children’s Home—a home which has been like Frank Cortese to light today. I wish you all dealings with Rabb. It seemed impossible that supporting children and families for over 130 the best Frank and good luck in your future a first generation Jewish American with roots years. endeavors. Thanks for your service to Pueblo, in the old country in Europe and an elitist Bos- John assumed a series of ever more re- Colorado. ton education could succeed at his assign- sponsible positions on the Uhlich board where, f ment as the Eisenhower administration’s point as a result of his leadership, the board was re- INTRODUCING A BILL TO EXCLUDE man on civil rights. How could this modest un- newed and reenergized and the work of Uhlich GIFTS WHEN CALCULATING SUP- assuming man relate to the provocative, flam- was likewise strengthened and expanded. PLEMENTAL SECURITY INCOME boyant and street-smart Congressman-preach- John passed away in January of this year. er from Harlem? But his son, George, and others carry on with Somehow, Maxwell Rabb did succeed, win- the mission of providing support and services HON. PATSY T. MINK ning Powell’s trust and admiration along the OF HAWAII to troubled children and troubled families and way. Indeed, Rabb enhanced a long list of IN THE HOUSE OF REPRESENTATIVES which allows every child to reach his, or her, credits by quietly writing himself into the an- fullest potential. Tuesday, June 11, 2002 nals of the great movement for civil rights. John Drost made a difference for thousands Mrs. MINK of Hawaii. Mr. Speaker, today I More than an intermediary for the Eisen- and he leaves a legacy of making a dif- introduce a bill to exclude gifts worth less than hower administration, Rabb was an honest ference. $100 when calculating a person’s income for broker and deal-maker with Powell in the Con- Mr. Speaker, I believe an important part of Supplemental Security Income (SSI). gressman’s successful struggle to deseg- his legacy is the example he has left us. A constituent in Hawaii who helps disabled regate U.S. military facilities. In a sense, As John was fond of saying,, ‘‘In a country individuals obtain SSI benefits brought this Rabb—by tempering the Congressman’s that gave us a beautiful life . . . we had to re- problem to my attention. He explained how a brickbats—guided the battering ram which ciprocate.’’ person who received SSI was penalized for brought down a dehumanizing racist practice. f accepting gifts. The two had met on Capitol Hill, when This individual was given money for a birth- Rabb, as a young lawyer, worked as an aide PAYING TRIBUTE TO FRANK S. day and Christmas, which she reported to So- to Senator Henry Cabot Lodge. After service CORTESE cial Security. Social Security treated the gifts in the Navy during WWII, he joined the Eisen- as income. Because she accepted gifts while hower Administration where he served in var- HON. SCOTT McINNIS her SSI claim was being adjudicated, the gifts ious posts, including secretary to the cabinet OF COLORADO were deducted from the retroactive benefits and liaison to Jewish groups, labor and civil IN THE HOUSE OF REPRESENTATIVES that she deserved. These gifts were not in- rights. come and should not be treated as income. In the 1960’s, he was president of the U.S. Tuesday, June 11, 2002 My bill excludes gifts worth less than $100 Committee for Refugees and was active in se- Mr. MCINNIS. Mr. Speaker, I rise to take from income when calculating SSI benefits. curing the release of Americans in detention in this opportunity to recognize an outstanding The bill will refocus the Social Security Admin- communist East Germany. In the 1980’s he individual who has dedicated his life to serve istration’s needs tests on true income gener- served with great distinction as ambassador to and protect the citizens of the State of Colo- ating activities. Italy in the Reagan Administration, repairing rado. Corporal Frank S. Cortese of the Pueblo I urge my colleagues to cosponsor this bill damaged relations with one of our most impor- Police Department has faithfully served his fel- and help eliminate a penalty on poor and dis- tant allies following the hijacking of the Achille low Coloradans for over thirty years. After a abled individuals who receive small gifts from Lauro. long and successful career as one of Colo- their friends and relatives. In his lifetime, the Ambassador applied his rado’s finest, Frank announced his retirement f considerable talents to difficult and sensitive from the force in December of last year. As TRIBUTE TO AMBASSADOR MAX- situations around the world—never forgetting Frank looks forward to retirement, I would like WELL RABB: A MAN WITHOUT the lot of the less fortunate, whether in South to take this time to highlight his service to his BORDERS Asia, Israel, Eastern Europe or the United community. States. Frank has faithfully served the Pueblo Po- HON. CHARLES B. RANGEL Ambassador Maxwell Rabb, a man without lice Department in various capacities through- borders, had a heart big enough to reach out OF NEW YORK out his long career. During his service he was to people whom he resembled, in color and IN THE HOUSE OF REPRESENTATIVES active in the Homicide Division as a juvenile background, not in the least—with respect, investigator. In this capacity, he was often Tuesday, June 11, 2002 compassion and love. called upon to study and investigate homicides Mr. RANGEL. Mr. Speaker, I rise to pay trib- I extend my deepest sympathy to his wife among our youth and was instrumental in ute to my dear friend, Ambassador Maxwell M. Ruth, and his children, Bruce, Sheila

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00016 Fmt 0626 Sfmt 9920 E:\CR\FM\A11JN8.062 pfrm04 PsN: E12PT1 June 12, 2002 CONGRESSIONAL RECORD — Extensions of Remarks E1025 Weidenfeld, Emily Livingston and Priscilla dog tag to Israeli Government. Clearly he has were captured in 1982. The fourth, Ron Arad, Ayres, and I call on my colleagues to join me a connection to those who are holding him, was captured in 1986. Recently, two more in tribute. yet he has done nothing to assist in bringing names were added to the list of the missing; Zach home. on August 17, 1997, Guy Hever went missing f from his army base in the Golan; on October Mr. Speaker, we must increase the pressure ON THE 20TH ANNIVERSARY OF 15, 2000, Hizbullah announced that another on Syria, Iran and the Palestinian Authority Israeli citizen, 54 year-old Elchanan Tannen- THE CAPTURE OF ZACHARY and any other nation that has information re- baum (Col. res.), had also been taken captive. BAUMEL garding these prisoners. That is why I, along As you are no doubt aware, Public Law 106– with the Gentleman from California, Mr. LAN- 89, authored by Congressman Lantos of Cali- HON. ANTHONY D. WEINER TOS, have led a coalition of members in send- fornia, directs the Department of State to OF NEW YORK ing a letter, which I will submit for publication raise the issue of missing Israeli soldiers IN THE HOUSE OF REPRESENTATIVES in the CONGRESSIONAL RECORD, to the Sec- with officials of Syria, Lebanon, the Pales- retary of State, urging him to raise this matter tinian Authority and other governments in Tuesday, June 11, 2002 with Syrian Foreign Minister Farouk Shara the Middle East. It specifies that US aid to Mr. WEINER. Mr. Speaker, on June 11, when he comes to Washington later this these governments should take into consid- 1982, during a battle with Syrian and Palestin- month. eration their willingness to assist in locating ians forces on the Israeli-Lebanese border, Mr. Speaker, this nightmare has lasted long and securing the return of these soldiers. It also directs the Department of State to re- five Israeli soldiers were captured by Syrian enough, it’s time to bring Zachary Baumel and port to Congress on these efforts. We hope forces. Several years later, two of the cap- all of the other missing Israeli soldiers home. that you will use the occasion of your meet- tured soldiers were returned to Israel in pris- CONGRESS OF THE UNITED STATES, ing with Foreign Minister Shara to further oner exchanges with Syria. But today, twenty Washington, DC, June 7, 2002. the goals of Public Law 106–89. Secretary COLIN L. POWELL, years later, we still know nothing of three of If the Syrian government is to become a these soldiers, Zachary Baumel, Tzvi Feld- U.S. Department of State, Washington, DC. responsible member of the international man, and Yehuda Katz. DEAR SECRETARY POWELL: Syrian Foreign community, it must take all necessary meas- One of these soldiers, Zachary Baumel, is a Minister Farouk Shara is scheduled to meet ures to provide the fullest possible account- U.S. citizen, and a former resident of my con- with you in Washington, D.C. this week. You ing for Zachary Baumel and all other Israeli gressional district. may be aware that his visit will coincide hostages held under Syrian control. We urge On a number of occasions, I have met with with the 20th anniversary of the capture of you to convey this message to the Syrian Zachary’s parents, and listened to them tell American citizen and Israeli soldier Zachary Foreign Minister and to redouble your ef- forts to secure the long overdue release of me of the years of effort to gain any informa- Baumel who, along with four other Israeli soldiers, was taken captive on June 11, 1982 these soldiers. tion about their son. For the most part, this during battles with Syrian forces near the has been a fruitless quest. But the greatest in- Thank you for your consideration. We look Lebanese village of Sultan Ya’akub. We urge forward to your response. justice is not that they have been unable to you to take advantage of the concurrence of Sincerely, discover any information about the well-being these events to reinvigorate efforts to obtain Anthony D. Weiner; Tom Lantos, Ben- of their son. The greatest injustice is that there information regarding the whereabouts of jamin A. Gilman; Henry A. Waxman; are those out there who know where Zachary these and other missing Israeli soldiers, and Janice D. Schakowsky; Eliot L. Engel; is, and yet, they refuse to share this informa- to secure their release. Carolyn B. Maloney; Nita M. Lowey; tion. Since the founding of the State of Israel in Gary L. Ackerman; Shelley Berkley; 1948, more than four hundred Israeli soldiers Mr. Speaker, the United States must not Jerrold Nadler; Robert Wexler; Barney have been declared ‘‘Missing in Action’’ Frank; Eric Cantor; James R. permit those who know the whereabouts of (MIA). Only six of these cases are officially Langevin; Peter Deutsch; Howard L. Zachary Baumel to keep this information to listed as ‘‘soldiers missing but presumed to Berman; Steve Israel; Tammy Baldwin; themselves. In 1993, PLO Chairman Yasser be alive.’’ Three of the soldiers: Zachary Joseph Crowley; Adam B. Schiff; Ben- Arafat delivered one-half of Zachary Baumel’s Baumel, Tzvi Feldman and Yehuda Katz jamin L. Cardin; Jim Saxton.

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00017 Fmt 0626 Sfmt 0634 E:\CR\FM\A11JN8.065 pfrm04 PsN: E12PT1 E1026 CONGRESSIONAL RECORD — Extensions of Remarks June 12, 2002 SENATE COMMITTEE MEETINGS the Secretary of the Interior to grant and science research, development, and to Deschutes and Crook Counties in the Title IV of Senate Resolution 4, education in the 21st century. State of Oregon a right-of-way to West SD–430 agreed to by the Senate on February 4, Butte Road. 2:30 p.m. 1977, calls for establishment of a sys- SD–366 Foreign Relations tem for a computerized schedule of all Environment and Public Works Western Hemisphere, Peace Corps and Nar- meetings and hearings of Senate com- To hold hearings to examine water re- cotics Affairs Subcommittee mittees, subcommittees, joint commit- sources development programs within To hold hearings on S. 1017, to provide tees, and committees of conference. the U.S. Army Corps of Engineers. the people of Cuba with access to food This title requires all such committees SD–406 and medicines from the United States, to ease restrictions on travel to Cuba, to notify the Office of the Senate Daily JUNE 19 Digest—designated by the Rules com- to provide scholarships for certain 9:30 a.m. Cuban nationals. mittee—of the time, place, and purpose Energy and Natural Resources of the meetings, when scheduled, and SD–419 To hold hearings on S. 2473, to enhance Commerce, Science, and Transportation any cancellations or changes in the the Recreational Fee Demonstration Science, Technology, and Space Sub- meetings as they occur. Program for the National Park Serv- committee As an additional procedure along ice; and S. 2607, to authorize the Sec- To hold hearings to examine the Na- with the computerization of this infor- retary of the Interior and the Sec- tional Aeronautics and Space Adminis- retary of Agriculture to collect recre- mation, the Office of the Senate Daily tration, focusing on education pro- ation fees on Federal lands. Digest will prepare this information for grams. SD–366 printing in the Extensions of Remarks SR–253 Health, Education, Labor, and Pensions section of the CONGRESSIONAL RECORD Business meeting to consider S. 2184, to on Monday and Wednesday of each provide for the reissuance of a rule re- JUNE 20 week. lating to ergonomics; S. 2558, to amend 9:30 a.m. Meetings scheduled for Thursday, the Public Health Service Act to pro- Commission on Security and Cooperation June 13, 2002 may be found in the Daily vide for the collection of data on be- in Europe Digest of today’s RECORD. nign brain-related tumors through the To hold joint hearings to examine human national program of cancer registries; rights in Greece, focusing on minority MEETINGS SCHEDULED S. 2328, to amend the Public Health rights, religious liberty, freedom of the Service Act and the Federal Food, media, human trafficking, and domes- JUNE 14 Drug, and Cosmetic Act to ensure a tic terrorism. 9:30 a.m. safe pregnancy for all women in the 334, Cannon Building Health, Education, Labor, and Pensions United States, to reduce the rate of 10 a.m. Children and Families Subcommittee maternal morbidity and mortality, to Commerce, Science, and Transportation To hold hearings to examine increasing eliminate racial and ethnic disparities To hold hearings to examine global cli- of options and awareness concerning in maternal health outcomes, to reduce mate change, focusing on the U.S. Cli- the screening of newborns. pre-term, labor, to examine the impact mate Action Report. SD–430 of pregnancy on the short and long SR–253 term health of women, to expand 2:30 p.m. knowledge about the safety and dosing JUNE 18 Energy and Natural Resources of drugs to treat pregnant women with National Parks Subcommittee 9:30 a.m. chronic conditions and women who be- Commerce, Science, and Transportation come sick during pregnancy, to expand To hold hearings on S. 139/H.R. 3928, to Consumer Affairs, Foreign Commerce, and public health prevention, education assist in the preservation of archae- Tourism Subcommittee and outreach, and to develop improved ological, paleontological, zoological, To hold hearings to examine steroid use and more accurate data collection re- geological, and botanical artifacts in professional baseball and anti- lated to maternal morbidity and mor- through construction of a new facility doping issues in amateur sports. tality; S. 1115, to amend the Public for the University of Utah Museum of SR–253 Health Service Act with respect to Natural History, Salt Lake City, Utah; 10 a.m. making progress toward the goal of S. 1609/H.R. 1814, to amend the National Finance eliminating tuberculosis; S. 710, to re- Trails System Act to direct the Sec- To hold hearings to examine the protec- quire coverage for colorectal cancer retary of the Interior to conduct a tion of seniors from abuse and neglect. screenings; and pending nominations. study on the feasibility of designating SD–215 SD–430 the Metacomet-Monadnock-Matta- Banking, Housing, and Urban Affairs Commission on Security and Cooperation besett Trail extending through western Business meeting to markup the pro- in Europe Massachusetts and central Connecticut posed Public Company Accounting Re- To hold hearings to examine the current as a national historic trail; S. 1925, to form and Investor Protection Act of human rights atmosphere in Kosovo, establish the Freedom’s Way national 2002. focusing on the rights of ethnic minori- Heritage Area in the States of Massa- SD–538 ties to return home, human traf- chusetts and New Hampshire; S. 2196, Judiciary ficking, and the rising tensions be- to establish the National Mormon Pio- To hold hearings to examine proposals to tween the region’s ethnic minorities. neer Heritage Area in the State of reform the death penalty. SD–124 Utah; S. 2388, to direct the Secretary of SD–226 10 a.m. the Interior to study certain sites in 2:30 p.m. Commerce, Science, and Transportation the historic district of Beaufort, South Energy and Natural Resources Communications Subcommittee Carolina, relating to the Reconstruc- Public Lands and Forests Subcommittee To hold hearings to examine future suffi- tion Era; S. 2519, to direct the Sec- To hold hearings on S. 198, to require the ciency and stability of the Universal retary of the Interior to conduct a Secretary of the Interior to establish a Service Fund. study of Coltsville in the State of Con- program to provide assistance through SR–253 necticut for potential inclusion in the States to eligible weed management 10:30 a.m. National Park System; and S. 2576, to entities to control or eradicate harm- Judiciary ful, nonnative weeds on public and pri- Crime and Drugs Subcommittee establish the Northern Rio Grande Na- vate land; S. 1846, to prohibit oil and To hold hearings to examine penalties tional Heritage Area in the State of gas drilling in Finger Lakes National for white collar offenses. New Mexico. Forest in the State of New York; S. SD–226 SD–366 1879, to resolve the claims of Cook Inlet Governmental Affairs Region, Inc., to lands adjacent to the To hold hearings on the nomination of JUNE 27 Russian River in the State of Alaska; Michael D. Brown, of Colorado, to be 9:30 a.m. S. 2222, to resolve certain conveyances Deputy Director of the Federal Emer- Appropriations and provide for alternative land selec- gency Management Agency. Transportation Subcommittee tions under the Alaska Native Claims SD–342 Commerce, Science, and Transportation Settlement Act related to Cape Fox 1:45 p.m. Surface Transportation and Merchant Ma- Corporation and Sealaska Corporation; Health, Education, Labor, and Pensions rine Subcommittee S. 2471, to provide for the independent To hold hearings on proposed legislation To hold joint hearings to examine cross investigation of Federal wildland fire- authorizing funds for the National border trucking issues. fighter fatalities; and S. 2482, to direct Science Foundation, focusing on math SR–253

VerDate 112000 04:03 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00018 Fmt 0626 Sfmt 0634 E:\CR\FM\M12JN8.000 pfrm04 PsN: E12PT1 Wednesday, June 12, 2002 Daily Digest Senate was in violation of section 311(a)(2)(B) of the Con- Chamber Action gressional Budget Act was sustained, and the amend- Routine Proceedings, pages S5391–S5463 ment thus fell. Pages S5412–34 Measures Introduced: Four bills and one resolution Pursuant to the order of April 23, 2002, the bill were introduced, as follows: S. 2613–2616, and S. was returned to the Senate calendar. Pages S5434–35 Res. 283. Page S5454 Terrorism Risk Insurance Act Agreement: A Death Tax Elimination Act: Senate continued con- unanimous-consent agreement was reached providing sideration of H.R. 8, to amend the Internal Revenue for consideration of S. 2600, to ensure the continued Code of 1986 to phase out the estate and gift taxes financial capacity of insurers to provide coverage for over a 10-year period. Pages S5398–S5435 risks from terrorism, at 10 a.m., on Thursday, June During consideration of this measure today, Senate 13, 2002. Pages S5435–41 also took the following action: Executive Reports of Committees: Senate received By 44 yeas to 54 nays (Vote No. 149), three-fifths the following executive report of a committee: of those Senators duly chosen and sworn, not having Report to accompany Optional Protocol No. 1 To voted in the affirmative, Senate rejected the motion Convention On Rights Of The Child On Involve- to waive section 311 of the Congressional Budget ment Of Children In Armed Conflict (Treaty Doc. Act with respect to Reid (for Dorgan) Amendment 106–37A) and Optional Protocol No. 2 To Conven- No. 3832 (to Amendment No. 3831), to amend the tion On The Rights Of The Child On The Sale Of Internal Revenue Code of 1986 to make permanent Children, Child Prostitution And Child Pornography the estate tax in effect on December 31, 2009, to in- crease the exclusion amount to $4,000,000 in 2009, (Treaty Doc. 106–37B). (Ex. Rept. 107–4) and to provide a full family-owned business interest Pages S5453–54 deduction in 2003. Subsequently, the point of order Messages From the House: Page S5452 that the amendment was in violation of section 311 Measures Referred: Page S5453 of the Congressional Budget Act was sustained, and Measures Placed on Calendar: Page S5453 the amendment thus fell. Pages S5398–S5412 By 38 yeas to 60 nays (Vote No. 150), three-fifths Executive Reports of Committees: Pages S5453–54 of those Senators duly chosen and sworn, not having Additional Cosponsors: Pages S5454–55 voted in the affirmative, Senate rejected the motion to waive section 311 of the Congressional Budget Statements on Introduced Bills/Resolutions: Act with respect to Conrad Amendment No. 3831, Pages S5455–62 in the nature of a substitute. Subsequently, the point Additional Statements: Pages S5448–52 of order that the amendment was in violation of sec- Amendments Submitted: Page S5462 tion 311 of the Congressional Budget Act was sus- tained, and the amendment thus fell. Authority for Committees to Meet: Pages S5462–63 Pages S5398–S5434 Record Votes: Three record votes were taken today. By yeas to nays (Vote No. 151), three-fifths of (Total—151) Pages S5412, S5434 those Senators duly chosen and sworn, not having Adjournment: Senate met at 9:30 a.m., and ad- voted in the affirmative, Senate rejected the motion journed at 6:52 p.m., until 9 a.m., on Thursday, to waive section 311(a)(2)(B) of the Congressional June 13, 2002. (For Senate’s program, see the re- Budget Act with respect to Gramm/Kyl Amendment marks of the Acting Majority Leader in today’s No. 3833, to permanently repeal the death tax. Sub- sequently, the point of order that the amendment Record on page S5463).

D599

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War, S. 1312/H.R. 2109, to authorize the Secretary Committee Meetings of the Interior to conduct a special resource study of (Committees not listed did not meet) Virginia Key Beach, Florida, for possible inclusion in the National Park System, S. 1944, to revise the APPROPRIATIONS—DEFENSE boundary of the Black Canyon of the Gunnison Na- Committee on Appropriations: Subcommittee on Defense tional Park and Gunnison Gorge National Conserva- concluded hearings on proposed budget estimates for tion Area in the State of Colorado, H.R. 38, to pro- fiscal year 2002 for the Department of Defense and vide for additional lands to be included within the related programs, after receiving testimony from cer- boundaries of the Homestead National Monument of tain public witnesses. America in the State of Nebraska, H.R. 980, to es- tablish the Moccasin Bend National Historic Site in MEDICARE MEDICAL SUPPLIES PAYMENTS the State of Tennessee as a unit of the National Park Committee on Appropriations: Subcommittee on Labor, System, and H.R. 1712, to authorize the Secretary Health and Human Services, and Education con- of the Interior to make adjustments to the boundary cluded hearings to examine fraud, waste and abuse of the National Park of American Samoa to include related to Medicare reimbursement for medical certain portions of the islands of Ofu and Olosega equipment and supplies, and ways to improve the within the park, after receiving testimony from Sen- process, including creating supplier standards, cen- ator Bill Nelson; Representatives Faleomavaega, tralizing claims processing, reducing oxygen reim- Meek, and Wamp; P. Daniel Smith, Special Assist- bursement, and introducing a more competitive bid- ant to the Director, National Park Service, Depart- ding process, after receiving testimony from Janet ment of the Interior; Steve Ririe, Silent Heroes of Rehnquist, Inspector General, and Thomas A. Scully, the Cold War National Memorial Committee, Las Administrator, Centers for Medicare and Medicaid Vegas, Nevada; and James O. Mills, Friends of Moc- Services, both of the Department of Health and casin Bend National Park, Chattanooga, Tennessee. Human Services; Leslie G. Aronovitz, Director, CLEAN POWER ACT Health Care-Program Administration and Integrity Issues, General Accounting Office; and David T. Committee on Environment and Public Works: Com- Williams, Invacare Corporation, Elyria, Ohio. mittee concluded hearings on S. 556, to amend the Clean Air Act to reduce emissions from electric INTERNET MANAGEMENT: ICANN power plants, after receiving testimony from Rep- GOVERNANCE resentative Kucinich; Ronald C. Methier, Georgia Committee on Commerce, Science, and Transportation: Sub- Environmental Protection Division, Atlanta, on be- committee on Science, Technology, and Space con- half of the State and Territorial Air Pollution Pro- cluded hearings to examine reform and privatization gram Administrators and the Association of Local issues of the Internet Corporation for Assigned Air Pollution Control Officials; Robert Page, Names and Numbers (ICANN), focusing on clari- TransAlta Corporation, Calgary, Canada; William F. fying the mission and responsibilities, ensuring ac- Tyndall, Cinergy Services, Inc., Cincinnati, Ohio, on countability, and developing an effective advisory behalf of the Edison Electric Institute; David G. role for governments, after receiving testimony from Hawkins, Natural Resources Defense Council, Wash- Nancy J. Victory, Assistant Secretary of Commerce ington, D.C.; Lee P. Hughes, Bayer Corporation, for Communications and Information; Peter Guer- Pittsburgh, Pennsylvania, on behalf of the American rero, Director, Physical Infrastructure Issues, General Chemistry Council; Don Barger, National Parks Accounting Office; M. Stuart Lynn, Internet Cor- Conservation Association, Knoxville, Tennessee; and poration for Assigned Names and Numbers, Marina J. Thomas Mullen, Catholic Charities Health and del Rey, California; Karl Auerbach, Internet Cor- Human Services, Cleveland, Ohio. poration for Assigned Names and Numbers Board of CHILDHOOD VACCINE SHORTAGE Directors, San Jose, California; Roger J. Cochetti, VeriSign, Inc., and Alan B. Davidson, Center for De- Committee on Governmental Affairs: Committee con- mocracy and Technology, both of Washington, D.C.; cluded hearings to examine the causes and extent of and Cameron Powell, SnapNames, Portland, Oregon. the current shortage of childhood vaccines, their ex- pected duration and impact, and the Federal govern- NATIONAL PARKS ment’s role in maintaining the supply, after receiv- Committee on Energy and Natural Resources: Sub- ing testimony from Lester M. Crawford, Deputy committee on National Parks concluded hearings on Commissioner, Food and Drug Administration, and S. 1257/H.R. 107, to require the Secretary of the In- Walter Orenstein, Director, National Immunization terior to conduct a theme study to identify sites and Program, Centers for Disease Control and Preven- resources to commemorate and interpret the Cold tion, both of the Department of Health and Human

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Services; Timothy F. Doran, Greater Baltimore Med- and Matthew R. Bettenhausen, Illinois Deputy Gov- ical Center, Baltimore, Maryland, on behalf of the ernor for Criminal Justice and Public Safety, and Ex- American Academy of Pediatrics; Mary Anne Jack- ecutive Director, Illinois Governor’s Commission on son, Children’s Mercy Hospitals and Clinics, Kansas Capital Punishment, both of Springfield; Druanne City, Missouri; and Wayne Pisano, Aventis Pasteur D. White, Solicitor, Tenth Judicial Circuit, Ander- North America, Asbury, New Jersey, on behalf of son, South Carolina; Donald Hubert, Hubert, the Pharmaceutical Research and Manufacturers of Fowler, and Quinn, and Scott Turow, Sonnenschein America. Nath and Rosenthal, both of Chicago, Illinois, both DEATH PENALTY members of the Illinois Governor’s Commission on Committee on the Judiciary: Subcommittee on Constitu- Capital Punishment; John J. Kinsella, First Assistant tion concluded hearings to examine issues with re- State’s Attorney, DuPage County, Illinois; Lawrence spect to reducing the risk of executing the innocent, C. Marshall, Northwestern University Law School focusing on the Report of the Illinois Governor’s Center on Wrongful Convictions, Chicago, Illinois; Commission on Capital Punishment, after receiving and Kent Scheidegger, Criminal Justice Legal Foun- testimony from Illinois Governor George H. Ryan, dation, Sacramento, California. h House of Representatives the proceedings of the joint meeting be printed in Chamber Action the Record. Pages H3456–58 Measures Introduced: 15 public bills, H.R. Recess: The House recessed at 3:40 p.m. and recon- 4914–4928; and 2 resolutions, H. Con. Res. 417, vened at 4 p.m. Page H3462 and H. Res. 442 were introduced. Pages H3513–14 Supplemental Appropriations: The House dis- Reports Filed: Reports were filed as follows: agreed with the Senate amendment to H.R. 4775, H.R. 3130, to provide for increasing the tech- making supplemental appropriations for the fiscal nically trained workforce in the United States, year ending September 30, 2002, and agreed to a amended (H. Rept. 107–505, Pt. 1); and conference. Appointed as conferees: Chairman Young H.R. 3936, to designate and provide for the man- of Florida, Regula, Lewis of California, Rogers, agement of the Shoshone National Recreation Trail, Skeen, Wolf, Kolbe, Callahan, Walsh, Taylor of and for other purposes, amended (H. Rept. North Carolina, Hobson, Istook, Bonilla, Knollen- 107–506). Page H3513 berg, Obey, Murtha, Dicks, Sabo, Hoyer, Mollohan, Speaker Pro Tempore: Read a letter from the Kaptur, Visclosky, Lowey, Serrano, and Olver. Speaker wherein he appointed Representative Simp- Pages H3459–62 son to act as Speaker pro tempore for today. Rejected the Obey motion to instruct conferees to Page H3455 insist, for each item directly related to the war on Prayer: The prayer was offered by the guest Chap- terrorism or homeland security, on the higher dollar lain, Rev. Kent Williams, Sunnybrook Christian amount in either the House bill or the Senate amendment and to disagree to any item that appro- Church, of Stillwater, Oklahoma. Page H3455 priates additional funds earmarked for a specific Recess: The House recessed at 10:06 a.m. and re- project not related to the war on terrorism or home- convened at 2:56 p.m. Page H3456 land security by a yea-and-nay vote of 181 yeas to Joint Meeting to Receive the Prime Minister of 235 nays, Roll No. 224. Pages H3471–72 Australia: The House and Senate met in the House Securing America’s Future Energy Act: The Chamber to receive the Honorable John Howard, House disagreed with the Senate amendment to Prime Minister of Australia. The Prime Minister was H.R. 4, to enhance energy conservation, research and escorted into the Chamber by Representatives development and to provide for security and diver- Armey, Watts of Oklahoma, Hyde, Bereuter, Gep- sity in the energy supply for the American people, hardt, Pelosi, Frost, Lantos, and Faleomavaega and and agreed to a conference. Appointed as conferees: Senators Daschle, Nelson of Florida, Lott, Nickles, From the Committee on Energy and Commerce, for Hutchinson of Texas, Craig, and Lugar. Agreed that consideration of the House bill and the Senate

VerDate 11-MAY-2000 04:43 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00003 Fmt 0627 Sfmt 0627 E:\CR\FM\D12JN2.REC pfrm04 PsN: D12JN2 D602 CONGRESSIONAL RECORD — DAILY DIGEST June 12, 2002 amendment, and modifications committed to con- From the Committee on Science, for consideration ference: Chairman Tauzin and Representatives Bili- of sections 125, 152, 305–6, 801, Division B, Divi- rakis, Barton of Texas, Upton, Stearns, Gillmor, Burr sion E, and section 6512 of the House bill and sec- of North Carolina, Dingell, Waxman, Markey, Bou- tions 501–507, 509, 513–516, 770–772, 807–809, cher, Gordon, and Rush. Pages H3462–72 814–816, 824, 832, 1001–1022, Title XI, Title From the Committee on Agriculture, for consider- XII, Title XIII, Title XIV, sections 1502, ation of section 401 of the House bill and sections 1504–1505, Title XVI, and sections 1801–1805 of 265, 301, 604, 941–948, 950, 1103, 1221, the Senate amendment, and modifications committed 1311–1313, and 2008 of the Senate amendment, to conference: Chairman Boehlert and Representa- and modifications committed to conference: Chair- tives Bartlett of Maryland and Hall of Texas. Pro- man Combest and Representatives Lucas of Okla- vided, that Representative Costello is appointed in homa and Stenholm. Page H3472 lieu of Representative Hall of Texas for consideration From the Committee on Armed Services, for con- of Division E of the House bill, and modifications sideration of sections 401 and 6305 of the House committed to conference. Provided, that Representa- bill and sections 301, 501–507, 509, 513, 809, 821, tive Woolsey is appointed in lieu of Representative 914, 920, 1401, 1407–1409, 1411, 1801, and 1803 Hall of Texas for consideration of sections of the Senate amendment, and modifications com- 2001–2178 and 2201–2261 of Division B of the mitted to conference: Chairman Stump, Weldon of House bill, and modifications committed to con- Pennsylvania and Skelton. Page H3472 ference. Page H3472 From the Committee on the Budget, for consider- From the Committee on Transportation and Infra- ation of section 1013 of the Senate amendment, and structure, for consideration of sections 121–126, modifications committed to conference: Chairman 151, 152, 401, 701, 2101–2105, 2141–2144, 6104, Nussle and Representatives Gutknecht and Moore. 6507, and 6509 of the House bill and sections 102, Page H3472 201, 205, 301, 701–783, 812, 814, 816, 823, From the Committee on Education and the Work- 911–916, 918–920, 949, 1214, 1261–1262, and force, for consideration of section 134 of the House 1351–1352 of the Senate amendment, and modifica- bill and sections 715, 774, 901, 903, 1505, and tions committed to conference: Chairman Young of 1507 of the Senate amendment, and modifications Alaska, Petri, and Oberstar: Provided, that Rep- committed to conference: Representatives McKeon, resentative Costello is appointed in lieu of Rep- Norwood, and George Miller of California. resentative Oberstar for consideration of sections Page H3472 121–126 of the House bill and sections 911-916 and From the Committee on Financial Services, for 918–919 of the Senate amendment, and modifica- consideration of Division D of the House bill and tions committed to conference. Provided, that Rep- sections 931–940 and 950 of the Senate amendment, resentative Borski is appointed in lieu of Representa- and modifications committed to conference: Chair- tive Oberstar for consideration of sections 151, man Oxley and Representatives Roukema and La- 2101–2105, and 2141–2144 of the House bill and Falce. Page H3472 sections 812, 814, and 816 of the Senate amend- From the Committee on the Judiciary, for consid- ment, and modifications committed to conference. eration of sections 206, 209, 253, 531–532, 708, Provided, that Representative DeFazio is appointed 767, 783, and 1109 of the Senate amendment, and in lieu of Representative Oberstar for consideration modifications committed to conference: Chairman of section 401 of the House bill and sections 201, Sensenbrenner and Representatives Smith of Texas 205, 301, 1262, and 1351–1352 of the Senate and Conyers. Page H3472 amendment, and modifications committed to con- From the Committee on Resources, for consider- ference. Page H3472 ation of sections 401, 2441–2451, 6001–6234, and From the Committee on Ways and Means, for 6301–6801 of the House bill and sections 201, 265, consideration of Division C of the House bill and 272, 301, 401–407, 602–606, 609, 612, 705, 707, Division H and I of the Senate amendment, and 712, 721, 1234, 13&–1352, 1704, and 1811 of the modifications committed to conference: Chairman Senate amendment, and modifications committed to Thomas and Representatives McCrery and Rangel. conference: Chairman Hansen and Representatives Page H3472 Cubin and Rahall; Provided, that Representative For consideration of the House bill and Senate George Miller of California is appointed in lieu of amendment, and modifications committed to con- Representative for consideration of sections ference: Representative DeLay. Page H3472 6501–6512 of the House bill, and modifications Agreed to the Markey motion to instruct conferees committed to conference. Page H3472 to ensure that no provision of the bill will create a

VerDate 11-MAY-2000 04:43 Jun 13, 2002 Jkt 099060 PO 00000 Frm 00004 Fmt 0627 Sfmt 0627 E:\CR\FM\D12JN2.REC pfrm04 PsN: D12JN2 June 12, 2002 CONGRESSIONAL RECORD — DAILY DIGEST D603 deficit in the non-social security portion of the Fed- HELP U.S. CITIZENS HELD AGAINST THEIR eral budget during any year of the 10-year budget WILL IN SAUDI ARABIA estimating period unless there are sufficient offsets Committee on Government Reform: Held a hearing on under the bill so that there is no net deficit during ‘‘Should the United States Do More to Help U.S. such 10-year period by a yea-and-nay vote of 412 Citizens Held Against Their Will in Saudi Arabia?’’ yeas to 1 nay with 2 voting ‘‘present’’, Roll No. Testimony was heard from the following officials of 223. Pages H3463–71 the Department of State: Dianne Andruch, Deputy Tax Limitation Amendment to the Constitution: Assistant Secretary, Overseas Citizen Services; and The House failed to pass H.J. Res. 96, proposing a Ryan Crocker, Deputy Assistant Secretary, Near tax limitation amendment to the Constitution of the Eastern Affairs; Hume Horan, former U.S. Ambas- United States by a 2⁄3 yea-and-nay vote of 227 yeas sador to Saudi Arabia; and public witnesses. to 178 nays, Roll No. 225. Agreed to H. Res. 439, HEALTH CARE LITIGATION REFORM the rule that provided for consideration of the joint resolution by voice vote. Pages H3472–87 Committee on the Judiciary: Subcommittee on Com- mercial and Administrative Law held an oversight Responsible Fatherhood: The House agreed to H. hearing on Health Care Litigation Reform: ‘‘Does Res. 442, supporting responsible fatherhood and en- Limitless Litigation Restrict Access to Health Care?’’ couraging greater involvement of fathers in the lives Testimony was heard from public witnesses. of their children, especially on Father’s Day. Pages H3487–92 MISCELLANEOUS MEASURES Quorum Calls—Votes: Three yea-and-nay votes de- Committee on Resources: Subcommittee on Fisheries veloped during the proceedings of the House today Conservation, Wildlife and Oceans held a hearing on and appear on pages H3470–71, H3471, and the following measures: H. Con. Res. 408, honoring H3486–87. There were no quorum calls. the American Zoo and Aquarium Association for their continued service to Animal Welfare, Conserva- Adjournment: The House met at 10 a.m. and ad- tion Education, Conservation Research and Wildlife journed at 12 p.m. Conservation Programs; and H.R. 4807, the Susque- hanna National Wildlife Refuge Expansion Act. Tes- Committee Meetings timony was heard from Nancy Gloman, Chief, Divi- MILITARY CONSTRUCTION sion of Conservation Planning and Policy, National APPROPRIATIONS Wildlife Refuge System, U.S. Fish and Wildlife Service, Department of the Interior; and public wit- Committee on Appropriations: Subcommittee on Mili- nesses. tary Construction approved for full Committee ac- tion the Military Construction appropriations for fis- NATIONAL FORESTS—PROCESS GRIDLOCK cal year 2003. Committee on Resources: Subcommittee on Forests, and U.S. NUCLEAR STOCKPILE PERFORMANCE Forest Health held an oversight hearing on Process Gridlock on the National Forests. Testimony was Committee on Armed Services: Subcommittee on Mili- heard from Dale Bosworth, Chief, Forest Service, tary Procurement held a hearing on the Safety, Secu- USDA. rity, Reliability, and Performance of the U.S. Nu- clear Stockpile. Testimony was heard from Gen. SMALL EXPORTERS—EFFECT OF John A. Gordon, USAF (Ret.), Administrator, Na- OVERVALUED DOLLAR tional Nuclear Security Administration, Department Committee on Small Business: Held a hearing on the of Energy; Rear Adm. John T. Byrd, USN, Director, Effect of the Overvalued Dollar on Small Exporters. Plans and Policy, U.S. Strategic Command, Depart- Testimony was heard from public witnesses. ment of Defense; Michael R. Anastasio, Deputy Di- MARITIME DISASTER FAMILY ASSISTANCE rector, Strategic Operations, Lawrence Livermore Na- ACT tional Laboratory; John C. Browne, Director, Los Al- amos National Laboratory; C. Paul Robinson, Direc- Committee on Transportation and Infrastructure: Sub- tor, Sandia National Laboratory; and public wit- committee on Coast Guard and Maritime Transpor- nesses. tation held a hearing on H.R. 2228, Maritime Dis- aster Family Assistance Act of 2001. Testimony was CITIZEN SERVICE ACT heard from Representative Green of Wisconsin; Rear Committee on Education and the Workforce: Ordered re- Adm. Harvey Johnson, USCG, Director, Operations ported, as amended, H.R. 4854, Citizen Service Act Capability, U.S. Coast Guard, Department of Trans- of 2002. portation; and public witnesses.

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cuit Judge for the Sixth Circuit; the nomination of David Joint Meetings S. Cercone, to be United States District Judge for the 9/11 INTELLIGENCE INVESTIGATION Western District of Pennsylvania; the nomination of Mor- rison C. England, Jr., to be United States District Judge Joint Hearing: Senate Select Committee on Intel- for the Eastern District of California; the nomination of ligence held joint closed hearings with the House Kenneth A. Marra, to be United States District Judge for Permanent Select Committee on Intelligence to ex- the Southern District of Florida; and the nomination of amine events surrounding September 11, 2001. Lawrence A. Greenfeld, of Maryland, to be Director of Senate Select Committee will meet again tomor- the Bureau of Justice Statistics, Department of Justice, 2 row. p.m., SD–226. f House COMMITTEE MEETINGS FOR THURSDAY, Committee on Agriculture, Subcommittee on Department JUNE 13, 2002 Operations, Oversight, Nutrition and Forestry, hearing on (Committee meetings are open unless otherwise indicated) National Fire Plan and Outlook for 2002 Wildfire Sea- son, 2 p.m., 1300 Longworth. Senate Committee on Armed Services, Special Oversight Panel on Committee on Appropriations: Subcommittee on Interior, the Merchant Marine, hearing on vessel operations under to hold hearings on proposed budget estimates for fiscal ‘‘flags of convenience’’ and their implications on national year 2003 for the Department of the Interior, 10 a.m., security, 10 a.m., 2212 Rayburn. SD–124. Committee on Energy and Commerce, to consider the fol- Committee on Banking, Housing, and Urban Affairs: Sub- lowing bills: H.R. 4888, Mammography Quality Stand- committee on Housing and Transportation, to hold hear- ards Reauthorization Act of 2002; H.R. 1784, Women’s ings on the Transportation Equity Act for the 21st Cen- Health Office Act of 2001; and H.R. 3609, Pipeline In- tury, 10 a.m., SD–538. frastructure Protection to Enhance Security and Safety Committee on Finance: business meeting to consider Act, 9:35 a.m., 2123 Rayburn. H.R.7, to provide incentives for charitable contributions Subcommittee on Oversight and Investigations, hearing by individuals and businesses, to improve the effective- entitled ‘‘An Inquiry into the ImClone Cancer-Drug ness and efficiency of government program delivery to in- Story,’’ 9:30 a.m., 2123 Rayburn. dividuals and families in need, and to enhance the ability Committee on Government Reform, Subcommittee on Gov- of low-income Americans to gain financial security by ernment Efficiency, Financial Management, and Intergov- building assets; S. 2498, to amend the Internal Revenue ernmental Relations, hearing on ‘‘Medicaid Claims: Code of 1986 to require adequate disclosure of trans- Who’s Watching the Money?’’ 10 a.m., 2154 Rayburn. actions which have a potential for tax avoidance or eva- Committee on International Relations, hearing on the De- sion; and S. 2119, to amend the Internal Revenue Code veloping Food Security Crisis in Southern Africa, 11 a.m., of 1986 to provide for the tax treatment of inverted cor- 2172 Rayburn. porate entities and of transactions with such entities, 10 Subcommittee on Africa, hearing on Angola: Prospects a.m., SD–215. for Durable Peace and Economic Reconstruction, 2 p.m., Committee on Foreign Relations: to hold hearings on the 2172 Rayburn. Convention on the Elimination of All Forms of Discrimi- Committee on the Judiciary, to mark up H.R. 4598, nation Against Women, adopted by the United Nations Homeland Security Information Sharing Act, to continue General Assembly on December 18, 1979, and signed on markup of H.R. 3215, Combatting Illegal Gambling Re- behalf of the United States of America on July 17, 1980 form and Modernization Act; and to mark up the fol- (Treaty Doc. 96–53), 10 a.m., SD–419. lowing bills: H.R. 1452, Family Reunification Act of Full Committee, business meeting to consider S. 2525, 2001; H.R. 4623, Child Obscenity and Pornography Pre- to amend the Foreign Assistance Act of 1961 to increase vention Act of 2002; H.R. 4477, Sex Tourism Prohibi- assistance for foreign countries seriously affected by HIV/ tion Improvement Act of 2002; and H.R. 4679, Lifetime AIDS, tuberculosis, and malaria, 2:15 p.m., S–116, Cap- Consequences for Sex Offenders Act of 2002, 10 a.m., itol. 2141 Rayburn. Committee on Health, Education, Labor, and Pensions: to Subcommittee on Courts, the Internet, and Intellectual hold hearings to examine the implementation of Reading Property, oversight hearing on ‘‘The CART (Copyright First and other reading programs and strategies, 10 a.m., Arbitration Royalty Panel) Structure and Process,’’ 2:30 SD–430. p.m., 2141 Rayburn. Select Committee on Intelligence: closed business meeting Subcommittee on Crime, Terrorism, and Homeland Se- to consider the events surrounding September 11, 2001, curity, to mark up H.R. 4864, Anti-Terrorism Explosives 2:30 p.m., SH–219. Act of 2002, 9:55 a.m., 2141 Rayburn. Committee on the Judiciary: business meeting to consider Committee on Resources, Subcommittee on Fisheries Con- pending calendar business, 10 a.m., SD–226. servation, Wildlife and Oceans, hearing on H.R. 4781, to Full Committee, to hold hearings on the nomination reauthorize the Marine Mammal Protection Act of 1972, of John M. Rogers, of Kentucky, to be United States Cir- 2 p.m., 1334 Longworth.

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Subcommittee on National Parks, Recreation and Pub- Kennedy Center for the Performing Arts Access Study lic Lands, hearing on the following bills: H.R. 2534, and Plaza Authorization, 10 a.m., 2253 Rayburn. Lower Los Angeles River and San Gabriel River Water- Subcommittee on Water Resources and Environment, shed Study Act of 2001; H.R. 4530, Blue Ridge Herit- hearing on Water Quality Trading—An Innovative Ap- age and Cultural Partnership Area Study Act of 2002; proach to Achieving Water Quality Goals on a Water- and H.R. 4822, Upper Missouri River Breaks Boundary shed Basis, 10 a.m., 2167 Rayburn. Clarification Act, 10 a.m., 1334 Longworth. Committee on Veterans’ Affairs, Subcommittee on Health, Committee on Small Business, Subcommittee on Regu- hearing on the health care of Filipino World War II vet- latory Reform and Oversight, hearing on the TRI Lead erans within the Department of Veterans Affairs, 3 p.m., Rule: Costs, Compliance and Science, 10 a.m., 2360 Ray- 334 Cannon. burn. Committee on Ways and Means, Subcommittee on Select Committee on Transportation and Infrastructure, Sub- Revenue Measures, to continue hearings on the committee on Economic Development, Public Buildings Extraterritorial Income (ETI) Regime, 10 a.m., 1100 and Emergency Management, hearing on the John F. Longworth.

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Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9 a.m., Thursday, June 13 10 a.m., Thursday, June 13

Senate Chamber House Chamber Program for Thursday: After the transaction of any Program for Thursday: Consideration of H.R. 4019, morning business (not to extend beyond 10 a.m.), Senate Permanent Marriage Penalty Relief Act of 2002 (modified will consider S. 2600, Terrorism Risk Insurance Act. closed rule, one hour of general debate).

Extensions of Remarks, as inserted in this issue

HOUSE Issa, Darrell E., Calif., E521 Saxton, Jim, N.J., E511 Kucinich, Dennis J., Ohio, E521 Schakowsky, Janice D., Ill., E514, E517 Barr, Bob, Ga., E513, E516 McCollum, Betty, Minn., E519 Shaw, E. Clay, Jr., Fla., E515, E518 Berkley, Shelley, Nev., E522 McGovern, James P., Mass., E522 Shuster, Bill, Pa., E518 Capito, Shelley Moore, W.Va., E509 McInnis, Scott, Colo., E522, E523 Skelton, Ike, Mo., E519 Crowley, Joseph, N.Y., E512 Maloney, Carolyn B., N.Y., E523 Slaughter, Louise McIntosh, N.Y., E514 Davis, Tom, Va., E507 Manzullo, Donald A., Ill., E515, E517 Smith, Christopher H., N.J., E510 DeLauro, Rosa L., Conn., E519 Morella, Constance A., Md., E507 Stark, Fortney Pete, Calif., E509 Dicks, Norman D., Wash., E520 Norton, Eleanor Holmes, D.C., E508 Thompson, Bennie G., Miss., E509 Dingell, John D., Mich., E518 Pallone, Frank, Jr., N.J., E508 Udall, Mark, Colo., E514, E516 Dooley, Calvin M., Calif., E513 Paul, Ron, Tex., E512 Visclosky, Peter J., Ind., E518 English, Phil, Pa., E510 Payne, Donald M., N.J., E513, E515, E518 Walsh, James T., N.Y., E507 Hastings, Alcee L., Fla., E508 Portman, Rob, Ohio, E521 Wilson, Heather, N.M., E507 Horn, Stephen, Calif., E511 Roemer, Tim, Ind., E520 Isakson, Johnny, Ga., E512 Roukema, Marge, N.J., E509

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